Angela Ahrendts Is Expected To Be Next Fashion Play CEO Of Apple Inc. (NASDAQ:AAPL)
Marc Benioff, chief executive of software-as-a-service success Salesforce.com, said that Apple Inc. (NASDAQ:AAPL)’s CEO Tim Cook made most important decision by hiring Angela Ahrendts, Apple’s new head of retail and online sales and expected future CEO of the company. After the announcement fourth quarter results, talk of Ahrendts becoming Apple CEO is started as results left some on Wall Street disappointed.
Ahrendts appointment has caused plenty of puffery and considered as a brilliant move. Others think that she’s something called a “fashion play”, somebody who has the ability to change future products image completely. But first she has to clear retail mess.
During 2000 to early 2010s, the company’s shops expanded massively under retail boss Ron Johnson to hit 408 outlets with growing revenue. John Bowett replaced Johnson’s position and is the former Dixons Retail CEO and sales decline quarter by quarter. The retail chief’s position has been left vacant for a year since Bowett was expelled, with sales growing at eight per cent in the first nine months of fiscal 2013.
As compare to the last year, the company reported growth is near flat as profits have been worn for shareholders. Apple’s results showed huge disappointment for holiday quarter, according to Reuters. In the same time, Samsung has snatched global smartphone crown from the company. Wall Street expected that about 33.8 million iPhones shipped during the quarter, an increase from 26.9 million.
According to IDC, Samsung shipped more than twice the number predicted for Apple. Similarly, if smartphones remain priority for customers than Apple will lose its current lead in tablets as well. Recently, the company has released a new iPad and its productivity suite iWorks and creative suite iLife will be free.
In Christmas holidays, the competition is coming not just from Android and Amazon but with Microsoft as well which is also taking a second stab at its tablets – Surface Pro and Surface 2. The market’s confidence in Apple is shaking now. However, the company is projecting to make more money this Christmas than last year, estimating revenue between $55bn and $58bn as compared to last year’s record of $54.5bn.
The new iPad Air and Mac Mini with Retina display, plus the iPhone 5S and cheaper 5C targeting lower-priced markets are products that will be available in Christmas holidays.
Gartner thinks that the current Christmas quarter will experience more tablet selling than PCs for the first time in tech industry.
After Christmas, there is expectation that new launches to produce sales spikes like new versions of tablets, phones, even the expected iWatch.
Apple Inc. (NASDAQ:AAPL) shares fell -0.08% in premarket on Thursday.Tags: AAPL, Angela Ahrendts, Apple Inc, NASDAQ:AAPL, Tim Cook