Apple CFO : Appoints Kevan Parekh as its Chief Financial Officer
Apple CFO : Tech giant Apple said on Monday that insider Kevan Parekh would take over as chief financial officer, the position being held by business veteran Luca Maestri, who will step down on January 1, 2025.
The appointment of a new leadership team coincides with Apple’s fall product launch, which experts have dubbed the largest software update for the iPhone.
It has artificial intelligence elements, which are critical for Apple as it aims to combat competitors who have introduced AI updates and turn around a slump in worldwide sales, especially in China.
After more than ten years with Apple, Parekh will join the executive committee of the firm. He most recently held the position of vice president of finance planning and analysis.
“The most crucial aspect is that it seems that the changeover to the new CFO is organized and systematic. Gil Luria, an analyst at D.A. Davidson, said that Maestri’s decision to remain with Apple is also crucial since it eliminates any possibility of financial uncertainty.
“(Parekh) will need to continue the prudent capital management, but may also be tasked with restarting Apple’s exploration of complimentary acquisitions.”
Parekh was a prominent executive at Thomson Reuters and General Motors prior to joining Apple.
Information systems and technology, information security, and real estate and development are among the corporate services departments that Apple said Maestri would continue to oversee and report to CEO Tim Cook.
Under Maestri’s leadership, Apple’s revenue more than quadrupled, with services revenue expanding at a rate more than five times.
“Apple filling the role with an internal candidate should make the transition a bit smoother… any change of this magnitude does create some level of uncertainty, especially given the consistency and the history of execution from Maestri,” analysts from Piper Sandler said in a note.
This month, despite its overall China business disappointment, Apple said that its third-quarter iPhone sales were stronger than anticipated and projected more growth as it places its bet on artificial intelligence to draw customers.
The absence of notable improvements in the latest models and competition from Android-based smartphone companies that provide premium features at more affordable pricing have caused a decline in iPhone sales in recent years.
Apple unveiled a plethora of AI technologies, including a redesigned Siri and a ChatGPT integration, during its June developers conference under the banner “Apple Intelligence.”
In prolonged trading, the manufacturer of iPhones’ shares saw a decrease of about 1%.
