Bullsh*t Rumor Claims Apple Could Be Looking To Replace Tim Cook


Going nowhere.
Going nowhere.

I’ve been writing for Cult of Mac for almost three years now, and in that time I’ve covered some pretty farfetched Apple rumors. But the latest from Forbes comes with a whole new level of crazy.

“Some Wall Street sources close to some Apple executives” say the Cupertino company could be searching for a replacement for Tim Cook, it claims, before suggesting Cook could turn Apple into another Hewlett-Packard or JC Penney and insisting “Apple’s shine has faded” since the passing of Steve Jobs.

“There’s yet no available evidence that the board of the once-mighty top tech-innovator is officially in such a game-changing mode,” Forbes’ Gene Marcial admits. “But if it isn’t yet pursuing such a goal, it should, according to some big stakeholders, who have trimmed their Apple holdings.”

Marcial’s “sources” claim that the Apple board is privately looking to oust Cook, who led the company’s share price to an all-time peak last September. But with those shares now sliding rapidly, it’s a great time to write bullshit rumors that’ll pull in some page views.

“At least one of [the Apple board members] believes there’s a move by some at the company to search for someone with credible credentials and superb tech qualifications to take over and turn things around, lest Apple go the way of Hewlett-Packard and JC Penney,” Marcial writes.

Marcial is surprised that Wall Street firms “remain generally positive towards Apple,” despite its falling share price, which has plummeted from $702 a share last September to $390 a share on Friday. “The Street’s bullish stance is astonishing considering that some $290 billion of Apple’s market value has been wiped out in just six months,” he writes.

Marcial points out that not one of the 37 analysts from major securities firms who follow Apple has downgraded the company’s stock to sell, but 25 of them still recommend the stock as a “strong buy.” That’s thanks to Apple’s $137 billion cash pile, and the anticipation of new iOS devices and another revolutionary product in the coming months.

“But the real issue confronting Apple is its lamentable slowed growth — and whether the slowdown will continue,” Marcial writes, before citing analysts who claim Apple’s sales will never be the same again, and that growth will continue to be slow.

“So unless Apple CEO Cook announces something really dramatic in new products or astronomical earnings on Tuesday, the stock will surely decline even more. And so will Tim Cook’s standing with shareholders and investors — and Wall Street,” Marcial concludes. “That may finally signal his exit.”

Doesn’t this sound like a premature attack from a moody Apple shareholder who’s pissed their stock isn’t making them a profit? But Marcial isn’t the only one.

Fortune’s Philip Elmer-DeWitt reports that Doug Kass, a small hedge fund manager who’s been known to manipulate Apple stock before, is also at it. “From my Gnome, high above the Alps — “Is Apple’s Tim Cook… Cooked?” he tweeted on Sunday, two days before Apple announces its earnings.

So what’s really going on here?

“Make no mistake, the people who want Tim Cook’s head on a spike are not friends of Apple,” writes Elmer-DeWitt. “As far as I know, he still has the deep respect of the analysts who know the company best and — most important — the confidence of the board of directors.”

Elmer-DeWitt also points out that even at today’s share price, Apple is still trading higher than it was when Cook first replaced Steve Jobs. “The forces that drove the stock up to over $700 and then down to below $390 seem to me to have more to do with a dysfunctional securities market than anything Cook has done as CEO,” he says.

So don’t take any notice of the rumors you read suggesting Tim Cook could be on his way out of Apple. Chances are they came from disgruntled shareholders who are trying to manipulate the company’s stock price to make a quick buck.

Source: Fortune

  • technochick

    Aka they don’t get that tech itself has slowed down and there’s nothing major for Apple to work with.

    And it’s the last change to drop the stock value to buy low before it might go up at tomorrows earning call and/or if something releases the day after, like the quiet release of a new Mac Pro

  • dcdevito

    Tim Cook is the best COO, but it’s hard to be the CEO of Apple, particularly after Mr. Jobs. Apple is facing steep competition and their stock price keeps falling.

    Apple, welcome to US Capitalism. This is what happens when you make money on Wall Street.

  • bdkennedy

    Market saturation may be a contributor.

  • Windlasher

    Well, he probably has some time left. Not much but some…. Some magic from Apple would be nice.

  • joewaylo

    Not bulls— if a CEO is points away from being ousted. CEOs who underperform on everything are voted out quickly. It’s only a matter of time before the board votes. Losing half of everything from trust of fans to investors and a drop from 700 to 401 in the stock market are evidents to an out.

  • RobGcf

    While Jobs may have left something to be desired in terms of personality, the guy had vision. I’ve never seen any such thing from Cook. Ever since he took over, he’s made Apple a, “typical corporation” — something Jobs would detest. The best move made since Cook took over was the ouster of Forestall and his replacement with Johnny Ive. Cook was great as COO but I think he sucks as CEO. Jobs supposedly left Apple FIVE years’ worth of products when he passed. That should have given Cook time to figure stuff out and be a real leader. But where are these products? The only “new” thing that has come out is the iPad Mini.

  • MC Pearl

    I do believe that Apple has lost it’s shine when steve Jobs died. Tim Cook is a terrible CEO and I hope that Apple does oust him

  • ny2013

    I don’t understand why we want to blow out our smartest and one of the most innovative corporations of the world? I think partially because of stock market gambling. We invest on speculations and forget the real value of an asset like we lost trillions of dollars in the real estate market. I personally think, Tim Cook and his team is wonderful and perfect fit to run a great corporation.

  • lwdesign1

    Calm down and take a deep breath. The stock market has nothing whatsoever to do with the health and vitality of a company. The stock market is filled with analysts, traders, speculators, investors, brokers… and they’re ALL gamblers, all hoping to make a profit on someone else’s company and ideas. They have zero stake in the company’s products except for how it affects the stock price. The huge cargo ship of bad press and crud that has come out in the press about Apple for the last 6 months has had one goal: dropping Apple’s runaway stock price. This has been purposely done. Throw around a lot of bad press which makes investors twitchy and nervous and knocks the stock price down, then when the stock caves in, buy up lots of cheaper shares at the lower price and then release all kinds of good press about how Apple is back and doing wonderful things. The stock then goes back up. The nervous investor who sold when the stock went down loses his investment, and the savvy manipulator takes the profits due to his control of the media. It’s been going on since the stock market was formed.