Apple Inc's chief executive, Tim Cook, has faced a wave of criticism on Tuesday regarding the company's approach to artificial intelligence, with some investors expressing frustration over what they perceive as a lag in innovation compared to its tech rivals.
Ross Gerber, co-founder of the investment management firm Gerber Kawasaki, voiced strong opinions on social media platform X, labeling Cook's performance as stagnant and calling for his resignation. Gerber contended that Apple has missed out on pivotal advancements in AI technology, stating, "It’s time for Tim Apple to resign. He hasn’t done a thing really in years." He further emphasized Apple's dependence on Google, remarking that the tech giant "completely missed the AI boat" and now "needs Google to survive." Gerber added plainly, "No excuses. Tim Cook needs to go."
These remarks mirror a growing sentiment among some shareholders who believe Apple is trailing behind competitors such as Microsoft Corp, Alphabet Inc.'s Google, and Meta Platforms in the rapidly evolving field of generative artificial intelligence. These companies have actively expanded their AI capabilities and product offerings, intensifying competition within the sector.
In response to the challenges Apple faces in AI, the company revealed earlier this month a strategic, long-term partnership with Google. Through this collaboration, Apple plans to incorporate Google's Gemini AI models and cloud infrastructure to enhance its Apple Foundation Models, which aim to underpin future AI functionalities including next-generation versions of its voice assistant, Siri.
Gene Munster, managing partner at Deepwater Asset Management, welcomed this development, praising Apple’s decision by stating, "Nice job, Tim Cook." Munster also highlighted that Apple's pivot from reliance on OpenAI’s ChatGPT platform towards Google’s Gemini signals a renewed and serious commitment to advancing Apple's AI technologies.
Speculation about Tim Cook’s tenure has also been fueled by his age and length of service. Having assumed the CEO role in August 2011, Cook is currently 65 years old, prompting discussions about potential leadership succession in the coming years. A report from 2025 suggested that Cook might step down as early as 2026. Additionally, Bloomberg journalist Mark Gurman has indicated that Cook is expected to continue in his role until at least mid-2026. In parallel, Apple’s Senior Vice President of Hardware Engineering, John Ternus, has emerged as a prominent internal candidate to potentially succeed Cook.
Despite the leadership questions and the criticism surrounding Apple’s AI progress, Wall Street remains generally confident in the company's future. Dan Ives, an analyst at Wedbush Securities, reaffirmed a positive outlook for Apple, considering 2026 pivotal and setting a price target of $350 per share.
On the market front, Apple’s shares closed Tuesday’s session up 1.12% at $258.27 and continued to rise modestly in after-hours trading, reaching $259. This follows the company’s notable long-term price resilience, though observers note that Apple’s short- and medium-term price momentum remains weak. Furthermore, Apple holds a low ranking in terms of value, according to Benzinga Edge Stock Rankings.
No immediate comment from Apple was available following requests for input regarding the criticisms or its evolving AI strategy.
In summary, the company is navigating intense scrutiny over its AI initiatives and leadership direction, while simultaneously forging partnerships designed to strengthen its competitive position. Market analysts maintain an optimistic stance, underscoring a key period ahead as Apple seeks to regain technological momentum.