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Report: Apple board pressuring Cook over "pace of innovation"

  • Citing sources, Fox Business' Charlie Gasparino reports (video) Apple (AAPL) board members are pressuring Tim Cook over the company's "pace of innovation."
  • Gasparino suggests a recent shortage of groundbreaking new products is "manifesting into pressure on Tim Cook to basically innovate, do something fast."
  • However, he adds "this doesn’t mean that Tim Cook is out of a job." "I don’t believe that’s happening, and sources inside Apple are telling us that’s not the case"
  • Apple has ceded international smartphone share over the last year amidst growing calls to offer cheaper and bigger iPhones. The former appears set to arrive shortly; the latter is reportedly in the prototype stage.
  • Multiple reports indicate an iWatch is in the pipeline. But a July FT report suggested hiring activity points to a 2H14 launch.
Comments (56)
  • let's try and remember we're talking about a phone here.
    seriously what do people expect from a phone? it
    already does everything sans washing your clothes.
    phone mrkt rapidly reaching maximum yield. better
    think of a new mouse trap peeps.
    about time the American economy had more going for
    itself than a phone co., eh?
    8 Aug 2013, 07:03 PM Reply Like
  • One cannot innovate every six months. Apple should keep their product line simple and pay more attention to streamlining software part of the ecosystem. Let Cook do his job, just tell him to make iPhone one quarter of an inch wider.
    8 Aug 2013, 07:40 PM Reply Like
  • Anyone who believes anything from FOX needs to have their ears checked. This is complete hogwash.
    8 Aug 2013, 07:40 PM Reply Like
  • 100% Agree. Total BS.
    8 Aug 2013, 08:26 PM Reply Like
  • More bovine scatology from Charley the Gasbag Gasparino. Only Fox would employ this guy. "Whatta maroooon" (bugs bunny for you kids out there).
    8 Aug 2013, 09:04 PM Reply Like
  • NBC employed him.
    8 Aug 2013, 10:12 PM Reply Like
  • And NBC got rid of him.
    9 Aug 2013, 08:09 AM Reply Like
  • FOX is as good news service as any, and better than most.
    9 Aug 2013, 08:24 AM Reply Like
  • FOX is entertainment and Republican propaganda, not news.
    9 Aug 2013, 09:17 AM Reply Like
  • I watch FOX so I know how 50% of Americans are thinking.

     

    That's why it scares me...
    9 Aug 2013, 09:37 AM Reply Like
  • Recent studies show that people who watch Fox "News" are less informed than those who watch no news at all. Seriously:

     

    http://exm.nr/15UIiR4
    9 Aug 2013, 01:25 PM Reply Like
  • FOX = HOG WASH - Nice one.

     

    Leave Tim alone he's doing a great job - just Waite until next year when the new stuff comes through.
    Hey, these critics will still try to zap it as they have done with practically every new Apple product. Remember the comments about the first iPAD ?! : " we've got nice Notebooks ,why do we need a Pad ?"

     

    Apple is still doing a great job under Tim Cook. It is the crooked sharks in Wall Street you should be blaming for the share price -Total Manipulation. How come Google is up there on $900 plus when they earn a fraction of Apple's profit ?!
    9 Aug 2013, 01:31 PM Reply Like
  • RE Rknigh2 Comment 41

     

    "I watch FOX so I know how 50% of Americans are thinking.

     

    That's why it scares me...'"

     

    We English have the BBC which is State Financed and is brilliantly objective and unbiased : you should try it.
    9 Aug 2013, 01:45 PM Reply Like
  • Because most people think the risk against it continuing is high. The money is saying that profits are coming down in the near future and that the company is unlikely to produce another gadget that is going to change that. If you disagree, buy more AAPL and make a bundle as the stock will go up.
    9 Aug 2013, 02:51 PM Reply Like
  • Re Dagger55555 Comment 48

     

    "The money is saying"
    Since when did money have the intelligence to say anything ?!
    9 Aug 2013, 09:07 PM Reply Like
  • I hope that was sarcasm regarding the Beeb?
    11 Aug 2013, 03:21 AM Reply Like
  • Charlie Gasparino is a one of the most respected journalist on the Street, with close ties to people who know. If he says it, it tend to think he is correct. Let's be honest, Apple has NOT come out with a new product in over 10 months. Samsung has no problem coming out with a new phone every few months and getting plenty of hype every time they do. When you are in the field of hi-tech, you need to be on top or get out of the way. There have been too many screw ups under Cook to go through them all. My prediction, when the board of directors starts to float a report like this it is the start of rumors that his days may be numbered --- unless he starts producing. All of these months we have heard "don't count Apple out," or he has "game changers in the pipeline." Hey Tim, its time to put up since your stock is free falling. Anyother CEO would have been shown the door if their stock price fell 300+ points.
    8 Aug 2013, 07:53 PM Reply Like
  • @szeducate- innovation takes time. Apple typically comes out with a game changer every 3-4 years. There will be something soon.

     

    I would not call what Samsung is doing innovation. They flood the market with products that aren't fully articulated. A larger screen is not innovation.
    8 Aug 2013, 08:12 PM Reply Like
  • AAPL doesn't have the luxury of taking the time it used to - obviously. I'd call what Samsung is doing "taking money away from AAPL, thereby leaving AAPL with lower earnings than expected."
    8 Aug 2013, 09:11 PM Reply Like
  • Yeah it is. Just look at the iTouch...I mean, iPad.
    8 Aug 2013, 11:20 PM Reply Like
  • Um yeah......Samsung is doing a little more than delivering a larger screen. Pay attention to the numbers, AAPL is way behind.
    9 Aug 2013, 02:36 AM Reply Like
  • They should replace Mr. Cook. Nothing personal, he's too much of a company fixture, a creature of the big institution.

     

    Where it really shows is in Apple's ads. Tim Cook and the promo campaign he's overseeing are giving (have given) the company a whole new public face, and it's old, wrinkled and sentimental.

     

    A watch is not innovation, it's a gimmick.

     

    Apple still doesn't have anything like Google voice, they are still too controlling. Everyone I know hates iTunes, Apple's eco system is still too iTunes centric, they need to make part of their system more open source.

     

    In other words, they're behind the curve. (I still love my Mac Book Pro and OSX, it works great with my Samsung 2560x1440 matte screen monitor).
    8 Aug 2013, 07:57 PM Reply Like
  • Looking at the latest customers I've seen in the Apple store:
    the're old,
    the're wrinkled
    and the're sentimental! (iPads with tons of pictures of Grandkids!)
    8 Aug 2013, 10:26 PM Reply Like
  • AAPL is a technology company which thrives on creating gizmos. No new gizmos, we'll see if they can become a commodity manufacturer. Think about companies like Nokia and Hewlett Packard, for example.
    8 Aug 2013, 08:02 PM Reply Like
  • one phone each year is plenty frequent. plus what's the rush to replace it when the current phone is still selling well. i just don't understand why they won't let you remove the default, and mostly useless, apps that come with the phone.
    8 Aug 2013, 08:04 PM Reply Like
  • Sounds like Nokia's old strategy....right up to the point they stop selling and find there is nothing decent on the shelves because they forgot about the future. And in a market where buying something 6 months old feels like your getting something already obsolete it is hard to charge a premium like Apple does. Add to that, the fact that your not making headlines and in a puff a logic your market share vanishes. But as a MS long, I love your thinking.
    9 Aug 2013, 10:20 AM Reply Like
  • Anything about Apple from FOX is BONUS.
    8 Aug 2013, 08:25 PM Reply Like
  • The boardroom drama reported by Fox is completely unbelievable for anyone with a grasp of Apple's culture. Bean counters demanding "innovation" from the CEO as if this were as quantifiable as bottle caps is a scene from some movie of the mid-last century.
    One really does need a sense of history with Apple to grasp how it works, what it does, and the company's value.
    8 Aug 2013, 08:30 PM Reply Like
  • "The boardroom drama reported by Fox is completely unbelievable for anyone with a grasp of Apple's culture."

     

    Umm..., we ARE talking about the same company that fired Steve Jobs, right? Maybe it is YOU who needs a history lesson.
    9 Aug 2013, 02:28 AM Reply Like
  • Are you going to give the history lesson??? Tell me @Provengers, show me the same people that are still on the board now from when Steve was was fired.
    9 Aug 2013, 11:14 AM Reply Like
  • The board is just doing their job by pushing the CEO to deliver. That is normal procedure, isn't it? I hardly consider that "drama" as the story says. I also didn't see a reference to "demanding" or "bean counters". Must be an interesting place where you think the board isn't qualified to say or do anything that might upset Tim.
    9 Aug 2013, 11:33 AM Reply Like
  • This is hardly believable. Apple board members don't say things to Fox news that will ding the company's image.
    8 Aug 2013, 08:33 PM Reply Like
  • I wonder how many of these people who have been bashing Apple for months are secretly buying it. I bet plenty. Then when they are ready they will talk it up again. Many were talking it up at $705.00 per share. The business has actually been moving ahead since then. It is worth a lot more than what it is going for now. I think it will be well over $500.00 per share soon, after the dividend and any new products going into the holiday shopping season.
    8 Aug 2013, 09:15 PM Reply Like
  • There is NO BETTER financial reporter than Charlie Gasparino. He is extremely well connected and his sources are the best in the business. Listen to him and you will hear things you won't hear anywhere else!
    8 Aug 2013, 11:19 PM Reply Like
  • I also discount Fox in general for its wildly biased "reporting". Neil Cavuto types with the tea party attitudes. They make Rick Santelli look level headed. In fact a decade ago a friend of mine who worked at Fox told me that if anyone there criticized Bush-Cheney they were out of a job. An unwritten but true rule. So now that Apple is cushy with Obama, of course they become a target.

     

    I expect 2-4 new products from Apple within the next few months and 2-4 more within the next nine months. The first will probably be; a cheaper iPhone for China (hopefully with a closed China Mobile deal), a big expansion of Apple TV and of course refreshes to iPhone and iPad. We might also see something like iBanking and iCar and isuper magic TV remote.

     

    Conventional wisdom is the iWatch (not a gimmick but sure to be a really amazing product) is for next year but that is not based on any hard info, just suppositions which may or may not be true.

     

    Also comparisons to the way Samsung copies and rushes out products are Apples and Kumquats. Samsung rushes out everything from A-Z they hear Apple is planning and is bound to make some big errors the more they rush. Also besides the iMaps (now all fixed I hear) Apple has not made any errors really, besides not buying back 60 billion in stock 3-6 months earlier.

     

    Cook deserves a few months of patience. Last year the big announcements came at the end of September. Probably the same thing this year. August is not a month to announce, but we are all eagerly and impatiently awaiting. The China deal may come first as I hear the cheaper iPhones are already in production. Or just about to be.
    8 Aug 2013, 11:36 PM Reply Like
  • Sure. We should discount Fox and Cavuto, but believe your loser friend.
    9 Aug 2013, 08:55 AM Reply Like
  • Thank the Aaple Board for caring about the company.
    THe Aaple stock price has been near its 54 weeks low, ( with a little pop up recently) while the Dow is close to its all time high is a clear indication that market does not have faith in Mr Cook . He should realize that his management strategy is not working and is hurting the company badly
    Things need to be changed so that Aaple can be rebound again. .
    9 Aug 2013, 12:10 AM Reply Like
  • Huge AAPL supporter but they are falling behind. Period.
    9 Aug 2013, 12:38 AM Reply Like
  • No, they are not.
    9 Aug 2013, 08:58 AM Reply Like
  • seriously doubtful
    9 Aug 2013, 12:59 AM Reply Like
  • I wish SA wouldn't allow such garbage to be posted on this site. I don't think Cook or anyone at apple cares what this man says.
    9 Aug 2013, 03:14 AM Reply Like
  • I don't know what rock you live under, but when a high tech stock like Apple drops 35% in value the board should put pressure on the person in charge. This article only reported what was happening.
    9 Aug 2013, 08:30 AM Reply Like
  • have you ever seen any fox news clips on youtube or tv? What makes such a biased and obtuse group of reporters' comments have any value?

     

    Buffett mentioned Berkshire Hathaway lost 50% of its several times in its lifetime under his own management before, you think ousting Buffett would have been a good idea?
    9 Aug 2013, 02:50 PM Reply Like
  • Do not bring your politics into a discussion that has nothing to do with it. What seems biased to you may look objective to others.
    10 Aug 2013, 09:23 AM Reply Like
  • not an iWatch, please. What's the use fo an ugly item on your wrist that will duplicate the smartphone.
    9 Aug 2013, 06:58 AM Reply Like
  • It is about time that somebody on Apple's board listened to investors. The company has talked about all sorts of new innovative products but released nothing.
    9 Aug 2013, 08:28 AM Reply Like
  • This has the ring of truth - a message being sent to Cook via a "leak". And I am aware that Fox is right wing propaganda machine. But Gasparino has broken good stories when on CNBC. He is connected.

     

    I had hoped that Jobs would have left a legacy of products in the pipeline, but it appears that the bean-counters are not supporting innovation in the way Jobs did, Jobs caring more about innovation and design than profit (which ironically would create profits).

     

    Long apple but monitoring closely.
    9 Aug 2013, 09:24 AM Reply Like
  • Is this the Gasparino that had a little trouble with the truth when he professed to be a Pulitzer "nominee" and it was discovered that it was not true...?While I believe his work was submitted, along with several thousand others, he never made the cut and was NOT a nominee. I suppose I could believe him now but......
    9 Aug 2013, 10:10 AM Reply Like
  • Animus, you are right. You speak the hearts and minds of many investors.
    I had long been commented that Tim Cook's management strategy is not working. Under his leadership, Aaple had became " Old Tired Horse," Dead money," many strong Aaple bulls had turned bearish.Heade funds and institutional investors exit in droves. Is it time, Mr. Cook, that you find out why the investors are abandoning Aaple?
    Mr Cook, Please show your strong leadership now. Aaple investors had suffered enough want you to act now. .
    9 Aug 2013, 09:37 AM Reply Like
  • Tripe from the original issuer of these statements.
    9 Aug 2013, 10:01 AM Reply Like
  • Whether you love or hate Fox, take the emotion out of your thoughts and just ask yourself if the facts could be true. I'm leaning towards true based on Apple's recent performance. And assuming true, it also makes me think that good news isn't around the corner in any significant way, otherwise, I think the board would have backed off. If a board isn't pushing to some degree then they aren't doing their job IMHO.
    9 Aug 2013, 10:35 AM Reply Like
  • I'm struck by the overwhelming sentiment expressed here on S A and in the media in general about Apple and Tim Cook, and how fast (and fickle?) it has gone from positive to negative.
    That is reason in and of itself to question holding the stock.
    But then again, one must also ask, aren't all the brilliant engineers that gave us iPod, iPhone, and iPad still there? Was everything really that dependent on the force of Steve jobs?
    I have three 4s phones in my household and typing this on an iPad. Love them all. Can't see much use for an iWatch. I'm going to give them a little while longer but, the din of the jungle drums cannot be ignored forever. The noise used to be crazy positive on apple, just as it is now for Tesla. And the stock prices of both react accordingly. That must be considered in investment decisions.
    9 Aug 2013, 11:33 AM Reply Like
  • Chris Ciaccia's article, " Aaple's Board Pressures Cook: something doesn't add up" needs our attention.
    In his article, he wrote " It seems odd that Aaple Board of Directors would start to make a stir when Aaple is slated to launch a slew of new products, software , services starting in the next few months.
    On Aaple's fiscal 2nd quarter earning call, Cook himself excitedly said Aaple would be releasing new products this fall and through 2014. However, during the 3rd quarter earning call, when asked by the analyst about the releasing of new products, Cook abruptly said that " we will announce when we are ready". The tone seems so much different.
    Chris finished the article by suggesting that there is a possibility that Aaple Board knows something that the market place doesn't know.
    It is something to be considered, especially at a day when Nasdaq only goes down 0.2%, while Aaple falls more than 1.58%.
    Mark Hibbon wrote that the Aaple cash hoard of more than $ 130 billion, has at least made the management , the master of their own fate. " if the current leadership prove itself unworthy, better leadership can and will be found."
    Mr. Cook, the Aaple investors have suffered enough. Please show your strong leadership now.
    9 Aug 2013, 04:34 PM Reply Like
  • I would agree with logic that says IF the board is pressuring Tim Cook then it's reason for concern as it WOULD tend to indicate that we might be underwhelmed with the fall & 2014 products and innovations. However, this rumor sounds a little fishy and Ciaccia's article appears to be channeling Gasparino who has pretty low credibility (and even if sincere could easily be duped by forces that are short AAPL). If there is further substantiation to this notion I'd be interested. The toned down rhetoric from Cook that you point out might mean something though...hard to read those tea leaves as it could alternatively mean he simply didn't want to hint at release dates.
    9 Aug 2013, 09:32 PM Reply Like
  • Has anyone heard of product life cycle?
    The longer a product is on the market, the more profit the Co makes.

     

    Who has anything revolutionary but Apple?
    Did anyone know of a smartphone before Apple?

     

    Apple is the most secretive Co in the world. You get more leaks out of the secret service than Apple! So to think that the BOD comes out with such a nonsense is nothing but another bashing effort on the part of WS crooks.

     

    Apple made more money withe same product(s) than Samsung and all others did together with all their seemingly "new" gadgets. Now, if that doesn't tell you what consumers prefer, then continue burying your head under the sand.
    9 Aug 2013, 11:50 PM Reply Like
  • If this rumor causes the price to drop more, I'd be happy to pick up more shares.
    11 Aug 2013, 03:29 AM Reply Like
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