Apple Announces CFO Transition

Apple announced Monday that Luca Maestri would be stepping down as chief financial officer on Jan. 1, 2025.

As part of a planned succession, Vice President of Financial Planning and Analysis Kevan Parekh will succeed Maestri as CFO and join the executive team.

Maestri will continue to lead the Corporate Services teams and report to Apple CEO Tim Cook.

Long-standing CFO Maestri, who joined Apple as corporate controller in 2013, enabled essential investments and practiced robust financial discipline, helping the company more than double its revenue, with services revenue growing more than five times, Apple said in a statement.

Apple Inc (NASDAQ:AAPL) was down marginally in premarket trading Tuesday.

Commenting on the news, JPMorgan analysts believe that investors may be “mildly disappointed” with the announcement given the substantial progress Apple has made under Luca Maestri’s leadership.

This progress includes solidifying Apple’s identity as a Services company, achieving a higher valuation multiple, consistent execution of targets, and strong operational and financial discipline, contributing to significant shareholder returns.

With the appointment of Kevan Parekh, who has worked extensively in a senior role with both Tim Cook and Luca Maestri, investors will likely be looking for “more of the same” and a seamless CFO transition, analysts commented.

However, they hope for the continuation of a guidance/target-setting practice that has been “just right” under Maestri, demonstrating consistent execution while leaving room for upside surprises.

Separately, Bank of America analysts said they expect Apple to stay focused on becoming net cash neutral under Parekh, a goal established under Maestri through buybacks and dividend hikes.

After achieving net cash neutral status, Apple might continue significant buybacks, possibly going into a net debt position.

BofA also anticipates that Apple will prioritize investments in AI, its proprietary Apple silicon, and the vertical integration of iPhone components, while also expanding its range of services, including GenAI apps and both third-party and first-party offerings.

Moreover, analysts foresee future technological advancements, such as a potential foldable iPhone introduction within the next year or two, alongside hardware improvements aimed at enhancing the AI-driven iPhone features and functions.

Yasin Ebrahim contributed to this report.