- Tech giant Apple has appointed Kevan Parekh as its new CFO, succeeding long-standing executive Luca Maestri, who will step down on January 1, 2025.
- Parekh, a company veteran who most recently served as vice president of financial planning and analysis, previously held senior positions at Thomson Reuters and General Motors before joining Apple.
OUR TAKE
The appointment of Kevan Parekh as CFO signals continuity and stability, crucial ahead of a major product launch. Parekh’s extensive experience and Maestri’s ongoing role in key areas bode well for Apple’s financial health, particularly as it leverages AI to drive sales and compete globally.
–Vicky Wu, BTW reporter
What happened
Tech giant Apple has announced the appointment of Kevan Parekh as its new chief financial officer, succeeding long-standing executive Luca Maestri, who will step down from the role on January 1, 2025. Parekh, a long-serving Apple executive, most recently served as vice president of financial planning and analysis. Prior to joining Apple, he held senior positions at Thomson Reuters and General Motors.
Maestri will remain with Apple, continuing to oversee corporate services teams, including information systems and technology, information security, and real estate and development, reporting directly to CEO Tim Cook. During his tenure as finance chief, Maestri played a pivotal role in more than doubling Apple’s revenue, with services revenue growing by over five times.
D.A. Davidson analyst Gil Luria said, “It appears that the transition to the new CFO is planned and orderly, which is the most important question. Maestri staying on with Apple is also very important, as it removes the risk of financial questions.”
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Why it’s important
This leadership change occurs ahead of a significant product launch this fall, which analysts predict will feature the biggest software upgrade for the iPhone to date. The update includes advanced artificial intelligence features, which are critical for Apple as it seeks to reverse a global sales slowdown, particularly in China. The company has already integrated AI enhancements, such as a revamped Siri and integration with ChatGPT, into its products.
The move to appoint an internal candidate like Parekh should ensure a smooth transition and continuity in strategic direction. Analysts suggest that Parekh will need to maintain prudent capital management while potentially exploring complementary acquisitions to bolster Apple’s competitive edge.
Despite recent disappointment in China, Apple’s third-quarter iPhone sales exceeded expectations, and the company forecasts further gains by leveraging AI innovations to attract buyers. This strategy is crucial as Apple faces increased competition from Android-based smartphones offering high-end features at lower prices.
The appointment signals Apple’s commitment to maintaining financial stability and innovation, positioning the company for future growth amidst a challenging market landscape. Investors, however, reacted cautiously, with Apple’s shares dipping nearly 1% in extended trading following the announcement.
