Hedge Fund boss Doug Kass and others call for Tim Cook's ouster

Hedge Fund boss Doug Kass and others call for Tim Cook's ouster
So Apple sold 10 million fewer iPhone units last quarter than they sold the year before. The Apple iPad has been not just showing lower growth, it has actually showing negative growth. The Apple Watch, while praised by many, only had 6.8% of the wearables market in the U.S. during the last quarter. And the stock, which recently stalled out at $110, is now $94.19 and looking like it might drop like a rock through a wet paper bag.

This isn't the first time that there have been worries and concerns about the future of the iPhone and Apple. But for the first time that we can recall, seasoned Wall Street traders are calling for the head of Apple CEO Tim Cook. Among those seeking Cook's dismissal is Doug Kass, a hedge fund manager known for his bearish picks. Kass says that Apple might never repeat the success it had with the Apple iPhone 6. He also knocks Tim Cook for not being Steve Jobs (if that is a sin, it is one that we can all be found guilty of).

An analyst by the name of Bob Lefsetz is another card carrying member of the "Sack Tim Cook" club. "Tim Cook needs to be replaced," says Lefsetz. "Apple doesn’t need a traffic cop, it needs a visionary."

Of course, when the stock was soaring higher and higher and the number of iPhone units sold was beating Wall Street estimates (which, by the way, Apple did do last quarter when it sold 51.2 million handsets), where was all this criticism of Tim Cook? 

So let's address some of the issues that have been brought up recently. Those complaining about the Apple Watch should know that the device sold more than twice as many units in its first year than the iPhone sold in its rookie season. As for the iPad, well, the entire tablet market has been declining. And as we pointed out, Apple did sell more handsets in that tough fiscal second quarter than Wall Street was looking for.

Overall, Apple had revenue of $51 billion and net profit of $10.5 billion for its fiscal second quarter. That is more than the profits of Microsoft, Google and Facebook...combined. And no one is calling for the ouster of these companies' CEOs.


source: Lefsetz.com via BGR

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42 Comments

4. RAV4CAD

Posts: 96; Member since: May 03, 2016

Wait until ip7 arrives.

5. TheUnbiasedGuy

Posts: 50; Member since: Apr 21, 2016

What...!!!! So every time the shares go a bit down below the safe zone,u r going to change the ceo.

6. VZWuser76

Posts: 4974; Member since: Mar 04, 2010

It's pretty ridiculous I agree. Apple is seen as always increasing their sales and revenue, but that can't last forever. At some point, they have to top out or decline. There is no such thing as a sustainable increase forever, it's just not realistic. But because that's what investors are used to, that's what they want going forward, however unrealistic that may be.

15. Cicero

Posts: 1148; Member since: Jan 22, 2014

That's the situation with all economical issues. Up and down and nervous investors which wants all the time growing things and profits. They never sustain a situation but only selling at fast when the ship get some wholes.

34. sissy246

Posts: 7129; Member since: Mar 04, 2015

The thing is that it's not just a bit,, almost $15 is a lot a bit is $2 to $5 and if that was all I would agree with you.

8. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Who would compare the first year sales of a watch to a phone? Smart watches were already popularized for 2 years before Apple finally released theirs. It is at 50% the price point of an iPhone. Even though smartphone were around when th3 iPhone came out, the iPhone was the first of its kind to be mass produced. If you release a product that has been popularized by someone else, you stand to have higher sales. The original Galaxy S sold way more than the first iPhone. Sony had already popularized music players. So when Apple came they received the rewards of that. Spotify popularized music streaming and yes Apple got more customers in a shorter time because the service was ready made popular by someone else. So what th3 Apple Watches sold more than the iPhone. Well shipped anyways. So? How do we know for sure? Apple won't even talk about it. And the fact it's only 6% of the US market shows its not doing all that well. But having small issues shouldn't mean the boss should lose his job. Even baseball managers give a pitcher in a jam a chance to get out of it. Changing the ceo isn't going to help. Ask Nokia, Blackberry and Microsoft. Balmer blew a huge chance for Microsoft to have a good presence in mobile phones, but he didn't get fired for it. As bad as people claimed Balmer was, MS still profited every single year under his watch. No CEO is perfect. After all they are all human. But Apple doea need a CEO who will listen to the people who buy their products and not just stockholders. That is where Apple needs to pay more attention. Because stockholders don't pay the bills, your customers do.

11. dimas

Posts: 3418; Member since: Jul 22, 2014

It's just a first year of slowdown for apple, big deal. Market is already saturated and there are more smartphone options today compared with the past years. This Doug Kass is just being a smart ass, let him manage apple see if he can kill all the competitions.

27. SamDH1

Posts: 419; Member since: Apr 21, 2015

He's not claiming he can. He's saying Tim Cook cannot. And it's true, the iPhone that did sell well was designed by Steve Jobs and Jony. Nothing that has come out since Tim Cook has arrived has been revolutionary. They need someone who is going to strike fear through all of Apple again. Also, they need to get Jony Ive away from every single project, he's getting worse. He was the one the decided and pushed forward the gold iWatch.

30. AlikMalix unregistered

Wow, I tend to actually agree with you at some brief moments - this is one of those moments, Sam..

45. marorun

Posts: 5029; Member since: Mar 30, 2015

Well lets make it 3 as i also agree with both of you in this bried moment.

12. kiko007

Posts: 7520; Member since: Feb 17, 2016

"Apple doesn't need a traffic cop, it needs a visionary." This might be the cheesiest, most idiotic statement I have ever heard, and I heard Kanye say "George Bush doesn't care about black people!!!" (probably true....but still...TV) live. Great job Mr.Lefsetz, you topped Kanye at something. Congratulations are in order ladies and gentlemen, someone finally said something dumber than Kanye with a straight face and allowed people to publish it. Lmao.

18. SYSTEM_LORD

Posts: 1168; Member since: Oct 05, 2015

If the truth is dumb, then I love stupid. I doubt any of us has the economic sense of these guys, though, so I'm not sure why any of us are throwing our 2 cents into billion dollar betting

32. kiko007

Posts: 7520; Member since: Feb 17, 2016

Having money doesn't make you smarter than the average Joe. It simply gives you access to better resources. Case and point: Donald Trump and hiss itty-bitty hands. The man has had multiple businesses go bankrupt, and people still think he is in-the-know. People who think money=intelligence tend to more "submissive" to nonsense like that qoute. I'm going to do some research on Mr.Lefsetz to see if he's legit brilliant, or just another rich kid with bailout money. I'll see surprised if the former is more true than the latter.

13. wando77

Posts: 1168; Member since: Aug 23, 2012

iPhonearena to the rescue...... Better do something to stop your Apple shares plummeting boys

14. launernoon

Posts: 81; Member since: Mar 05, 2016

Not surprised at all looking at who wrote this page. Hahaha. Alan f duh!

16. Cicero

Posts: 1148; Member since: Jan 22, 2014

Sell, sell, sell. lol

21. GreenMan

Posts: 2698; Member since: Nov 09, 2015

Oh lord, Mr. Forest Gump must be angry... He has shares in some "FRUIT COMPANY" remember?!! (I wonder if anyone will get my reference....)

40. DnB925Art

Posts: 1168; Member since: May 23, 2013

Nah, he's not so mad. He still has Bubba Gump's to fall back on.

17. medicci37

Posts: 1361; Member since: Nov 19, 2011

Apple definitely screwed up when it comes to tablets. After releasing the air2 in 2014 they still haven't came out with a true successor. The iPad Pro is very expensive considering the limited functionality you get

20. GreenMan

Posts: 2698; Member since: Nov 09, 2015

A word of advise for Mr. Tim "Timmy" Cook; Why 'exactly' is iPhone sales declining? Because new iPhones are dated? No... Then iPhone users must be embracing Android at an alarming rate? No... Then iPhones must be out of fashion? No... As a matter of fact, some would sell their kidney to get one... SO WHY IN THE WORLD THEY ARE NOT SELLING? It's simple... $$$! Price!!! No many people, apart from iPhone purists, would buy a 4 Incher for roughly $500! And people feel ripped off when they've to pay MEGA BUCKS just to upgrade storage space... Apart from The A Series SkC, the rest of the iPhone is PURE MID RANGER....! Let it be battery or display or cameras our built quality... iBend, anyone? So, here you have it! Just compare Nexus 5X with iPhone SE! G'Day!

26. yyzamin

Posts: 383; Member since: Aug 26, 2015

Its because people are not upgrading as often. If a 3 year old iPhone is still as snappy as it was 3 years ago why upgrade.

46. marorun

Posts: 5029; Member since: Mar 30, 2015

Well if pricing would be more interesting they would be more enclined to upgrades.

22. GreenMan

Posts: 2698; Member since: Nov 09, 2015

And with The new Android N in the horizon with actionable notifications, split screen, tap to wake and more battery efficiency in tow... iPhones will soon be "endangered species"... Not on the same level of Microsoft Lumia though!

33. kiko007

Posts: 7520; Member since: Feb 17, 2016

I'm using the N preview now (Nexus 6 owner) and it really isn't that impressive. Excusing the bugs, the multi-window feature is useful, but I wouldn't sell my IPhone with its exclusive titles for it. Battery life is about the same, I get about 4 and a half to 5 hours of screen on time which is nice, but not revolutionary (getting a little bit more on 6.0). Besides, do you honestly think that the adoption rate of 7.0 will reach 10% before a year from now. No one except Nexus/HTC owners will have these features for a while. Especially since carriers control the update flow here in the States. Not to mention most people don't know what Android version they are in already. I gave my HTC One M7 to my kid cousin, and he still thinks Android is on KitKat lol. TD;LR 7.0 isn't going to make the IPhone "an endangered species" fix for a number of reasons, namely the fact that 90% of Android users won't get the OTA. That statement is pure hyperbole.

47. marorun

Posts: 5029; Member since: Mar 30, 2015

kiko007 you really need to check your thing. Most motorola phone are on 6.0 already Same for HTC and nexus ofcourse. Chinese manufacturer should not really count. Best way to get good number would be to compare lets say all motorola flagship from 2014 to 2016 with the same for HTC , samsung ect and you will see thats some OEM thats tend to sell more also tend to never or almost never give update in time. Also if OEM would skip carrier its would be even faster. I had 6.0 on my moto x play less than 4 months after its came out officially and its a carrier device could had it 1 or 2 month earlier. So some OEM are at fault but Carrier as well. But the important part is my old LG optimus G on 4.4 run like a charm can run all app and never crash. As for your cousin why he is not running 6.0 like i am on my HTC one M7 crappy carrier? As for last sentence its will make new iphone sale endangered compared to new android sales at least.

23. SIGPRO

Posts: 2817; Member since: Oct 03, 2012

Tim Cook or not...... Apple's time has come! They are loosing value fast, time for a new game changer because Apple has nothing to offer! Iphones have no future!

24. tech2

Posts: 3487; Member since: Oct 26, 2012

'Some Hedge Fund traders say Apple needs to replace current CEO Tim Cook (L) with someone more like the late Steve Jobs' You don't just stumble across likes of Jobs and Musk. They're a rare talent. You can't simplify put an ad and hire a Steve Jobs. However, Tim Cook is a finance guy and he knows his strengths. He's extremely good at what he does.

48. marorun

Posts: 5029; Member since: Mar 30, 2015

and extremely bad at important thing as well..

25. xfire99

Posts: 1207; Member since: Mar 14, 2012

Keep Cook, he's doing a great job. They can sack him when appl are at 50$. :)

29. AlikMalix unregistered

Super Agree with the motion to get rid of Tim C. He's making iPhones more like Android (not a bad thing) but I dont want another Android device - there are plenty of android devices to choose from... I like that iOS is/was different. Steve couldnt care less about the rest of the market - he did things for the sake of being different - and many things were better for that... Throw out J. Ive as well, he's got stuck with "iconic" design....

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