Apple Inc (NASDAQ: AAPL) is undergoing a significant reshuffling within its executive ranks, elevating several individuals to vice president positions among several departures over the past months.
The move comes as the tech giant is also focusing on reducing the price of the Vision Pro and enhancing the in-store iPhone purchasing experience.
The tech giant has witnessed the exit of about a dozen vice presidents in 2022 and 2023, leading to a wave of promotions to replenish its leadership.
The reasons for these departures vary, including retirements and the intense pressures associated with the roles. This level of turnover is unusual for a company known for its stability, Bloomberg reports.
March 2023 reports indicated that since the second half of 2022, the company has lost 11 high-ranking executives just below the senior vice president level that reports directly to CEO Tim Cook.
Also this year, Apple postponed perks for some corporate divisions and expanded a cost-cutting effort, joining its peers, Bloomberg noted.
Apple also restricted hiring and left additional positions open after employee departure.
In response to the departures, Apple has promoted individuals across various departments.
Apple promoted Harry Guo to VP of video engineering in the hardware technologies group. Rob Hardy and Vashist Vasanthakumar have received promotions in operations.
Despite these promotions, Yannick Bertolus, a key figure in hardware engineering, has retired, according to Bloomberg.
On the product front, efforts are underway to make the Vision Pro more affordable. The company is considering reducing features and utilizing an iPhone processor to achieve this goal.
A second-generation Vision Pro, featuring a more compact design and integrated prescription lenses, is also in the works.
Additionally, updates on new iPads and Macs are anticipated, with developments suggesting a consumer release for the M3 MacBook Pros between early and spring 2024.
The new MacBook Air models will likely follow suit between the spring and summer of the next year.
Apple is innovating the in-store iPhone purchasing experience. A new system will enable the update of iPhone software before the sale, ensuring customers receive devices with the latest features and security enhancements. This initiative will likely roll out before the year ends.
Price Action: AAPL shares traded lower by 0.50% at $177.96 on the last check Monday.