Can’t remember ever before reporting of firings at Apple. Last night Apple announced that Scott Forstall had been fired. He was i/c of mobile/iPhone software and had been on stage only a few weeks back on the launch of the iPhone 5. Forstall had been blamed for the Maps fiasco. He had been rumoured as a possible future CEO. Jonathan Ive will now take control of the ‘human interface’ elements at Apple – the first time he has had a software brief.
Also John Browett has been fired from his role i/c of the Apple stores after just 6 months. I wonder if he will be repaying any of his £36m 'golden hello' payment? Readers will remember Browett launched tesco.com and then went on to lead Dixons/PC World in the UK. Many questioned his suitability given his past. Indeed he really upset many Apple store staff with his new high pressure sales incentives. The last thing Apple needed was an in-store experience as ‘enjoyed’ by Dixons’ customers! Tim Cook will take direct responsibility for the stores until a replacement is found.
So, what do you read into this? Tim Cook asserting his authority? Or panic at Apple as it starts to look like a company making the kind of mistakes that normal companies make. Apple shares are down over $100 since their high about 6 weeks ago of $705. Nobody would doubt that Apple is now facing real competition across the range which, at their own admission, is affecting profit margins as they have to respond to the market rather than lead it. The iPad mini is a classic example. Apple responded to the welter of cheaper/smaller tablets. I too doubt that Steve Jobs would have done it.
What Apple needs now is another game changer. Where is Apple iTV? Without another wow addition to the product range, maybe Apple’s golden days really are over.