Investing.com -- Apple announced Monday that Luca Maestri would be stepping down as chief financial on Jan. 1, 2025.
As part of a planned succession, Vice President of Financial Planning and Analysis Kevan Parekh would succeed Maestri as CFO and join the executive team.
Maestri, however, 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, which together helped 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, which has helped achieve a higher valuation multiple, consistent execution of targets, and strong operational and financial discipline, all 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, most importantly, we think they will hope for the continuation of a guidance/target-setting practice that has been “just right” from Luca Maestri," demonstrating consistent execution while leaving room for upside surprises that investors can celebrate.
Separately, Bank of America analysts said they expect Apple to remain focused on getting to net cash neutral under Parekh, a goal that has been established under Maestri through buybacks and dividend hikes.
"After getting to net cash neutral, Apple could choose to continue significant buybacks and could go into a net debt position," they wrote.
BofA also anticipates that Apple will continue to prioritize investments in Ai, its proprietary Apple silicon, and the vertical integration of iPhone components. They also expect Apple to focus on expanding its range of services, including GenAI apps and both third-party and first-party offerings.
Moreover, the analysts foresee future technological advancements, such as the potential introduction of a foldable iPhone within the next year or two, and hardware improvements aimed at enhancing the features and functions of the AI-driven iPhone.
Yasin Ebrahim contributed to this report.