When Tim Cook took over Apple Inc (NASDAQ: AAPL) as its new CEO in August 2011, replacing founder Steve Jobs, the question was, ‘would he be able to sustain Apple’s legacy?’
Fast forward ten years, and the iPhone maker is now a $350 billion revenue company. The numbers over the past ten years speak volumes to Cook’s performance as the chief executive at Apple.
Sacconaghi’s remarks on CNBC’s “Squawk Boxâ€
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Cook’s journey, however, is far from over yet, says Bernstein’s Toni Sacconaghi. If anything, he is set to face even bigger challenges ahead. On CNBC’s “Squawk Boxâ€, Sacconaghi said:
“Prior to this year, Apple grew 3% per year in the previous five years. This year, its growth stands at 35%, making further growth more challenging than ever. So, the near to medium term challenge for Apple is to figure out its strategy to continue to demonstrate its growth profile.â€
According to Bernstein’s senior research analyst, Apple diversified significantly into services and wearables under Cook’s leadership. He expects both segments to remain in focus as the company lays out its growth strategy for the next ten years.
Last week, JPMorgan’s Samik Chatterjee said Apple shares could climb more than 20%.
Apple could build on its advertising business
Sacconaghi also expects advertising to become another prominent source of revenue for Apple in the future.
“Apple’s advertising business is worth just a few billion today. But it was a few billion at Amazon about five years ago, and now it’s a $25 billion business. We think similar is the opportunity for Apple,†he commented.
The Bernstein analyst sees potential in Jeff Williams (current COO) and Craig Federighi (current senior VP of software engineering) to lead Apple after Cook, but highlighted that the debate remains open, especially since Cook has expressed desire to continue as the CEO for “many more yearsâ€.
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