Tech giant Apple on Monday named insider Kevan Parekh as its chief financial officer, replacing company veteran Luca Maestri who will transition from the role on Jan. 1, 2025.

The leadership change comes ahead of Apple’s multiple product launch this fall season, which analysts have called the biggest software upgrade for the iPhone.

It includes artificial intelligence features, which are crucial for Apple as it looks to reverse a slowdown in global sales, particularly in China, and better compete with rivals who have rolled out AI upgrades.

Parekh, who has been with Apple for more than a decade and will join the company’s executive committee, most recently served as vice president of financial planning and analysis.

“It appears that the transition to the new CFO is planned and orderly, which is the most important question. Maestri staying on with Apple is also very important, as it removes the risk of financial questions,” D.A. Davidson analyst Gil Luria said.

“(Parekh) will need to continue the prudent capital management, but may also be tasked with restarting Apple’s exploration of complimentary acquisitions.”

Before Apple, Parekh held senior leadership roles at Thomson Reuters and General Motors.

Apple said Maestri will continue to lead the corporate services teams, including information systems and technology, information security and real estate and development, reporting to CEO Tim Cook.

During Maestri’s tenure, Apple more than doubled its revenue, with services revenue growing more than five times.

“Apple filling the role with an internal candidate should make the transition a bit smoother… any change of this magnitude does create some level of uncertainty, especially given the consistency and the history of execution from Maestri,” Piper Sandler analysts said in a note.

Earlier this month, Apple said its third-quarter iPhone sales were better than expected and forecast more gains as it bets on artificial intelligence to attract buyers, even as its overall China business disappointed.

In recent years, iPhone sales have slowed due to a lack of significant upgrades in newer models and competition from Android-based smartphone brands offering high-end specifications at lower prices.

At its developers conference in June, Apple announced a slew of AI features under the umbrella “Apple Intelligence”, including a revamped Siri and an integration with ChatGPT.

The iPhone maker’s shares were last down nearly 1% in extended trading.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

Representational image of man talking on a phone outside an Apple store in Shanghai, China
| Photo Credit: Reuters

China has not issued a ban on the purchase and use of foreign phone brands, the Chinese foreign ministry said on Wednesday, in response to media reports that said some government agencies and firms had told staff to stop using Apple’s iPhones at work.

“China has not issued laws, regulations or policy documents that prohibit the purchase and use of foreign brand phones such as Apple’s,” foreign ministry spokesperson Mao Ning told a regular press briefing when asked about the reports.

“But recently we did notice a lot of media exposure of security incidents related to Apple’s phones. The Chinese government attaches great importance to information and cyber security and treats both domestic and foreign companies as equals,” she added.

Reuters recently reported that China had widened existing curbs on the use of iPhones by state employees, telling staff at some central government agencies to stop using their Apple mobiles at work.

The supposed ban coincides with rising tensions between Beijing and Washington, and signals growing challenges for Apple, which relies heavily on China for revenue growth and manufacturing.

Ms. Mao said China hoped all mobile phone companies would strictly abide its laws and regulations, as well as “strengthen information security management”.

China has increasingly emphasised using locally-made tech products, as technology has become a major national security issue for Beijing and Washington.