Apple keeps analyst support with shake-up - MarketWatch

By Dan Gallagher, MarketWatch

SAN FRANCISCO (MarketWatch) â€" Apple Inc.’s surprise, high-level shakeup elicited a small handful of largely supportive reactions from analysts on Tuesday, though the day’s market closure made it unclear how investors will ultimately process the news.

Apple CEO Tim Cook, left, with Scott Forstall on stage at the company’s Worldwide Developers Conference in June.

On Monday afternoon, Apple /quotes/zigman/68270/quotes/nls/aapl AAPL -0.91%   announced that Scott Forstall, the executive who’s led its crucial iOS mobile operating system that’s powered its popular iPhone since its inception, is leaving the company next year.

Also departing is John Browett, who joined Apple earlier this year to lead the company’s fast-growing retail stores. Read: Apple's Forstall leaving in shake-up

Per its tight-lipped nature, Apple gave no further information on the reason for the departures, though unnamed sources told the Wall Street Journal on Tuesday that the recent misstep with the launch of the faulty Apple Maps application was a factor in Forstall’s exit â€" along with a deteriorated relationship with other senior executives. Read WSJ story on Forstall's departure

The move did not appear to dent the overwhelmingly bullish support Apple has among Wall Street analysts, though only a few issued reactions to the news on Tuesday.

“While we view Forstall as key to Apple’s success having been head of the ‘all-important’ iOS platform and are very disappointed to see him go, there is no change to our current positive view on Apple,” wrote Brian Marshall of ISI Group. “We believe if the company can be successful without Steve Jobs, it can be successful without Scott Forstall.”

Shaw Wu of Sterne Agee wrote that, while the recent moves were a surprise, “we don’t think it will be a big deal as the company has arguably not missed a beat despite senior departures in the past, showing the resilience of Apple’s mission and culture.”

Bite Into Apple

Apple shares have fallen about $100 and it is a good time to invest, Fred Hickey, editor of the High-Tech Strategist, tells Barron's at the 2012 Art of Successful Investing conference.

Gene Munster of Piper Jaffray noted that Apple’s statement indicated an expanded role for chief product design guru Jony Ive, which was a strong positive. “This, combined with Tim Cook’s nine years remaining on his contract with Apple, suggests the two most critical management figures will be in place for the longer term.”

Kulbinder Garcha of Credit Suisse wrote that the departures present “some risk on the way to a more streamlined organization.” But, he added that the actions “point to management taking decisive action, which is a positive.”

The only negative reaction so far came from Trip Chowdry of Global Equities Research, who last week criticized the company following what he described as “incremental” improvements to the iPad and iPhone, expressing concern that innovation at the company is slowing.

Chowdry’s note Tuesday said the moves could be a signal that Apple “lacks innovative executive leadership.” He added that it is unclear how, after the death of Steve Jobs last year, “one of the most innovative engineers in the software industry is having a series of missteps.”

/quotes/zigman/68270/quotes/nls/aapl

US : U.S.: Nasdaq

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Oct. 26, 2012 4:00p

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Dan Gallagher is MarketWatch's technology editor, based in San Francisco.