Apple Inc. (NASDAQ:AAPL) recently hired Angela Ahrendts, former Burberry’s CEO, to head its online and retail sales. A report from UBS by analysts Steven Milunovich and Peter Christiansen believe the hiring of Ahrendts to be a big deal. After the announcement of the news, Salesforce.com’s Marc Benioff, who is well familiar with Ahrendts, tweeted “I just saw future Apple CEO Angela Ahrendts…the most important hire Tim Cook has ever made.”
Woman in senior management to benefit Apple
According to UBS analysts, Ahrendts and Apple CEO Tim Cook are more or less of the same age, therefore, for her to become the Apple Inc. (NASDAQ:AAPL) CEO, Cook will have to retire a bit earlier. Analysts also note that, she could also become the president and “a clear #2,” which according to analysts will “bring pizzazz back to Apple.” Having a woman in the senior management should benefit the iPhone maker, believe analysts.
Ahrendts consider herself to be both half right- and half left-brained, which is in line with Jobs’ intersection of technology. According to analysts, she is naturally right-brained (liberal arts), but shifted towards towards being more analytical while working for Donna Karan. Ahrendts believes that feelings are real and important, and sometime facts can be confusing. This thought of hers is line with Apple Inc. (NASDAQ:AAPL)’s belief of enhancing the customer experience beyond speeds and feeds. She popularized Burberry’s brand by acquiring licenses, which is also similar to Jobs style. Ahrendts terms her former employer as “a democratic luxury brand,” which according to analysts is an apt description of what her current employer plans to become.
Ahrendts digitally skilled
Ahrendts is more digitally sound than what can normally be expected of a Burberry’s CEO. Previously, Ahrendts has tagged Burberry as a “digital-media company.” The luxury fashion house took help of the digital media to showcase its runway shows, and gain trust of Burberry consumers through social media networks like Facebook and Twitter. While giving a lecture to Ball State graduates, Ahrendts revealed that the primary recipe to success is a “core purpose based on values that should never be compromised.”
UBS analysts have a Neutral rating on Apple Inc. (NASDAQ:AAPL) with a price target of $540. Analysts as of now have not factored Ahrendts as a multiple point on the stock, but went to say “we can envision a day when Ahrendts is worth a multiple point on the stock.”