On Monday, tech giant Apple announced the appointment of insider Kevan Parekh as its new chief financial officer, succeeding long-time executive Luca Maestri, who will step down from the position on January 1, 2025.

This leadership transition occurs just before Apple's anticipated product launches this fall, which analysts predict will feature the most significant software enhancements for the iPhone to date.

These updates will incorporate artificial intelligence capabilities, a vital move for Apple as it aims to counteract a decline in global sales, especially in China, and to enhance its competitive edge against rivals that have already introduced AI advancements.

Parekh, who has been with Apple for over ten years and will become a member of the executive committee, previously held the role of 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."

Prior to joining Apple, Parekh served in high-level leadership positions at Thomson Reuters and General Motors.

Apple announced that Maestri will maintain his leadership of the corporate services teams, which encompass information systems and technology, information security, as well as real estate and development, reporting directly to CEO Tim Cook.

Under Maestri's leadership, Apple experienced a revenue increase of over 100%, with services revenue expanding more than fivefold.

"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.

Recently, Apple reported better-than-anticipated iPhone sales for the third quarter and projected continued growth by leveraging artificial intelligence to entice customers, despite challenges in the overall China market.

In the past few years, iPhone sales have experienced a slowdown due to limited substantial upgrades in newer models and intense competition from Android-based smartphone brands that offer high-end specifications at more affordable prices.

During its developers conference held in June, Apple unveiled a range of AI features under the umbrella term “Apple Intelligence,” including an enhanced Siri and integration with ChatGPT.

At the time of this report, the iPhone manufacturer’s shares had experienced a slight decline of approximately 1% in extended trading.