On Monday, Apple announced the appointment of Kevan Parekh as its new chief financial officer, set to take over from long-serving CFO Luca Maestri, who will step down from the role on January 1, 2025. Parekh, a company veteran with more than a decade of experience at Apple, will join the executive committee. Before this promotion, he held the position of vice president of financial planning and analysis.

This leadership transition comes at a pivotal moment for Apple as it prepares for one of its most significant product launches this fall. The upcoming releases are expected to introduce substantial software enhancements for the iPhone, particularly in the realm of artificial intelligence. These advancements are critical for Apple as it seeks to boost global sales, especially in the Chinese market, and to keep pace with competitors that have already integrated AI features into their offerings.

Industry experts view Parekh’s promotion as a well-planned and smooth transition. D.A. Davidson analyst Gil Luria noted that Maestri’s continued presence at Apple would help maintain stability, reducing potential concerns about financial management during the transition. He also suggested that Parekh might focus on sustaining Apple’s careful capital management practices while potentially reigniting the company’s interest in strategic acquisitions.

Parekh had executive positions at General Motors and Thomson Reuters prior to joining Apple. His experience and expertise are expected to contribute significantly to Apple’s financial strategies moving forward.

Maestri, who has been instrumental in Apple’s financial success, will remain with the company, overseeing corporate services such as information systems and technology, information security, and real estate development, reporting directly to CEO Tim Cook. During his tenure, Apple more than doubled its revenue, with services revenue increasing more than fivefold.

Piper Sandler analysts acknowledged that while Parekh’s internal appointment should ease the transition, any leadership change of this magnitude inherently introduces some uncertainty, given Maestri’s consistent and successful track record.

Earlier this month, Apple reported stronger-than-expected third-quarter iPhone sales and expressed optimism for further growth, largely driven by its focus on artificial intelligence. However, the company still faces challenges, particularly in China, where overall business performance has been disappointing. In recent years, iPhone sales have slowed due to fewer significant upgrades in new models and increasing competition from Android-based smartphones that offer high-end features at lower prices.

At its June developers conference, Apple unveiled a range of AI-powered features under the banner “Apple Intelligence,” including an updated Siri and integration with ChatGPT. Despite these innovations, Apple shares dipped nearly 1% in after-hours trading following the announcement.