Apple CEO Cook more than a caretaker after death of Jobs
Tim Cook has forged his own legacy since taking over as Apple’s CEO in
BERKELEY, Calif. — Apple co-founder Steve Jobs, who died in 2011, was a tough act to follow. But Tim Cook seems to be doing so well at it that his eventual successor may also have big shoes to fill.
Initially seen as a mere caretaker for the iconic franchise Jobs built, Cook has forged his own distinctive legacy. He marked his ninth anniversary as Apple’s CEO on Monday — the same day the company split its stock for the second time during his reign, setting up the shares to begin trading on a split-adjusted basis beginning Aug. 31.
Grooming Cook as heir apparent was “one of Steve Jobs’ greatest accomplishments that is vastly underappreciated,” said longtime Apple analyst Gene Munster, who is now managing partner of Loup Ventures.
The upcoming four-forone stock split, a move that has no effect on share price but often spurs investor enthusiasm, is one measure of Apple’s success under Cook. The company was worth just under $400 billion when Cook the helm; it’s worth five times more than that today, and has just become the first U.S. company to boast a market value of $2 trillion.
Its share performance has easily eclipsed the benchmark S&P 500, which has tripled in value during the past nine years.
But it hasn’t always been easy. Among the challenges Cook has faced: a slowdown in iPhone sales as smartphones matured, a showdown with the FBI over user privacy, a U.S. trade war with China that threatened to force up iPhone prices and now a pandemic that has closed many of Apple’s retail stores and sunk the economy into a deep recession.
Cook, 59, has also struck out in into novel territory. Apple now pays a quarterly dividend — a step Jobs resisted partly because he associated shareholder payments with stodgy companies that were past their prime. Cook also used his powerful perch to become an outspoken advocate for civil rights and renewable energy, and on a personal level came out as the first openly gay CEO of a Fortune 500 company in 2014.
At the same time, though, under Cook’s stewardship, Apple has largely failed to come up with breakthrough successors to the iPhone. Its smartwatch and wireless ear buds have emerged as market leaders, but not game changers.
Apple also lags in artificial intelligence, particularly in the important market for voice-activated digital assistants. Although Apple’s Siri is widely used on Apple devices, Amazon’s Alexa and Google’s digital assistant have made major inroads in helping people manage their lives, particularly in homes and offices.
Apple also has stumbled a few times under Cook’s leadership.
In 2017, it alienated customers by deliberately but quietly slowing the performance of older iPhones via a software update, ostensibly to spare the life of aging batteries.
Many consumers viewed it as a ploy to boost sales of newer and more expensive iPhones. Apple offered to replace aging batteries at a steep discount; later it paid $500 million to settle a classaction lawsuit.