Apple CEO Tim Cook’s ten-year contract expires in 2021. The outside world was very curious about his stay. It’s been nine years since Jobs left, and Cook, who took over, says he haven’t been able to shake off Jobs’ shadow for a long time. At Apple’s new launch that year, Cook, who made his debut in front of the stage, was even accused of “no passion.” In a speech last year, Cook spoke of how Jobs felt when he handed over the burden of managing Apple, “the loneliest moment of my life.” “He knows that he will face all expectations and will be strongly questioned.
And at the end of last month, Apple gave Cook a pair of “golden handcuffs.” According to SEC documents obtained by multiple media outlets, Apple awarded Cook 333,987 restricted stock units and, if the results were met, Cook would receive an additional 667,974 shares. This is the second time since 2011 that Cook has received equity incentives, and Apple is doing so to keep Cook in office until at least 2025. Based on the closing price of the day, the equity incentive value is approximately $114 million.
Most intuitively, apples have spent a full 38 years at market capitalization of $0 to $1 trillion. Apple doubled its market capitalization in two years after becoming the first company to break through $1 trillion in August 2018. When Mr Cook came to power, Apple had a market capitalisation of less than $400bn.
Booked aside, Cook’s gentle, calm and privacy-conscious nature has also changed Apple, which has become more environmentally friendly, privacy-conscious and more pro-pluralistic and equal.
“When Cook took over Apple, the prevailing view was, “Apple’s done. . . To this day, there is such a argument.
After cook’s book came out, someone would say, “Cook’s been praised, he’s destroying Apple, he should resign.” Leander Kahney, author of the book, says, “If you look at objective metrics, from stock prices to company values to sales of products like the Apple Watch… You’ll find that people underestimate what Cook is doing. “He’s not just working on Jobs’s blueprint, he’s reinventing Apple in his own way, ” said Jonathan Ave, Apple’s chief designer. “
Before he became Apple’s new CEO, little attention was paid to Cook.
Jonathan Ives, who has worked with Jobs since the first generation of iMacs (1998), is seen as the “first choice” for CEO. It took them a decade to turn Apple into a global brand that led the world in good design. Jobs called Ave his “spiritual partner” at Apple. They talk about products, manufacturing methods and materials together, like two kids in a candy store. Another person similar to Jobs was Scott Forstall, then the senior vice president for iOS, who was known for his tough style and strict management, and who was once called “mini-Steve” by Bloomberg.
Cook, who has never appeared in Apple’s product ads, became Apple’s CEO in 2011 as an “airborne soldier”, much to the surprise of many. At the time, Cook’s image was so different from the image of Apple in the Jobs era.
In fact, During Jobs’ two illness breaks in 2009 and 2011, Cook was entrusted as interim CEO. The gentle, calm, operationally sound manager successfully completed his mission of overseeing and managing the company, and the board was bullish on Cook as he moved from COO to CEO. Cook himself didn’t make his mark until 2009, when he almost joined Apple in 1998, according to Kahney.
In 1998, Apple got into trouble. Microsoft released Windows 95 three years ago that mimics the Macintosh operating system, and ibm and similar manufacturers such as Compaq and Gateway are making Intel chip-based computers. These computers are much cheaper than Macs. At the time, Apple’s line of business was heavily redundant, with products in more than 40 different models. The combination of Microsoft and Intel has hit Apple hard, with its market share of computers dropping from 16% at its peak to 4% in 1996.
“Even though Apple was on the front lines at the time, Mr Cook turned the company upside down with his personal ability.” Greg Joswiak, a veteran of more than 30 years at Apple, recalls, “We had a terrible operation, very poor cost control, poor inventory management, and messy bookkeeping.” “In the first seven months of joining Apple, Cook reduced the inventory period from 30 days to six days and the unsold Mac inventory from $400 million to $78 million.
Before Mr Cook was created, Apple’s grip on hardware manufacturing was almost strict, and Mr Jobs abhorred outsourcing. Finally, in an effort to increase productivity, Jobs slowly changed his attitude and poached Cook, who was still at Compaq at the time. After graduating from college, Cook joined IBM. IBM adopted a fairly rigorous “on-time production approach” and Cook was well trained to ensure that all parts were supplied in the required quantity at the required time during the production process. After 12 years at IBM, Cook joined Compaq. Compaq uses an optimized distribution model to transfer inventory costs to its outsourced manufacturers, who only assemble complete machines when they receive an order. As a result, Compaq no longer needs a large warehouse for computers for sale.
Cook, who has a background in operations and procurement, has accelerated Apple’s outsourcing process. Cook also visited each vendor to finalize detailed supply standards, and invested in SAP, a software company, to establish an advanced supply chain management system. Cook isn’t just operating on schedule, booking $100 million worth of air capacity months in advance as Apple prepares to bring the iMac G3 into the mainstream market. This way, customers can receive a candy-colored computer that was a big success, even on important holidays.
Analyst Horace Dediu told Kahney that he thinks Jobs is Apple’s only generalist, while everyone else is an expert. The other person to play the role is Cook. Cook started out as an operations specialist and worked in supply chain related work before being promoted to sales manager and managing Macintosh Hardware before being appointed COO. So, like Jobs, he tried different jobs.
Do the right thing.
In addition to his very different personalities, Cook is different from Jobs in the management of the company. “Jobs likes competition and values competition within the company. Back in the early days of Macintosh and Mac, these two products operated in two buildings, with their own flags… He did the same for the iPhone. He let Tony Fadell compete with Scott Fausto to see who could think of the best idea for developing a mobile phone. They fight each other and keep their work strictly confidential. Kahney concludes, “Jobs encouraged competition and capriciousness, and Cook was very good at collaborating and coordinating, the skills necessary to run a large, diverse, complex company like Apple.” “
In addition to actively promoting team-to-team cooperation, Cook has repeatedly offered to apologize to the public on apple’s behalf.
In 2012, Apple launched the Siri, which the New York Times called “the most embarrassing and unusable software Apple has ever released.” But after the incident, Scott Fausto, who is in charge of the development of the two apps, refused to send an apology to users. In the face of public discontent, Mr Cook offered a public apology and fired Mr Jobs “boldly and decisively”. Insiders thought Fausto was playing with power at the company and even started running his own projects. These are intolerable in the eyes of Mr Cook, who values cooperation. “I think it’s a bit like Cook’s “alternative thinking” moment. It’s like Cook’s public statement on how to manage Apple. Kahney said in the interview.
Since Cook took office in 2011, Apple has faced a number of serious challenges. In 2012, an ABC special, Nightline, and a New York Times report on Foxconn’s working conditions cast a dark shadow over Apple. Critics say Apple is indifferent to Foxconn’s treatment of workers. At a later Goldman Sachs meeting, Mr. Cook bluntly responded to allegations of worker abuse in Apple’s supply chain and promised to remove suppliers who did not care about labor rights and address them. Apple has identified 360 “remediation guidelines” covering issues that need to be amended, such as worker safety, pay and working conditions, and has implemented 284 items in advance. “In his first year as CEO, Cook has made more improvements in supplier responsibility than Jobs has done throughout his tenure. Brands are realizing that a strong sense of morality and core values are no longer the icing on the cake, but an indispensable thing. Kahney said.
Cook also overhauled Apple’s environmental policies and sustainability plans. The first was the hiring in 2013 of Lisa Jackson, who had been the head of the National Environmental Protection Agency for four years. By Earth Day 2018, Apple announced that 100% of its facilities around the world are powered by renewable energy. In addition, Apple is determined to reduce carbon emissions in its supply chain, launching two robots, Liam and Daisy, that dismantle parts of the device, hoping to make new products from recycled materials.
The emphasis on privacy and protection is also the most visible banner on Apple under Cook. Every update to iOS reinforces the privacy features. In February 2016, Apple even defended a court order. The order requires Apple to help the FBI unlock an iPhone used by the perpetrators of last December’s San Bernardino shootings, specifically to develop a special version of iOS that can enter passwords indefinitely. If apple does so, it will be seen as “opening a back door” to the government, regardless of user privacy and security, and if it refuses, it will be accused of supporting terrorists. Apple, caught in a dilemma, refused, and six weeks later, the judge dropped the case. That has won Apple the support of a significant portion of the public, as well as almost the entire Silicon Valley business community.
Cook grew up in the southern United States, where the tide of racism was surging, which led him to pay attention to equality in the future. Under his leadership, Apple has become a more inclusive place. Apple employs a higher percentage of minority employees than other Silicon Valley companies and has generously supported universities, charities and foundations that encourage minority students to study STEM (science, technology, engineering, and math education). The privacy-conscious CEO wrote an article for Bloomberg in 2014 called Tim Cook Speaks Up in support of sexual minorities. “If I hear that Apple’s CEO is a gay man who can help those struggling with sexual orientation, or who can soothe those who feel lonely, or who can inspire people to be brave in their quest for equality, what is it about public privacy?”
One of Jobs’ best recruits.
Accessibility, education, environmental responsibility, inclusion and diversity, privacy and security, and supplier responsibility are the six values that Cook wrote into his financial statements at the end of 2017, all of which became Cook’s “Polaris” in managing Apple in the past.
Apple, which lost Jobs, remains innovative. Apple unveiled its first Cook-led device, the Apple Watch (removing the “i” prefix from the Jobs-era naming model), and although it had a flat initial response, it has been growing at a 50 percent quarterly rate since it first sold more than 40 million blocks. Sales of AirPods are equally staggering, with Apple expecting to sell more than 50 million pairs of AirPods and Beats headsets in 2018. Coupled with the new HomePod speaker, Apple’s annual revenue on smart audio devices could exceed $10 billion. The service business ranked second in Apple’s revenue stream, generating $9.1 billion in revenue in the second quarter of fiscal 2018.
If a separate company were formed, Apple’s revenue from its services business could break into the world’s top 500.
In 2018, Apple became the world’s first technology company with a market capitalization of less than $1 trillion, and was named the “World’s Most Valuable Company”. According to Bloomberg’s May 14, 2019 list of the world’s most profitable companies for 2018, Apple won again with a net profit of $57.2 billion, the fourth consecutive win for Apple. By August 2020, Apple’s market capitalization had passed the $2 trillion mark, making it the first stock in U.S. history to exceed $2 trillion. Apple has also become the world’s most valuable public company.
This may be Jobs’ best hiring. Cook has also made the role of operations the front and center of Apple’s work. Even Apple’s current COO, Jeff Williams, who is in charge of the Apple Watch business, is following Cook’s path, with Kahney predicting that “he does have the potential to be the next Cook”.
It’s worth noting that when asked if he would “get away with it” next year, Mr Cook responded that he “won’t be leaving any time soon”.
Last year, Mr. Trump misspoken at a meeting, calling Mr. Cook “Tim Apple.” People no longer doubt Cook’s leadership, and Apple has deeply imprinted him. Under Cook’s leadership, Apple has transformed itself from a smart device manufacturer into a fully sustainable diversified company with smart hardware and digital services.