[News Inside] 10 Years of Apple Under Tim Cook After Jobs... "He Expanded Jobs' Legacy"

Team Cook Apple CEO

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] "Apple will gradually decline after Steve Jobs"

This is the perspective on Apple following the death of its founder, Steve Jobs. The prevailing concern was that Apple would no longer innovate and only face a downfall.

However, Tim Cook, Apple’s CEO who took over the baton after Jobs, proudly elevated Apple to the ranks of the world’s top companies. Under Cook’s leadership, Apple became the first American company to surpass a $2 trillion market capitalization, proving his success with numbers. Some even evaluate that Cook has already surpassed Jobs in terms of finance and management.

On the 24th (local time), it marked the 10th anniversary of Tim Cook’s appointment as Apple CEO. In fact, few expected Cook to succeed Jobs as CEO. Since many of Jobs’ close colleagues had been with Apple since its early days, there was little expectation that an outsider like Cook would replace them. However, Cook gradually established his position within Apple by earning Jobs’ trust through outstanding supply chain management.

Notably, in 2004, when Jobs took a two-month medical leave due to pancreatic cancer surgery, the person entrusted with the CEO role was Tim Cook. Having joined Apple only six years earlier, Cook had become someone Jobs trusted absolutely. In 2005, Cook was promoted to Chief Operating Officer (COO).

Although Cook earned Jobs’ trust and became CEO, concerns about Apple under Cook’s leadership remained prevalent both inside and outside the company. Yet, the past 10 years under Cook’s leadership have been proven successful by the numbers. During Cook’s decade at the helm, Apple achieved the milestone of being the first American company to surpass a $2 trillion market cap. When Cook became CEO, Apple’s market cap was $349 billion; it has now grown more than sevenfold to over $2.5 trillion.

▲Tim Cook, Apple CEO [Image source=Reuters News Agency]

According to The Economist’s data, Cook increased Apple’s market capitalization by an average of $210.3 billion (approximately 245 trillion KRW) annually over 10 years. This figure far exceeds that of Tesla CEO Elon Musk ($60 billion annually) and Amazon founder Jeff Bezos ($76.8 billion annually).

Annual revenue also more than doubled from $108 billion 10 years ago to $274 billion today. Net profit doubled to $57 billion compared to the Jobs era, making Apple the most profitable company in the world.

CNBC predicted, "Apple’s market capitalization could reach $3 trillion as early as next year (2022)."

Apple’s workforce has also grown significantly over the past decade. When Cook took office, Apple had 60,400 full-time employees; as of last fall, the number had risen to 147,000.

Tim Cook has not only driven Apple’s quantitative growth but also emphasized corporate social responsibility, enhancing the brand’s value. The Economist described Cook as "the first CEO of a company like Apple to declare that it must fulfill its responsibilities to humanity and the environment."

Cook differs from Jobs in many ways, but his passion for work is no less. Cook is known as a workaholic. His routine of waking up at 4:30 a.m. to check emails, exercising for an hour, and starting work shortly after 6 a.m. is well known. He is also known for holding meetings on Sunday evenings and consistently being the first to arrive and last to leave the office.

▲Tim Cook, Apple CEO [Image source=AP News]

Despite Apple’s remarkable growth under Cook’s leadership, significant challenges remain. High dependence on China is a major issue. To reduce demand fluctuation risks, Apple follows a fabless business model rather than establishing its own factories, but most fabless factories are located in China. Antitrust issues related to sales methods in the app market are also important challenges. Apple mandates in-app payments for all companies on its App Store, collecting a 30% commission. However, there is growing criticism that Apple’s payment method is unfair. Discovering the next growth engine is another challenge for CEO Cook.

CNBC pointed out, "Apple is developing technology to enter the healthcare sector, but aside from the Apple Watch, it has yet to introduce any new services."

Cook has also become a billionaire, an unusual feat for a salaried CEO. Recently, Cook received over 5 million Apple shares, selling most of them to pocket about 900 billion KRW.

According to a report by CNBC citing documents Apple submitted to the U.S. Securities and Exchange Commission (SEC), Cook received a large compensation package on the 10th anniversary of his appointment as Apple CEO. When Cook became CEO 10 years ago, he signed a compensation contract that granted Apple shares based on Apple’s performance relative to S&P 500 companies. Over Cook’s 10 years as CEO, Apple’s stock price rose 1,200%. CNBC reported that Cook’s excellent management performance allowed him to receive Apple shares up to the maximum limit of his compensation contract.

Cook sold most of the shares he received this time, converting about $750 million (approximately 880 billion KRW) into cash.

Earlier, Cook pledged to donate $10 million worth of Apple shares to a charity. Meanwhile, Cook signed a new compensation contract with Apple last year. The new contract runs until 2026, with most of the compensation in Apple shares.

This content was produced with the assistance of AI translation services.