How Tim Cook has grown the Apple empire in his decade as CEO

How Tim Cook has grown the Apple empire in his decade as CEO

How Tim Cook has grown the Apple empire in his decade as CEO

When Tim Cook took over as CEO of Apple, it was a corporate transition different from other companies. He stepped out of the shadow of one of the most famous American chief executives and took over the world’s largest technology company. The company faces some uncertainties, that is, how successful it can be.

After ten years in office, Cook now leads the world’s most valuable companies. Whether technical or otherwise – and remains one of the most influential companies. More than 1 billion people around the world use its devices. Also tens of millions of developers have established businesses on its software platform.

On August 24, 2011, Cook took over as CEO from Steve Jobs, less than two months after the death of Apple’s founder. Since then, Apple’s market value has increased by about 600% to nearly $2.5 trillion. Also, its annual income has more than doubled.

If Jobs can create breakthrough devices and redefine consumers’ technology experience, Cook may be famous for expanding Apple’s ecosystem. Building a set of subscription services and other hardware products to supplement Jobs’s core iPhone business.

Cook’s leadership

CUPERTINO, CA – JULY 28: Apple CEO Tim Cook poses for a portrait at Apple’s global headquarters in Cupertino, California on July 28, 2016. Cook has been CEO for five years; he took over for Steve Jobs shortly before Jobs’ death. (Photo by Andrew Burton/For The Washington Post via Getty Images)

Under Cook’s leadership, Apple has transformed from a high-end equipment manufacturer to a large and diversified company, with businesses ranging from payment services to Oscar-nominated television and film production studios. He oversaw the acquisitions of more than 100 companies. Including the $3 billion acquisition of Beats in 2014 and the $1 billion acquisition of Intel’s smartphone modem business in 2019.

Within Apple, CEO Tim Cook inherited a corporate culture known for being relentlessly demanding. He is now managing in the era of, scientists and technicians are increasingly vocal about social issues (Cook himself became one of the first CEOs to appear as a homosexual in 2014 and has been involved in LGBTQ + rights advocacy.)

Cook also took the helm because of major corporate mistakes such as “Batterygate” and allegations of poor working conditions in his supplier factories. A recently announced new child protection plan has also become an unexpected public relations nightmare. Over the years, he has dealt with a series of external threats to Apple’s business. Including the recent feuds with the Trump administration, the US-China trade war, and the covid -19 pandemic.

What cook didn’t do was launch another successful and destructive product like the iPhone, but he found a way to keep apple growing.

Mike Bailey, research director of FBB capital partners, said when talking about the transformation from jobs to cook: “this may be the most successful power transformation in the history of the company. ” Frankly speaking, Apple needs a cheerleader and a politician, maybe not just a micromanaged and stressed founder. “

Bailey added: “you are maintaining the Empire, not building it.”

Apple’s growth continues

In the 10 years since Tim Cook took over as CEO, Apple’s annual revenue and market value have increased significantly, by 154% and 601% respectively.

The growth of services

Apple CEO Tim Cook just after a month taking over as CEO, announced the launch of the iPhone 4S. Since then, Apple has released nearly 24 versions of the iPhone. With a wider price range, as well as a new generation of iPad, Macs, and Macbooks. Cook also supervised the launch of new hardware products. The most successful was the Apple watch in 2015 and Airpods in 2016.

But more important than the new devices under his leadership is the growth of Apple’s services business. “

From a hardware perspective, I think you can argue that it is iterative, not revolutionary, but according to my opinion it weakens his contribution to the company, “said Tom Forte, an analyst at D.A. Davidson, adding that cook expanded the concept of apple. What does he say apple is? Apple can be a music subscription service. Apple can be a fitness subscription service, and apple can be much more than an app store“

Even in his first five years in office, apple received considerable revenue from its service department, including Icloud and other products launched in October 2011; Apple podcast released in 2012; In January 2016, apple first disclosed that it had created $20 billion in service sales the previous year.

Apple services

How Tim Cook has grown the Apple empire in his decade as CEO
The Apple Fitness+ application presented virtually during the Apple Worldwide Developers Conference on a laptop computer in Tiskilwa, Illinois, U.S., on Monday, June 7, 2021. Apple is expected to announce its long-rumored 14-inch and 16-inch MacBook Pro with Apple silicon at WWDC, according to Wedbush analyst Daniel Ives. Photographer: Daniel Acker/Bloomberg via Getty Images

Since then, Apple has launched more services, including apple arcade, Apple TV +, and apple fitness +, as well as a subscription package, which further promoted the development of the business. In the fiscal year 2020, apple generated nearly $53.8 billion in service revenue, accounting for about 20% of the company’s total sales (Apple does not break out sales for personal services.)

Apple’s focus on services has reduced its dependence on iPhone sales. iPhone sales can be unstable every quarter and have begun to stabilize, even sometimes falling under Cook’s leadership. One of Cook’s priorities is to offset the slowdown in iPhone growth.

Apple still gets a lot of cash from iPhone sales every year. But now, it also gets a more stable and higher profit margin from the subscription service as a buffer for customers to keep the equipment for a longer time. These services provide consumers with more reasons to choose Apple hardware. Also, help the company get more dollars from everyone who buys its devices.

Global iPhone users surge

In the decade since Tim Cook took over as CEO of Apple, the global installation of the iPhone (a measure of active device users) has increased by more than 640%. From an estimated 135 million to about 1 billion.

What’s next?

Cook has said he does not intend to be at Apple in another 10 years. But most of the company’s followers want him to stay at least a few more days.

During this period, he will have many things to do, which may affect the company’s future. Including the long-rumored release of Apple cars and AR glasses, and the company’s continued efforts to make its own chips for its devices.

But he will also face major challenges, including Apple’s current antitrust struggle with app developers and regulators. Forte also questioned whether Apple could maintain its leading position if the growth of the Internet of things devices meant that consumers were less dependent on smartphones. Apple has not yet gained the same appeal on home-connected devices as Amazon’s Alexa. Earlier this year, Apple abandoned its original Homepod and chose a cheaper mini version.

It can be said that they (still) rely heavily on the iPhone. I’m still trying to imagine what the future will look like and what will happen when smartphones are no longer the center of the universe. “

Under the leadership of Cook, Apple has also been committed to addressing the impact on the environment. Including the carbon neutralization plan in 2030. However, considering that the company relies on complex global supply chains and non-renewable rare earth metals to produce products, Cook is likely to have to further promote the company’s efforts in the next few years. Because climate change poses an increasing threat to human survival.

who will take over next?

Another question is who will take over and lead the world’s largest company when cook really steps down. Jeff Williams is the current chief operating officer of apple and is called Tim Cook in the technology media. If he takes over now, he will be an obvious choice. But Bailey said he is only two years younger than cook, and even in a few years, the succession plan may be more suspicious.

“It seems that no second insider is ready. So I really think this is a problem that Apple must start to solve in the next two years,” he said.

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