In 2009, when Steve Jobs was in the advanced stages of his battle with cancer, Tim Cook offered to donate him a portion of his liver because both men shared a rare blood type.
Although Jobs turned down the offer, it was a symbol of the remarkably close relationship between the two men at the helm of Apple, a company which Cook had joined 11 years earlier.
“I’ll never let you do that,” Jobs allegedly said at the time.
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Two years later, when Cook was appointed to lead Apple a few weeks before his predecessor’s death, there were inevitable questions over his suitability for the job.
Certainly they were big shoes to fill.
Could Mr Cook, a vastly different character from Steve Jobs – less abrasive and more technocrat than tech visionary – successfully steer Apple towards a brighter future?
This week, as investors lick their wounds following Apple’s announcement that it was cutting its revenue outlook for the first time in nearly two decades triggered a 7pc fall in its share price, it would be easy to rehearse the familiar argument that Cook was the wrong man for the job.
To do so would be simplistic and unfair.
In spite of this week’s stumble, Cook’s seven-year tenure at Apple has been by any measure an extraordinary success.
Propelled by spectacular sales of the iPhone, Apple has enjoyed one of the most spectacular runs in the history of Wall Street, culminating this October when the company’s market valuation exceeded $1 trillion – making it the world’s most valuable company.
Naturally, a 32pc plunge in Apple’s share price since then to a close of $157.92 on Wednesday is unwelcome, but Mr Cook’s performance must be seen against this wider backdrop of the company’s achievements over the best part of a decade.
Of course, there is no question the company is facing big challenges – a stagnating smartphone market globally and growing challenges in China, where it is battling fierce competition from local champions like Huawei and Xiaomi.
Apple has struggled to come up with a replacement killer product to match the iPhone, a product closely identified with Jobs which still generates two-thirds of revenues.
Meanwhile, the criticism that Apple has raised prices too far too quickly is a fair one too – and one for which Cook bears responsibility. Nevertheless, while it would be easy to pin the blame on Cook, a softly spoken 58-year-old fitness enthusiast from Alabama, the truth is that much of Apple’s recent success is down to his personal creativity and focus.
It’s also worth considering that many of Apple’s current troubles are simply beyond his control. In truth, a greater share of the blame may lie with another American leader – Donald Trump, whose decision to stir up trade tensions between the US and China was always going to be problematic for global companies like Apple whose products famously declare that they are ‘designed in California. Assembled in China’.
Moreover, to expect Apple’s future to be defined by another single product like the iPhone is probably unrealistic.
The iPhone is almost unique. It’s hard to think of another consumer electronic device which has matched the device in terms of success and sales.
That is why Cook’s approach remains fundamentally sound – to focus on diversifying revenues across a broader range of products – including services and wearables like the Apple Watch.
There is evidence the approach is starting to work. First quarter revenue from wearables grew by almost 50pc year-over-year, while services generated over $10.8bn, hitting a new quarterly record in every geographic area.
To be sure, Apple needs to change its business – by cutting prices, doubling down on innovation and finding new ways to crack emerging markets like China and India, but to call for a change in leadership at this stage would be wrong. (© Daily Telegraph, London)
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Home » Analysis & Comment » Robin Pagnamenta: 'Saying Cook is at core of Apple's issues is a skin-deep analysis'
Robin Pagnamenta: 'Saying Cook is at core of Apple's issues is a skin-deep analysis'
In 2009, when Steve Jobs was in the advanced stages of his battle with cancer, Tim Cook offered to donate him a portion of his liver because both men shared a rare blood type.
Although Jobs turned down the offer, it was a symbol of the remarkably close relationship between the two men at the helm of Apple, a company which Cook had joined 11 years earlier.
“I’ll never let you do that,” Jobs allegedly said at the time.
Please sign in or register with Independent.ie for free access to this article.
Sign In
New to Independent.ie? Sign up
Two years later, when Cook was appointed to lead Apple a few weeks before his predecessor’s death, there were inevitable questions over his suitability for the job.
Certainly they were big shoes to fill.
Could Mr Cook, a vastly different character from Steve Jobs – less abrasive and more technocrat than tech visionary – successfully steer Apple towards a brighter future?
This week, as investors lick their wounds following Apple’s announcement that it was cutting its revenue outlook for the first time in nearly two decades triggered a 7pc fall in its share price, it would be easy to rehearse the familiar argument that Cook was the wrong man for the job.
To do so would be simplistic and unfair.
In spite of this week’s stumble, Cook’s seven-year tenure at Apple has been by any measure an extraordinary success.
Propelled by spectacular sales of the iPhone, Apple has enjoyed one of the most spectacular runs in the history of Wall Street, culminating this October when the company’s market valuation exceeded $1 trillion – making it the world’s most valuable company.
Naturally, a 32pc plunge in Apple’s share price since then to a close of $157.92 on Wednesday is unwelcome, but Mr Cook’s performance must be seen against this wider backdrop of the company’s achievements over the best part of a decade.
Of course, there is no question the company is facing big challenges – a stagnating smartphone market globally and growing challenges in China, where it is battling fierce competition from local champions like Huawei and Xiaomi.
Apple has struggled to come up with a replacement killer product to match the iPhone, a product closely identified with Jobs which still generates two-thirds of revenues.
Meanwhile, the criticism that Apple has raised prices too far too quickly is a fair one too – and one for which Cook bears responsibility. Nevertheless, while it would be easy to pin the blame on Cook, a softly spoken 58-year-old fitness enthusiast from Alabama, the truth is that much of Apple’s recent success is down to his personal creativity and focus.
It’s also worth considering that many of Apple’s current troubles are simply beyond his control. In truth, a greater share of the blame may lie with another American leader – Donald Trump, whose decision to stir up trade tensions between the US and China was always going to be problematic for global companies like Apple whose products famously declare that they are ‘designed in California. Assembled in China’.
Moreover, to expect Apple’s future to be defined by another single product like the iPhone is probably unrealistic.
The iPhone is almost unique. It’s hard to think of another consumer electronic device which has matched the device in terms of success and sales.
That is why Cook’s approach remains fundamentally sound – to focus on diversifying revenues across a broader range of products – including services and wearables like the Apple Watch.
There is evidence the approach is starting to work. First quarter revenue from wearables grew by almost 50pc year-over-year, while services generated over $10.8bn, hitting a new quarterly record in every geographic area.
To be sure, Apple needs to change its business – by cutting prices, doubling down on innovation and finding new ways to crack emerging markets like China and India, but to call for a change in leadership at this stage would be wrong. (© Daily Telegraph, London)
Source: Read Full Article