It’s been almost five years since Tim Cook was named Apple CEO, and during that time the company has seen some pretty incredible highs. But there have been some significant lows, too.
The recent fall in iPhone demand is perhaps the most significant setback, leading to Apple’s first quarterly decline in revenue in 13 years. Cupertino has also been criticized for releasing unpolished products and buggy software in recent years.
So, is Cook doing enough to keep Apple one step ahead of the competition, or does he need to do more? Join us in this week’s Friday Night Fight as we discuss Cook’s first five year’s as Apple CEO.
Killian Bell: We’ve spoken briefly about Apple under Tim Cook in previous Friday Night Fights, but I want to know whether you think Apple is in a better place now — or whether things have gotten worse for the company since Steve Jobs departed.
There’s been a lot of pressure on Cook in recent years as fans and investors await a revolutionary new product that’s yet to arrive. Almost everything released under Cook — with the exception of the Apple Watch — has been little more than a slightly improved version of an existing product.
Apple’s certainly in a great place right now, but could Cook be doing more five years on?
Luke Dormehl: Way to hedge your bets, Killian. So Tim Cook has led Apple to a great place, but the company could be doing more? I honestly don’t think there’s a single exec at Apple who would disagree with you.
The reality is, though, that to truly understand how good Tim Cook has been for Apple you have to go back and read the doom predictions that hit Apple in late 2011 after Steve Jobs died. At the time, virtually everyone was publicly voicing the opinion that, like Disney after Walt died, or Polaroid after Edwin Land, good times had peaked and the company was set to decline from there.
The opposite happened. Today Apple brings in four times the revenue it did in 2010, has many more employees, and is operating in plenty of new sectors — as well as proving incredibly effective at updating both its software and hardware cycles at a rate that was, frankly, unimaginable during much of Jobs’ reign at the top. Cook is an easy target in some ways, since he doesn’t possess the boundless charisma of his predecessor, but his operations expertise has continued to drive Apple’s growth — and for the most part he’s been smart about who he has positioned around him to continue that growth.
It’s not like Cook’s been shy about moving into new areas, either. There has been emphasis on new markets for the iPhone, which is inevitable, as well as a push toward the enterprise market, which you could argue was an inevitable extension of the good work that happened under Jobs. But the Apple Watch, Apple Car, Apple TV, the fruitful push into services — many of these are things Cook has led.
He’s also been great at making Apple into what he calls a “force for good” in the world. There are certainly things I’m not sure about: I’d personally like to see a more simplified product line in some cases, but it’s hard to argue that Cook is not the right man to be leading Good Ship Apple right now. Let me put it to you this way: Is there someone better and more qualified than him to be running Apple right now?
Killian: I’d like to point out that I didn’t say Cook could be doing more; I just asked you that question. I actually agree that he’s done a great job of maintaining Apple’s success up until now, but I also think he may be struggling to fill Jobs’ shoes.
In five years, Cook hasn’t revolutionized any industries in the way Jobs did. We’re still waiting for him to deliver something entirely new that could become as successful as the iPod or the iPhone, and I don’t think Apple Car will be that product. Apple is struggling in markets like China and India where it desperately needs to grow, and if iPhone demand keeps falling, what can Apple rely on?
You’ve also mentioned many times during these FNF debates that Apple has become somewhat unfocused under Cook. It has too many fingers in too many pies, and some of its products have suffered as a result. We’ve seen Maps apps that don’t work, software updates that render new iPhones totally useless, and design abominations like the Magic Mouse 2.
Apple has also given rival companies a chance to catch up under Cook. Samsung couldn’t compete with the iPhone while Jobs was in charge, but in recent years, the South Korean company has delivered greater devices with better specifications and better features — like wireless charging, water-resistance, and iris scanning — that sell incredibly well.
I can’t tell you whether there is someone out there who could do a better job than Cook — no one can. And I’m certainly not suggesting that he should be replaced anytime soon. I’m merely asking if things could be better at Apple, and I think most would agree that they could.
Luke: It’s a difficult question in some ways, I’ll agree. But the problem with people who assume that Jobs went through life revolutionizing one industry after the other aren’t entirely seeing the whole picture: there was a good ten year period in Jobs’ career from the mid-1980s until the mid-1990s when, despite a lot of the innovative projects he was involved with, nothing was clicking. Apple had a spectacular run from the early 2000s until Jobs’ death but it was also a case of his being in the right place at the right time. The iPhone, for instance, took the Newton MessagePad concept Apple had tried back in the early 1990s without much success — and attached that to the growing ubiquity of internet connectivity. The iMac and iPod also attached themselves to a spectacular period in tech history.
Cook finds himself in a post-smartphone world where connectivity is already pretty much ubiquitous in the world’s wealthiest regions. Jobs, of course, had the ability to see where things were going — but my point is that there was a long period of time when the world wasn’t yet in the right place for those technologies to find a mass market. Cook has been great at driving adoption of Apple’s existing products, while also exploring new areas which could bear real fruit 10 years from now. As he pointed out during his recent Washington Post interview, Apple may never again find another gadget that’s going to have such widespread adoption as the iPhone — but if it can make a success of enough of its areas of business (and it is) Apple will continue to go from strength to strength.
I don’t know if I can say the same for a lot of the Android OEMs you often hold up as some kind of “how to” manual in this area.
Killian: It is a difficult question. Maybe Apple won’t find another revolutionary gadget, but if it can’t, it must at least stay ahead of the pack. I don’t think it’s doing that under Cook.
The iPhone continues to sell well in the grand scheme of things because it’s so iconic, and it already has that image. But that’s only going to keep it going for so long if rival companies like Samsung continue to deliver better devices. Apple is going to have a hard time competing with the Galaxy Note 7 this fall, for instance. Slightly improved designs and better cameras aren’t enough to make up for the fact that the iPhone still lacks a number of exciting features that are commonplace on rival handsets.
Anyway, let’s hand this debate over to the readers now. Do you think Apple is in a perfect position under Cook, or could he be doing more to keep the company at the top?
Friday Night Fights is a series of weekly death matches between two no-mercy brawlers who will fight to the death — or at least agree to disagree — about which is better: Apple or Google, iOS or Android?
12 responses to “Could Tim Cook be doing a better job at Apple? [Friday Night Fights]”
During Tim Cook’s 5 years as CEO at Apple, the company’s revenues and profits have TRIPLED!
When you ask “Could Tim Cook be doing a better job at Apple?”, are you suggesting that tripling Apple’s revenues and profits in only 5 years isn’t “good enough?
Can you think of another CEO of a Fortune 100 company that has done better (or even AS WELL as that) in the past 5 years???
I think Apple was going to have revenues and profits soar with or without Tim, but they are in a downward trend now. They haven’t refreshed their product line with anything really great. It’s been a little on the stale side and I feel Tim doesn’t have passion for that part of the job. I also think Jony Ive has been spending too much time with Bono and the fashion industry and not spending time making sure they’re releasing killer products.
Their product line is really anemic now, it’s become boring and predictable, I feel as they abandoned any drive and are just now very complacent.
I’m hoping the new product refresh will have some great products, but if they don’t pull out some miracles, they might be heading towards a decline in sales which will be difficult to recover from.
What they do from here on out is Tim. The last 5 years was already in motion before Tim. I think Tim doesn’t get it with regards to product design. I don’t see much passion in their product announcements anymore as I think they are biting their lips when they do make a product announcement. What have they actually talked about in the last year? new versions of the OS and the Apple Watch.
“I think Apple was going to have revenues and profits soar with or without Tim”
Really!?!
Tim was the de facto leader of Apple in the few years while Steve Jobs was ill, even before his death. And in all that time as leader at Apple you are implying he was not actually leading the company to the incredible growth it has seen??? Perhaps you think that Tim Cook is just the guy that pushes the mail cart down the halls at Apple HQ?
It takes a very delusional mind to believe that Tim Cook’s leadership had absolutely no affect on Apple’s success… Or as you put it “Apple was going to have revenues and profits soar with or without Tim”.
“but they are in a downward trend now.”
This may come as a shock to you, but for almost 20 years Apple has had growth. And other company in the world has any success even approaching Apple’s.
The other fact that may come as a shock to you is that no company, REPEAT: NO COMPANY has record-breaking quarterly revenues and profits consistently for decades without occasional setbacks. The fact that Apple has gone for so many years without any setbacks is incredible, and what you call a “downward trend” is a setback that is long overdue, but certainly not a “downward trend” at all.
In fact, Apple pulled in $50.6 billion in sales during the recent “disappointing” quarter. That is more than the combined revenue of Google parent Alphabet ($20.3 billion) and Amazon ($29.1 billion) over the same period. Even MORE impressive, Apple’s $10.5 billion in profits last quarter was more than the profits of Alphabet/Google ($4.2 billion), Amazon ($513 million), Facebook ($1.5 billion), and Microsoft ($3.8 billion) COMBINED!
Although sales of iPhones is down currently (but analysts expect iPhone sales to rise to record levels again in the holiday quarter), Apple DOES NOT EQUAL iPhone. Unlike Samsung and other phone manufacturers, Apple has an ecosystem of platforms, hardware products, and services that no other company in the world has. An example of the benefits of that ecosystem, is that Apple’s services division has been growing at a 20% annual rate, and if it was a company on its own it would be in the Fortune 100 group of companies.
Apple has approximately 1.2 Billion customers (and growing) in its ecosystem. Owners of iMacs, MacBooks, iPhones, iPads, iPod Touch, Apple TV, Apple Watches, etc. spend money not just on the hardware that they bought, but also on the services (music subscriptions, iTunes music and video downloads, iOS apps, macOS apps, tvOS apps, watchOS apps, eBooks, Apple Pay, iCloud enhancements, etc.).
As much as you may “think” Apple is “in a downward trend”, it has been growing it’s products and services (a record amount of over $10 Billion is being spent this year on R&D, including on its car efforts).
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A CEOs work is medium to long term. The tripling in revenue was the result of Steve Jobs, although Tim Cook did at least not rock the apple cart, allowing those revenues to realise. However, what we are seeing now, 5 years later, is mostly the result of Tim Cool’s reign. I’ll be first to admit that coming up with more revolutionary products in a marketplace that is perhaps not there yet, is not easy. But there are some basics that’s very un-Apple, or un-Steve, which I really don’t like. Like the utterly convoluted product lines. Like the loads and loads of software bugs, one in particular still there after 3 iOS generations, and like the designs which are average at best. The result of these things you’ll see in the next 5 years.
I keep hearing about how great the Samsung Galaxy is and how it’s leaving the iPhone behind with “innovation” — but never how it’s actually doing it.
Wireless charging: Is this a must have? Nope, not for me. My iPhone plugs into my Mac Pro or USB wall charger just fine. Why would you force me to buy another type of charger? Would wireless charging be a benefit? Well, it might save me half a second where I don’t have to plug in my charging cable, so I’d have to say no.
Waterproofing: The iPhone is already highly water resistant and can survive over an hour in water and still work. It can even be frozen in water and survive intact. See YouTube for many video torture tests. So, complete waterproofing for the iPhone would only be a factor if I planned to go swimming with an unprotected phone. Therefore, no tangible additional benefit.
Iris scanning: Wow, there’s a must-have feature! NOT! My thumb print works just fine, and I foresee at no future time I won’t have at least one digit to be able to launch my iPhone. Why is iris scanning important to the average or even above average user?
The upshot is that ALL of Samsungs “innovations” are bells, whistles and more bells and whistles, with a lot of hot air on the side. Show me an Android feature that really is a must-have feature. Really, show me! I see dingusses and whatsits but nothing really exciting–yet all the pundits scream that Samsung and Android are so innovative. Meh.
Now what I WOULD like to see is Apple breaking the mold of “thinner is better” and making a longer lasting battery. What a concept! I love my iPhone 6 and it works extremely well for my needs. I’ll probably upgrade to the iPhone 7 or 7plus for the better camera and image stablization.
Yes, Samsung revolutionized the industry with an iris scanner which requires you to wake your device, swipe up and stare at your device awkwardly – 3 unnecessary steps to replace fingerprint scanner which takes 1 touch to unlock your device. Now im not dissing iris scanners – i think they are usefull for a handful of people – but this is the lind of bullshit you read on tech blogs. You put on a gimmick thats going to be used by maybe 5% of the population and you’re suddenly the king of innovation and every other brand is boring and going downhill…
I think the truth of it is that Samsung and the rest of the copycat universe is desperately waiting for Apple to do something riotously groundbreaking like it did with 1) the Graphic User Interface (copied by Microsoft), 2) the iPhone (copied by Samsung and every other smartphone maker), 3) iOS (copied by Google and called Android), and 4) the iPad (copied by Samsung and every other tablet maker). None of these copycat companies has come out with ANY major paradigm-shifting advances in technology like Apple has. They’re pissed that Apple hasn’t continued to give them a huge new product segment to copy, so the pundits cry “victory” when Samsung brings “retina scanning” to their phone and hail it as an innovation worthy of Steve Jobs, when I can only imagine it would have only raised a snort of derision from him as a useless gimmick. Can’t any other company truly innovate and come out with a new product/device that takes the world by storm? Apparently not, and that’s why the pundits and the tech world are so upset with Apple. Apple isn’t doing their R&D for them like they’ve done in the past.
I don’t think he could have done a better job for the company and investors. We costumers and fans have the right to expect more for our money, maybe we experienced a few disappointments, but in general I think that he’s doing a really good job. I think we should rather voice our scepticism/concern about Ive, Federighi and Dye.. They all combined could bring something new to the world.
Killian, i would love to see you question Android OEMs CEOs efforts as diligently as you question Cook’s efforts. I’d love to see you calling out Sony or HTC CEOs for ‘not revolutionizing any industry like Jobs did’. But that’s not gonna happen is it ? I understand Apple is not perfect, and that questioning and even bashing them is the popular option now – but please, don’t reduce yourself to the likes of daily mail with your articles…
One thing is clear, Tim Cook is not visionary, he’s a master at supply chain, and that would explain why they still sell iPhones with 16gb. It’s also clear that he’s been playing it safe
I do think he focused too much on iPhones and let the computer products fade, the Mac Pro line has suffered the most in my opinion, they focused too much on a “revolutionary” design but instead it killed everything the Mac Pro was. The rest of the computer line suffered terrible with the lack of upgradability options. OS X is bringing more problems than solutions with any update and the iPad line saw many missed opportunities (look at Surface)
I keep thinking that they made a mistake by firing Scott Forstall, maybe Tim Cook felt threatened by him, after all, he was one of Steve Jobs disciples, yet, it was Steve Jobs who chose Tim Cook for CEO and not Forstall. I still believe one day he’ll return and his story of comeback may be similar to Steve Jobs.
I do agree that Tim Cook’s apple has been somewhat unfocused. The fact that the iPhone 7 is probably gonna look identical to the 6 or the not so great interface of Apple Music might not happen under Jobs but neither would the philanthropy and activism.
The incessant need for new products is so funny to me though because how much space between the iPod and iPhone was there? The iMac G3 to the iPod. I just don’t think there’s any market apple could really innovate in. All the new tech that’s out now is nothing that is really needed. Just stuff techies would gush over but nothing the average lay person would need that would be life changing. At least not yet.
I do wish instead of smart watches and even bigger iPads focus on the products that are available now. Like a MacBook Pro update and stop chasing these new product lines because everyone else is doing it.