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Tim Cook, CEO Apple
Apple
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Tim Cook


CEO, Apple


Age:
Years as a CEO:
Tenure: 0
Industry: Software & Technology



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CEO DOSSIER

The late Steve Jobs was always going to be a tough act to follow. Tim is a proven logistics man and executor, but with Apple's stock price under pressure, can he bring forward the hit new products that prove he is an innovator and not just an iterator?

early years
Tim was born in 1960 to a working class family in the Gulf coast town of Robertsdale, Alabama. His father was employed around the local shipyards and, after Robertsdale High School, Tim earned a degree in industrial engineering from Auburn University in 1982.

From 1983-94, Tim spent 12 years with IBM, latterly as director of North American Fulfillment, where he led manufacturing and distribution functions for IBM’s personal computer division in North and Latin America. In 1988, he added an M.B.A. from Duke University's Fuqua School of Business. In 1994, Tim became the chief operating officer of the Reseller Division at Intelligent Electronics. In 1997, he became vice president of corporate materials for Compaq, where he was responsible for procuring and managing all product inventory.

Tim joined Apple in March 1998 as Senior Vice President of Worldwide Operations and also served as Executive Vice President of Worldwide Sales and Operations. In 2005, he was appointed as COO, responsible for all of the company’s worldwide sales and operations, including end-to-end management of Apple’s supply chain, sales activities, and service and support in all markets and countries. He also headed Apple’s Macintosh division and played a key role in the continued development of strategic retailer and supplier relationships, ensuring flexibility in response to an increasingly demanding marketplace. He was named the CEO of Apple on August 24, 2011, six weeks before Jobs' ultimate death October 5, 2011.


As ceo
Tim already had experience on the position of chief executive, as he had taken over for Steve Jobs during his medical leave in January 2004. In January 2011, he again stepped into the interim CEO role. In early 2012, he was awarded compensation of 1 million shares, vesting in 2021, by Apple's Board of Directors. As of April 2012, these shares are valued at US $600 million, making him the world's highest paid CEO. 

Tim has continued the Apple tradition of secrecy but has said that his predecessor, Steve Jobs, is "irreplaceable" and that he would not try to replicate him. He has hinted on improvements coming soon in Siri, the voice activated digital assistant in the iPhone, said the iPad has a long way to go and that the public will love the new things coming from Apple.

In 2012 Tim was the keynote speaker of the 30th edition of the renowned Allen & Co media conference in Sun Valley. Also in the same year, Apple had to pay US$60 million to the Chinese company Proview to settle a legal dispute over use of the iPad trademark. Proview’s CEO has suggested that Apple boss Tim Cook cracked open his own wallet to find the money.

Latest News


Away from work
Tim is a fitness fanatic and outdoor enthusiast.

In own words
"You kind of want to manage it like you're in the dairy business. If it gets past its freshness date, you have a problem."

“For years, and this will never change, Apple has been focused on innovation. Never have I seen… the things I can’t talk about today.”

"The Nike thing is a privilege. When I walk on the campuses of both companies I have a shiver that goes up my spine."

“I learned a lot from Steve. It was the saddest day of my life when he passed away. As much as you should see or predict that I really didn’t. It’s time to get on.”

“Steve was good at not accepting things ‘good’ or ‘very good’ but only ‘the very best’. It’s so unique that I’m not going to witness or permit the change of it.”

“The joy is in the journey. Life is fragile. We’re not guaranteed a tomorrow so give it everything you’ve got.”

Leadership and philosophy
Tim says he does not need to try and replace Steve Jobs, as he is irreplaceable:
I never really felt the weight of trying to be Steve. I am who I am and I’m focused on that and being a great CEO to Apple.”

When Jobs was planning his succession, he was concerned that Apple should avoid the fate of Disney, where “the business was paralysed, and people just sat around in meetings and talked about what Walt would have done.” In passing on the baton to Tim Cook, Jobs sought to lift a burden off him by instructing: “I never want you to ask what I would have done. Just do what’s right.”

Some of Tim's early moves as CEO have seen him usher in a more consensual at collaborative era at the tech giant. The firing of software and iOS lieutenant Scott Forstall was said to represent a signal that Tim preferred teamworking to big egos. Tim has made public apologies when things have gone wrong, for example when Apple's Maps app failed to deliver, in contrast to Jobs' "reality distortion field". Tim has also introduced a dividend for Apple shareholders, something which Jobs long refused to do.

So far, Apple employees seem to be on his side, awarding him a 97% approval rating on Glassdoor.com. 

Our Three Questions
1) How do you respond to critics who say you’re not a ‘product’ person? Is this a personal weakness or an area you have covered off in your top team?

2) Would you consider going down the lower-cost route to increase market share? Are the iPad Mini and iPhone 5C a precursor of things to come, and are Apple’s gross margins set on a path of continued decline?

3) Do you think that your share buyback scheme can reverse the decline in Apple’s stock price? How quickly can you bring new innovations forward?

Colleagues, Friends & Analysts' report
Mike Janes worked with Tim, and is now CEO of an event ticket site called FanSnap:
"A number of us had tickets to see the Mets that night. After hours, he was still drilling us with question after question, while we were watching the clock like kids in school. I still have this vision of Tim saying, 'Okay, next page,' as he opened yet another energy bar. Needless to say, we missed the Mets game."

Steve Doil, who worked in Cook's operations group before moving to Texas for family reasons:
"He'll ask you ten questions. If you answer them right, he'll ask you ten more. If you do this for a year, he'll start asking you nine questions. Get one wrong, and he'll ask you 20 and then 30." 

Debbie Shaw, head of Auburn's alumni association:
"Let's just say we have our fair share of alumni who like the recognition. Tim's not one of them."

Gina Gloski, a Boston-based semiconductor consultant, graduated from Auburn the same year and in the same industrial and systems engineering program:
"Tim's just not a real social person. He's not anti-social, either. He just never seemed that interested in other people. I'm a hugger and a kisser, but I'd never feel comfortable giving Tim a hug or a kiss."

Toni Sacconaghi, Apple analyst at brokerage firm Sanford C. Bernstein, before Tim's appointment as CEO:
"By default Tim Cook would be the logical guy. Yet that hasn't been spelled out. And the stakes are just higher at Apple, because Steve is larger than life, and Tim isn't a known quantity."

"Though he's capable of mirth, Cook's default facial expression is a frown, and his humor is of the dry variety. In meetings he's known for long, uncomfortable pauses, when all you hear is the sound of his tearing the wrapper of the energy bars he constantly eats.
"Like everyone else at Apple, Cook dresses casually in jeans, his graying hair cropped close in the style of Lance Armstrong, whom he idolizes. (Through a friend, Armstrong says he doesn't know Cook, though he's "heard he's a good dude.") Perhaps Cook's only notable sartorial flourish is that he always wears shoes from Nike, where he's on the board of directors. (Jobs, another sneaker wearer, is a New Balance man.)

CNN Money/Fortune:
"Cook's stamina is the stuff of legend at Apple. He often begins emailing the executives who work for him at 4:30 a.m.; worldwide conference calls can take place at any time of day. For years, Cook held a standing Sunday night staff meeting by telephone in order to prepare for yet more meetings on Monday morning."

"Mr Cook is an industry veteran who spent more than a decade with IBM, before he was lured by Mr Jobs to join Apple in the late 1990s. Given the task of turning around the fortunes of the company, which was on the brink of collapse at the time, he made some drastic - and highly effective- decisions.

BBC News:
"Mr Cook, a fitness fanatic and outdoor enthusiast, is said to be a great believer in intuitive decisions: it is this knack for doing the right thing that has won him the trust of Mr Jobs and Apple's board of directors."

Silicon Valley investor who travels in the Apple orbit:
"Nobody would make Tim Cook CEO. That's laughable. They don't need a guy who merely 'gets stuff done.' They need a brilliant product guy, and Tim is not that guy. He is an ops guy - at a company where ops is outsourced."


Date Written
13-01-2014
Sources
Apple
BBC News
CNN Money
Macworld
New York Times
TechCrunch
Apple
BBC News
CNN Money
Macworld
New York Times
TechCrunch
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Financials
Business summary
Employees: 80,300

Apple Inc., together with subsidiaries, designs, manufactures, and markets mobile communication and media devices, personal computing products, and portable digital music players worldwide. Its products and services include iPhone, a handheld product that combines a mobile phone, an iPod, and an Internet communications device; iPad, a multi-purpose mobile device; desktop computers, such as iMac, Mac Pro, and Mac mini; portable computers, including MacBook Pro and MacBook Air; a line of iPod portable digital music and media players; and iCloud, a cloud service. The company also offers a range of software products, including iOS and OS X operating system software; server software; iLife and iWork application software; and other application software consisting of Final Cut Pro, Logic Studio, Logic Pro, and its FileMaker Pro database software. It also manufactures the Apple LED Cinema Display and Thunderbolt Display; sells a variety of Apple-branded and third-party Mac-compatible and iOS-compatible peripheral products, including printers, storage devices, computer memory, digital video and still cameras, and various other computing products and supplies; and Apple TV, a device that allows customers to watch movies and television shows on their high definition televisions. The company sells its products to consumers; small and mid-sized businesses; and education, enterprise, and government customers through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers, and value-added resellers. It also sells and delivers digital content and applications through the iTunes Store, App Store, iBookstore, and Mac App Store. As of September 29, 2012, the company had 250 stores in the United States and 140 stores internationally. Apple Inc. was founded in 1977 and is headquartered in Cupertino, California.

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