Apple's Market Value Soars 771% Under Cook's Leadership

Apple found itself in the spotlight last week when President Trump’s trade advisor, Peter Navarro, criticized CEO Tim Cook for not expediting the relocation of manufacturing out of China. However, Apple has already made significant strides in this area. Most iPhones sold in the U.S. are now manufactured in India, and most laptops, AirPods, and other devices are produced in Vietnam. Additionally, Cook has pledged over $500 billion to new U.S. manufacturing facilities and design centers, which are expected to employ about 20,000 Americans.

Despite these efforts, the focus shifted to Cook’s tenure as CEO. This shift may be attributed to the seasonal debate that occurs during the hot midsummer months, following annual shareholder meetings, about CEO turnover. Some analysts, such as Walter Piecyk and Joe Galone at Lightshed, have called for Apple to consider replacing Cook amidst the company’s struggles with artificial intelligence. However, such attacks on Cook are misguided, as his leadership remains critically important to Apple.

While Apple has not been a pioneer in AI, it does not necessarily need to be. The company might benefit from avoiding the AI arms race, which has led to counterproductive and desperate moves from competitors. For instance, Meta has offered cash bonuses of up to $100 million to poach AI engineers from rivals. Nearly 50% of CEOs polled at the Yale CEO Summit believe that AI hype has led to significant overinvestment within their companies, with an equal proportion thinking that AI investments have been allocated inefficiently and expressing disappointment with the return on investment.

Apple’s potential partnership or outright acquisition of Perplexity could transform it into an AI leader practically overnight. There are numerous examples of companies successfully buying or partnering their way into new products or business lines, such as IBM’s acquisition of RedHat, Pfizer’s partnership with BioNTech, and Merck’s acquisition of Schering-Plough. Despite Apple’s setbacks with Apple Intelligence, a strategic move could position the company as a leader in AI.

Cook deserves a long leash as one of the most revered chief executives of our time, with an unparalleled track record of accomplishment. He faced the daunting task of succeeding the larger-than-life Steve Jobs and has transformed Apple into the world’s most valuable company. Under his stewardship, Apple’s market value has soared from $350 billion in 2011 to more than $3 trillion today. Apple became the first U.S. company to achieve a $1 trillion market capitalization in 2018, doubling that figure in 2020 and tripling it just three years later.

Despite accusations that Cook is merely a supply chain guru, his tenure has seen Apple revolutionize its product lineup, driving profound advancements for the iPhone, Mac, and iPad, and introducing industry-leading devices such as the Apple Watch, AirPods, and Apple Vision Pro. His leadership has also expanded the Apple ecosystem, launching services like Apple Pay, Apple Music, and Apple TV+. However, even supporters of Cook wonder if he may have lost his touch or creativity. CNBC anchor David Faber questioned whether there might be someone else better positioned to lead the company.

Research on age and work has shown that older workers tend to have greater sales skills and interpersonal savvy, with only modest declines in physical dexterity. Older managers are only mildly less willing to take risks and are better able to appreciate the value of new information. Historical examples, such as Benjamin Franklin, Charles De Gaulle, and Averell Harriman, demonstrate that age does not correspond with a decline in invention or leadership. At age 64, Cook is just getting started.

To strengthen Apple’s positioning, Cook could accelerate some of its $500 billion commitment for domestic manufacturing, which would send a tangible political and patriotic signal. Additionally, adding a respected technologist with AI, software, or hardware expertise to its board could benefit the company. However, Apple has remained ripe for growth and product innovation under Cook, and the attacks on him and the company are half-baked.