Tim Cook's Reign at Apple: A Good Time To Be a Shareholder

When Steve Jobs resigned from his position as Apple CEO on August 24, 2011, the stock market reaction was surprisingly muted. After all, Jobs was considered the visionary behind Apple’s resurgence from near bankruptcy in the late 1990s, and yet, Apple’s share price dropped by less than 1 percent on the day following the change of the guard. 15 years later, it’s safe to say that shareholders were right in trusting Jobs’ judgement that the company would be in good hands with Tim Cook, who had long been groomed as Jobs’ heir apparent.

For shareholders of Apple, the tenure of CEO Tim Cook has been an unqualified success. Since taking over in August 2011, Apple’s stock has risen more than twentyfold, equivalent to an average annual return of more than 20 percent, excluding dividends. Under Cook, Apple became the first company to reach a market capitalization of $1 trillion, and the company is now worth more than $4.5 trillion.

Despite navigating multiple crises, including Trump’s trade wars, the Covid-19 pandemic and a global inflation crisis, Cook steadily drove Apple’s expansion while gradually reducing its reliance on the iPhone. The company’s services division alone now generates more than $120 billion in annual revenue, helping to boost profit margins as a positive side effect.

Even so, Cook’s successor John Ternus faces significant challenges. Apple’s artificial intelligence strategy is under scrutiny. A revamped, AI-powered Siri expected this fall will need to deliver, while Ternus also inherits the high expectations set by his predecessors. In Apple’s world, any year without new sales and profit records is likely to be seen as a disappointment, regardless of the broader economic environment.