Apple CEO Cook is lauded by investors as he prepares for new role
NEW YORK, April 20 (Reuters) – Apple shares fell 1% in after-hours trading on Monday after Tim Cook, the communications hardware firm’s CEO, said he would step down after nearly 15 years at the helm of the world’s second most valuable company. Cook’s decision to resign in favor of longtime Apple hardware chief John Ternus surprised Wall Street and raised questions about whether the new chief could maintain the brisk pace set by his predecessor.
Cook will become chief executive on September 1 as the iPhone maker prepares for industry change spurred by artificial intelligence. He succeeded Apple founder Steve Jobs and transformed the company into a global brand producing hundreds of millions of units each year. He will be replaced by a company insider known for his focus on design and product.
“Under Cook’s leadership, Apple’s market capitalization has increased from approximately $350 billion to $4 trillion, representing an increase of more than 1,000%, and its annual revenue has nearly quadrupled, from $108 billion in fiscal 2011 to more than $416 billion in fiscal 2025. The company has significantly expanded its global footprint, especially in emerging markets; it now operates in more than 200 countries and territories. Apple has over 500 retail locations. “During his tenure, Apple more than doubled the number of countries where customers can visit an Apple Store, and Apple grew more than 100,000 team members and increased its active board to over 2.5 billion during his tenure.”
The decision will ensure that Apple’s next quarterly report, due a week from Thursday, April 30, will be watched more closely than ever before.
RICK MECKLER, PARTNER, CHERRY LANE INVESTMENTS, NEW VERNON, NEW JERSEY:
“Tim Cook has done a great job. I’m not surprised that the initial reaction was for the stock to be a little lower. But he will be the chairman of the board. I expect he will still be part of the company’s larger strategy.”
“He’s been an incredibly successful CEO who has come into a position where you would have previously thought he would be difficult to replace. As an investor, I would hate to see him leave the CEO position.”
ART HOGAN, MARKET HEAD STRATEGY, B. RILEY WEALTH MANAGEMENT, BOSTON:
“It would never have left if the numbers were bad, so I think that’s the big deal. They’re about to report the numbers and you know they’re going to be good. You know the direction is going to be positive. And you know we’re going to start hearing more about how they’re going to use AI to improve their products.”
“He was a transformative Apple CEO who always had a firm hand on the wheel. I think that will be his legacy. He had huge shoes to step into, and he was the right person for the job. That’s how he’ll be remembered.”
TIM GHRISKEY, SENIOR PORTFOLIO STRATEGIST, INGALLS & SNYDER, NEW YORK
“The company has done very well. And, you know, the stock price, the value of the company has increased dramatically. A lot of that has to do with being in the right place at the right time, but I think they’ve made the right moves and grown their user base.”
“Earnings are coming up, so he probably wanted to get that out there so it didn’t become an issue in earnings.”
(Reporting by Lewis Krauskopf, Noel Randewich; editing by Colin Barr)
