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The Last Word with Matt Cooper

What Does The Future Look Like For Apple After Tim Cook Steps Down?

23 Apr 2026

Transcription

Chapter 1: What is the main topic discussed in this episode?

0.537 - 10.138 Matt Cooper

The last word with Life Pharmacy. Over 100 local pharmacies nationwide that are always here to help. Life Pharmacy. Live better together.

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10.178 - 31.9 Andy O'Donoghue

Andy O'Donoghue is with us for Tech Thursday. Only recently, Andy, we spoke about 50 years of Apple. But I think it's appropriate now to talk about the man who's going to officially step down as chief executive on the 1st of September, Tim Cook. Because I think the figure is when Tim Cook took over after the death of Steve Jobs, Apple was worth about a trillion dollars.

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31.92 - 34.344 Unknown

350 billion. That's all.

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Chapter 2: What significant changes are expected after Tim Cook steps down?

34.384 - 35.627 Unknown

It wasn't even a trillion. No.

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35.647 - 37.53 Andy O'Donoghue

350. And it's now worth...

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37.679 - 38.961 Unknown

About $4 trillion.

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38.981 - 39.342 Andy O'Donoghue

Okay.

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39.542 - 39.742 Unknown

Yeah.

40.003 - 46.113 Andy O'Donoghue

So that's a lot of additional value in Apple created under Tim Cook's stewardship.

46.133 - 66.023 Unknown

Enormous shareholder value created since Tim Cook took over. In 2011, Matt, it's not that long. You think that's, you know... 15 years. $3.5 trillion of valuation. And this incredible growth. And it's funny because people, in a way, I think Tim Cook was almost underrated at the beginning of this.

Chapter 3: How did Tim Cook's leadership impact Apple's valuation?

66.043 - 77.338 Unknown

He was thought to be too dull and too bland. He was. And yet he's created this remarkable company without the theatrics. And people kind of came to expect the theatrics from Steve Jobs.

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77.318 - 82.992 Andy O'Donoghue

Which were essential at the time of launching the iPhone and various other Apple products.

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83.012 - 106.295 Unknown

They were. And even before that, when Steve Jobs came back, it was very important because Apple had been practically bankrupt. We spoke about that recently. And Tim Cook, of course... was hired by Steve Jobs in 1998. And Cook had grown up in Mobile, Alabama, gone to Auburn University, and had spent 12 years with IBM.

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107.016 - 130.588 Unknown

And his passion, he studied industrial engineering, I think, but his passion was, he was really good at logistics. at engineering inventory and getting product to who needed it when they needed it. And then he spent a little bit of time at Compaq. And it was when he was at Compaq that Steve Jobs went to him and got him to join Apple. And Matt, he was so critical.

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130.929 - 133.212 Unknown

People often think about people like Johnny Ive.

133.192 - 133.893 Andy O'Donoghue

For design.

134.214 - 160.697 Unknown

For design. And Tony Fadell, who went on to create Nest, but worked on the original iPod. Tim Cook was probably more important to Apple's success because in a sense, he saved it because he fixed this incredible inventory trouble that Apple had. And when he joined, he joined, I think, as a vice president of operations. and was head of worldwide operations and was responsible for, say, Apple Corks.

160.717 - 171.931 Unknown

You met him there, I understand. I did meet him. I was working in the IT department at the time. I was running the help desk one evening in IS&T and got a call from the MD's office to drop Tim Cook to dinner.

Chapter 4: What challenges will John Ternus face as the new CEO?

171.951 - 191.481 Unknown

I think he was going to Arbutus Lodge in... St. Luke's. So I went downstairs, collected him, drove him up and, you know, takes about 20, 30 minutes to come down in the traffic from Holly Hill. And I had a remarkable chat with him because he asked me what I was doing. And I was working on kind of a bill of material system integration at the time.

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191.461 - 209.536 Unknown

And Matt, he knew everything about what I was talking about. He knew about the product SKUs, even their product codes, how bill of materials worked, the sort of integration stuff that I was doing. I didn't dwell on it much at the time, but years later... I began to realise, I thought, you know, it's incredible.

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209.777 - 216.644 Unknown

His understanding of detail around the manufacturing process and around inventory and how it all works was incredible.

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217.065 - 234.664 Unknown

He took that knowledge, he ended the inventory problem that Apple had, and Apple were bleeding money, and he perfected JIT, just-in-time manufacturing, and that was, of course, the downside for this, and for Ireland as well, was that Apple lost production, Apple lost manufacturing at the time.

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234.644 - 236.568 Andy O'Donoghue

And that meant a lot of that moved out of cork.

237.35 - 252.265 Unknown

Moved out of cork and most of it. But also the subcontracting started. So that's how Apple ended up, you know, going to Foxconn, manufacturing a Viper. In China. And now, of course, we know that that's going on to India and other countries as well.

252.245 - 266.18 Unknown

So he really got to grips very early on with the inventory problem, stopped that issue, and then went on to, I think in a way, put his own stamp on Apple. And the products that he made a difference on were, you know, the watch and the wearables.

266.241 - 279.315 Andy O'Donoghue

Well, that would suggest that he put a big emphasis on hardware, was it? That Apple was very much a hardware company, even though it also did generate an enormous amount of money from recurring services businesses.

279.295 - 302.726 Unknown

And so the short answer of that is kind of, but no. The services business was Tim Cook's great success at Apple. So at the time when he joined, Apple had revenue of about $100 billion. Now it's about $400 billion a year. $100 billion of Apple's earnings this year, roughly, will come from the services business. So Tim Cook perfected the services business.

Chapter 5: What role did Tim Cook play in Apple's operational success?

372.041 - 387.005 Unknown

You get a new iPad. Oh, I can back up my old one. Your contacts are there. Your movies are there. Everything works really well. Tim Cook did a tremendous job on that. And you're right, he did. Apple Watch is a great success. At one time, it was the best selling, I think, the best selling watch in the world. An incredible business.

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387.325 - 409.05 Unknown

Also, Apple's push under him into health care, even, you know, acquiring primary care clinics in the US. We don't hear much about that here yet, but Apple have a big play to come in health care. He had some tough times along the way. For instance, Apple Car, I think, Project Titan codename. They've probably spent $3 or $4 billion on that. That's gone away, and Apple will not make a car.

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409.469 - 419.924 Andy O'Donoghue

But he hasn't wasted money on artificial intelligence, has he? Or is that a shortcoming that he should have been investing in that rather than depending on buying AI services from competitors?

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420.064 - 439.668 Unknown

It's, you know, some cynical commentators would say that perhaps Tim Smith on artificial intelligence is one of the reasons why he's going. Not early, but only two weeks ago, you and I predicted that this would happen this year. But I think that has certainly been a miss. Yeah, for sure. And so the miss on artificial intelligence is a problem.

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440.088 - 460.688 Andy O'Donoghue

Why is it a problem? Because I wonder how a lot of companies wasted money on artificial intelligence, just like Mark Zuckerberg has wasted, it's estimated about $70 billion with his madness in relation to the metaverse. And he's getting away with it because of all the money that Facebook and Instagram and the other products bring in and advertising companies.

460.668 - 474.408 Andy O'Donoghue

But could it be that Apple, by not following the others slavishly into making big AI bets, will end up having its money safely secured and ready to spend on whatever eventually emerges from the AI gold rush?

474.488 - 492.664 Unknown

Well, and you're right, I think, in a sense, because Apple are always very good at making the best out of, you know, not starting from the front of the pack. Apple tend not to invent things, but they perfect them. And artificial intelligence, Apple's play on artificial intelligence will be different because it will be about on-device intelligence. So they will do that really well.

493.025 - 512.705 Unknown

However, Zuckerberg, one of the great successes, and it's a smouldering success, is the smart glasses that Facebook make. Apple will release a set of smart glasses. Under Cook, they released, you know, their virtual reality headset. Didn't work. Apple Vision Pro. It's really hard to find an audience for a device that costs thousands of dollars.

513.126 - 533.363 Unknown

But take that tech, take the concept, put it into glasses that are fashionable. Apple are not going to get an external designer like Zeiss or somebody. or Ray-Ban like Facebook did. They're going to do it themselves. They're going to hire designers. They're going to make the coolest pair of smart glasses, which we will probably see, I suspect, next year. So artificial intelligence will be a play.

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