Tim Cook, Apple Chief Executive Officer (CEO), is facing an unprecedented crisis since taking office. In the information and communications (IT) industry and the investment sector, calls for Cook's dismissal are emerging. Although Cook is considered one of the key figures who guided Apple to success after Steve Jobs passed away and significantly increased the company's corporate value, he has been showing signs of instability amid geopolitical factors resulting from U.S.-China tensions and competition in AI technology from big tech companies like Google.
Apple's traditional strategy of enhancing the technological capabilities of its production base in China while drastically lowering production costs is now turning into a 'poison' due to the exclusive tariff policies of the Trump administration. As top decision-makers and talent at Apple begin to leave the company, responsibilities are also being attributed to Cook. Attention is focused on whether Cook can succeed in revitalizing the company, which is dramatically revising its management strategies from supply chain diversification to AI investments.
◇ Apple raised its market capitalization tenfold with the 'multi-vendor' strategy
Cook, who has led Apple since 2011, is an operations management expert. Before joining Apple in 1988, he worked at IBM and Compaq. Since joining Apple, he has led overseas sales and served as interim CEO whenever Steve Jobs took medical leave. Jobs also trusted him, naming him as his successor while he was alive.
The reason Cook has been able to remain in power for 14 years is that he stabilized the supply chain and maximized operating profit. Under Cook's leadership, Apple solidified its multi-vendor strategy. This means not relying solely on one supplier for parts but dispersing procurement across multiple suppliers. Apple has maintained a strong partnership with local firms in China for a long time through this strategy. According to the industry, Apple has lowered the cost of components by adopting technologies from various component and materials companies and leaking that technology to partners in China, Taiwan, and Hong Kong to stimulate competition.
Although Apple has been criticized for being less innovative than during Jobs' era, Cook has maintained his CEO position for an extended period. During his tenure, the corporate value has soared. When Cook took office, Apple's market capitalization was about $350 billion (approximately 486 trillion won), and in 2018, it became the first company in the world to reach $1 trillion (approximately 1,389 trillion won). As of this date, Apple's market capitalization stands at approximately $3.178 trillion (about 4,182.963 billion won).
◇ From supply chain crises to antitrust lawsuits... rushing to aim for a turnaround through AI
However, the current global situation has plunged Cook and Apple into an unprecedented crisis. Under President Donald Trump's tariff policies, Apple finds it difficult to rely on cooperation with China. While the company is shifting its supply chain to India, the industry fears that manufacturing efficiency will decline, and component expenses will increase. There are already analyses suggesting that Apple may raise the price of the iPhone 17 series, which is set to be released in the second half of this year.
Apple has also become embroiled in antitrust lawsuits in the U.S. Recently, the U.S. Department of Justice sued Apple over alleged smartphone monopolization. The department argues that Apple's ecosystem restricts external apps and makes compatibility with third-party devices impossible, lowering market competition. Furthermore, it sees potential violations of antitrust laws in Apple's in-app policy, which charges developers a fee of up to 30%, and in restricting its payment service, Apple Pay, to iPhones only.
The industry is watching whether Cook can achieve a turnaround by belatedly joining the AI race. Apple has been criticized for being less aggressive in AI investments compared to its competitors. The AI features introduced this year at the annual developer conference, WWDC25, are not significantly different from those showcased by Samsung Electronics during the launch of its Galaxy S24 series last year. The release date for the 'Siri 2.0' version has been postponed. There is also serious staff turnover, with Apple losing four key AI researchers to Meta in a month.
In this crisis, Cook has been appealing for more proactive investments in AI. According to reports on the 5th, Apple is said to have begun forming a dedicated team to improve its voice assistant service, Siri, and web browser, Safari, based on artificial intelligence. Through job postings, Apple announced plans to develop a large language model (LLM) that prioritizes personal information while answering user inquiries. Until now, Apple has expressed a negative view towards AI chatbot models.
Earlier, Cook emphasized during a recent earnings conference call that 'we have made significant progress in developing a more personalized Siri, aiming for a release next year,' and that 'we are significantly expanding AI investments in both the June and September quarters, and reallocating internal resources for AI feature development.'