One of the notable events of the week is Tim Cook stepping down as CEO of Apple, the company that produces the iPhone. His journey at the helm of the tech giant shows the increasing significance of geopolitics for major global corporations.
Tim Cook may be dull, less charismatic and creative than Apple’s founder and savior Steve Jobs, but under his leadership, Apple’s market value has multiplied by thirteen. This success can be attributed in large part to his expertise in geopolitics, especially in the field of semiconductors. This knowledge was honed in his previous roles overseeing Apple’s logistics and supply chains. As a result, he possesses intimate knowledge of supply chains, production countries, mainly China and Taiwan, as well as intercontinental transportation, assembly, and distribution.
This knowledge has served him well in at least two recent instances. Firstly, during the coronavirus crisis and its impacts on supply chains, which affected Apple’s completely internationalized logistics chain but did not hinder the company’s revenue and profits from rising. Similarly, during the trade war initiated a year ago by Donald Trump, Tim Cook managed to diversify sourcing locations in less affected countries, considering manufacturing in India and reshoring production to the United States, while engaging in discussions with government officials for the benefit of his company.
Engaging with various presidents and world leaders is an essential aspect of Cook’s role. Described as boring but pragmatic, he has interacted with all American presidents, attending events such as the groundbreaking ceremony for Taiwanese semiconductor giant TSMC’s factory in Arizona alongside Joe Biden, and also contributing a million dollars from his personal funds, not Apple’s, to support Donald Trump’s inauguration celebrations. Like many corporate leaders, he has presented golden gifts to Trump in the Oval Office.
Tim Cook’s departure as CEO does not mean he is leaving the company entirely, as he will continue as Apple’s executive chairman. His responsibility will be to maintain communication with political leaders around the world, both American and European, representing the interests of the tech industry by opposing European regulations on digital services. He is expected to speak out in Brussels, as he has done in European proceedings against Apple. Similarly, in Asia, particularly in China, where decisions made by the top official are final, Cook remains engaged in consultations, being received by the leader to discuss matters. Tim Cook may be unexciting, but when he speaks, even leaders like Xi Jinping listen.
