'If It Weren't For Tim Cook, The iPad Would Have Cost $5,000'

tim cook apple

Photo: AP

Tim Cook might not be a visionary like Steve Jobs, but that doesn’t mean he doesn’t inspire awe from people in the industry.We were recently chatting with an industry veteran, who works for one of Apple’s rivals. We were asking this person about the state of the PC business.

HP, Samsung, Acer, Dell, just to name a few, are struggling to eek out a profit from PC sales. Meanwhile, Apple is cranking along with a 45 per cent gross margin.

Our industry veteran explained the difference between Apple and the rest of the pack pretty simply: “If it weren’t for Tim Cook the iPad would cost $5,000.”

Cook was able to figure out logistics and manage the supply chain so Apple could earn those fat margins. This isn’t the first time we’ve heard people marvel at Cook’s operations ability, but it was the best phrasing for it we’ve ever heard.

It’s also a good reminder of how important Cook is to Apple.

The real reason Apple is the most valuable company in the world right now isn’t that it makes ultra-sexy iPads and iPhones. It’s because it makes ultra-sexy iPhones and iPads and charges the same price as its rivals, or less, for those gadgets.

If iPads did cost $5,000 (or more realistically $1,000 like everyone thought they would) Apple would not have sold as many. And it would have given Google another opportunity to take share from Apple in the mobile market.

Thanks to Cook’s operational brilliance no one has matched the iPad on price, and the stock has been a rocketship.

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