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You genuinely believe Tim Cook has more leverage than China? By what fraction do you think Apple's profits would drop if it had to rebuild all of its factories
by laughinghan 7y ago
You genuinely believe Tim Cook has more leverage than China?
By what fraction do you think Apple's profits would drop if it had to rebuild all of its factories outside of China? By what fraction do you think China's GDP or tax revenue would drop if it kicked Apple out of China?
Even if that situation were reversed, Tim Cook answers to shareholders via a board of directors. He's legally obligated to maximize shareholder value. Who do you think the Chinese officials who want power over Taiwan answer to? What legal obligations of any kind do you think they are under?
- r00fus 7y ago> He's legally obligated to maximize shareholder value. Is this actually true? Or just a "institutional wisdom"?
- jmchuster 7y agoprobably more that he's obligated to do so to keep his job
- reaperducer 7y agoTim Cook has enough money that he doesn't need to work anymore. It's not like he's a wage ape pounding code in a cubicle all day.
- Hamuko 7y agoIt's false. It's just that it's close to what's actually true, so it's pretty easy to pass it as a fact. Basically, what a company is required to do is serve the BEST INTERESTS of its shareholders. This might not necessarily be the same as maximising shareholder value. https://www.nytimes.com/roomfordebate/2015/04/16/what-are-corporations-obligations-to-shareholders/corporations-dont-have-to-maximize-profits https://www.nytimes.com/roomfordebate/2015/04/16/what-are-co...
- laughinghan 7y agoThanks for the clarification, I hadn't seen that before. Although I don't think the distinction changes the point I made.
- musicale 7y ago"When we work on making our devices accessible by the blind, I don't consider the bloody ROI... If you want me to do things only for ROI reasons, you should get out of this stock." - Tim Cook