Apple CEO Tim Cook "crosses borders" to help Nike, can it reverse the decline in performance?

According to the financial news app Zhitong Finance, when Apple Inc. (AAPL.US) launched its new iPad product line, Tim Cook not only showcased Apple's innovation, but also cleverly demonstrated his deep relationship with Nike. As the longest-serving member of Nike's (NKE.US) board of directors, Cook provided advice on leadership changes and strategic planning when Nike faced challenges from emerging brand competition and declining sales. His involvement goes beyond product launches, extending to deep influences on company operations, from supply chain management in China to technical operations, and even to the appointment of key executives. Cook's guidance has helped Nike maintain its direction during turbulent times, reflecting a long-standing and successful partnership between the two companies.

During the launch of the new iPad at Apple's headquarters in California, Tim Cook was seen wearing Nike sneakers specially designed for him, showcasing not only his personal taste but also the embodiment of his deep relationship with Nike. As the CEO of Apple and an important member of Nike's board of directors, Cook provided valuable advice on leadership changes and strategic planning when Nike faced challenges from emerging brand competition and declining sales.

However, two months before the iPad launch, Nike had warned of declining demand and began layoffs in the first half of this year. Cook played a key role in leadership changes, recommending former eBay CEO John Donahoe to be appointed as Nike's CEO, despite Donahoe retiring after only four years in office. Subsequently, Cook helped hire retired Nike veteran Elliott Hill as the new CEO.

It is understood that Cook, as Nike's lead independent director, has been a close external advisor to the company for the past 19 years. Current and former Nike and Apple employees revealed that during his tenure, Cook provided advice on issues such as China's supply chain, technical operations, and the appointment of key new executives.

When Cook joined Nike's board of directors in 2005, he was still Apple's Chief Operating Officer and a trusted assistant to Steve Jobs. At that time, the two companies were about to enter into their first collaboration, installing pedometer sensors in Nike sneakers to send fitness data to iPods. Nike warmly welcomed Cook to the board and praised his technical expertise as "a valuable asset."

In terms of operations, employees at Nike's global headquarters in Oregon mentioned that Cook occasionally provided design suggestions for retail stores and encouraged Nike to focus on core products rather than market saturation. Additionally, during the upgrade of Nike's digital ecosystem in China, including online stores, apps, and WeChat mini-programs, executives from the company's technology department often borrowed strategies from Cook on legal compliance in the Chinese region.

As Cook's career progressed, his relationship with Nike grew closer. Nike and Apple are now close partners for Apple Watch, and since 2016, the two companies have been selling collaborative watches with unique straps and dials. Nike also offers its own fitness features that Apple Watch users can install on their devices.

For most of Cook's tenure as a director, Nike has been a steadily growing company with few leadership changes. However, everything changed in 2019 when disappointing financial performance and a series of sexual harassment allegations against subordinates of then-CEO Parker disrupted his term To modernize its e-commerce operations, Nike has appointed Donna Ho as the new CEO.

Nike is currently facing its biggest turmoil in decades, with challenges for Nike's board members like Cook becoming more severe than ever before. Previously, Nike's revenue for the fourth quarter of the 2024 fiscal year, announced at the end of June, fell short of expectations and the guidance for the 2025 fiscal year was revised down, triggering a strong reaction in the capital markets, with the stock price plummeting nearly 20% on June 28th after the financial report was released.

Nike's revenue for the first quarter of the 2025 fiscal year, announced earlier this month, fell by 10.4% year-on-year, with profits dropping by 28%. As the new and old CEOs transition, Nike has withdrawn its full-year performance guidance and postponed the investor day scheduled for November to give the new CEO more time to develop a strategy to turn losses into profits. This strategy will require approval from Nike's board members like Cook