Apple is hurt by being so centralized Cupertino IMO. A company that big in city that small and frankly, boring, isn't going to have the best hiring pool.
I know plenty of very talented people who simply won't apply to Apple. They don't want to live in Cupertino or have to commute 2+ hours each day to go to work.
Steve Jobs was a middle-class guy trying to find his place in the world; the kind to travel India to to meet Neem Karoli Baba, shaved head, barefoot, wearing kurtas [1]. 50 years later, who grows up in Cupertino? It's no longer "middle-class". I'm sure Cupertino produces some excellent talent that did great at some top university, but I'm also sure it's not the kind that rocks the boat, or the kind that will push a "dumb decision" out of principle at work and get fired, like Jobs did back in 1985.
When I think Cupertino, the city, I don't think vibrancy of the built environment, diversity of professions, or wealth of ideas. I think comfort, complacency and quiet. The type of place that repels the kind of people who want to fight in the trenches, and slowly milds the fight out of those who do move there.
I can only assume Apple, like a lot of the Bay at this point, survives from imported talent. The kind that is hungry enough to move across the country, or across the globe, to achieve something. But if you're in demand, why would you want to work in Cupertino and not San Francisco? Or better yet New York, Shenzhen, London, Tokyo, Shanghai, Paris, etc. Money only motivates people so much, and people who are in it for the money don't stand up for or against things in the same way.
[1]: https://medium.com/macoclock/how-much-did-coming-to-india-co...