Tim Cook is stepping down as Apple CEO. Who will replace him?
Tim Cook is stepping down at the peak of the company's capitalization at $4 trillion, but at a very difficult moment: while Nvidia and Meta are taking over the AI and augmented reality market, Apple urgently needs a new technological breakthrough.
Tim Cook and John Ternus. Photo: Apple
Apple has announced that 50-year-old John Ternus will become its new CEO starting September 1. Tim Cook, who took over the company in 2011 after Steve Jobs' resignation, will become the executive chairman of the board of directors. Ternus, whose contribution to Apple over the past 25 years cannot be overstated, is the most suitable person to lead the company, Cook said, writes the BBC.
65-year-old Cook joined Apple in 1998. In over 14 years of his leadership, the company's capitalization grew from $350 billion to $4 trillion, and revenue from $108 billion in 2011 to $416 billion in the last fiscal year.
Under Cook, Apple released Apple Watch, AirPods, and Apple Vision Pro, and launched services such as iCloud, Apple Pay, Apple TV, and Apple Music.
50-year-old Ternus is Apple's Senior Vice President of Hardware Engineering. He joined Apple in 2001 and played a key role in revitalizing sales of products such as Mac computers, which have increased their market share in recent years.
Ternus has served as head of the hardware engineering division since 2021 and has dedicated 25 years to product development at the iPhone manufacturer.
Ternus is the same age as Cook when he assumed CEO duties from Apple co-founder Steve Jobs.
His latest achievement was the presentation of the iPhone Air last autumn — the biggest iPhone update since 2017. This is a key platform for testing new chips.
Ternus, who participated in the creation of the iPad and AirPods, will need to help Apple navigate the technological landscape revolutionized by artificial intelligence, after the company lost its title as the world's most valuable company, ceding it to Nvidia.
Nvidia has announced its personal computer and is working on chips for laptops, while Meta Platforms has developed augmented reality glasses that have become a hit, although they possess only a fraction of the capabilities (and cost less) than Apple Vision Pro.
"Mr. Ternus's promotion indicates that the company will focus on new hardware devices, such as foldable phones, glasses, virtual reality devices, and artificial intelligence," said Gil Luria, Managing Director at D.A. Davidson & Co.
Apple shares have increased 20-fold since Cook took over as CEO in August 2011.
Cook will continue to interact with politicians, the company said in a statement. He already oversees Apple's relations with U.S. President Donald Trump, Bloomberg reminds. According to the agency's source, Ternus's long-time deputy, Tom Marib, will head the hardware engineering division.
As Bloomberg writes, Ternus will have to define Apple's future path at a difficult moment. Despite consistent growth, the company is struggling with the implementation of artificial intelligence – a technology that promises to fundamentally change how consumers use devices.
"John Ternus possesses the mind of an engineer, the soul of an innovator, and the drive to lead with integrity and decency," Cook said in a statement. "He is a visionary whose contributions to Apple over the past 25 years cannot be overstated, and he is, without a doubt, the right person to lead Apple."
When Cook steps down as CEO, he will have served in that role for a record 15 years. During that time, he helped expand the success of the Mac and iPhone, moving into smartwatches and headphones. The company introduced new iPhones, iPads, and services like Apple Music and Apple TV, but there were also setbacks, including the self-driving car project.
Cook's tenure was also marred by failures in the field of artificial intelligence. OpenAI, Anthropic PBC, Google, and others launched their world-changing AI-based products, while Apple largely remained on the sidelines, Bloomberg comments.
According to the publication's sources, Ternus is a strong proponent of artificial intelligence and in April reorganized the hardware development division to work with a new AI platform to create new products and improve the quality of existing devices.
According to Bloomberg, new AirPods, smart glasses, and a pendant with cameras are under development, as well as smart home devices including a facial recognition display, a desktop robot, and a surveillance camera.