John Ternus takes up his role as CEO of Apple today with one goal firmly in mind: to steer the tech giant through the revolution in artificial intelligence and ensure that the company’s historic dominance continues in a new technological era.
Ternus, who has been with the company for 25 years and previously headed the hardware division, is taking charge just as Apple prepares for a highly ambitious autumn where it is expected we will see the first foldable iPhone and an intelligent display capable of personalised user recognition.
Support from the core group
Although Ternus is a master of hardware engineering – he oversaw the development of Macs, iPads and iPhones – he lacks experience in finance, legal affairs and global procurement.
To bridge these gaps, he will lean heavily on a core group of executives. Sabih Khan (chief operations officer), Kevan Parekh (chief financial officer) and Eddy Cue (services) are expected to wield more influence during this transition.
The handover is intended as a gradual transfer rather than an abrupt departure. Tim Cook, who has been at the helm of Apple since 2011 and saw the company’s market value soar, will stay on as Executive Chairman.
Cook plans to continue maintaining key geopolitical relationships, particularly with the Chinese government and US President Donald Trump. Despite his wish to spend more time at his holiday home and outdoors, Cook has stressed that Apple remains his top priority.
Ternus is seen as a natural successor and is praised by Cook for his ability to switch between high-level strategic vision and meticulous technical detail. Some observers, however, note that Ternus currently looks more like a continuation of Cook’s leadership style than a reformer. This is evident from their joint public appearances and from Ternus’s outspoken admiration for his predecessor’s way of working.
Shifts in hardware
Strategically, Ternus is shifting part of Apple’s focus. He has expressed scepticism about the Vision Pro headset, which he considers too expensive and too cumbersome for the general public. Although he is open to the category if smart glasses (codenamed N50) prove successful, he is prepared to move away from head-worn devices if they fail to gain traction.
Conversely, he is doubling down on the iPhone and dismisses claims that the device is outdated. He foresees a multi-year evolution of the phone, including thinner models and a special ‘glass’ version to mark the 20th anniversary in 2027.
Internal challenges are looming, however. Apple is facing an exodus of top engineering talent to competitors such as OpenAI, which has prompted Ternus to introduce aggressive retention bonuses and to take legal action against former employees.
Moreover, the company is struggling with a slowdown in services revenue and persistent component shortages in the supply chain. Those are areas where Cook’s operational expertise was crucial.
Generative AI
The biggest hurdle is Apple’s perceived lag in generative AI. After initial problems with its own large language models and the reorganisation of the Siri team, Apple has resorted to Google’s Gemini technology to bolster its AI capabilities.
The upcoming launch of a revamped Siri will be a litmus test for Ternus, as the company aims to transform the voice assistant from a widely criticised tool into a profitable, indispensable AI companion.
Beyond consumer products, Ternus is integrating AI into Apple’s internal design and testing workflows to accelerate innovation. He is also seeking a balance between AI’s need for data and Apple’s commitment to user privacy, opting for sensors in new AirPods and home devices that analyse the environment without recording visible video.
As the old guard of executives approaches retirement age, the company is heading into a period of significant turnover. The eventual departure of key figures such as Johny Srouji will further strengthen Ternus’s grip.
For now, the company is following a model similar to Amazon’s transition from Jeff Bezos to Andy Jassy, in which the former leader continues in a supporting role as chairman while the new CEO takes charge of day-to-day management.
Business AM
