Apple names insider John Ternus as CEO, Cook to become executive chairman
Ternus, who joined Apple in 2001 and has maintained a quiet but determined presence behind the scenes as it develops its products over the years, has played a key role in revitalizing sales of products such as Apple’s Mac computers, which have gained market share against PCs.
Ternus, 50, is the same age Cook was when he took over CEO duties from Apple co-founder Steve Jobs. It last showed off the company’s iPhone Air last fall; This was the iPhone’s biggest refresh since 2017 and a major proving ground for many new chips.
Despite its low external profile, Ternus helped launch now-ubiquitous products like iPads and AirPods. He will be tasked with helping Apple, which lost its crown as the world’s most valuable company to Nvidia, navigate the technology landscape turned upside down by artificial intelligence.
It also helped sharpen the differences between Apple’s product lines by introducing “Pro” models of Macs and iPhones that took their technological capabilities and prices to new heights, while also introducing offerings like the MacBook Neo and iPhone “e” models at some of Apple’s lowest prices ever.
Ternus will have to fend off competitors like Nvidia, which has announced its own personal computer and is working on chips that could power laptops, as well as Meta Platforms, whose augmented reality glasses have become a surprise hit with just a fraction of the capabilities and price tag of Apple’s Vision Pro headset.
“The introduction of Mr. Ternus indicates that the company will focus on new hardware devices such as folding phones, glasses, VR devices and AI pins,” said Gil Luria, managing director of DA Davidson & Co. Perhaps the biggest challenge Ternus will face will be how to integrate AI into the iPhone, the most successful consumer product in history, and the rest of Apple’s lineup. Earlier this year, Apple struck a deal with Alphabet’s Google, its long-time smartphone rival, to use Google’s Gemini to develop its Siri virtual assistant.
Although Apple introduced a form of artificial intelligence to the public imagination with Siri in 2011, it has not yet signed a hardware or software product focused on new artificial intelligence technologies; Emerging competitors such as OpenAI have attracted hundreds of millions of users.
“I think their biggest challenge and efforts will be focused on getting a better AI story and delivering a combination that relies more on Apple’s own capabilities and less on third parties,” said Bob O’Donnell, president of technology consulting firm TECHAnalytics Research.
COOK SUPERVISED HISTORICAL GROWTH
Apple said in a statement that Cook will become chairman of the company’s board of directors. Apple shares have increased twentyfold since Cook took over as CEO in August 2011.
Cook was hired by Jobs at a time when Compaq was at the height of the PC boom of the 1990s and Jobs was trying to save Apple from the brink of bankruptcy.
Although Cook first gained fame at Apple by establishing its expanding supply chain in China, he has become a famous CEO in his own right over the years. He was the first Fortune 500 CEO to come out as gay in 2014 and has taken public stances on issues such as workplace diversity and corporate sustainability.
The company said that Cook, who presented a special gold plaque to US President Donald Trump, will continue to meet with policy makers.
In selecting its CEO, Apple transitions Ternus from a supply chain guru who helped transform Apple into a global brand that produces hundreds of millions of units annually into a leader who has long focused on design and products.
Ben Bajarin, CEO of technology consultancy Creative Strategies, said Ternus is well-liked within Apple and will “bring fresh energy.”
Separately, Apple said it has appointed Johny Srouji, who oversees Apple’s custom chip and sensor designs, as head of hardware. Srouji will continue to oversee this group, along with the hardware engineering group that Ternus once led, which will now be overseen by Tom Merieb.
