Well, it’s happened. Long awaited. Apple CEO Tim Cook passes on the baton from founder/CEO Steve Jobs in 2013, to 25 year veteran John Ternus, 50, this September. Long expected. The fifty year old who spent half his life at fifty year old Apple. Chronologically fits the Apple Way.
“Apple Inc. Chief Executive Officer Tim Cook will hand the reins to hardware boss John Ternus later this year, capping a 15-year tenure that turned the company into a $4 trillion business spanning watches, video streaming and financial services.”
“Ternus will become CEO on Sept. 1, when Cook will transition to executive chairman, the company said in a statement Monday. Ternus, 50, has served as head of hardware engineering since 2021 and spent 25 years focused on product development at the iPhone maker. Bloomberg News previously reported that Ternus was Cook’s heir apparent.”
And of course this main billiard ball strike hits other balls around the table:
“Ternus’ hardware engineering division will be taken over by longtime deputy Tom Marieb, according to a person with knowledge of the matter. He will report to newly named Chief Hardware Officer Johny Srouji. In that role, Srouji is gaining oversight of a newly combined hardware engineering and hardware technologies group.”
Deep breath, back to Ternus:
“Ternus is tasked with charting the path for one of Silicon Valley’s most storied businesses at a challenging moment. Though Apple’s growth remains strong, the company has struggled to catch up in artificial intelligence — technology that promises to transform the way consumers use devices.”
“John is the right leader to help us innovate into the future, to help us break new ground on big ideas and bold new pathways, and to ensure that the values that have made us so successful and so admired for the past 50 years will remain the core of our identity and our culture in the decades to come,” Cook told employees in a memo.”
Tim Cook of course will be around in more than spirit. As Executive Chairman, he can obviously help at all the global government relationships stuff. Kind of like what Google ex-CEO Eric Schmidt did in 2011 after a decade in the job, when he handed the CEO baton to ‘grown up’ founder Larry Page in 2011:
“In the new executive chairman role, Cook will be engaging with policymakers around the world, Apple said. The 65-year-old CEO already oversees Apple’s relationship with US President Donald Trump. As part of the transition, longtime Chairman Art Levinson will become lead independent director.”
And the needed reminders of Tim’s ups and the downs:
“When he steps down as CEO later this year, Cook will have served a record 15 years in the position. Over that span, he helped build on the success of the Mac and iPhone by pushing into health services, smartwatches and earbuds.”
“The company also introduced larger iPhones, multiple new iPads, and services like Apple Music and Apple TV. But there have also been flops, including the Apple Vision Pro headset and a failed self-driving-car project. The Cupertino, California-based company spent a decade working on both.”
“Cook’s tenure also was mired by misfires in artificial intelligence. OpenAI, Anthropic PBC, Alphabet Inc.’s Google and others have launched world-changing AI products while Apple has largely sat on the sidelines.”
“Cook leaves with the receipts. Market cap from $350B to $4T, a 10x in 14 years. Revenue from $108B to $416B, nearly quadrupled. Services from a footnote to a $100B business. He inherited a hardware company and built a recurring-revenue platform on top of it.”
Then of course we need to discuss Ternus and AI:
“Ternus is a strong believer in AI and this month reorganized the hardware engineering division to operate with a new AI platform designed to help with product development and improving device quality, according to people with knowledge of the matter.”
“He’s been leading the charge of a trio of new AI-focused wearables and new home devices, Bloomberg has reported. That lineup includes new AirPods, smart glasses and a pendant with cameras. He’s also been leading the development of new smart home products, including a display with facial recognition, a tabletop robot and a security camera.”
Again, this has been in the works for a while:
“Cook has been preparing Ternus for the role for months, asking him at the end of last year to informally take over the company’s software and hardware design teams. He has also inherited a new hardware prototyping team in recent months and took charge of hardware engineering for the Apple Watch.”
“In a memo to the hardware engineering group, Ternus said he is stepping away from his current role today. Still, he’s not going far, he said. “I look forward to working with you very closely in my new role. Needless to say, I still plan to be very hands-on.”
And a reminder of other recent changes at the company.
“The retirement of Cook as CEO caps a lengthy stretch of significant departures from the iPhone maker over the past couple of years, including environment chief Lisa Jackson, operations chief Jeff Williams, former hardware head Dan Riccio and longtime interface design lead Alan Dye. There have also been shake-ups to the company’s general counsel and chief financial officer roles.”
“Today, we have a truly extraordinary road map, and I have never been more optimistic about Apple’s future,” Cook told employees. “That is why I have decided that now is the right time for me to transition to a new role of executive chairman.” He said he would share more details about the transition in an all-hands meeting Tuesday.”
That’s it for now. It kicks off a big set of changes at Apple, while making sure it still goes about things in familiar ways and rhythms.
The Apple way of doing things will likely still continue. But a lot more to be thought through and discussed. Especially as it relates to the AI Tech Wave ahead of course. Stay tuned.
(NOTE: The discussions here are for information purposes only, and not meant as investment advice at any time. Thanks for joining us here)
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