In brief
- Tim Cook will step down as CEO in September, marking the end of a 15-year term.
- His replacement will be Apple hardware chief John Ternus, who has a reputation for sharp product ideas and design.
Apple has named insider John Ternus as its next CEO, tasking the long-time hardware chief to steer the company after Tim Cook, as the company gears up for an industry change spurred by artificial intelligence.
Ternus, who joined Apple in 2001, has played a key role in reigniting sales of products such as Apple's Mac computers, which have gained market share in recent years.
In naming Ternus chief executive, Apple is shifting from a supply-chain guru who helped turn Apple into a global brand that churns out hundreds of millions of units per year, to a leader who has long focused on design and products.
At 50, Ternus is the same age Cook was when he took over CEO duties from Apple co-founder Steve Jobs and had been considered the most likely heir to the throne.
Despite his low public profile, Ternus has helped bring about now-ubiquitous products such as iPads and AirPods.
He has also helped sharpen the distinctions among Apple's product lines by introducing "Pro" models of Macs and iPhones that pushed their technological capabilities and prices to new heights, while also introducing offerings such as the MacBook Neo and iPhone "e" models at some of Apple's lowest-ever prices.
He most recently showed the company's iPhone Air last autumn, the biggest revamp of the iPhone since 2017 and a key proving ground for several new chips.
Ternus faces several challenges
Ternus will be tasked with helping Apple navigate a technology landscape upended by AI, after losing its crown as the world's most valuable company to Nvidia.
Nvidia has announced its own personal computer and is working on chips that can power laptops.
Ternus will also have to fend off rivals such as Meta, 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 promotion of Mr Ternus indicates the company will focus on new hardware devices such as folding phones, glasses, VR devices and AI pins," said Gil Luria, managing director of financial services company DA Davidson & Co.
Perhaps the biggest challenge Ternus will face is 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 its longtime rival in smartphones, Alphabet's Google, to use Google's Gemini to try to improve its Siri virtual assistant.
Despite introducing a form of artificial intelligence to the public imagination in 2011 with Siri, Apple hasn't yet scored a hardware or software product hit centred on new AI technologies, while emerging rivals such as OpenAI have attracted hundreds of millions of users.
"I expect his biggest challenge and efforts will be focused on getting a better AI story and offering together that relies more on Apple's own capabilities and less on third parties," Bob O'Donnell, head of tech consulting firm TECHAnalysis Research, said.
Cook will become the company's executive chairman on 1 September, Apple said in a statement.
Apple stock has soared twentyfold since Cook took over as CEO in August 2011.
Cook, who presented a custom golden plaque to United States President Donald Trump will also continue to engage with policymakers, the company said.
Ben Bajarin, CEO of technology consulting firm Creative Strategies, said Ternus is well-liked within Apple "and will bring fresh energy".
Separately, Apple said that Johny Srouji, who has overseen Apple's custom chip and sensor designs, has been named chief hardware officer.
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