John Ternus officially takes over as Apple’s CEO today, beginning a new chapter for the world’s most valuable technology company. But he will have little time to settle in.
Apple’s biggest product event of the year arrives on September 9, putting the new CEO immediately in the spotlight.
The company is preparing one of its most ambitious product cycles in years. The lineup is expected to include Apple’s first foldable iPhone and a new smart home display. Ternus helped oversee the development of both products during his time running the company’s hardware division.
Who is he?
Ternus, 51, has been at Apple since 2001, rising through the ranks to lead its hardware division. But as he takes the top job, he faces several major challenges.
AI becomes Ternus biggest test: Apple has struggled to match rivals since the generative AI boom began, with delays affecting its upgraded Siri and other Apple Intelligence features.
The company has also rebuilt the technology behind Siri, using Google’s Gemini models as part of that effort. Apple plans to roll out a more capable AI-powered Siri in September, giving Ternus an immediate opportunity to show whether the company can close the gap with competitors such as OpenAI and Google.
The tech giant was also behind Meta in launching Vision Pro in 2024.
Apple is also facing a chip crunch: AI companies gobble up memory chips, pushing prices higher and forcing the company to pass some of those costs on to customers.
Challenges beyond new product: Apple faces increased pressure on its services business and stiff competition for experienced hardware engineers.
The company has lost employees to rivals, including OpenAI, while several senior executives could leave or retire in the coming years.
Tim Cook’s mark on Apple
He replaced Steve Jobs in 2011, and the big question was whether Cook could keep Apple’s incredible growth story alive. But since taking the reins, he has overseen a staggering run for the tech giant: shares have climbed 2,000%, the company briefly hit a $5 trillion market cap in July, and annual iPhone sales are projected to rise to 255 million this year from 72 million in 2011, according to Counterpoint Research.
Products such as the Apple Watch and AirPods became major successes.
Although Cook’s tenure as the CEO ended yesterday, he will remain involved as the company’s executive chairman. He is expected to help manage important relationships, including those with the US government and China.