It is a big year for Apple. Not only is the company celebrating 50 years in business, but if rumours are true, it is also planning a revamp of its product lines to celebrate.
And it will take on the next decade or so of its existence under new leadership. In September, Tim Cook will step down from the chief executive role he has held for 15 years and become chairman. In his place will be John Ternus, the current senior vice-president of hardware engineering.
The choice of successor comes as no real surprise. Ternus was long considered the frontrunner to take over the role, a succession plan that seemed all but certain after Jeff Williams retired as Apple’s chief operating officer late last year. No doubt there have been months of careful planning behind the scenes to make sure the transition is as smooth as possible.
When Cook stepped into Steve Jobs’s shoes, it was under much tougher circumstances. The Apple founder resigned as chief executive due to ill health – he had been living with cancer for several years – and died six weeks later.
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There was no long transition period; although Cook was part of Apple’s succession plan, circumstances dictated a more abrupt change. There was also the added hurdle of stepping into the shoes of a man who was credited with turning the near-bankrupt tech giant around, and transforming it into a company that spoke of “magical” tech products.
[ Who is Apple’s new chief executive John Ternus?Opens in new window ]
Ternus, on the other hand, will have a smoother lead-in to his new role. He has worked closely with Cook for several years, and with the outgoing Apple boss transitioning to the chairman role in September, it will be several months before Ternus is officially heading up one of the world’s most valuable companies.
But what can we expect from Apple under Ternus? It is unlikely there will be any big changes. Like Cook before him, Ternus is considered a safe, steady pair of hands for Apple. He has spent half his life working at the tech giant, starting out on the Apple Cinema displays before moving on to Mac, iPad, AirPods and eventually iPhone. Since 2022, when he took over Apple Watch, Ternus has been responsible for overseeing the development of all Apple’s main products.
Analysts have noted that Ternus is inheriting a company that is in great shape. But decisions will need to be made. The iPhone has been the main engine of growth for Apple for more than a decade; the slowing growth in smartphone sales means Apple needs something else to keep it on the current trajectory.
And Ternus is, after all, the “product guy”. Expectations that he may conjure up another category-defining product for Apple to ensure it keeps growing are high.
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Ben Wood of CCS Insight pinpoints AI as one of the key areas that Ternus will need to address. Apple has hung back somewhat from the technology, with its upgrade of Siri still delayed. With Apple’s developer conference, WWDC, fast approaching, any announcements will be closely watched.
“AI is widely regarded as an area where Tim Cook decided to let others, such as Google with Gemini and OpenAI with ChatGPT, take the lead,” says Wood.
“A big question for John Ternus will be how much Apple invests in building its AI platform versus relying on other companies’ models and platforms. The decision to let others invest vast amounts of capital expenditure and pursue partnerships with companies like OpenAI, Google and Alibaba points to Apple’s near-term strategy. The timing of the new CEO’s AI strategy is likely to coincide with a correction in the AI market.”
Ternus will need to offer more than just continuity. With Apple no longer able to rely on stellar iPhone sales for growth, investors will be looking to Ternus for revolution rather than simple evolution.
It’s a difficult task. It is not as if Apple hasn’t been trying. But despite high hopes for Vision Pro, Apple’s toe-dip into augmented reality, the product hasn’t garnered the sort of interest you would expect from the company entering a new market.
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Better received was the MacBook Neo, Apple’s lower-cost addition to its laptop line-up and one that analysts have described as one of the most disruptive devices Apple has launched in years. Ternus was also heavily involved in the development of that product.
But while Ternus has inherited a company in a strong position, factors outside his control may prove more problematic. The current market turbulence and geopolitical instability may create some issues for Apple and its new chief executive, causing a bigger headache than you might expect.
“The consumer electronics industry faces a perfect storm, with memory chip shortages and the conflict in the Middle East having widespread implications for consumer confidence,” Wood says. “Apple will also need to decide how much it wants to continue its reliance on China for manufacturing.”
So Ternus will have a lot to consider in the early months of his tenure as chief executive. Apple’s usual approach for careful planning will only get things so far. The rest will be up to the whims of the market, and in some cases, political leadership. As we have seen in recent months, that is something far harder to predict.
