Apple's top hardware engineer John Ternus will lead the $4 trillion iPhone maker, as Tim Cook steps back. Will Apple chase rivals for the smartest intelligence, or deliver the best personal AI experience?
https://p.dw.com/p/5CYrRJohn Ternus takes over from Tim Cook as Apple CEO on September 1Image: Apple Inc./AFPAdvertisementWeeks after Apple's 50th anniversary, the US technology titan announced on Monday that its CEO Tim Cook would step down in September, to be succeeded by hardware engineer John Ternus.
Ternus will step into some of the biggest shoes in corporate America. Cook is credited with turning Apple from a $350 billion (€298 billion) company when he started to a valuation of over $4 trillion today.
Ternus takes over a tech giant that must keep its premium edge — the iPhone recently retook the crown as the world's most popular smartphone by sales — while pushing harder into artificial intelligence (AI).
At the same time, Apple faces intense competition, regulatory pressures and supply-chain challenges as it searches for the next phase of expansion beyond the iPhone.
In a media statement, Ternus said he was "profoundly grateful" for the chance to lead Apple, adding that he is "filled with optimism about what we can achieve in the years to come."
Rather than a designer focused on sleek aesthetics, Apple has turned to a hands-on engineering leader to guide the company through the next chapter of growth.
Ternus has spent more than a decade leading the engineering teams behind Apple's core products — the iPhone, iPad and Mac — while driving the development and launch of newer categories including the Apple Watch, AirPods and Vision Pro headset. Although the latter disappointed, the first two quickly became major hits for the company.
A quiet hardware specialist, Ternus also played a central role championing Apple's shift to designing its own chips in-house instead of relying on external suppliers like Intel. These chips are the tiny but powerful “brains” inside every device.
By creating its own, Apple could make iPhones, Macs and other products run faster, use less battery and work more smoothly with its iOS software, helping the tech giant stand out and protect its premium margins in an increasingly crowded market.
Ternus joined Apple in 2001 on the product design team after working as a mechanical engineer at Virtual Research Systems, an early pioneer of virtual reality headsets. At Apple, he rose to vice president of hardware engineering in 2013 and senior vice president in 2021.
He holds a bachelor's degree in mechanical engineering from the University of Pennsylvania.
Ternus is 50 years old, the same age Cook was when he took over from Apple co-founder and visionary Steve Jobs.
Apple continues to deliver strong growth, yet it has lagged behind rivals in AI, a technology expected to reshape how people interact with their devices.
Rivals like Google, Microsoft and OpenAI have rolled out more advanced generative AI chatbots. Upgrades to the iPhone maker's own AI platform, Apple Intelligence, along with a long-awaited overhaul of voice assistant Siri, have faced delays and relied partly on other platforms like ChatGPT.
To catch up, Apple needs to make Siri far smarter and more natural, so it's able to handle complex requests smoothly and reliably. It must also create useful new AI features that work seamlessly across its devices, while taking full advantage of the powerful chips it designs itself.
Apple will also need to turn those AI capabilities into reasons for customers to buy new devices and pay for extra services, while creating fresh products like smart glasses, foldables or robotics that feel truly useful rather than experimental.
Ternus is a strong advocate for AI and, according to Bloomberg, recently reshaped his hardware engineering division around a new AI platform designed to help with product development and improving device quality.
He is also overseeing a new lineup of devices, from smarter AirPods and glasses to a camera pendant and new smart home products such as a facial-recognition screen, tabletop robot and security camera.
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Apple must also navigate slowing iPhone sales in key markets, particularly China, where local rivals like Huawei and Xiaomi have gained ground with attractive high-end phones, aggressive pricing and strong appeal among buyers who prefer domestic brands.
It also faces ongoing regulatory pressures in the United States — its largest market — and Europe that could force changes to its App Store, app payments and ecosystem rules, potentially hitting services revenue.
Supply-chain diversification away from China remains another long-term priority amid geopolitical tensions and possible new US tariffs. Apple has shifted some production to India and Vietnam to reduce risks from trade disputes, but it has raised production costs.
Cook built unusually close ties with Chinese officials and suppliers over the years through frequent visits and public praise for local partners.
Ternus will need to maintain those relationships to protect sales and manufacturing in Apple’s second-largest market.
Apple stock fell only slightly on the announcement of a change at the top, as investors knew Apple had succession plans in place.
The timing was, however, a "surprise" for Dan Ives, global tech research head at Wedbush Securities, as Cook had expected to remain CEO for another year.
"These are big, big shoes to fill," Ives told US business channel CNBC, comparing Cook with Tesla chief Elon Musk and Microsoft's CEO Satya Nadella.
Ives doubled down on Ternus' need to prioritize Apple's AI strategy, saying Apple's success would be judged not on new tech, but "how you monetize 2.5 billion iOS devices when it comes to AI."
Analysts at DeepWater Asset Management believe Ternus has been "seen for some time as a credible successor," noting that he inherits one of Apple’s greatest assets: its culture.
"Ternus, after 25 years at Apple, is in a great spot to carry that forward. Staying true to Apple’s culture should allow Apple to pursue AI more aggressively without compromising on quality.
Chris Deaver, who formerly worked in Apple's human resources department, described Ternus as a "deep collaborator," telling The Wall Street Journal that "having a great product leader at the helm right now is a good future indicator for Apple.”
