Apple founder Steve Jobs created the iPhone and cultivated a rockstar reputation for innovation. His successor, Tim Cook, turned the company into a globe-spanning colossus of profit. What will the next CEO, John Ternus, do to build on their legacies?
The 51-year-old Ternus “knows Apple at its core” after a quarter-century at the company, said CNN. As a senior executive since 2021, Ternus “led the hardware engineering behind Apple’s most recognizable products” like the iPhone and iPad and was “essential” in developing the new mid-price MacBook Neo.
His promotion to CEO “isn’t much of a surprise,” given that he had been seen as a front-runner to succeed Cook “for at least the last year,” CNN said. His task is to position the company for further success in the age of artificial intelligence. Ternus faces pressure to “produce success out of the gates,” Wedbush analyst Dan Ives said in a note.
An ‘Apple lifer’
Ternus is a “safe choice in a dangerous moment” for Apple, said Semafor. Cook replaced Jobs when Apple was at the “height of its influence” and built it into the first company with a $1 million market cap. The company is “still a financial juggernaut” though it does not command its former cultural cachet. Ternus is an “Apple lifer” unlikely to take Apple in a “radical new direction” that would “squander its lucrative business.” But his ascension comes as AI transforms the “entire concept of computing and technology.”
The “defining challenge” for Ternus is “fixing the company’s AI strategy,” said CNBC. Apple has so far avoided “hefty capital expenditures” on AI data centers and “punted” on its own AI model. Instead, Apple has bet that consumers will use its iPhones and other products to run AI. Choosing Ternus as CEO signals the company’s belief that the “future of AI will run through tightly integrated devices, not just software,” the University of Notre Dame’s Timothy Hubbard said to CNBC.
Apple faces an “existential challenge” figuring out “what comes after the iPhone,” said Axios. Cook “executed masterfully” to maximize iPhone’s success, but “largely sputtered” with new products like the Vision Pro and a failed attempt at building autonomous cars. Companies like Meta and Google are pushing smart glasses, and former Apple design guru Jony Ive is designing hardware for OpenAI. A new leadership era opens with Apple “chasing its next hit” product. Cook demonstrated that Apple can grow. Ternus instead “must prove that it can still innovate.”
Making ‘first-rate physical things’
Apple has put the “hardware guy in charge,” said The Wall Street Journal, and is betting on itself as a “maker of first-rate physical things” in an AI-dominated world. That means navigating “complex geopolitics threatening Apple’s supply chain” and countless “regulatory battles around the world.”
Ternus is expected to “bring back Jobs-era decisiveness” to Apple’s CEO suite, said Bloomberg. Cook was known for “incrementalism” in moving the company’s product line forward, Forrester Research’s Dipanjan Chatterjee said in a note. Ternus “must define Apple’s future as ferociously as he defends its past.”