Apple Names John Ternus Chief Executive Officer; Tim Cook Becomes Executive Chairman
Apple has named John Ternus its next Chief Executive Officer, with current Chief Executive Officer Tim Cook transitioning to the role of executive chairman. This leadership change occurs as the iPhone maker prepares for an industry shift spurred by artificial intelligence.
Mr. Ternus, who joined Apple in 2001, has served as the long-time hardware chief, quietly but steadfastly improving products over the years. He has played a key role in reigniting sales of products such as Apple’s Mac computers, which have gained market share against PCs.
At 50 years old, Mr. Ternus is the same age Mr. Cook was when he took over Chief Executive Officer duties from Apple co-founder Steve Jobs. Mr. Ternus most recently showed Apple’s iPhone Air last autumn, the biggest revamp of the iPhone since 2017 and a key proving ground for several new chips.
Despite his low external profile, Mr. Ternus has helped bring about ubiquitous products like iPads and AirPods. He will be tasked with helping Apple navigate a technology landscape upended by AI, after the organisation lost its crown as the world's most valuable company to Nvidia.
Mr. Ternus has also helped sharpen the distinctions among Apple's product lines. He introduced "Pro" models of Macs and iPhones that pushed their technological capabilities and prices to new heights, while also offering products such as the MacBook Neo and iPhone "e" models at some of Apple's lowest-ever prices.
He will need to contend with Nvidia, which has announced its own personal computer and is developing chips capable of powering laptops. Rivals such as Meta Platforms, whose augmented-reality glasses have become a surprising success, also pose a challenge with a fraction of the capabilities and price of Apple's Vision Pro headset.
Gil Luria, managing director of D.A. Davidson & Co., stated, "The promotion of Mr. Ternus indicates the company will focus on new hardware devices such as folding phones, glasses, VR devices, and AI pins."
Perhaps the biggest challenge Mr. Ternus will face is integrating 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 longtime smartphone rival, Alphabet’s Google, to use Google's Gemini in an effort to improve its Siri virtual assistant.
Despite introducing a form of artificial intelligence to the public imagination in 2011 with Siri, Apple has not yet scored a hardware or software product hit centred on new AI technologies. Emerging rivals such as OpenAI have, in contrast, attracted hundreds of millions of users.
Bob O'Donnell, head of tech consulting firm TECHAnalysis Research, commented, "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."
Mr. Cook will become the company's executive chairman, Apple said. Apple stock has soared twenty-fold since Mr. Cook took over as Chief Executive Officer in August 2011.
Mr. Cook was recruited by Mr. Jobs from Compaq during the 1990s PC boom, when Mr. Jobs was working to rescue Apple from the brink of insolvency. While Mr. Cook made his early reputation at Apple by building out its sprawling supply chain in China, he became a celebrity Chief Executive Officer in his own right over the years.
He was the first Fortune 500 Chief Executive Officer to publicly come out as gay in 2014 and took public stances on issues such as workplace diversity and corporate sustainability. Mr. Cook, who presented a custom golden plaque to U.S. President Donald Trump, will also continue to engage with policymakers, the company said.
In naming Mr. 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. Ben Bajarin, Chief Executive Officer of technology consulting firm Creative Strategies, said Mr. Ternus is well-liked within Apple "and will bring fresh energy."
Separately, Apple said Johny Srouji, who has overseen Apple's custom chip and sensor designs, has been named chief hardware officer. Mr. Srouji will continue to oversee that group, along with the hardware engineering group that Mr. Ternus once led, which will now be overseen by Tom Merieb.
John Ternus has been named Apple's new Chief Executive Officer, with Tim Cook becoming executive chairman.
Mr. Ternus, a long-time hardware chief, is tasked with navigating the AI technology landscape and integrating AI into Apple's products.
Mr. Ternus has been instrumental in improving Mac sales, developing iPads and AirPods, and creating "Pro" and "e" models for various products.
Source: REUTERS
