Apple Inc. hands torch to John Ternus as Tim Cook steps up after historic run

Key topics:Apple Inc. names John Ternus CEO, Tim Cook becomes chairmanLeadership reshuffle as Johny Srouji gains hardware oversightAI gap challenge; Ternus bets on new devices, wearables.Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox every morning on weekdays. Register here.Support South Africa's bastion of independent journalism, offering balanced insights on investments, business, and the political economy, by joining BizNews Premium. Register here.If you prefer WhatsApp for updates, sign up to the BizNews channel here..By Mark Gurman.Apple Inc. Chief Executive Officer Tim Cook will hand the reins to hardware boss John Ternus later this year, capping a 15-year tenure that turned the company into a business worth $4 trillion that spans watches, video streaming and financial services.Ternus will become CEO on Sept. 1, when Cook will transition to executive chairman, the company said in a statement Monday. Ternus, 50, has served as head of hardware engineering since 2021 and spent 25 years focused on product development at the iPhone maker. Bloomberg News previously reported that Ternus was Cook’s heir apparent.The hardware engineering division will be taken over by longtime deputy Tom Marieb, according to people with knowledge of the matter. He will report to newly named Chief Hardware Officer Johny Srouji. In that role, Srouji is gaining oversight of a freshly combined hardware engineering and hardware technologies group. .Read more:.The Economist: How do you replace a CEO like Tim Cook or Warren Buffett?.“John Ternus has the mind of an engineer, the soul of an innovator, and the heart to lead with integrity and with honor,” Cook said in the statement. “He is a visionary whose contributions to Apple over 25 years are already too numerous to count, and he is without question the right person to lead Apple into the future.”The announcement comes just weeks after the company’s 50th anniversary celebration — festivities that included a live performance at the Apple Park campus by Paul McCartney. A longtime Apple executive, who worked under both Cook and Ternus, said it “felt obvious that the celebration also doubled as a goodbye to Tim.”Ternus is a “Tim Jr.” in style and he’s likely going to “continue to run the show the way Tim did,” said the executive, who asked not to be identified in order to speak candidly. Ternus isn’t a Steve Jobs-like showman, the person said. “He’s not a marketing ace. But he’s a product guy who is also politically savvy.”Like Cook, Ternus is “probably not the guy who’s going to risk it all,” according to the person.Investors largely took the announcement in stride. After dipping nearly 2% in late trading, the shares pared their losses. They were down less than 0.5% to $271.70 by Monday evening in New York. Apple shares have gained roughly 2,000% since Cook took the CEO job in August 2011.Global AmbassadorIn the new executive chairman role, Cook will be engaging with policymakers around the world, Apple said. The 65-year-old CEO already oversees Apple’s relationship with US President Donald Trump and often travels to China to manage the company’s ties with that country. As part of the transition, longtime Chairman Art Levinson will become lead independent director.When he steps down as CEO, Cook will have served a record 15 years in the position. Over that span, he helped build on the success of the Mac and iPhone by pushing into health services, smartwatches and earbuds. Annual sales almost quadrupled to $416 billion in the last fiscal year, and Apple now touts an active installed base of more than 2.5 billion devices. .During the Cook era, the company introduced larger iPhones, multiple new iPads, and services like Apple Music and Apple TV. But there have also been flops, including the Vision Pro headset and a failed attempt to build a self-driving car. The Cupertino, California-based company spent a decade working on both.Cook’s tenure also was mired by misfires in artificial intelligence. OpenAI, Anthropic PBC, Alphabet Inc.’s Google and others have launched world-changing AI products while Apple has largely sat on the sidelines. New DevicesTernus is a strong believer in AI and reorganized the hardware engineering division this month to operate with a new AI platform designed to help with product development and improving device quality, according to people with knowledge of the matter.The incoming CEO has been leading the charge on a trio of new AI-focused wearables and new home devices, Bloomberg has reported. That lineup includes new AirPods, smart glasses and a pendant with cameras. He’s also been overseeing the development of new smart home products, including a display with facial recognition, a tabletop robot and a security camera.Cook has been preparing Ternus for the role for months, asking him at the end of last year to informally take over the company’s software and hardware design teams. He has also inherited a new hardware prototyping team in recent months and took charge of hardware engineering for the Apple Watch. In a memo to the hardware engineering group, Ternus said he is stepping away from his current role Monday. Still, he’s not going far, Ternus said. “I look forward to working with you very closely in my new role. Needless to say, I still plan to be very hands-on.”.Read more:.The Economist: Can Tim Cook stop Apple going the same way as Nokia?.Cook’s retirement as CEO adds to major executive turnover at the company — with environment chief Lisa Jackson, operations head Jeff Williams, former hardware boss Dan Riccio and longtime interface design lead Alan Dye also stepping down in recent months. There have also been shake-ups to the company’s general counsel and chief financial officer roles.“Today, we have a truly extraordinary road map, and I have never been more optimistic about Apple’s future,” Cook told employees. “That is why I have decided that now is the right time for me to transition to a new role of executive chairman.”He said he would share more details about the transition in an all-hands meeting Tuesday. .© 2026 Bloomberg L.P.

Apple Inc. hands torch to John Ternus as Tim Cook steps up after historic run

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