Key facts
- Tim Cook has transitioned from Apple CEO to executive chairman, effective September 1.
- John Ternus, previously head of hardware engineering, is the new CEO.
- Cook's 15-year tenure saw Apple grow from a $350 billion company to a $4.5 trillion behemoth.
- Apple faces significant challenges in artificial intelligence and is working on new AI-integrated devices.
- Cook will focus on guiding Apple's dealings with policymakers amid U.S.-China tensions.
Tim Cook has stepped down as CEO of Apple, handing leadership of the technology giant to John Ternus, the company's former head of hardware engineering. Cook will assume the role of executive chairman, where he is expected to focus on Apple's interactions with policymakers, particularly amid strained U.S.-China relations.
During Cook's 15-year tenure, which began in August 2011, Apple transformed from a company valued at $350 billion into a $4.5 trillion behemoth. He is credited with excelling in operations and supply chain management, enabling Apple to deliver its products to a mass market. Cook also cultivated a strong consumer brand loyalty and developed Apple's services business, which has become a significant revenue driver, outperforming hardware growth in recent years. Annual sales increased from $108 billion to $416 billion, with profits growing more than fourfold to $112 billion under his leadership.
However, critics have pointed to a perceived loss of innovation during Cook's era, with Apple facing challenges in defining what comes after the iPhone and lagging in artificial intelligence features. The company's ventures into electric vehicles, which were reportedly scrapped, and the high-priced Vision Pro headset have not yet yielded substantial market success. The company also faced early stumbles with products like Apple Maps.
Ternus, who has been with Apple for 25 years, including his time as an engineer for Macs and later overseeing iPads, AirPods, and iPhones, is tasked with navigating the company into the AI era. He has been instrumental in developing upcoming products, including a foldable iPhone and a smart display, as well as future innovations like AirPods with cameras and smart glasses. He will rely on other executives, such as COO Sabih Khan, CFO Kevan Parekh, and services chief Eddy Cue, for expertise in areas outside his hardware background.
Financial analysts acknowledge Cook's success in building Apple into a resilient financial powerhouse and fostering a values-driven culture. His tenure also included a notable personal disclosure in 2014, acknowledging his homosexuality, which was hailed as a significant moment for the gay rights movement.