When John Ternus, the incoming CEO of Apple, spoke with CNBC in late 2023, his focus was squarely on the company’s technological prowess. Discussions revolved around custom silicon, advancements in device battery life, and sophisticated memory architecture – all areas he described as fundamental to creating products that resonate with consumers.
“If we build the right products with the right components within them, right silicon and other technologies, people love them,” Ternus, who had been leading Apple’s hardware division for two years prior, stated during the interview.
Ternus’ responsibilities will significantly expand on Tuesday when he officially succeeds Tim Cook, becoming only the second CEO of Apple since Steve Jobs’ departure in 2011, shortly before his passing. A 25-year veteran of the company, Ternus will now oversee the entirety of Apple’s operations, from software and devices to finance and legal affairs. Crucially, he will also be tasked with articulating a compelling vision for a company valued at $4.7 trillion, especially in an era where its artificial intelligence strategy is still evolving.
Apple representatives have characterized the leadership transition from the 65-year-old Cook to the 51-year-old Ternus as “thoughtful” and “smooth.” In an April statement announcing the succession, Ternus expressed his commitment to upholding Apple’s “values and vision.”
Since that official announcement, public appearances by Ternus have been notably scarce. Tim Cook has largely maintained his role as the public face of the company, even participating in the most recent earnings call. During that call, when directly questioned by an analyst about the competitive landscape, Ternus deferred by stating he would “reiterate what Tim said,” while also acknowledging, “There is so much opportunity for us with everything that’s happening in this space. We’re just really focused on our plans and very excited about it.”
Ternus inherits a significant advantage that Cook did not have at the outset of his tenure. While Cook is stepping down as CEO, he will transition to the role of executive chairman. According to the April statement, he will continue to engage with “policymakers around the world” and other key responsibilities. This continued involvement is a critical asset for Ternus as Apple navigates a global memory component crisis. This shortage has already compelled the company to implement price increases on its consumer electronics, a move that comes at a challenging time for consumers grappling with persistent inflation.
On his final day as CEO, Cook expressed his enthusiasm for “the next chapter.” He conveyed in a social media post, “My title changes tomorrow, but the love I have for the Apple community never will.”
According to Kathy Gersch, CEO of Kotter, a consulting firm specializing in leadership transitions, Cook’s departure presents a delicate balancing act for Apple. Ternus must now effectively convince shareholders, employees, and customers of his leadership capabilities and his vision for the company’s future, demonstrating that his approach will be distinct from his predecessor’s. “What worked for Tim Cook is not going to be the same that works for John Ternus,” Gersch noted. “The company is in a new environment. It’s going to have to keep evolving and competing.”
Gearing Up for Key Product Launches
The upcoming annual Apple launch event on September 9th is widely anticipated to be the first major public platform where a broad audience will become more acquainted with John Ternus. The event is expected to feature the unveiling of new iPhone and Apple Watch models. Historically, Tim Cook followed Steve Jobs’ lead in personally presenting major product announcements to a global audience.
In June, Apple announced price adjustments for MacBooks and iPads, attributing the increases to a significant memory component shortage. This scarcity is largely driven by the surging demand for AI chips and server infrastructure. While iPhone prices have not yet been increased, many industry analysts foresee such a move occurring early in Ternus’ leadership. Prior to the MacBook and iPad price adjustments, Cook had indicated to The Wall Street Journal that Apple would need to pass on increased costs to consumers.
This supply chain challenge is not a short-term issue. The ongoing shortage of memory and other essential components shows little sign of abating, suggesting that consumer electronics may experience sustained price increases, potentially reshaping long-term demand patterns and competitive dynamics.
Concurrently, the rapid expansion of generative AI is spurring innovation across the tech landscape. Companies like OpenAI and SpaceX are exploring new categories of computing devices, while Meta and Google are advancing their smart glasses initiatives. These developments raise pertinent questions about the future role of smartphones in a rapidly evolving technological ecosystem.
Apple’s stock has seen a year-to-date increase of approximately 17% in 2026, outperforming many of its large-cap technology peers. This performance has been attributed to a robust device upgrade cycle and market share gains against Android competitors, who are reportedly struggling more acutely with memory component constraints. However, some analysts express concern that rising device prices might mask underlying sluggishness in unit sales, a shortfall that could eventually impact other critical segments like Apple’s services division.
“If growth is coming from volume, that is great,” Brandon Nispel, an analyst at KeyBanc, commented. Nispel, who is notably one of the few analysts recommending a “sell” rating on Apple stock, added, “Investors don’t pay a premium for growth coming from price increases because it’s not sustainable.”
Beyond hardware price adjustments, Apple has also increased the subscription costs for Apple TV and its bundled service, Apple One, which includes iCloud storage, Apple Music, and other services. Furthermore, predictions suggest that Apple’s anticipated foldable iPhone, slated for release this fall, could carry a price tag as high as $2,500.
Gene Munster, managing partner at Deepwater Asset Management, believes that Ternus’ deep hardware expertise and his extensive experience in recruiting engineering talent will be invaluable as Apple embarks on a new era of device innovation. “They went with a product person, and I think that’s important,” Munster stated. He further emphasized that over the next few years, Ternus’ priority should be “lighting up recruiting and bringing in awesome talent, because they still need to reinvent themselves.”
While Apple introduced successful new products during Cook’s tenure, such as AirPods and the Apple Watch, the company has yet to deliver another industry-defining innovation. Its mixed-reality headset, the Vision Pro, has faced challenges in achieving widespread adoption.
Reports and recently discovered code snippets within a beta version of macOS indicate that Apple is actively developing a range of new product categories, including smart home devices, robotics, AirPods equipped with AI cameras, and other next-generation hardware. For Ternus to achieve significant success, the introduction of at least one major new hit product will likely be essential.
This challenge is one that Ternus has evidently been contemplating for years, as evidenced by his remarks to CNBC in 2023: “From the very beginning, we’re thinking about how are all these pieces going to come together to make the best possible product for our customers.”
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