“If we build the right products with the right components within them, right silicon and other technologies, people love them,” Ternus, who took over as head of hardware two years earlier, said in the interview.
Ternus’ job gets a whole lot bigger on Tuesday, when he succeeds Tim Cook and becomes just the second CEO of Apple since Steve Jobs left in 2011, shortly before his death. The 25-year company veteran will be responsible for everything from software and devices to finance and legal, while also having to articulate a vision for a $4.7 trillion company that hasn’t yet fully executed its strategy in artificial intelligence.
Apple representatives have said the transition from the 65-year-old Cook to the 51-year-old Ternus will be “thoughtful” and “smooth.” Ternus said, when the succession was announced in April, that he would carry on Apple’s “values and vision.”
That was in a statement. Investors and customers have heard almost nothing from him in real life since then, as Cook has remained the public face of the company, even on the last earnings call a month ago. Ternus hardly made an appearance on the call, and when asked directly by an analyst about the competitive landscape, he responded by saying he would “reiterate what Tim said.”
“There is so much opportunity for us with everything that’s happening in this space,” Ternus said. “We’re just really focused on our plans and very excited about it.”
On his last day at the helm, Cook said he’s “excited for the next chapter.”
“My title changes tomorrow, but the love I have for the Apple community never will,” Cook wrote in a post on X on Monday.
His exit presents a tough balancing act for Apple when it comes to who is seen as the person guiding the ship, said Kathy Gersch, CEO of Kotter, a consulting firm focused on leadership changes and transitions. Ternus is tasked with convincing shareholders, employees and customers that he can lead the company into the future and that he’s not just doing what the old boss would do.
“What worked for Tim Cook is not going to be the same that works for John Ternus,” Gersch said in an interview. “The company is in a new environment. It’s going to have to keep evolving and competing.”
Gearing up for iPhone launch
In June, Apple announced price increases on MacBooks and iPads due to the memory crunch, which is being driven by insatiable demand for AI chips and servers. The company hasn’t yet hiked prices for iPhones, though many analysts expect such an announcement will be coming very early in Ternus’ tenure. Cook told the Wall Street Journal, shortly before the announcement about MacBooks and iPads, that Apple would have to pass higher costs on to customers.
It’s not a short-term problem. The supply shortage for memory and components shows few signs of abating, signaling that gadgets may be more expensive going forward, permanently changing demand patterns and competition.
Meanwhile, the generative AI boom has pushed other companies like OpenAI and SpaceX to explore new computing devices, while Meta and Google are advancing their efforts in smart glasses, all raising questions about whether smartphones will someday be replaced.
Apple vs. the Nasdaq this year
Apple’s stock is up about 17% so far in 2026, outpacing most of its mega-cap peers, thanks to a strong device cycle and market share gains over Android rivals that are having a harder time coping with memory scarcity. Still, some analysts worry that rising device prices will cover up sluggish unit sales, a shortfall that would eventually show up in other key areas like Apple’s services division.
“If growth is coming from volume, that is great,” Brandon Nispel, an analyst at KeyBanc and one of the very few on Wall Street who recommends selling the stock, said in an interview. “Investors don’t pay a premium for growth coming from price increases because it’s not sustainable.”
In addition to higher prices for hardware, Apple has raised prices on Apple TV and Apple One, a bundle subscription that also includes iCloud storage, Apple Music and other services. And some analysts predict that Apple’s folding phone expected this fall could cost as much as $2,500.
Ternus’ hardware expertise and his decades spent hiring engineering talent could be a boon for Apple as it enters a potentially new era of devices, said Gene Munster, managing partner at Deepwater Asset Management.
“They went with a product person, and I think that’s important,” Munster said. In the next couple years, Munster said, Ternus needs to “light up recruiting and bring in awesome talent, because they still need to reinvent themselves.”
Apple released some new products during Cook’s tenure, such as AirPods and the Apple Watch, but nothing that revolutionized the industry. Its mixed-reality headset, Vision Pro, hasn’t sold well.
The company is working on smart home gadgets, robots, AirPods with AI cameras, and other new categories of devices, according to reports as well as snippets recently found in a beta version of MacOS. For Ternus to be successful, he’s likely going to need some big new hits.
It’s a challenge he’s been pondering for years, and one he talked about with 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,” he said.
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