Tim Cook Steps Down as Apple CEO
Apple Inc. Chief Executive Officer Tim Cook will pass the leadership to hardware chief John Ternus later this year, concluding a 15-year period that transformed the company into a $4 trillion enterprise encompassing watches, video streaming, and financial services. Ternus will assume the role of CEO on September 1, as Cook transitions to the position of executive chairman, the company announced in a statement on Monday. Ternus, 50, has held the position of head of hardware engineering since 2021 and has dedicated 25 years to product development at the iPhone maker. According to sources, longtime deputy Tom Marieb will assume control of the hardware engineering division. He will report to the newly appointed Chief Hardware Officer, Johny Srouji. Srouji is assuming oversight of a newly merged hardware engineering and hardware technologies group. Ternus is now tasked with navigating a new direction for one of Silicon Valley’s most renowned enterprises during a particularly challenging time. While Apple continues to experience robust growth, the company faces challenges in keeping pace with advancements in artificial intelligence — a technology poised to revolutionize consumer interaction with devices. “John Ternus has the mind of an engineer, the soul of an innovator, and the heart to lead with integrity and with honor,” Cook stated. “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 follows closely on the heels of the company’s 50th anniversary celebration, which featured a live performance at the Apple Park campus by Paul McCartney. A veteran Apple executive, who served under both Cook and Ternus, remarked that 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. A person remarked that Ternus does not possess the showmanship akin to that of Steve Jobs. “He’s not a marketing ace. But he’s a product guy who is also politically savvy.” Similar to Cook, Ternus is “probably not the guy who’s going to risk it all,” according to the person. Investors largely received the announcement with composure. Following a nearly 2 per cent decline in late trading, the shares reduced their losses. By Monday evening in New York, they had decreased by less than 0.5 per cent to $271.70. In his new role as executive chairman, Cook will be engaging with policymakers globally, according to Apple. The 65-year-old CEO currently manages Apple’s relationship with US President Donald Trump and frequently travels to China to oversee the company’s connections with that nation. In the course of the transition, longtime Chairman Art Levinson will assume the role of lead independent director.
Upon his departure as CEO, Cook will have completed an unprecedented 15 years in the role. During that period, he contributed to the advancement of the Mac and iPhone by expanding into health services, smartwatches, and earbuds. In the last fiscal year, annual sales surged nearly fourfold to reach $416 billion, with Apple proudly announcing an active installed base exceeding 2.5 billion devices. Under Cook’s leadership, the company unveiled larger iPhones, a range of new iPads, and services such as Apple Music and Apple TV. However, there have also been setbacks, such as the Vision Pro headset and an unsuccessful endeavor to create a self-driving car. The company based in Cupertino, California dedicated a decade to the development of both. Cook’s tenure was also marked by setbacks in artificial intelligence. OpenAI, Anthropic PBC, Alphabet Inc.’s Google, and others have introduced transformative AI products, while Apple has predominantly remained on the sidelines. Ternus firmly supports AI and has restructured the hardware engineering division this month to utilize a new AI platform aimed at enhancing product development and device quality, as reported by sources familiar with the situation. The incoming CEO has been at the forefront of a trio of new AI-focused wearables and innovative home devices, according reports. The lineup features new AirPods, smart glasses, and a pendant equipped with cameras. He has been supervising the advancement of innovative smart home products, which feature a display equipped with facial recognition, a tabletop robot, and a security camera.
Cook has been preparing Ternus for the role for months, requesting him at the end of last year to informally assume leadership of the company’s software and hardware design teams. In recent months, he has also taken on a new hardware prototyping team and assumed responsibility for hardware engineering for the Apple Watch. In a memo to the hardware engineering group, Ternus stated, “I am stepping away from my current role Monday.” “Still, he’s not going far,” Ternus said. “I look forward to collaborating closely with you in my new role.” And “I still plan to be very hands-on.” Cook’s retirement as CEO contributes to significant 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 departing in recent months. There have also been changes to the company’s general counsel and chief financial officer positions. “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 stated, “I will share more details about the transition in an all-hands meeting Tuesday.”
