John Ternus officially takes over as Apple’s CEO, succeeding Tim Cook after his 15-year run leading the company (02/09).

Ternus becomes only the second CEO of Apple since Steve Jobs left the company in 2011.

The 51-year-old Ternus is a 25-year Apple veteran who previously led the company’s hardware organization. His new role covers software, devices, finance and legal matters, while also requiring him to set a vision for Apple, a $4.7 trillion company that has not yet fully carried out its artificial intelligence strategy.

Ternus has long focused on technology. In a CNBC interview in late 2023, he discussed custom chips, device battery life and memory architecture.

“If we build the right products with the right components within them, right silicon and other technologies, people love them,” Ternus said at the time.

Apple has described the leadership change from Cook to Ternus as “thoughtful” and “smooth.” When the succession was announced in April, Ternus said he would continue Apple’s “values and vision.”

Since the announcement, Ternus has made few public appearances while Cook has remained the company’s public face. During Apple’s latest earnings call, Ternus gave a limited response when an analyst asked about the competitive landscape, 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.”

Apple Faces Rising Memory Costs and AI Pressure

Ternus begins his tenure as Apple deals with rising memory costs and challenges in artificial intelligence. The company is also facing a global memory crisis caused by strong demand for AI chips and servers.

Apple raised prices for MacBooks and iPads in June because of the memory crunch. The company has not yet increased iPhone prices, although many analysts expect an increase early in Ternus’ tenure.

Cook said shortly before the MacBook and iPad price increases that Apple would need to pass higher costs on to customers.

The memory and component shortage is not expected to be a short-term problem. The limited signs of improvement could mean higher gadget prices in the future and changes in demand patterns and competition.

Apple’s stock is up about 17% in 2026, helped by a strong device cycle and market share gains against Android rivals that are also struggling with memory scarcity.

However, some analysts are concerned that higher device prices could hide weaker unit sales. Such a shortfall could eventually affect other parts of Apple’s business, including its services division.

“If growth is coming from volume, that is great,” Brandon Nispel, an analyst at KeyBanc and one of the few Wall Street analysts who recommends selling the stock, said. “Investors don’t pay a premium for growth coming from price increases because it’s not sustainable.”

Apple has also raised prices for Apple TV and Apple One, which includes iCloud storage, Apple Music and other services. Some analysts expect Apple’s folding phone, which is expected this fall, could cost as much as $2,500.

Ternus Faces First Major Test With iPhone Launch

Ternus is expected to make his first major appearance before a global audience on Sept. 9, when Apple holds its annual product launch event.

Apple is expected to introduce new iPhones and Apple Watches at the event. During Cook’s leadership, the CEO regularly appeared at major product launches, which attracted headlines and millions of viewers worldwide.

Cook will remain with Apple as executive chairman after stepping down as CEO. According to the April announcement, he will continue to engage with policymakers around the world.

Kathy Gersch, CEO of consulting firm Kotter, said Cook’s continued involvement gives Ternus an important ally as Apple deals with the global memory crisis.

At the same time, Ternus faces the challenge of showing shareholders, employees and customers that he can lead Apple into the future rather than simply following Cook’s approach.

“What worked for Tim Cook is not going to be the same that works for John Ternus,” Gersch said. “The company is in a new environment. It’s going to have to keep evolving and competing.”

On his final day as CEO, Cook said he was “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.

Apple Looks to New Products Under Ternus

Ternus’ experience in hardware and his decades of hiring engineering talent could benefit Apple as the company considers new device categories, according to Gene Munster, managing partner at Deepwater Asset Management.

“They went with a product person, and I think that’s important,” Munster said.

Munster said Ternus needs to “light up recruiting and bring in awesome talent, because they still need to reinvent themselves.”

Apple introduced products such as AirPods and the Apple Watch during Cook’s tenure, but neither revolutionized the industry. The company’s mixed-reality headset, Vision Pro, has also not sold well.

Apple is working on smart home gadgets, robots, AirPods with AI cameras and other new device categories, according to reports and details found in a beta version of macOS.

Ternus has been thinking about how Apple’s different products and technologies can work together for years. In 2023, he said, “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.”

PHOTO: BLOOMBERG/ADAM GRAY

This article was created with AI assistance.

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