Cook hands Apple to Ternus amid AI challenges

In Short:
– Tim Cook is stepping down as Apple’s CEO, handing leadership to John Ternus while becoming executive chairman.
– Cook’s tenure increased Apple’s value significantly, but critics cite innovation struggles and production challenges.

Tim Cook’s tenure as Apple’s CEO is set to conclude as he hands over leadership to John Ternus, the company’s hardware chief.Cook’s leadership transformed Apple from a $350 billion company to a $4.5 trillion entity over 15 years.

Cook will become executive chairman, focusing on Apple’s relations with policymakers amid tensions between the U.S. and China.

He built Apple’s supply chain into a model for other manufacturers, leading to significant profit growth.

Under his guidance, Apple’s annual sales rose from $108 billion to $416 billion, with profits exceeding $112 billion last fiscal year.

The wearables division, including products like the Apple Watch, generated $35 billion in sales in fiscal 2025.

Experts note Cook fostered a strong consumer loyalty culture within Apple.

Leadership transition

Critics argue that Apple has struggled with innovation during Cook’s era.

The company faced challenges with the Vision Pro headset, which did not meet sales expectations.

Cook initiated a decade-long electric vehicle project that was abandoned in 2024, and Apple Maps suffered a problematic launch shortly after he took charge.

Ternus now faces the challenge of integrating AI into Apple’s products, as the company has lagged in this area.

The shift towards manufacturing in India and Vietnam aims to reduce dependence on Chinese production.

This strategy helps mitigate risks associated with tariffs and supply chain disruptions.

Cook’s leadership style allowed him to make difficult decisions and focus on long-term strategies, setting the stage for Ternus’s leadership.