CUPERTINO, CALIFORNIA — Apple is entering a new chapter as longtime CEO Tim Cook steps down from the company's top operating role and hands leadership to hardware chief John Ternus.
Ternus becomes CEO on September 1, while Cook moves into the role of executive chairman. The transition comes as Apple faces increasing pressure to demonstrate that it can compete effectively in artificial intelligence.
A New Leadership Test for Apple
Cook's 15-year tenure transformed Apple into one of the world's most valuable companies.
Under his leadership, Apple expanded its hardware ecosystem, strengthened its supply chain and built enormous recurring revenue from its installed base of devices.
But the company's AI strategy has become a major concern for investors.
Apple has faced criticism over delays to major improvements to Siri and other artificial-intelligence features.
Ternus now inherits responsibility for accelerating that strategy.
The challenge is larger than adding AI features to the iPhone.
Competitors are building AI assistants, autonomous systems and software ecosystems that could change how consumers interact with technology.
Apple must determine how to integrate AI without weakening the privacy and user-experience principles that distinguish its products.
The company is also continuing to reduce its dependence on China for manufacturing.
Production expansion in India and Vietnam is becoming increasingly important as U.S.-China tensions affect global supply chains.
For shareholders, Ternus represents a major leadership transition at one of the Magnificent Seven's most important companies.
The next several years could determine whether Apple remains primarily a hardware powerhouse or becomes a major AI platform.
