Apple's 15-year cook era ends this week

The Transition

Apple's 15-year era under Tim Cook concludes this week. Cook, who was appointed CEO on August 24, 2011, following Steve Jobs's resignation, will step down on September 1, with hardware chief John Ternus formally taking over as CEO, a transition Apple's board approved unanimously in April, as reported by The News International.

Ternus first joined Apple's product design team in 2001, progressed to vice president of hardware engineering in 2013, and became senior vice president in 2021, during which he was responsible for developing iPhones, Macs, iPads, and AirPods. Unlike Cook, who had an operations background, Ternus takes charge after a career as a product engineer, The News International noted.

Cook, 65, does not leave the company. He moves into the newly created role of executive chairman, where he will continue engaging with policymakers and helping Apple navigate regulatory pressure across markets, including the US and EU. Arthur Levinson, the former chairman, becomes the new lead independent director on the same day.

Apple hosted a farewell party for Cook on August 23, a day before his 15th anniversary, according to The Information, as reported by MacRumors. Approximately 200 people gathered at the Caffé Macs cafeteria on Apple's campus, with a performance by OneRepublic. Speakers included Steve Jobs's wife Laurene Powell Jobs, former Apple COO Jeff Williams, services chief Eddy Cue, and incoming CEO John Ternus.

A Record of Growth

Cook's tenure was marked by extraordinary shareholder returns. According to CNBC, Apple shares rose around 2,205% during his 15 years, compared with the S&P 500's 560% gain. At the time of his appointment, Apple's market capitalization was $349 billion, trailing ExxonMobil by roughly $9 billion. It has since soared past $5 trillion, making Apple only the second company to reach that threshold. Exxon's market cap is currently $665 billion.

Cook achieved this value creation by innovating and protecting the iPhone business, building a services juggernaut, and putting wearables like the Apple Watch and AirPods on the map. He set the bar for stock buybacks and supply chain management under both Republican and Democratic presidents, not to mention a global pandemic. He also put custom Apple chips across the company's devices and avoided the exorbitant spending seen in the artificial intelligence arms race.

Jobs, who returned to Apple in the late 1990s and brought the company back from the brink, introduced the iPhone, which remains Apple's cash cow. Jobs died six weeks after stepping down, from pancreatic cancer at age 56.

Challenges Ahead for Ternus

Despite the strong legacy, CNBC reported that Ternus inherits a set of pressing challenges, beginning with AI competition. While Apple has avoided massive AI spending, rivals like Google, Meta, and Amazon are pouring billions into the space. Laura Martin, an analyst quoted by CNBC, said Apple will spend $20 billion in capex this year, while Google and Amazon will each spend $200 billion or more. Meta's capex guide for 2026 is $145 billion at the high end, according to the report.

Apple has struggled to find its footing in AI, with delays to a Siri revamp and a mass exodus of AI talent. The company announced a multiyear deal to integrate Google's Gemini models into Siri and the broader Apple Intelligence platform. Sundar Pichai, Google's CEO, told CNBC that Search usage hit a record high during the World Cup this year, highlighting the strength of Google's AI-powered search. Mark Zuckerberg said during a recent earnings call that "glasses are basically going to be the ideal form factor for AI," underscoring the competitive landscape.

A severe memory supply problem, which Cook described as a "100-year flood," has forced Apple to raise retail prices across its Mac and iPad lineups this summer, though no changes have been made to iPhone pricing yet. Apple has started testing chips from state-backed ChangXin Memory Technologies for devices sold in China, and has reportedly lobbied Washington to permit broader use of CXMT's products. Micron opposes this and has asked Washington to prohibit it. Commerce Secretary Howard Lutnick said the Trump administration does not want Apple to turn to the Chinese for memory, as reported by CNBC. Media reports over the weekend indicated the administration may let Apple source memory from Chinese suppliers for devices sold in China, ahead of a visit by Chinese President Xi Jinping. Micron shares fell nearly 6% on Monday, then recovered some on Tuesday, up more than 2%.

The services business, a key growth driver under Cook, generated $30.7 billion in revenue in the June quarter, up 12% year over year, but missed analysts' expectations of $31.22 billion. Apple's installed base now exceeds 2.5 billion devices. Cook said Apple doesn't have a "complete plan" for charging users, but aims to use AI as a selling point for iCloud subscriptions. Eddy Cue will remain as head of services, and he told CNBC, "You may not need an iPhone 10 years from now, as crazy as it sounds."

Wall Street has concerns about potential downgrades when Ternus takes over, and Apple shares are down roughly 9.5% since their July 28 record-high close of $340, though still up 14% year to date.

Final Product and First Keynote

The transition coincides with a low-key product announcement. Cook announced the new Mac mini on X (Twitter) with the quote: "The new Mac mini is here. Small in size. Big on performance." The refresh was announced via press release without a keynote and asks customers to bring their own display and peripherals, as MacRumors reported. Bloomberg's Mark Gurman reports that the Mac mini will likely be the final new product to debut under Cook's leadership.

Looking ahead, Apple's fall iPhone event is expected on September 9, which will be Ternus's first major product launch as CEO. Reports suggest the company may launch the iPhone 18 Pro, iPhone 18 Pro Max, and a foldable iPhone, with an ordinary iPhone 18 possibly delayed to next spring. That would make Ternus's first keynote the launch of one of Apple's biggest design changes since the iPhone X, according to The News International.

Insiders at Apple told The Information that continuity is the focus of the transition, with Cook's executive assistant staying on to work for Ternus, as reported by MacRumors.

Perspectives

• Apple leadership (incoming and outgoing): The transition is planned and orderly, with continuity emphasized, as Cook moves to executive chairman to focus on policy and regulatory matters while Ternus takes over operational leadership.
• Wall Street analysts and investors: While acknowledging Cook's success, analysts express concerns about Ternus's ability to maintain performance amid AI competition, supply chain issues, and services revenue shortfalls, with potential downgrades on the horizon.
• Competitors and suppliers: Google, Meta, and Amazon are investing heavily in AI, presenting a competitive challenge to Apple; Micron opposes Apple's use of Chinese memory chips, citing national security concerns.