A new era begins
John Ternus officially becomes Apple’s chief executive on Tuesday, succeeding Tim Cook, who ends his tenure as CEO and takes on the role of executive chairman of Apple’s board of directors. Ternus’s appointment, which was announced in April, marks a significant leadership change for the company, bringing to the top job a veteran of Apple’s hardware engineering organization rather than an operations-focused executive.
Ternus has been with Apple for more than two decades and has headed its hardware engineering division since 2021. He has played a pivotal role in developing several of Apple’s flagship products, including the 2007 iMac, which was the first to feature the iconic aluminum casing. He graduated from the University of Pennsylvania in 1997 with a bachelor’s degree in mechanical engineering and joined Apple in 2001.
In announcing the transition, Cook described Ternus as a “brilliant engineer and thinker” with an eye for detail. The appointment is widely seen as significant because of Ternus’s engineering and product development background, which contrasts with Cook’s focus on operations and supply-chain management. This could mean a greater emphasis on hardware design, product development, and innovation under his leadership. Reports suggest that Ternus believes Apple needs a significant design overhaul, which could lead to real shifts in the company’s future product direction.
Challenges ahead
Ternus inherits a company that, while financially powerful, faces a set of formidable challenges. Apple’s annual revenue is comparable to Denmark’s annual economic output, and its market capitalization reached the No. 1 spot in July. Yet the consumer giant is grappling with questions about its strategy on artificial intelligence, where it faces competition from upstarts like OpenAI. A memory chip shortage threatens to squeeze Apple’s margins, and its revenue growth is slowing. Apple revealed a disappointing revenue forecast for its fiscal fourth quarter due to supply chain constraints.
The company has also faced criticism over product design stagnation. Recent launch events have mostly settled into a routine of incremental camera upgrades and spec bumps, and there have been notable misfires, including the Vision Pro headset and updates to its Siri voice-activated assistant. Apple has also sued OpenAI for stealing trade secrets, a claim OpenAI contested, saying, “we believe in fair competition and allowing people the freedom to work wherever they choose.”
A low-key style
Ternus’s leadership style is being closely watched. At a private gathering celebrating a design team executive’s 30th anniversary at the company, Ternus, who had just finished reporting quarterly earnings, worked the crowd, flashing his signature warm smile and reminiscing about memories. One attendee, who asked to remain anonymous, told Fortune that Ternus projected calm confidence and spoke with genuine excitement about Apple’s product roadmap. “It was super reassuring,” the attendee said. “He holds a tremendous amount of optimism and belief that hard things can be worked out.”
Ternus has been known for his attention to detail and craftsmanship. He once advised an engineer, Adam Mittleman, to take breaks and build relationships during the development of the first iPhone. In a 2024 commencement address, he told a story about counting grooves on steel screws to illustrate his view of craftsmanship.
At the Ted Lasso season 4 premiere, Ternus said he loves Apple and that “to have this opportunity is beyond words.” Apple declined to make Ternus available to Fortune for an interview.
Expert perspectives
Several industry observers have weighed in on what Ternus’s leadership might mean. Apple investor Gene Munster commented on Ternus’s leadership style, saying he doesn’t expect major changes to start. Jean-Louis Gassée, a former Apple executive, echoed that view, saying he does not expect the new CEO to make major changes to start. Wamsi Mohan, an analyst, said Ternus has the opportunity to be more prescriptive about device design and user interface preferences.
Looking ahead
As executive chairman, Cook will step away from Apple’s day-to-day operations but remain involved in areas where his experience and relationships could benefit the company. According to Bloomberg’s Mark Gurman, Cook is expected to continue managing Apple’s relationships with the White House and the Chinese government. These relationships have become increasingly important as Apple navigates trade policies, regulations, and supply-chain challenges amid rising component costs and competition in the smartphone arena.
Ternus will make his public debut as CEO at Apple’s product event on September 9, where the company is expected to launch a foldable phone. The event will offer a first look at how the new CEO handles the spotlight and communicates Apple’s vision in an era of intense AI competition and supply-chain pressures.