Tuesday, September 1st marks a new era for Apple, with John Ternus taking over as chief executive while Tim Cook transitions to executive chairman.
Ternus has several challenges ahead of him, from Apple’s advances in AI to the impact of geopolitical tensions on the company’s business.
The former head of hardware engineering takes the reins ahead of the launch of Apple’s newest iPhones, which are due to be unveiled on September 9th. That event is expected to include Apple’s first foldable phone, marking a departure for the company.
Apple will be hoping for a hit with its new iPhone. Generating excitement for new devices has become more difficult for phonemakers as hardware advances have tailed off, and Apple’s efforts to create new categories, such as the Vision Pro, have not yielded the expected results.
RM Block
But Ternus will have more than the success of new devices on his mind. AI has been a cloud hanging over Apple in recent years, with the company largely considered to be falling behind in integrating the technology into its devices.
A smarter, more context-aware Siri was announced in 2024, but was pushed back to this year as the assistant failed to live up to expectations and Apple conceded the changes needed to Siri’s architecture were more complex. Plans for Siri AI in Europe have been further delayed by Apple’s obligations under the Digital Markets Act, which compels the company to open its systems to third-party virtual assistants.
Add in the rising costs caused by the demand for AI chips, and it is clear that AI will continue to be a key issue for Apple and its new chief executive in the weeks and months ahead.
The industry is watching closely to see how Ternus will shape the management team to lead the company. Chief operating officer Sabih Khan and chief financial officer Kevan Parekh are expected to take on more responsibility, forming a key part of his team, while Cook will remain on hand to help manage the relationships with US president Donald Trump and officials in the Chinese government.
But Ternus is reportedly facing the exit of some of the key figures in Apple’s executive team, with marketing chief Greg Joswiak, head of retail and people Deirdre O’Brien, and former chief financial officer Luca Maestri among the people expected to depart over the next couple of years.
Despite the backup of Cook, the China issue is likely to weigh on Ternus’s mind. The ongoing tensions between the US and China have seen the company shift some of its manufacturing operations to other countries such as India and Vietnam. But Apple is still reliant on China in key parts of its supply chain, and any escalation between Washington and Beijing could have repercussions for the business.
