A historic change of leadership at Apple has taken place. Tim Cook, who led the company for nearly a decade and a half, has stepped down as CEO, making way for John Ternus. The market responded with a modest decline in stock prices, but this is only the beginning of a transformation that will define the future of the tech giant.
Cook, whose era marked a period of incredible growth and expansion, will now focus on the role of executive chairman of the board. His successor is a 25-year Apple veteran from the hardware development sphere. Ternus inherits the company at a pivotal moment when its key product faces new challenges, and its position in the artificial intelligence race looks increasingly shaky.
Personnel reshuffle and departure of veterans
The changes were not limited to the CEO seat alone. Phil Schiller, the legendary marketer and longtime ally of Jobs, has stepped back from the operational management of the App Store and the organization of product presentations. These areas now come under the control of services chief Eddy Cue and Kristin Huguet Quayle. Despite Schiller retaining his status as an Apple Fellow, behind the scenes this is perceived as preparation for his eventual departure. For Ternus, this means not only building a new team but also compensating for the loss of immense experience.
The top priority is not AI, but sales
Contrary to expectations, the new leader's primary task does not lie in the realm of artificial intelligence. Big Technology founder Alex Kantrowitz was blunt on CNBC: "He needs to sell iPhones. He has to sell iPhones." And these are not just bold words. Over the last quarter, iPhone revenue grew by 21%, becoming the main driver of Apple's stock rising 37% over the year. However, Ternus will have to walk a tightrope: rising memory chip prices are putting serious pressure on margins, and maintaining current figures will not be easy.
Nevertheless, Ternus's strategy is already taking shape. He is betting on a foldable iPhone and an upgraded Siri based on the Gemini model. This is a dual signal to the market: Apple intends to reclaim its status as an innovator and show it can catch up in AI.
Market reaction and forecasts
AAPL shares fell to $313 on Monday but partially recovered by evening, trading at $316.85 — 0.89% below Friday's close ($319.70). A spike in volatility at the moment of the leadership transition was inevitable, but investors, it seems, are not inclined to panic. The 37% annual gain remains impressive, although there is still a long way to go to the all-time high when the market capitalization nearly reached $5 trillion.
The key test for Ternus is the September 9 presentation, where the announcement of a foldable iPhone is expected. It is there that it will become clear whether he can turn Apple's engineering power into a real breakthrough in the AI market.
My take: The market is reacting too predictably to the leadership change. Ternus is a man from the hardware sector, and his appointment signals that Apple is betting on product innovation rather than service experiments. If the foldable iPhone becomes a hit and Siri finally gets a competitive AI foundation, we will see a new wave of growth. If not, pressure on the stock will intensify, and then there will be significantly more questions for the new CEO.