Apple’s senior vice president of Hardware Engineering, John Ternus, is set to take over as the tech manufacturer’s CEO later this year after current chief executive Tim Cook announced on Monday that he would be stepping down.
Cook will transition to executive chairman of the company’s board of directors. The company said the transition followed a “thoughtful, long-term succession planning process” and was unanimously approved by the board of directors.
“It has been the greatest privilege of my life to be the CEO of Apple and to have been trusted to lead such an extraordinary company,” Cook said in a statement.
“I love Apple with all of my being, and I am so grateful to have had the opportunity to work with a team of such ingenious, innovative, creative, and deeply caring people who have been unwavering in their dedication to enriching the lives of our customers and creating the best products and services in the world,” he added.
APPLE CEO TIM COOK TO STEP DOWN IN MAJOR LEADERSHIP SHAKEUP, SUCCESSOR NAMED
The leadership shakeup marks the first change in the company’s chief executive in 15 years, when Cook replaced Apple co-founder Steve Jobs.
Ternus will take over as CEO on Sept. 1, leading the company into its next phase of innovation. He will also join the board of directors upon assuming the role.
“I am profoundly grateful for this opportunity to carry Apple’s mission forward,” Ternus said in a statement. “Having spent almost my entire career at Apple, I have been lucky to have worked under Steve Jobs and to have had Tim Cook as my mentor. It has been a privilege to help shape the products and experiences that have changed so much of how we interact with the world and with one another.”
He joined Apple’s product design team in 2001 and became vice president of Hardware Engineering in 2013. Eight years later, he joined the executive team as senior vice president of Hardware Engineering, where he has overseen work on many of the company’s flagship products across iPhone, Mac, iPad, AirPods and Apple Watch.
Ternus also recently led the team behind the new MacBook Neo and the redesigned iPhone 17 lineup. Apple credits his leadership with driving advancements in AirPods, including active noise cancellation and capabilities that enable them to function as an all-in-one hearing health system, including over-the-counter hearing aid features.
Additionally, he has led efforts focused on durability, materials innovation, and sustainability, including the use of recycled aluminum and new manufacturing techniques. Ternus has also played a key role in Apple’s transition to in-house silicon.
“I am filled with optimism about what we can achieve in the years to come, and I am so happy to know that the most talented people on earth are here at Apple, determined to be part of something bigger than any one of us,” he said. “I am humbled to step into this role, and I promise to lead with the values and vision that have come to define this special place for half a century.”
Before joining Apple, Ternus worked as a mechanical engineer at Virtual Research Systems. He graduated with a bachelor’s degree in Mechanical Engineering from the University of Pennsylvania.
Cook praised Ternus as having “the mind of an engineer, the soul of an innovator, and the heart to lead with integrity and with honor.”
“He is a visionary whose contributions to Apple over 25 years are already too numerous to count, and he is without question the right person to lead Apple into the future,” Cook said. “I could not be more confident in his abilities and his character, and I look forward to working closely with him on this transition and in my new role as executive chairman.”
Apple shares dipped slightly—less than 1%— in after-hours trading following the news of the leadership shakeup, which some analysts said was not surprising.
“This transition shouldn’t come as a shock, as Cook is at retirement age and Ternus has long been rumored as the successor,” Jacob Bourne, a technology analyst at EMARKETER, told Reuters. “Cook staying on as CEO through September before continuing as executive chairman should provide some degree of reassurance to investors even as markets react negatively to the near-term uncertainty.”
LEADERSHIP CHANGE AT APPLE SPARKS INDUSTRY AND WALL STREET REACTIONS AS COOK TRANSITIONS ROLES
Rick Meckler, a partner at Cherry Lane Investments, told the outlet he is “not surprised that the initial reaction is for the stock to be a little bit lower.”
B. Riley Wealth chief market strategist Art Hogan also said Cook “would never leave if the numbers were going to be bad, so I think that that’s the important thing.”
“They’re about to report numbers, and you know they’re going to be good,” he added. “You know the guidance is going to be positive. And you know we’re going to start hearing more about how they are going to use artificial intelligence to improve their products.”
Ternus will take over Apple at a time when it faces antitrust scrutiny around the world. This includes a landmark case brought by the U.S. Department of Justice and more than a dozen states, alleging that Apple has maintained an illegal monopoly by using its control over the iPhone to stifle competition. European and Asian governments have also sought to penalize Apple for allegedly exploiting its dominant position in the industry.
Read the full article here
