John Ternus as CEO could bring ‘bigger acquisitions,’ new product categories: analyst

Tim Cook's final weeks as Apple CEO will soon be over as John Ternus is set to assume the role on September 1. According to Bank of America analyst Wamsi Mohan, Ternus may usher in a more daring and risk-taking era at Apple. While Apple has emphasized continuity in Ternus' appointment thus far, Wall Street analysts are not convinced he will closely follow Cook's approach.

In a research note, Mohan reiterates a strong 'Buy' rating for Apple, emphasizing that Ternus will likely maintain Cook's legacy while possessing a higher risk appetite. The bank noted Apple's shift away from its net-cash-neutral objective, signaling possible increased capital deployment. This could lead to heavier R&D spending, more CapEx, and potentially larger acquisitions, areas not emphasized under Cook's strategy.

Under Ternus, Apple could move more swiftly into new categories such as AI glasses, camera-equipped AirPods, smart rings, home automation, personal assistants, and robotics. Analysts see Ternus as maintaining Cook's legacy of turning Apple into a highly profitable global company while leveraging the company's strength to make riskier moves in the future. Major changes are likely to be seen in the coming months as Ternus establishes his priorities.