John Ternus to lead Apple into the age of AI

John Ternus assumes the role of Apple's chief executive on Tuesday, inheriting a company that dominates the smartphone market but is lagging behind in artificial intelligence. His primary challenge will be balancing the company's reliance on China while navigating intense political pressure from the White House. This marks the end of Tim Cook's 15-year tenure, replacing the operations specialist who built Apple's supply chain with the engineer who built its hardware.

Ternus, 51, has been with Apple since 2001 and has worked his way up to senior vice president of hardware engineering, overseeing all product lines, including iPhones that generate most of the company's revenue. With barely a week to settle in, Apple is set to unveil its first foldable handset at its annual iPhone event on September 9.

Dan Ives, a partner and senior managing director at Yorkville Ives & Co., believes Ternus should focus on hardware innovation while preserving Cook's supply chain. Analysts argue that software chief Craig Federighi would have been a better pick for AI, but Ternus's background in hardware design and durability will be crucial. The geopolitical landscape, particularly Apple's relationship with China and the US, adds complexity to Ternus's new role.

Cook, who becomes executive chairman of the board, will play a key role in engaging policymakers worldwide. The September 9 iPhone event will be the first public demonstration of this leadership transition, with a foldable iPhone expected to be the most significant redesign in years.