New Apple CEO John Ternus faces an old problem: the innovator’s dilemma

Apple CEO John Ternus takes the helm in a succession story that has been closely followed, as he steps up into a role traditionally defined by Apple's previous chief executive Tim Cook. As the new leader, Ternus faces an old problem known as the innovator's dilemma, which is a challenge that many successful companies grapple with.

This dilemma, identified by Harvard Business School professor Clay Christensen, occurs when companies prioritize enhancing their most profitable products, often to the detriment of innovations that could disrupt their core business. In the case of Apple, a company that holds a fifth of the global smartphone market and nearly two-thirds of the market share in premium devices, the innovator's dilemma poses a significant threat.

Last year, Apple's most popular AI assistants were owned by Google, OpenAI, and other platforms, showcasing the company's struggle to keep up in the AI arena. Despite this, Apple's iPhone continues to dominate the market, and BlackBerry's hardware innovation is a distant memory. As Ternus prepares to lead Apple through this predicament, it will be crucial to observe how he addresses the innovator's dilemma and manages the transition from Cook, who will remain as executive chairman and mentor to the new CEO.