Yearn for the Tern: Apple Has a New Daddy

Apple appointed John Ternus as its new CEO on Tuesday, replacing Tim Cook after serving as senior vice president of hardware engineering. Ternus took over just over a week before the annual iPhone launch event on September 9, at a time when Apple is facing challenges such as the global RAM shortage, increasing smartphone competition, and the race to keep up with artificial intelligence advancements.

Under Cook's leadership, Apple grew to become a $4 trillion company and introduced groundbreaking products like the iPhone 5, Apple Watch, AirPods, Vision Pro, and HomePod, as well as services such as Apple Music, Apple TV+, and Apple Fitness+. However, Ternus now faces significant challenges ahead, including the RAM shortage, fierce smartphone competition, and the struggle to stay ahead in the AI race.

Cook, who led Apple for 15 years before Steve Jobs' death in 2011, held a farewell party for Ternus last weekend, attended by around 200 people, including Apple employees, his partner, and musicians. Cook praised Ternus as "brilliant and wonderful and capable" in his farewell note, stating that Apple "could not be more excited for his leadership."

Ternus joined Apple in 2001 and rose through the ranks, becoming a VP of hardware engineering in 2013 and SVP in 2021. He worked on various flagship devices, including the iPad, AirPods, iPhone, Apple Watch, and the recently released MacBook Neo. Ternus improved device durability by incorporating 3D-printed titanium in the Apple Watch Ultra 3 and creating a recycled aluminum compound.

IDC Worldwide Device Trackers senior research director Nabila Popal expressed her excitement for Apple to have a products-focused leader during this crucial phase, noting that Ternus fits the bill as both an engineer and an innovator with a strong sense of integrity and honor. The choice to appoint Ternus as CEO aligns with Apple's history of having "products guys" at the helm, such as Michael Scott and Mike Markkula.

However, Ternus will face challenges in balancing product ambition with affordability and launch execution, especially considering the upcoming iPhone launch, which is expected to have higher prices due to the global RAM shortage. The iPhone 18 lineup is also anticipated to see price increases of $200-$250 per phone, with high-spec models potentially even more expensive.

Analyst Yang Wang from Counterpoint Research believes that Ternus's deep understanding of the hardware organization will be crucial in navigating these challenges, but the company will need to strike a balance between product ambition and consumer demand to succeed in the smartphone market.