Apple has appointed John Ternus, a seasoned insider, as its new CEO, entrusting him with the responsibility of guiding the company after Tim Cook’s tenure. Ternus, who has been a pivotal figure in Apple’s hardware division, steps into this role at a time when the tech giant is preparing for transformative changes driven by artificial intelligence.

Since joining Apple in 2001, Ternus has significantly contributed to the resurgence of the company’s Mac computers, which have experienced increased market share under his leadership.

This leadership transition marks a shift for Apple from the operational expertise of Tim Cook, who propelled Apple into a global powerhouse producing millions of devices annually, to Ternus, whose focus has been on innovative design and product development.

At 50, Ternus mirrors the age Tim Cook was when he succeeded co-founder Steve Jobs as CEO, making him the anticipated successor for some time.

Though not often in the public eye, Ternus has been instrumental in the creation of widely adopted products like the iPad and AirPods.

He has also played a crucial role in diversifying Apple’s product lineup, introducing high-end “Pro” versions of Macs and iPhones that boast advanced features and higher price points, while also launching more affordable options like the MacBook Neo and iPhone “e” models.

He most recently showed the company’s iPhone Air last autumn, the biggest revamp of the iPhone since 2017 and a key proving ground for several new chips.

Ternus faces several challenges

Ternus will be tasked with helping Apple navigate a technology landscape upended by AI, after losing its crown as the world’s most valuable company to Nvidia.

Nvidia has announced its own personal computer and is working on chips that can power laptops.

Ternus will also have to fend off rivals such as Meta, whose augmented-reality glasses have become a surprise hit with just a fraction of the capabilities — and price tag — of Apple’s Vision Pro headset.

“The promotion of Mr Ternus indicates the company will focus on new hardware devices such as folding phones, glasses, VR devices and AI pins,” said Gil Luria, managing director of financial services company DA Davidson & Co.

Perhaps the biggest challenge Ternus will face is how to integrate AI into the iPhone — the most successful consumer product in history — and the rest of Apple’s lineup.

Earlier this year, Apple struck a deal with its longtime rival in smartphones, Alphabet’s Google, to use Google’s Gemini to try to improve its Siri virtual assistant.

Despite introducing a form of artificial intelligence to the public imagination in 2011 with Siri, Apple hasn’t yet scored a hardware or software product hit centred on new AI technologies, while emerging rivals such as OpenAI have attracted hundreds of millions of users.

“I expect his biggest challenge and efforts will be focused on getting a better AI story and offering together that relies more on Apple’s own capabilities and less on third parties,” Bob O’Donnell, head of tech consulting firm TECHAnalysis Research, said.

Cook will become the company’s executive chairman on 1 September, Apple said in a statement.

Apple stock has soared twentyfold since Cook took over as CEO in August 2011.

Cook, who presented a custom golden plaque to United States President Donald Trump will also continue to engage with policymakers, the company said.

Ben Bajarin, CEO of technology consulting firm Creative Strategies, said Ternus is well-liked within Apple “and will bring fresh energy”.

Separately, Apple said that Johny Srouji, who has overseen Apple’s custom chip and sensor designs, has been named chief hardware officer.

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