Tim Cook to Step Down as Apple CEO on Sept. 1; Hardware Chief Ternus to Take Over

John Ternus will formally succeed Tim Cook as Apple's chief executive on September 1, taking over from Cook, who has held the role for 15 years. Since Cook became CEO on August 24, 2011, Apple shares have risen about 2,205%, compared with a 560% gain in the S&P 500. During that period, Apple's market value grew from roughly $349 billion to more than $5 trillion, making it the second company to cross that threshold. Cook will assume the position of executive chairman. Ternus, aged 51, has spent more than 20 years in Apple's hardware division, contributing to the development of AirPods, the Apple Watch, and multiple generations of MacBook and iPhone products.

Apple faces mounting pressure in artificial intelligence. The revamp of Siri has been delayed several times, and the company has seen an exodus of AI talent. Meta has set its 2026 capital expenditure guidance at an upper limit of $145 billion. Apple has yet to reveal a complete plan for charging users for AI features; Cook has indicated that AI will be a selling point for iCloud subscriptions.

On the supply-chain front, a shortage of memory chips has driven up costs, prompting Apple to raise retail prices across its Mac and iPad product lines this summer. In his final earnings call as CEO, Cook acknowledged the pricing pressure, saying the rising cost of memory had left the company with virtually no alternative. Apple is testing chips made by ChangXin Memory Technologies, based in China, for devices sold in that market, and has lobbied Washington to permit broader use of the supplier's products. U. S. Commerce Secretary Howard Lutnick said the Trump administration does not want Apple to shift toward Chinese suppliers, and that the message has been conveyed to Apple.

Services will be a key focus after Ternus assumes the CEO role. Apple's active device base exceeds 2.5 billion, and its services business generates recurring, high-margin revenue. Eddy Cue will remain head of services. Apple shares have fallen about 9.5% from their record closing high of $340 on July 28, yet remain up 14% for the year.