A new CEO. A new chapter. And a very high bar.
Apple is about to enter one of its biggest leadership transitions in 15 years.
On September 1, John Ternus will take over as CEO from Tim Cook, marking the end of Cook’s long tenure at the top. Ternus is not an outsider. He has been at Apple since 2001 and has led hardware engineering since 2021, giving him a deep understanding of the company’s products and operations.
But knowing Apple and running Apple are two very different jobs.
Ternus is walking into the role at a time when expectations are extremely high. The iPhone business remains strong, AI is becoming increasingly important, and Apple is preparing a major product cycle that could define the early part of his tenure.
For investors, the question is simple:
Can Ternus turn Apple’s existing strengths into its next major growth story?
The first test arrives almost immediately
Ternus will barely have time to settle into the CEO role before Apple’s next major product event.
The company is expected to unveil its new iPhone lineup on September 9, including its first foldable iPhone.
That makes the launch more than just another annual iPhone update.
It will be Ternus’ first major public test as CEO.
The hardware side is familiar territory for him. He has already been closely involved with Apple’s product development and has overseen numerous launches during his time as hardware chief.
The bigger question is whether Apple can create enough excitement around its products to justify the expectations built into its valuation.
The foldable iPhone could change the conversation
Apple has spent years watching competitors experiment with foldable smartphones.
Now, the company is expected to enter the category itself.
A foldable iPhone could give Apple another major product story beyond the traditional annual upgrades.
It could also help answer a question investors have been asking for years:
Where does Apple find its next major hardware growth opportunity?
The iPhone remains the company’s biggest driver, and the latest numbers show that demand is still strong. iPhone sales increased 22% year over year during the first three quarters of fiscal 2026.
But Apple cannot rely on the existing iPhone formula forever.
A successful foldable could open another premium category and potentially strengthen Apple’s ability to keep customers inside its ecosystem.
Then comes the bigger challenge: AI
If the foldable iPhone is Ternus’ first product test, Siri could be his biggest technology test.
Apple has struggled to match the pace of competitors in generative AI. The company is now reportedly using Google’s Gemini technology as the foundation for its revamped Siri.
That is a significant shift.
Siri has been around for years, but consumer expectations have changed dramatically. People now expect AI assistants to understand context, complete complex tasks and actually help them get things done.
Apple needs to make Siri feel useful again.
And it needs to do that while maintaining the privacy, reliability and seamless experience that customers expect from Apple.
The stakes are even higher because AI is connected to Apple’s future product roadmap.
AI could unlock Apple’s next product wave
Several products reportedly being explored by Apple could depend heavily on better AI capabilities.
These include:
- Camera-equipped AirPods
- Smart glasses
- A smart display
- Home security products
- More advanced AI features across Apple’s existing devices
This is where Ternus’ hardware background becomes particularly interesting.
The next phase of Apple may not simply be about building better devices.
It could be about making those devices smarter and more connected through AI.
If Apple gets that combination right, its enormous installed base gives it an advantage that many AI competitors simply do not have.
But there is another problem investors should watch
Technology and products aren’t the only challenges facing Ternus.
Apple also needs to rebuild its leadership bench.
According to the reporting in the material, around half of Apple’s leadership team could eventually leave over the next few years.
Several major executives are expected to depart over time, including hardware chief Johny Srouji, marketing chief Greg Joswiak and retail and people chief Deirdre O’Brien.
That puts succession planning high on Ternus’ list of priorities.
He will need to develop strong successors across:
- Hardware
- Marketing
- Retail
- Human resources
- Design
Apple’s design organization is particularly important. Design has been one of the company’s biggest competitive advantages, and rebuilding that team could become an important part of Ternus’ legacy.
Tim Cook isn’t completely disappearing
The transition does not mean Apple is losing Cook entirely.
Cook is expected to become executive chairman and continue handling important relationships, including those involving the U.S. government and China.
That gives Ternus something valuable during the transition:
Continuity.
Unlike Steve Jobs’ departure in 2011, this is a planned internal succession. Ternus has spent decades inside Apple and already understands how the company operates.
That could reduce the execution risk that usually comes with a new CEO.
What history tells Apple investors
There is an interesting lesson from previous CEO transitions at major technology companies.
When Steve Jobs handed Apple to Tim Cook, Apple shares gained roughly 76% over the following year.
When Microsoft promoted Satya Nadella, shares gained about 15% in his first year.
Alphabet’s move to Sundar Pichai was followed by roughly 41% growth over the next 12 months.
But Amazon tells a very different story.
Andy Jassy took over from Jeff Bezos in 2021, and Amazon shares fell roughly 38% over the following year.
The average across these four examples was a gain of about 24%, but the numbers tell an important story.
The CEO transition itself was not the main driver.
The business conditions each CEO inherited mattered much more.
And that is where Apple gets interesting
Ternus isn’t taking over Apple at a cheap valuation.
The company is entering this transition at around 36 times earnings, significantly higher than the valuation Tim Cook inherited.
Apple’s market value has also risen more than 30% over the past year.
That means investors are already paying a premium for Apple’s future.
The company therefore has less room for disappointment.
Ternus doesn’t necessarily need to reinvent Apple.
In fact, that could be the wrong approach.
His challenge may be to protect what already works while building the next growth engine.
Three things investors should watch
1. The iPhone cycle
The iPhone remains Apple’s cash engine. A successful new lineup, particularly if the foldable model gains traction, could strengthen the company’s hardware growth story.
2. The new Siri
Apple’s AI strategy needs to become visible to consumers. If Siri finally becomes genuinely useful, it could change the way investors think about Apple’s AI opportunity.
3. Leadership succession
Ternus will need to build the next generation of Apple’s leadership team. The company’s ability to retain talent and maintain its design and engineering culture will matter over the long term.
What this means for Apple shareholders
Apple enters this transition from a position of strength.
The iPhone business is growing, its ecosystem remains enormous and the company continues to generate substantial cash.
But the market is also demanding more.
At a high valuation, investors aren’t simply paying for today’s Apple. They are paying for the Apple that Ternus is expected to build.
That makes the next few years particularly important.
The foldable iPhone could test Apple’s ability to create new hardware categories.
Siri could test whether Apple can finally turn its AI ambitions into a compelling product.
And the leadership transition could determine whether Apple’s culture and innovation engine remain intact for the next decade.
Ternus has spent 25 years learning how Apple builds products.
Now he has to prove he can decide what Apple should build next.