On September 1st, Apple officially completed its leadership transition. John Ternus, previously the Senior Vice President of Hardware Engineering, succeeded Tim Cook as the new CEO of the consumer electronics giant, which holds a market value of $4.6 trillion.

Cook has not fully retired but has moved into the role of Executive Chairman, where he will assist with certain corporate matters, including communication with global policymakers. Fifteen years ago, Cook took the reins from Steve Jobs, capitalizing on the consumer electronics supercycle and leveraging his operational expertise to elevate Apple to new heights. Today, Ternus inherits an Apple that is nearly flawless across the board—its products, supply chain, and vast array of user services are all significantly ahead of competitors. Yet, the challenges are equally apparent: at this pivotal moment of technological change, how quickly can Apple's AI efforts fill the gap? In the saturated smartphone and computer markets, where does the next growth opportunity lie?

Apple's AI Needs a Strong Comeback, Rebuilding the Team is an Urgent Priority

During Cook's 15-year tenure, products like the Mac and iPhone rode the industry's upward cycle, while new offerings such as the Apple Watch and AirPods sold remarkably well, generating substantial revenue and profit for Apple. However, Apple's performance in the AI sector has been underwhelming, failing to deliver innovative technologies and products during the AI boom. This is critical because AI is a key driver for innovation in hardware products, making it a crucial exam paper for Ternus to tackle after taking office. Previously, Apple followed rather than led in AI strategy, and unlike other tech companies, did not make massive investments in this area. Will Ternus change this approach after his appointment? If Apple is to make a significant impact in AI, increasing investment and rebuilding the team are essential steps.

This year alone, Apple's AI team has experienced significant turbulence. Several executives and core technical staff have departed. John Giannandrea, the former head of AI, officially left in April 2026, primarily due to Apple's sluggish response to the generative AI wave; his flagship project, Apple Intelligence, failed to meet expectations, with the upgraded Siri facing multiple delays. In January 2026, at least four AI researchers and one senior Siri manager left to join other tech companies. By August, reports emerged that Apple was conducting another round of personnel adjustments within its Siri digital assistant, Vision Pro headset, and some AI software teams, with total layoffs exceeding 200 people. This restructuring indicates Apple is reallocating R&D resources, focusing more on the new AI-powered Siri, smart glasses, and other future devices. Now, the new Siri AI is set to launch fully in September and will be compared against chatbots like ChatGPT. It will need to overturn its long-standing reputation for being "not user-friendly" to earn consumer trust. The AI market competition is intense, with major model providers leapfrogging each other by months. How Apple catches up and allocates resources are immediate priorities for Ternus.

Where is the Next Growth Opportunity?

Identifying the next growth driver for the sprawling Apple empire is another question Ternus must answer. While Apple's various product lines are still growing, the consumer electronics industry is showing signs of stagnation, with limited upside potential. Even Apple's growth is being constrained. The company urgently needs to discover its next big opportunity. Cook once held high hopes for Vision Pro, believing it to be a groundbreaking product ushering in spatial computing in the AI era. However, in reality, Vision Pro failed to shoulder this responsibility, as users often shelved it after a trial period. The 51-year-old Ternus has spent 25 years at Apple, starting as a Mac engineer and progressively leading the iPad, AirPods, and eventually the entire hardware engineering system. He is widely recognized as a hardware expert. Cook has described Ternus as having "an engineer's mind and an innovator's soul," making him the "best person to lead Apple into the future." What innovations can Ternus bring to Apple? His debut as CEO will be at Apple's September 9th fall event, which is expected to unveil the company's first foldable iPhone. Additionally, he supports the internal smart glasses project, codenamed N50, planned for release next year. However, he has shown a lukewarm attitude towards the Cook-championed Vision Pro. If head-mounted devices fail to gain broader market acceptance, he might further scale back this category, potentially impacting the next-generation Vision Pro scheduled for release in late 2028.

Apple's recent launch of the MacBook Neo offers an external glimpse into Ternus's product strategy. This $599 laptop, which departed from Apple's long-standing premium market focus, quickly sold out after its release. Against the backdrop of a sluggish global economy and reduced consumer spending power, cost-effective products are gaining popularity. The success of the MacBook Neo suggests Apple will likely release more similar products to meet user demand. At the intersection of AI and hardware, users' greatest expectation is that Ternus will drive the integration of AI and hardware to create a new generation of truly groundbreaking devices.

Executive Retirements and Competitor Poaching

Apple's transition isn't just about the CEO position; it involves a generational shift across the entire management team. Several key executives who have worked alongside Cook are retiring or about to retire, leaving Ternus with a relatively unstable team. Starting in 2024, Apple's top management began transitioning: CFO Luca Maestri stepped back from daily management, COO Jeff Williams departed, and General Counsel Kate Adams also retired. According to reports, over the next three years, multiple core executives in charge of hardware, marketing, retail, and human resources may complete their handovers. Additionally, 61-year-old chip chief Johny Srouji seriously considered leaving last year before staying after being given broader responsibilities, becoming Apple's first Chief Hardware Officer, overseeing both the chip and hardware engineering teams. Reports suggest he may again consider departing within the next year or two. If this happens, Apple might need to restructure its hardware engineering and technical teams. Of course, Ternus also needs to manage his relationship with Cook. Cook may have stepped away from the wheel, but he remains in the car and still holds significant power at Apple. Currently, their division of labor sees Ternus taking on more responsibility for products, engineering, and daily operational decisions, while Cook continues to leverage his experience in global policy communication and long-term external relationships. Internally, this partnership is being compared to Amazon's Jeff Bezos and Andy Jassy.

Simultaneously, Apple is facing talent poaching from competitors. Hundreds of former Apple employees now work at OpenAI's hardware division, leading Apple to file a lawsuit. If OpenAI succeeds in hardware, it could attract more companies to invest in this area, and Apple may face even more talent raids. For Ternus, the goal isn't to become the next Steve Jobs or replicate Tim Cook. It's to lead Apple in proving once again that it is still the best in the AI and foldable device era. At 1:00 AM Beijing time on September 10th, Apple's fall event will be Ternus's first appearance as CEO. Regardless of the outcome, Apple has officially entered the Ternus era.