When receiving a call apple CEO John Tarnas spoke to CNBC in late 2023 and talked all about the technology. Custom chips, device battery life, and memory architecture were among his main interests.
“If you build the right product with the right components, the right silicon and other technology, people will love it,” Tarnas, who took over as head of hardware two years ago, said in an interview.
On Tuesday, Ternas’s job gets even bigger, as he replaces Tim Cook and becomes Apple’s second CEO since Steve Jobs stepped down in 2011, shortly before his death. The 25-year veteran will be responsible for everything from software and devices to finance and legal, while also defining the vision for the $4.7 trillion company, which has yet to fully execute its strategy in artificial intelligence.
Apple representatives said the transition from Cook, 65, to Tarnas, 51, will be “thoughtful” and “smooth.” When his successor was announced in April, Turnus said he would carry on Apple’s “values and vision.”
That was stated in the statement. Investors and customers have heard little from him in real life since then. Even at its last earnings call a month ago, Cook remains the public face of the company. Mr. Ternus rarely appeared on conference calls, and when asked directly by analysts about the competitive landscape, he responded, “I’ll repeat what Tim said.”
“With everything that’s happening in this space, there are so many opportunities for us,” Ternus said. “We are really focused on our plans and very excited.”
Tarnus will have one big luxury that Cook was not afforded upon his promotion. A statement in April said Cook was not leaving the company, but would continue to serve as chairman and continue to engage with “policymakers around the world.” He is a crucial ally for Ternas as Apple grapples with a global memory crisis that has forced it to raise prices on consumer devices while Americans struggle with stubborn inflation.
On his final day at the helm, Cook said he was “excited for the next chapter.”
“My title may change tomorrow, but my love for the Apple community will never change,” Cook wrote in a post to X on Monday.
Kathy Gersh, CEO of Kotter, a consulting firm focused on leadership changes and transitions, said his departure presents a difficult balancing act for Apple in terms of who is seen as the person to lead the ship. Tarnas is tasked with convincing shareholders, employees and customers that he can lead the company into the future and that he’s not just doing what his old boss did.
“What worked for Tim Cook won’t necessarily work for John Ternas,” Gersh said in an interview. “Companies are in a new environment. They have to keep evolving and keep competing.”
Preparing for the release of iPhone
The first time much of the world will learn about Ternus will be at Apple’s annual launch event on September 9, where the company is expected to announce new iPhones and Apple Watches. Mr. Cook followed in Mr. Jobs’ footsteps, appearing on stage at every major Apple product launch, making headlines around the world and drawing millions of viewers.
In June, Apple announced price hikes for MacBooks and iPads, citing memory shortages due to insatiable demand for AI chips and servers. The company has not yet raised the price of its iPhones, but many analysts expect such an announcement to be made fairly early in Ternas’ tenure. Cook told the Wall Street Journal shortly before the MacBook and iPad announcements that Apple would have to pass on higher costs to customers.
It’s not a short-term issue. Supply shortages in memory and components show little sign of abating, potentially making gadgets more expensive in the future and permanently changing demand patterns and competition.
On the other hand, the generative AI boom is centered around OpenAI and space x While exploring new computing devices. meta and google Companies are working on smart glasses, raising questions about whether they could someday be replaced by smartphones.
Apple vs Nasdaq this year
Apple stock is up about 17% so far in 2026, outperforming most of its mega-cap peers thanks to a strong device cycle and market share gains over Android rivals that are struggling to cope with memory shortages. Still, some analysts worry that higher device prices will offset weaker unit sales, and that the shortfall will eventually show up in other key areas, such as Apple’s services division.
“If the growth comes from volume, that’s great,” KeyBanc analyst Brandon Nispel, one of the few analysts on Wall Street recommending selling the stock, said in an interview. “Investors won’t pay a premium for growth driven by higher prices because it’s not sustainable.”
In addition to increasing hardware prices, Apple also increased the price of Apple One, a bundled subscription that also includes Apple TV, iCloud storage, Apple Music, and other services. Some analysts also predict that Apple’s foldable phone, expected this fall, could cost up to $2,500.
Gene Munster, managing partner at Deepwater Asset Management, said Mr. Telnas’ hardware expertise and decades spent recruiting engineering talent could be a boon for Apple as it enters a potentially new era of devices.
“They were accompanied by a product person, and I think that’s important,” Munster said. In the next few years, Munster said, Ternas will “need to focus on recruiting and bring in great talent, because they still need to reinvent themselves.”
Apple released a few new products during Cook’s tenure, including AirPods and the Apple Watch, but nothing that revolutionized the industry. The company’s mixed reality headset, Vision Pro, hasn’t sold well.
According to reports and snippets recently found in the MacOS beta, the company is working on smart home gadgets, robots, AirPods with AI cameras, and other new categories of devices. Ternas will need a big new hit if it is to succeed.
It’s an issue he’s been thinking about for years, and one he discussed on CNBC in 2023.
“From the beginning, we think about how all of these elements fit together to create the best product for our customers,” he said.
Attention: John Ternas preparing to become Apple’s CEO
