On Tuesday, John Ternus will take over as Apple Inc.’s (NASDAQ:AAPL) CEO after spending 25 years focused on the company’s hardware engineering operations. Meanwhile, Tim Cook will continue his relationship with President Donald Trump and the Chinese government.
Tim Cook’s Amazon-Style Succession Plan
Cook will step down after 15 years at the helm. He will remain at the company as executive chairman and continue to assist with matters, including maintaining sensitive relationships.
The outgoing CEO’s help will provide Ternus with valuable support as he adjusts to his new role. However, he will eventually need to establish his own leadership style, considering Apple faces challenges in AI, talent retention and next-gen products, according to Bloomberg columnist Mark Gurman.
The arrangement between Cook and Ternus bears similarities with Jeff Bezos’ transition at Amazon.com, Inc. (NASDAQ:AMZN). Bezos resigned as CEO in 2021 but remained executive chairman, leaving Andy Jassy to take control of day-to-day operations, Gurman noted, citing people close to Apple.
However, leadership transitions can also go awry. For example, Bob Iger remained as an adviser at Walt Disney Co. (NYSE:DIS) but kept clashing with his successor Bob Chapek. Iger eventually returned as CEO in 2022. He has now passed the torch to Josh D’Amaro.
Ternus’ Hardware Expertise Faces New CEO Test
The new Apple CEO has extensive experience in overseeing products spanning Macs, iPads, AirPods and iPhones, but as CEO he will need to navigate other departments.
To handle finance, sales, supply chains, legal affairs, government relations, international politics, services and AI, Ternus is expected to rely on executives including COO Sabih Khan, CFO Kevan Parekh and services chief Eddy Cue, the report added, citing people close to the company.
The tech giant is currently preparing to launch its first major product under the new CEO on Sept. 9. Apple is expected to unveil the iPhone 18 series and its first foldable iPhone.
Price Action: Apple shares rose 1.63% to $319.70 on Friday. In the past year, the shares are up 39.17%, according to Benzinga Pro.
Benzinga Edge Stock Rankings place Apple in the 97th percentile for Quality, highlighting its strong short-, medium- and long-term performance.
Photo Courtesy: Ringo Chiu on Shutterstock.com
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