Apple has a new boss, and he inherited one very specific headache: the company that changed the smartphone forever is currently losing the AI race. John Ternus officially took over as CEO on September 1, ending Tim Cook’s 15-year run, and how he handles AI will likely define his first few years in the job.
A Smooth Handover, On Paper
The transition itself was tidy. Apple’s board approved the succession plan back in April, and it took effect exactly as scheduled. Cook moved into the role of executive chairman, staying on to help with things like relationships with policymakers, while Ternus, previously senior vice president of Hardware Engineering and a 25-year Apple veteran, stepped into the CEO seat and joined the board. Arthur Levinson, Apple’s longtime non-executive chairman, became lead independent director the same day.
Cook leaves behind a company in strong financial shape, record fiscal 2025 revenue of over $416 billion, a services business that crossed $100 billion, and product categories like the Apple Watch, AirPods, and Vision Pro that didn’t exist when he took over in 2011.
The Problem Ternus Actually Inherits
Here’s the uncomfortable part: Apple towers over the smartphone market but trails its rivals badly in artificial intelligence. The company’s promised Siri overhaul has faced repeated delays, and Apple has leaned on outside AI models to fill the gap rather than shipping a fully in-house solution on its own timeline. Earlier this year, Apple did roll out AI upgrades to Siri with an emphasis on privacy and everyday usefulness, an attempt to catch up rather than lead.
It’s not the first leadership shake-up tied to this problem, either. Apple’s AI and machine learning chief, John Giannandrea, stepped down late last year, replaced by Amar Subramanya, a 16-year Google veteran who had worked on Google’s own Gemini Assistant before a stint at Microsoft. That move alone signaled Apple knew its AI leadership needed outside experience.
Why a Hardware Guy for an AI Problem?
Putting a hardware executive back in charge might look like an odd fit for a software and AI problem, but Apple has a long-standing preference for promoting from within, and Ternus is seen as a logical choice: a technologist rather than an operations specialist, which is exactly what Cook was known for. Ternus’s first big public moment came quickly too, introducing new iPhone hardware at Apple’s fall event on September 9.
What This Means Going Forward
Ternus doesn’t just need to fix Siri. He needs to figure out Apple’s broader AI strategy, including its early robotics bets, while also navigating supply chain questions and political pressure over manufacturing, particularly Apple’s heavy dependence on China. The AI race is only accelerating elsewhere, with rivals like OpenAI’s GPT-6 Astra raising the bar practically every week.
Frequently Asked Questions
Who is Apple’s new CEO?
John Ternus, formerly senior vice president of Hardware Engineering at Apple, became CEO on September 1, succeeding Tim Cook after a 15-year run.
What role does Tim Cook have now?
Cook moved into the role of executive chairman, continuing to help with matters like relationships with policymakers.
Why is AI seen as Apple’s biggest challenge?
Apple has trailed rivals in AI, with Siri’s promised overhaul repeatedly delayed and the company relying on outside AI models rather than a fully in-house solution.
Why did Apple pick a hardware executive to lead an AI turnaround?
Apple has a long-standing preference for promoting from within, and Ternus is seen as a technologist rather than an operations specialist, similar to Cook’s own background before becoming CEO.
