Tim Cook to step down as Apple CEO in September; company veteran John Ternus to take over
Cook, 65, will become executive chairman of Apple's board.
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SAN FRANCISCO: Apple on Monday (Apr 20) announced that Tim Cook will step down as the tech giant's chief executive officer in September, handing the top job to company veteran John Ternus.
The announcement answers long-simmering questions about a successor for 65-year-old Cook, who said he will become executive chairman of the board when he cedes Apple's CEO position.
"It has been the greatest privilege of my life to be the CEO of Apple and to have been trusted to lead such an extraordinary company," Cook said in a statement.
Cook joined Apple in 1998, rising through the ranks and helping drive its success as chief operating officer, coordinating the iPhone maker's complex supply chain.
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He became chief executive in 2011 after Apple's iconic co-founder and leader Steve Jobs left due to health issues.
Cook was recruited by Jobs from Compaq at a time when that firm was riding high on the 1990s PC boom and Jobs was working to rescue Apple from the brink of insolvency.
He is credited with expanding Apple's product line and ramping up the company's value to about US$4 trillion based on the value of its shares.
While Cook made his early reputation at Apple by building out its sprawling supply chain in China, over the years, he became a celebrity CEO in his own right.
He was the first Fortune 500 CEO to come out as gay in 2014 and took public stances on issues such as workplace diversity and corporate sustainability.
Cook, who presented a custom golden plaque to United States President Donald Trump, will continue to engage with policymakers, Apple said.
"Tim's unprecedented and outstanding leadership has transformed Apple into the world's best company," outgoing chairman of the board Arthur Levinson said in the statement.
"His integrity and values are infused into everything Apple does."
Levinson currently holds the board chairmanship in a non-executive role. He will become the board's lead independent director.
Ternus, who joined Apple in 2001, has played a key role in reigniting sales of products such as Apple's Mac computers, which have gained market share in recent years.
At 50, Ternus is the same age Cook was when he took over CEO duties from Jobs. He most recently showed the company's iPhone Air last autumn, the biggest revamp of the iPhone since 2017 and a key proving ground for several new chips.
While analysts showed mixed reactions to his promotion, they believe it indicates Apple's intention to continue its endeavours involving AI.
A concern haunting investors is that rivals such as Google, Microsoft and OpenAI have raced ahead on this technological front.
"Ternus is not an unexpected choice, and he has a pedigree in hardware engineering, which will be critical for Apple's future foray into AI," said Kathleen Brooks, research director at the trading platform XTB.
"There is also anticipation of new Apple products to boost their offering, and there is some expectation that Ternus could move fast to put his own stamp on the company," she wrote in a research note.
Gil Luria, managing director of DA Davidson & Co, said Ternus' promotion indicated that Apple will focus on new hardware devices such as folding phones, glasses, VR devices and AI pins.
"There will be a lot of pressure on Ternus to produce success out of the gates especially on the AI front," Wedbush analyst Dan Ives said in a note to investors.
"Apple is making a major transition on its AI strategy and longtime CEO and legendary Cook leaving now is a surprise."
Ternus, who helped bring about now-ubiquitous products such as iPads and AirPods, will have to fend off Nvidia, which has stolen Apple's crown as the world's most valuable company.
Besides Nvidia, which has announced its own personal computer and is working on chips that can power laptops, he also faces rivals such as Meta Platforms, whose augmented-reality glasses have become a surprise hit with just a fraction of the capabilities - and price tag - of Apple's Vision Pro headset.
"I am profoundly grateful for this opportunity to carry Apple's mission forward," Ternus said.
"Having spent almost my entire career at Apple, I have been lucky to have worked under Steve Jobs and to have had Tim Cook as my mentor."
Apple marks its 50th anniversary this year as artificial intelligence challenges the Silicon Valley legend to prove it can deliver yet another culture-changing innovation.
Jobs, a driven marketing genius, and Steve Wozniak, who invented the Apple computer, revolutionised how people use technology in the internet age.
The two men - both college dropouts - changed the way people use computers, listen to music and communicate on the go, giving rise to lifestyles revolving around smartphone apps.
Apple's hit products - the Mac, the iPhone, the Apple Watch and the iPad - command a cult-like following, long after the company's humble beginnings on Apr 1, 1976, in Jobs's Cupertino, California garage.
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