On 9 September, the new chief of the world’s second-largest company will take the stage to launch the latest version of the world’s single-most sold smartphone lineup. John Ternus, who led Apple Inc.’s hardware engineering as a senior vice-president, took over after former chief Tim Cook stepped down on 31 August. Straight off, Apple’s new head will have a few burning questions to answer. Mint breaks down the immediate concerns.
Was Ternus’s pick as Apple’s new CEO a surprise?
No. Having joined Apple in 2001, the 51-year-old is among the company’s long-serving senior executives mentored by co-founder Steve Jobs. Prior to the 20-April announcement of his becoming Apple’s new chief executive, Ternus had risen to lead all of Apple’s hardware engineering, which drives three-fourths of its $416-billion annual revenue. He was thus seen as among the top candidates to replace Cook, who turned 65 last November. The ‘surprise’ element stemmed from the fact that all Apple’s CEOs, including Cook, have typically held business or operations roles, thus making Ternus the first engineering head to become CEO.
Would the memory chip crisis be Ternus’s first challenge?
In many ways, yes. On 17 June, Cook said in a Wall Street Journal interview that iPhone prices will bear some brunt of the increase in memory chip costs. For Ternus, this will present a strategic dilemma: whether Apple should launch its new iPhones this week at higher prices than before—and how those prices will affect its revenue growth over the next four quarters. Apple has had one of its best fiscal years in 2025-26 and is expected to report more than 10% annual revenue growth next month. Its market cap, during the year, has surged from $3.6 trillion to $4.7 trillion—behind only Nvidia Corp. All of this could bear the brunt of the chip shortage.
Could high chip costs hit iPhone sales?
Not yet, according to projections from global and Indian analysts. Goldman Sachs, Jefferies and International Data Corporation have predicted that while the overall smartphone market may decline or stall in 2027, Apple’s sales could rise, thanks to the expected launch of a foldable variant—the first new hardware style since its ‘Vision Pro’ augmented reality headset in February 2024. Under Ternus, Apple looks set to sell a wider variety of devices to mitigate concerns of stagnated sales.
Are AI and supply-chain vendors key challenges, too?
Analysts agree that the biggest challenge coming Ternus’s way could be balancing Apple’s global supply chain. Geopolitical disruptions and calls to localize production in the US mean the company will toe a careful line to avoid sanctions-led disruptions or any undue production surprises. Cook, who’s continuing as executive chairman, is said to play a key role in liaising with the government. The next perception threat comes in AI, where Apple has lagged behind others. While Cook’s Apple Intelligence rollout has not played up well, analysts will keenly observe if Ternus invests more heavily in generative AI, though the lack of AI progress hasn’t bothered Apple’s market value yet.
How steep would it be for Ternus to match Cook’s investor returns?
One of the reasons investors appreciated Cook’s tenure at Apple was his stability and returns—over 15 years, Apple returned nearly 24% annually to shareholders, marking a prolonged growth phase during which Apple also broke into the top five of India’s once-budget-only smartphone market. During this time, Apple's market capitalization grew 13x, from just $356 billion in August 2011. Analysts believe Ternus may have a similar tenure, given his age. However, given his product expertise, analysts believe that delivering such returns could be a steep challenge.