Tim Cook to Transition to Executive Chairman Role as John Ternus Becomes Apple CEO

By Aditya Soni Sept 1 (Reuters) - When Tim Cook became Apple’s chief executive in 2011, he followed advice from founder Steve Jobs to focus on decisions based on current circumstances rather than attempting to replicate prior approaches.

Fifteen years later, after leading the company from a market capitalization of approximately $350 billion to more than $4.5 trillion, Cook will hand operational leadership to hardware engineering chief John Ternus. Ternus will assume the chief executive position on September 1 as the company continues development of artificial intelligence features.

Cook will serve as executive chairman, overseeing relations with government officials during a period of trade and regulatory discussions involving the United States and China, the primary location for much of Apple’s manufacturing.

Cook rose through Apple’s ranks by overseeing supply chain operations. As chief executive, he applied that experience to expand product distribution. The company reported annual sales of $108 billion in the fiscal year prior to his appointment as CEO. In the most recent fiscal year, sales reached $416 billion and net profit totaled $112 billion.

Services revenue, which includes the App Store, Apple Music, and iCloud, has grown at a faster rate than hardware sales in several recent periods. The wearables segment, including the Apple Watch and AirPods introduced during Cook’s tenure, generated $35 billion in sales in fiscal 2025.

Christopher Brown, a financial adviser at Synovus Securities, which holds Apple shares, stated that Cook established operational processes and a company culture focused on stated values. Brown said this approach contributed to customer retention and generated substantial revenue over time.

Some analysts have stated that Apple has not introduced a product category comparable in scale to the iPhone during Cook’s leadership. They have pointed to competition from other hardware makers developing alternative devices.

Apple discontinued a multi-year electric vehicle development program in 2024. The company also faced criticism after the 2012 launch of Apple Maps, which led to the departure of software engineering chief Scott Forstall.

The transition occurs as Apple incorporates artificial intelligence capabilities into existing products and explores new hardware categories. Market capitalization figures cited are approximate and based on values reported at the start and end of the periods referenced. Sales and profit comparisons use fiscal year data as disclosed in company filings.