Tim Cook to step down as Apple CEO, handing reins to hardware chief Ternus in September

Apple announced on Monday that chief executive Tim Cook will step down from the CEO role on September 1, 2026, after nearly 15 years at the helm of the world's most valuable company, with hardware engineering chief John Ternus named as his successor in the most significant leadership transition at the Cupertino giant since the passing of co-founder Steve Jobs in 2011.

"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," Tim Cook, 65, said in a statement. "John Ternus has the mind of an engineer, the soul of an innovator, and the heart to lead with integrity and with honor. He is without question the right person to lead Apple into the future."

Under Tim Cook's stewardship, Apple's market capitalisation surged from approximately US$350 billion to over US$4 trillion—a more than tenfold increase—while annual revenue nearly quadrupled from US$108 billion in fiscal 2011 to more than US$416 billion in fiscal 2025.

The company expanded its active installed base to over 2.5 billion devices across more than 200 countries and territories, and grew its services division into a business exceeding US$100 billion annually.

Dan Ives, managing director and global head of technology research at Wedbush Securities, said the firm supports Ternus as the next CEO amid the company's major push into artificial intelligence, though he noted the timing raises questions. "These will be big shoes to fill and the timing of Tim Cook exiting stage left as CEO could make sense but also creates questions," Ives posted on X. "Apple is making a major transition on its AI strategy and longtime CEO and legendary Tim Cook leaving now is a surprise. We agree with Ternus as the pick."

Ternus, 50, joined Apple's product design team in 2001 and has spent the past 25 years overseeing hardware engineering across the company's entire product portfolio. He was instrumental in the introduction of the iPad and AirPods, as well as successive generations of the iPhone, Mac, and Apple Watch, and more recently led development of the iPhone 17 lineup and the MacBook Neo.

He will join Apple's board of directors effective September 1, while current non-executive chairman Arthur Levinson transitions to lead independent director.

"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. I am humbled to step into this role, and I promise to lead with the values and vision that have come to define this special place for half a century."

The announcement comes as Apple faces mounting pressure to accelerate its generative AI strategy, having turned to Google's AI capabilities earlier this year to power enhancements to its Siri virtual assistant. The company is also expected to unveil its first foldable iPhone later this year—the most consequential hardware form-factor change in the product's nearly 20-year history.

Joe Madden, founder and president of Mobile Experts, said Apple's decision to elevate a hardware engineer rather than an AI specialist signals strategic discipline. "Any other company would have chosen an AI expert, in an effort to pump up the stock price. But Apple is not following the fashion on Wall Street—they are following their own view of how the world will evolve and how they can create value," Madden said.

Tim Cook will remain deeply involved with the company as executive chairman, with Apple noting he will "assist with certain aspects of the company, including engaging with policymakers around the world"—a role that leverages his extensive diplomatic experience navigating two Trump administrations and complex US-China trade relations.

Shares of Apple dipped approximately 0.5 per cent in after-hours trading following the announcement, with the stock closing regular trading at around US$273.

The transition was approved unanimously by Apple's board following what the company described as a "thoughtful, long-term succession planning process."