Tim Cook steps back as Apple appoints hardware chief as new CEO

Apple, one of the world’s most valuable companies, is getting a new chief executive, marking a new chapter in the story of what has become arguably the most influential company in consumer technology.

The Cupertino, Calif., smartphone maker said Monday that John Ternus, senior vice president of hardware engineering, will become Apple’s chief executive on Sept. 1.

Tim Cook, who has served as chief executive for roughly 15 years, will become executive chairman of the company’s board of directors, the company said. He was long expected to step down soon.

Under Cook’s leadership, Apple’s market capitalization grew to $4 trillion from about $350 billion, according to the company. Its revenue ballooned from $108 billion in fiscal year 2011 to more than $416 billion in fiscal year 2025.

Apple also expanded its business under Cook’s tenure, including its presence in entertainment with Apple TV and Apple Music. People also use other services such as Apple Pay and iCloud to store their photos, videos and other content.

The leadership transition marks a new era for Apple, which turned 50 years old in April. The company has revolutionized technology, selling popular consumer electronics including iPhones and smartwatches.

But the company has lagged behind as its rivals such as OpenAI, Google, Meta and more move quickly to dominate the artificial intelligence race. It has also had to grapple with tariffs and criticism for manufacturing its products in other countries, such as China and India, during President Trump’s second term.

“These will be big shoes to fill and the timing of Cook exiting stage left as CEO could make sense but also creates questions. Apple is making a major transition on its AI strategy, and longtime CEO and legendary Cook leaving now is a surprise,” Dan Ives, an analyst with Wedbush Securities, said in a statement.

In a statement, Cook expressed gratitude for his time leading Apple. The 65-year-old succeeded chief executive and co-founder Steve Jobs in 2011 after he passed away from pancreatic cancer.

“John Ternus has the mind of an engineer, the soul of an innovator, and the heart to lead with integrity and with honor,” Cook said in a statement. “He is a visionary whose contributions to Apple over 25 years are already too numerous to count, and he is without question the right person to lead Apple into the future.”

Ternus was widely expected to be next in line as chief executive.

In a statement, he said he’s worked at Apple for nearly his entire career, including under Jobs. He described Cook, who will work with him during the transition, as his 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,” Ternus said in a statement.

Ternus has served as Apple’s senior vice president of hardware engineering since 2021, working on new products such as the iPad and AirPods. Before that role, he was on Apple’s product design team in 2001 before becoming vice president of hardware engineering in 2013, according to the company.

“Ternus’s work on Mac has helped the category become more powerful and more popular globally than at any time in its 40-year history,” Apple said in its news release about the transition.

In the fiscal year ending in September, Apple reported revenue of $416 billion and a net income of $112 billion. Worldwide, there are more than 2.5 billion active Apple devices.

Apple’s stock was down less than 1% in early after-hours trading, changing hands at around $271 a share.