Apple Announces Leadership Transition: Tim Cook to Step Down as CEO in 2026
Apple has announced a major leadership transition. Tim Cook will step down as chief executive officer on September 1, 2026, and will be succeeded by John Ternus, the company's senior vice president of hardware engineering. Cook will assume the role of executive chairman of Apple's board of directors.
Transition Details
The change was approved unanimously by Apple's board of directors. Cook will remain as CEO through the summer to assist with the transition. The succession followed a long-term planning process, according to the company.
On September 1, 2026, Ternus will officially assume the role of CEO and join the board of directors. Arthur Levinson, the current non-executive chairman, will become the lead independent director. Johny Srouji has been named chief hardware officer.
"It has been the greatest privilege of my life to be the CEO of Apple," — Tim Cook
Background on Tim Cook
Tim Cook joined Apple in 1998 and became CEO on August 24, 2011, succeeding co-founder Steve Jobs. During his tenure, Apple's market capitalization grew from approximately $350 billion to roughly $4 trillion. Annual revenue increased from $108 billion in fiscal 2011 to over $416 billion in fiscal 2025. Net income for fiscal 2025 was reported at $112 billion.
Products & Milestones Introduced Under Cook's Leadership
- Apple Watch (2015)
- AirPods (2016)
- Apple TV+ (2019)
- Apple Arcade (2019)
- Apple Vision Pro (2024)
- Transition of Mac computers from Intel processors to Apple Silicon chips (2020–2023)
- Apple Pay (2014)
- Apple Music (2015)
Services & Financial Growth
Apple's services segment generated more than $109 billion in revenue for fiscal 2025, a 14% increase from 2024. In fiscal 2011, the iTunes business was generating approximately $6 billion annually. The segment reported a revenue record of $30 billion in the quarter ending December 2025.
Expansion & Infrastructure
The company expanded its global retail network by approximately 200 stores during Cook's tenure. Apple Park, the company's headquarters, opened in 2017. In 2024, Apple announced a $600 billion U.S. spending commitment focused on hiring, manufacturing, and semiconductor supply chains.
In his new role as executive chairman, Cook will assist with certain company matters, including engagement with policymakers worldwide.
"John Ternus has the mind of an engineer, the soul of an innovator, and the heart to lead with integrity." — Tim Cook on his successor
Background on John Ternus
John Ternus is a 51-year-old mechanical engineer. He graduated from the University of Pennsylvania in 1997 with a bachelor's degree in mechanical engineering and was a competitive swimmer for the university.
Ternus joined Apple's product design team in 2001. He was promoted to vice president of hardware engineering in 2013 and to senior vice president in January 2021. He reports directly to Tim Cook.
Key Responsibilities & Contributions
His responsibilities have included overseeing hardware engineering for products including the iPhone, iPad, AirPods, Mac, and Apple Watch. He has been involved in the development and launch of products including AirPods, Apple Watch, Vision Pro, and the Mac's transition to Apple silicon. He also led engineering for the MacBook Neo, a more affordable laptop model.
Prior to joining Apple, he worked as a mechanical engineer at Virtual Research Systems.
In a 2024 commencement speech at the University of Pennsylvania, Ternus said:
"Always assume you’re as smart as anyone else in the room, but never assume that you know as much as they do."
Company & Industry Context
Apple has approximately 2.5 billion active devices and operates in more than 200 markets worldwide. The company's product lineup includes multiple iPhone models, Apple Watch, Apple Pencil, AirPods, HomePod, iPad Pro, Mac Studio, and AirTag.
Artificial Intelligence
Apple has been developing artificial intelligence capabilities. In 2024, the company announced "Apple Intelligence" AI features and struck a deal with Google to use its Gemini AI technology. The release of an AI-enhanced Siri was postponed in 2025.
Rising Costs & Manufacturing Shifts
The company faces rising memory costs. According to a Financial Times report, memory costs, which previously accounted for about 10% of the materials cost of an iPhone, could rise to as much as 45% by next year due to high demand for memory in AI servers.
Apple has been moving some manufacturing from China. The company shifted 25% of iPhone production to India in 2024. The Chinese government has reportedly taken steps to hinder iPhone production in India.
Statements
Arthur Levinson stated:
"Tim's unprecedented and outstanding leadership has transformed Apple into the world's best company... We believe John is the best possible leader to succeed Tim."
John Ternus stated:
"I am profoundly grateful for this opportunity to carry Apple's mission forward. 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."
Analyst Observations
Dan Ives of Wedbush Securities stated that the AI strategy is now a focus for the company and that Ternus faces pressure to show success early.
Gil Luria of DA Davidson & Co stated that the promotion of Ternus indicates the company will focus on new hardware devices.
Brian Wieser of Madison and Wall stated that continuity in Apple's product philosophy is expected, including a focus on privacy and limited advertising.