John Ternus to lead Apple amid AI and China challenges
Apple’s head of hardware engineering, John Ternus, is set to become the company’s chief executive officer on September 1, replacing Tim Cook. Cook, who has led Apple since 2011, will become executive chairman of the board of directors, Channel NewsAsia reports.
Ternus is 50 years old, holds a degree in mechanical engineering and has worked at Apple for 25 years. According to the publication, he has significant support within the company. The first major public event under his leadership could be the presentation of the new iPhone series, expected on September 9.
Challenges in artificial intelligence
Apple’s new leader will have to manage the company amid rapid industry changes driven by the development of artificial intelligence. The iPhone maker has been criticized for its slower adoption of AI, particularly due to delays in releasing enhanced versions of the Siri voice assistant.
At the same time, analysts consider Apple’s experience in creating devices an important advantage in providing the computing power needed for artificial intelligence applications. Carolina Milanesi, president and chief analyst at Creative Strategies, said that devices themselves, their convenience and the practical benefits of AI remain important to consumers.
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Artificial intelligence is also affecting Apple’s approach to using its cash reserves. The company has indicated that it may retain more funds for investments instead of buying back its own shares, which could potentially give Ternus broader opportunities for acquisitions, partnerships and the development of AI infrastructure.
Manufacturing and the Chinese market
China remains another challenge for Apple. Tariffs imposed by U.S. President Donald Trump have increased the vulnerability of the company’s large manufacturing chain. Apple is moving part of its product assembly to India and Vietnam, but a significant portion of critical production elements remains tied to China.
IDC senior research director Nabila Popal explained that China concentrates the necessary skills and component suppliers for smartphone production, and that replicating such a system in other markets is difficult. China is also Apple’s third-largest market by revenue and brings the company about $70 billion annually. Despite growth in iPhone shipments in the country over the past year, competition from Huawei and tensions between Washington and Beijing may create risks for Apple.
