John Ternus takes over as CEO of Apple, replacing Tim Cook

John Ternus has taken over as CEO of Apple and will need to maintain the company's financial course while driving new products and artificial intelligence.

The 51-year-old executive replaces Tim Cook, who will remain with the company as executive chairman. The transition coincides with changes in leadership and in key hardware areas.

What challenges does John Ternus face as CEO of Apple?

The new CEO must maintain the financial discipline that characterized Cook's management while also demonstrating that Apple can develop products capable of attracting consumers.

The leadership change comes as the company undergoes a significant technological renewal. A foldable iPhone is expected to be unveiled this month, which would represent the most significant modification to the flagship product in 19 years.

Additionally, Apple is working on a new attempt to integrate artificial intelligence across its entire product line.

Michael Gartenberg, a consumer technology analyst and former product marketing head at Apple, noted that the company will need to answer what comes next.

According to Gartenberg, Ternus's challenge will be to “restore Apple’s status as an attractive and innovative brand” and demonstrate that it still has the capacity to innovate.

What changes will there be in Apple's leadership?

Over the past four months, John Ternus has begun placing his own executives and combining Apple veterans with new hires.

The company hired Nate Gatten, coming from American Airlines, to lead the government affairs area. He will replace Kate Adams, who will retire this year.

Apple also welcomed back Laura Legros, vice president of hardware engineering and Ternus's former right-hand person. According to three people familiar with her hiring, she could act as an advisor and emissary for the new CEO.

The reorganization coincided with several departures. Brian Lynch, who led hardware for smart home products, joined the smart ring manufacturer Oura in March.

Paul Meade, responsible for hardware for Apple’s augmented and virtual reality products, joined OpenAI in July.

How many Apple employees went to OpenAI?

The company also recorded departures among its staff. According to a lawsuit filed by Apple against OpenAI in July, more than 400 former employees of the company now work at OpenAI.

Many of those hires occurred after OpenAI acquired IO, the design studio co-founded by Jony Ive, former chief design officer of Apple.

The hardware division of OpenAI, led by another former Apple executive and co-founder of IO, hired dozens of engineers from Apple, according to the lawsuit. OpenAI requested the dismissal of the litigation in August.

What role will Tim Cook have at Apple?

Tim Cook, 65, will continue at Apple as executive chairman. The company indicated that he will assist in certain areas, including relationships with policymakers around the world.

The new structure also poses the challenge for Ternus to develop his own identity as CEO while Cook remains with the company.

The renewal also extends to other positions within the company. Jennifer Bailey, head of Apple Pay, will retire this year after joining Apple in 2003.

What happened to Apple's hardware division?

The hardware division of Apple was restructured in April and became directly involved in the management changes.

Johny Srouji, head of the chip area, was promoted to hardware director. The engineering team that Ternus led merged with the hardware technologies team that Srouji led.