How difficult is it to take over in a prosperous era? Three major challenges facing Apple's new CEO

Apple’s most high-profile power transfer in its history has been officially finalized, but the challenges facing the successor are far more complex than outsiders imagine. According to a Wallstreetcn article, Apple announced on Monday that Senior Vice President of Hardware Engineering John Ternus will take over as CEO on September 1st. Tim Cook will become Executive Chairman, continuing to oversee Apple’s relations with global policymakers. On April 21, according to tech media The Information, this selection has been circulating in Silicon Valley for a long time, but its realization has not dispelled doubts about Apple’s future direction. With the white-hot AI race, rising supply chain risks, and the former leader still deeply involved in company affairs, Ternus’ succession is destined to be challenging. The report notes that Ternus faces three core issues: First, can Apple reinvent itself in the AI era and catch up with competitors? Second, with escalating geopolitical tensions, can Apple effectively reduce dependence on manufacturing in a single region before a crisis erupts? Third, with Cook remaining as executive chairman—a historical arrangement that often leads to power struggles—can Apple avoid repeating past mistakes? These three challenges will test whether this hardware engineer can fulfill the role of helmsman for one of the world’s most valuable tech companies. Ben Bajarin, CEO of consumer research firm Creative Strategies, expressed approval of the choice. “Ternus is the right person at the right time,” he said. “Apple will significantly increase new product launches in the coming years, and the company hopes to use both new and old products to start a new round of growth.” Chris Deaver, former Apple HR executive and co-founder of consulting firm BraveCore, also pointed out, “Ternus excels at establishing deep cross-departmental cooperation within Apple—not just hardware and products, but also software and operations. Other teams trust him.” AI Reinvention: Apple’s Most Urgent Self-Rescue Issue The report says Apple’s lag in AI has become market consensus, and Ternus’ first challenge is how to turn that around. Apple’s promised new Siri has repeatedly missed release dates since its 2024 announcement and is still not officially launched. According to The Information, Apple plans to release a version at its Global Developer Conference usually held in June, but much work remains to be done. To address deep-rooted problems in Siri’s development, Apple has repeatedly reorganized its AI teams—last year, Siri was shifted from former AI lead John Giannandrea to Software Chief Craig Federighi; last week, the Siri team sent some members to an AI coding bootcamp. Delays in AI software are not just a product issue—they directly constrain Apple’s layout in new hardware categories. According to The Information, Apple is developing new hardware for the home and a wearable pin device, both relying on AI assistants for core interactions. If AI capabilities can’t keep up, the competitiveness of new hardware will drop considerably. Meanwhile, competitors are rapidly eroding Apple’s hardware moat. According to The Information, OpenAI is collaborating with former Apple Chief Design Officer Jony Ive to develop an AI device and aggressively poaching Apple’s hardware talent. The strategic question Ternus must answer is: to what extent should Apple stick to its smartphone business, and which hardware categories potentially becoming new AI gateways deserve resource investment? Dependence on a Single Region: Unresolved Supply Chain Risk The report states that reducing reliance on a single region is a historical issue that Cook never fully resolved during his tenure, and now this challenge falls to Ternus. Supply chain disruptions during the pandemic fully exposed the risks of over-dependence on one region. Cook’s experience with government relations means he’ll remain instrumental on this front, but Ternus will eventually need to independently lead the strategic shift. How to substantially overhaul the supply chain before a real crisis arrives will be a dual test of Ternus’ strategic vision and execution. Geopolitical pressures are tightening from both directions. Externally, trade tensions persist. Internally, the Trump administration continues pressuring Apple to move manufacturing back to the US. Apple has paid about $3.3 billion in tariffs in the past three quarters; Cook has tried to ease the situation by promising to invest $500 billion in the US over the next four years. Power Transition: Too Many Cooks Spoil the Broth? The report says Cook’s retention arrangement provides support for Ternus while also planting the seeds for potential power friction. According to Apple’s announcement, Cook will remain as executive chairman to “assist with specific company matters, including communication with global policymakers.” From a division of labor standpoint, this arrangement is logical: Cook is responsible for White House visits and external relations, while Ternus focuses on products and business. Their backgrounds are complementary—one from operations, one product-oriented—so theoretically, there’s limited room for conflict. However, history shows that cases where a former CEO stays as executive chairman don’t always end well. Microsoft’s former CEO Steve Ballmer frequently faced interference from Bill Gates after Gates became Chief Software Architect. At Disney, after Bob Iger handed the CEO role to Bob Chapek in 2020 and stayed as executive chairman, he maintained close contact with the board and executives; after Chapek’s troubled tenure, Iger returned as CEO in 2022. A relatively successful precedent comes from Amazon—when Jeff Bezos became executive chairman and Andy Jassy took over as CEO in 2021, the power transfer has run smoothly so far. This is perhaps the playbook Ternus hopes to replicate. Ultimately, how it turns out depends largely on how much space Cook is willing to give his successor, and whether, when Apple faces real crisis, the executive chairman can resist the urge to personally step in. Risk Warning and Disclaimer The market bears risk; investment should be cautious. This article is not individual investment advice, nor does it take into account any user’s specific investment objectives, financial situation, or needs. Users should consider whether any opinions, viewpoints, or conclusions in this article fit their particular circumstances. Investing accordingly is solely at the user's own risk.