Tim Cook is stepping down as CEO of Apple on Sept. 1, the Big Tech giant said in a shock announcement on Monday afternoon.
Cook, 65, will transition to a role as the company’s executive chairman. John Ternus, the 50-year-old head of Apple’s hardware division, will replace Cook as CEO.
Apple said the leadership shakeup was “approved unanimously by the board of directors” and followed a “thoughtful, long-term succession planning process.” Cook had served as CEO since 2011, when he replaced Apple’s late co-founder Steve Jobs.
“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.
“I could not be more confident in his abilities and his character, and I look forward to working closely with him on this transition and in my new role as executive chairman,” the outgoing CEO added.
Meanwhile, Cook’s responsibilities as executive chairman will include “engaging with policymakers around the world,” according to Apple. Cook has cultivated close relationships with lawmakers on both sides of the aisle, including President Trump, during his tenure at Apple.
Apple shares were flat in after-hours trading following the announcement.
Cook steered Apple through its surge from a market valuation of about $350 billion in 2011 to roughly $4 trillion today.
However, the company has recently endured some key struggles, including weak sales for its Vision Pro augmented reality headsets.
Apple has also struggled to implement artificial intelligence features throughout its business and was notably forced to delay the rollout of a planned AI overhaul of its Siri voice assistant due to bugs and glitches.
John Giannandrea, who served as Apple’s senior vice president of machine learning and AI strategy since 2018, stepped down from his post in December as part of a shakeup of the company’s AI team.
Monday’s announcement was nothing short of a “shocker,” according to Wedbush analyst Dan Ives.
“Cook leaves a lasting legacy in Cupertino and there will be a lot of pressure on Ternus to produce success out of the gates especially on the AI front,” he said in a note to clients. “While there were rumors of Cook leaving as CEO, investors will for now have more questions than answers around the timing and what this means for the broader Apple strategy.”
Ternus was widely considered the frontrunner to replace Cook due to his key role overseeing development of the iPhone, which still comprises the bulk of Apple’s annual revenue, as well as other hardware devices. He joined the company in 2001 and held several roles before joining Apple’s executive ranks in 2021.
Rumors that Cook’s exit was imminent began percolating last fall, when the Financial Times reported that Apple’s board was “stepping up” its succession planning.
Cook had downplayed rumors he was readying to leave Apple as recently as last month, when he told ABC’s “Good Morning America” that he “can’t imagine life without Apple.”
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