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Tim Cook steps down as Apple CEO, succeeded by John Ternus
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After 15 years as CEO, Tim Cook has stepped aside at Apple, replaced by longtime executive John Ternus. The transition comes at a critical time for the $4.75 trillion company, which faces mounting pressure on its artificial intelligence strategy, competition from upstarts like OpenAI, a memory chip shortage, slowing revenue growth, and criticism over product design stagnation. Recent product launches have been incremental, with notable misfires including the Vision Pro headset and Siri updates. Apple has been behind in AI-driven form factors like smart glasses, and its acquisition activity has been muted, though a recent $2 billion purchase of audio AI startup Q.ai signals potential change. Analysts suggest Ternus's product background may help Apple refocus on device design and user interface. Ternus is scheduled to appear at Apple's major product event on September 9, marking the start of a new era for the company.
Source report
After 15 years as CEO, Tim Cook has stepped aside at Apple, with longtime executive John Ternus taking over the leadership of the $4.75 trillion company.
As my colleague Sebastian Herrera detailed in a just-published profile, Ternus assumes control at a pivotal moment:
Cook has made Apple a cash-flow king and one of the world’s supply-chain titans, but as Ternus inherits the iPhone-maker from the legendary CEO, Apple is grappling with questions about its strategy on artificial intelligence, where it is facing competition from hot upstarts like OpenAI. Meanwhile, a memory chip shortage threatens to squeeze its margins, its revenue growth is slowing, and even longtime Apple fans admit the maker of aspirational tech has lost some of its product design mojo.
Challenges Ahead
Though Apple accounts for roughly one in five smartphones shipped worldwide, the company has struggled to surprise consumers in recent years:
- Product launch events have settled into a predictable cadence of incremental camera upgrades and routine spec bumps.
- Notable misfires include the Vision Pro headset and updates to its Siri voice-activated assistant.
- The polarizing Liquid Glass iOS redesign faced sharp criticism over legibility and performance.
- Apple's long-rumored foldable phone will arrive years after competitors like Samsung defined the category.
The AI Race
The stakes are higher than ever, as every major tech company in Silicon Valley races to build new form factors designed for the AI era. Apple has been behind the curve in popular products like AI-enabled glasses.
In the private markets, Apple's role has been muted. Far from a cutting-edge AI leader, the company has been a sometime acquirer — in January, it announced its nearly $2 billion acquisition of audio AI startup Q.ai, its second-largest deal ever.
A Shift Under Ternus?
Some analysts believe Ternus's product background is exactly what Apple needs. As Herrera writes:
Ternus "has the opportunity to be more prescriptive about device design and about preferences around [the user interface]," said Bank of America analyst Wamsi Mohan, who noted that Apple's move away from a net cash neutral financial strategy could allow more investment in R&D, capital expenditures, and acquisitions — potentially required for Apple to keep pace in the AI era.
What's Next
Right after Labor Day, on Sept. 9, Ternus will appear at Apple's big product event — marking the beginning of a new era.
In Case You Missed It
Oura, maker of the ubiquitous smart ring, officially filed to go public on the Nasdaq. Its VC backers include Iconiq and Gradient Ventures.
Deals of the Week
Venture Capital
- Thyme Care — A Nashville, Tenn.-based cancer care company raised $125 million in Series E funding from Morgan Health, CVS Health Ventures, Humana, and others.
- Atira — A Munich, Germany-based AI software company for industrial sales teams raised $17.5 million, including a $15 million seed round led by Accel, joined by UVC, Fortino, and Booom.
- askpolly — An Ottawa, Ontario-based Microsoft AI market-research company raised $3 million in seed funding from Differential Ventures, joined by The 98 and Forum Ventures.
Private Equity
- Updata Partners invested $50 million in Hi Rasmus, a clinical software company for behavioral health providers based in Copenhagen, Denmark, and Nashville, Tenn.
- AMS Fulfillment (portfolio company of Fort Point Capital) acquired Vox Fulfillment, a Provo, Utah-based e-commerce fulfillment company. Financial terms not disclosed.
- Arxis (backed by Arcline Investment Management) acquired Schatz Bearing Corporation (Poughkeepsie, N.Y.) and StratEdge Corporation (Poway, Calif.). Financial terms not disclosed.
- Officine Maccaferri (backed by Ambienta) acquired Ovattificio Alpino, a Cittadella, Italy-based non-woven geotextiles and technical felts manufacturer. Financial terms not disclosed.
Others
- Nvidia agreed to acquire Hugging Face, a Brooklyn, N.Y.-based open source AI platform, for $12.9 billion.
IPOs
- Accelevation Holdings, a Miamisburg, Ohio-based data center power and infrastructure company, filed for an IPO.
Have a great long weekend. We'll be back on Tuesday.
Allie Garfinkle X: @agarfinks Email: alexandra.garfinkle@fortune.com
Joey Abrams curated the deals section of today's newsletter.
Source
Fortune | FORTUNEWestern
Part of this Story
Tim Cook steps down as Apple CEO on August 31, handing reins to John Ternus