Apple has ramped up its secretive CEO succession planning, preparing for the possibility that Tim Cook could exit as early as next year, according to a report.
Board members and senior executives have accelerated preparations in recent months as Cook, who turned 65 this month, weighs the end of a 14-year run that began after the death of co-founder Steve Jobs in 2011, the Financial Times reported.
The effort has intensified to the point where an announcement could come sometime early next year — with hardware engineering chief John Ternus emerging as the leading contender, according to the report, which cited unnamed sources.
Apple finds itself at a crossroads as it searches for growth beyond the iPhone. The Vision Pro headset fell short of sales targets, with projections cut in half, and the company has pushed back its AI-powered Siri to 2026 as rivals like Microsoft and Google accelerate their artificial intelligence efforts.
Ternus, 50, joined Apple’s product design team in 2001 and rose steadily through senior roles in the company’s hardware division. He eventually became a vice president in 2013, taking charge of hardware engineering several years later. In 2021, he joined the company’s executive team.
Ternus, a former champion swimmer, reigns over a portfolio that includes the iPhone, iPad, Mac and AirPods. He also played a central role in the high-stakes shift from Intel processors to the company’s in-house Apple silicon chips.
In recent years, Ternus has also become a familiar presence at major launch events. Ternus has been described as an executive who is “charismatic and well-regarded by Apple loyalists” and who is trusted by Cook, who has granted Ternus more responsibilities, according to Bloomberg News.
While Ternus is viewed by many as the favorite, no decision has been made, according to the FT.
Dan Ives, head of technology research at Wedbush Securities, sounded skeptical that Cook would step down anytime within the next two years.
“I don’t see Cook leaving his CEO perch… til at least… 2027? And potentially later,” Ives told The Post.
Ives, who called the suggestion in the FT report of a change at the top a “head-scratcher,” said it’s likely Cook stays for the foreseeable future “given our view that the AI strategy is front and center for him to build…and he’s not gonna hand the keys to the castle without the AI strategy fully in motion.”
If Ternus does ascend to the top role, he will have significant shoes to fill.
Under Cook, Apple’s market capitalization exploded tenfold — from about $350 billion in 2011 to $4 trillion today.
The company became the first publicly traded US firm to be valued at $1 trillion in 2018, and it crossed the $2 trillion mark just two years later.
While Jobs was considered a visionary who focused on innovation and design, Cook, who was his operations chief, proved to be a master of efficiency and supply chain operations — allowing Apple to scale its global empire and maintain its dominance.
Cook has also been credited for the successful rollout of accessory products such as Apple Watch in 2015 and AirPods in 2016.
He also engineered the company’s massive and highly profitable pivot to services, such as the App Store, Apple Music, iCloud and the Apple TV+ streaming service.
The services division grew from just under $3 billion in fiscal 2011 to more than $96 billion in 2024, providing a steady revenue stream to offset slowing iPhone growth.
Cook himself has confirmed the existence of robust succession plans, though he has remained tight-lipped on timing.
“We’re a company that believes in working on succession plans, so we have very detailed succession plans,” Cook told singer Dua Lipa on a podcast in November 2023.
“Because something unpredictable can always happen.”
He has also made his preference clear for a successor from within the company’s ranks.
“I really want the person to come from within Apple, the next CEO,” Cook stated in the same interview.
“So that’s my role: That there’s several for the board to pick from.”
Despite the intensified planning, Cook has signaled he is not in a rush to leave.
“I love it,” he said when asked to reflect on more than a quarter century at the Cupertino-based company.
“I can’t envision my life without being there so I’ll be there a while,” he told Lipa.
While Apple’s stock is trading near an all-time high, its 12% rise this year has lagged behind tech rivals like Microsoft and Nvidia, whose valuations have been supercharged by Wall Street’s frenzy over artificial intelligence.
The Post has sought comment from Apple.
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