Apple will conclude the Tim Cook era on September 1, transitioning to the leadership of John Ternus as the new CEO. Ternus faces numerous challenges, including enhancing artificial intelligence (AI) capabilities, developing next-generation products, securing AI talent, and addressing changes in labor conditions at its largest production base in China.
Bloomberg reported on August 30 that Ternus's top priority will be to strengthen Apple's AI competitiveness. Apple has been criticized for lagging behind competitors like Google and OpenAI in the generative AI race. Since last year, the company has been developing a new version of Siri using Google’s Gemini technology, which is expected to be unveiled alongside new iPhone models in September, marking a critical test of Apple's AI capabilities.
Developing next-generation products, such as AirPods with AI features, smart glasses, and smart home devices, is also essential for creating new growth drivers beyond the iPhone. Following the release of a foldable iPhone this year, Apple plans to introduce a new model in 2027 to commemorate the 20th anniversary of the iPhone, aiming to sustain its growth trajectory.
Ternus is a hardware expert who has worked at Apple for 25 years. He has been involved in the development of the Mac, iPad, and AirPods, overseeing the entire hardware engineering division.
However, Bloomberg noted that Ternus lacks experience in critical areas such as finance, sales, legal affairs, government relations, and supply chain management, which are essential for a CEO. As Apple navigates supply chain risks, including recent memory chip shortages and price increases, the roles of the Chief Financial Officer (CFO) and Chief Operating Officer (COO) may become more prominent. Tim Cook will remain as chairman of the board, continuing to manage key external relations, including those with President Donald Trump and the Chinese government.
Another challenge for the new CEO will be adjusting production models in response to changes in China's political and economic environment. Rising labor costs and demands for improved working conditions make it increasingly difficult to rely on long hours of labor as in the past.
Apple's product release cycles are short, and the company significantly increases order volumes with each new product launch. As a result, suppliers must deliver large quantities in a short time while operating on thin margins.
On August 31, The Diplomat, a U.S. foreign affairs magazine, criticized Apple for relying on long working hours, low wages, and illegal overtime from Chinese workers to achieve its high production efficiency and profitability. It suggested that a key test for Ternus will be whether he can maintain the world-class production efficiency established under Cook while changing the structure that places the burden on workers.
* This article has been translated by AI.
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