My Take on The New Apple

Apple is undergoing a significant leadership change as Tim Cook steps down as CEO, to be replaced by John Ternus, previously Senior Vice President of Hardware Engineering. Cook will transition to Chairman of the Board. This shift is notable because, while Cook successfully grew Apple into a multi-trillion-dollar company through supply chain optimization and business expertise, he was not primarily a "product guy." Investors loved his financial acumen, but the company's focus under his leadership leaned heavily into services for recurring revenue. The succession of John Ternus, a proven "product guy" with a deep understanding of hardware engineering, signals a potential return to innovative hardware development. Ternus's background, including leading the development of products like the MacBook Neo and spearheading a rumored folding iPhone, suggests a renewed emphasis on groundbreaking physical products. This change is part of a larger, seemingly orchestrated executive turnover at Apple, with many long-tenured leaders retiring and being replaced by a younger generation. This transition comes after a period where Apple's hardware engineering has seen positive shifts, moving from thinner, problem-ridden MacBook Pros to thicker, more functional Apple Silicon models. The success of products like the $599 Mac Mini and the disruptive MacBook Neo further highlights the capabilities of the hardware team under Ternus's influence. His public appearances, such as hosting the MacBook Neo event, indicate he has been prepared for this elevated role. However, a concern remains regarding Apple's tendency to avoid failure, which sometimes limits their willingness to experiment with new product categories. Unlike companies that frequently release and iterate on products, Apple's new releases often need to be massive, revolutionary successes, leading to fewer attempts at diverse innovations. This conservative approach under Cook resulted in products that sometimes felt like variations of existing ones. With Ternus at the helm, there's hope for Apple to take more significant swings at interesting, thoughtful hardware products, moving beyond the safe, formulaic releases. While successful products like Apple Watch, AirTags, and AirPods emerged under Cook, a renewed focus on hardware innovation could revitalize the company's product portfolio. To truly succeed, Apple will also need to elevate its software game, addressing areas like macOS, Liquid Glass, Apple Intelligence, and Siri to match potential hardware advancements.