1 month ago
John Ternus takes complete from Tim Cook arsenic main executive of Apple successful September. A institution insider, Ternus is moving up from his domiciled arsenic caput of engineering to return power of nan full $4tn (£3tn) business.
Apple is simply a vast, successful tech institution and 1 of nan astir recognised brands successful nan world. But it faces challenges nonetheless. Here is simply a look astatine Ternus’s in-tray.
1. Fix nan AI strategy
Artificial intelligence has been a astonishing weakness for Apple, astatine slightest successful nan eyes of immoderate investors. It has stood connected nan sidelines arsenic Microsoft, Google, Meta and Amazon person poured hundreds of billions of dollars into AI development.
Instead, Apple has preferred partnerships and announced successful January that its AI tech will beryllium based connected Google’s Gemini, including successful a revamped type of its sound assistant, Siri.
Dan Ives, an expert astatine nan US financial services patient Wedbush Securities, said: “We can’t opportunity it capable but Apple cannot watch nan AI era from nan sidelines arsenic this 4th business gyration takes hold. In essence, Apple is simply a toll collector connected nan user AI road and Ternus needs to yet get nan AI strategy right.”
Jony Ive (left) and Tim Cook astatine an iPhone motorboat time successful 2018. The iPhone brings successful half of Apple’s revenue. Photograph: Qi Heng/VCG/Getty Images
2. Diversify distant from nan iPhone
This is thing of a counterintuitive situation for an executive who has received plaudits internally and externally for overseeing caller iPhone exemplary launches. It is besides not a caller quandary.
The iPhone, 1 of nan signature user products of nan 21st century, represented conscionable complete 50% of Apple’s $416bn successful income past twelvemonth and has 1.5 cardinal progressive users worldwide. Nonetheless, nan marketplace is saturated and highly competitive.
“They request to diversify distant from nan iPhone and make judge it nary longer represents 50% of their revenue,” said Thomas Husson, an expert astatine Forrester Research.
Ternus, 51, will beryllium looking astatine what OpenAI produces from its collaboration with iPhone designer Jony Ive. Apple is expected to motorboat a foldable iPhone and has reportedly explored individual robotics arsenic a caller merchandise offering, while an Oura-style ringing could beryllium different option. Ternus, however, does not person a estimation for taking large swings.
Ives said: “Innovation going guardant astir foldable phones, an AI-enabled smartphone, caller sleeker/affordable Apple Glasses, and early hardware developments will beryllium nan hearts and lungs of Apple’s success.
“While we tin talk astir proviso chain, governmental navigation, and branding … it comes down to invention and this will specify nan early of Apple and Ternus.”
3. Deal pinch nan geopolitics
Apple has each nan diplomatic, governmental and regulatory issues 1 would expect for a $4tn institution whose products are successful billions of people’s pockets and homes.
Cook has managed his relationship with Donald Trump cautiously and Ternus will person to do nan same, fixed nan US president’s tariff argumentation and his repeated calls for Apple to bring backmost iPhone manufacturing from China to nan US.
Apple besides has to support a narration pinch China, its 3rd largest marketplace down Europe and nan US and wherever it assembles nan mostly of its iPhones. Europe and nan UK are besides putting regulatory unit connected Apple complete its app store, agelong a bugbear of developers who resent nan trim it takes connected app and in-app purchases.
Husson said: “He will person to woody pinch monolithic geopolitical challenges specified arsenic diversifying the proviso concatenation distant from China and dealing pinch Donald Trump. It whitethorn not beryllium easy navigating this play of monolithic geopolitical tension, erstwhile you person to woody pinch Trump, [European Commission president] Ursula von der Leyen and China. It’s a large challenge.”
Severance starring Adam Scott and Britt Lower has been a large deed connected Apple TV. Photograph: AP
4. Keep expanding Apple’s services business
One of Cook’s awesome successes was building Apple’s services portion into a $110bn-a-year business. This portion includes Apple’s method support work and nan Apple Music and Apple TV streaming services, which produces hits specified arsenic Severance and Ted Lasso.
This is simply a high-margin business pinch accordant gross streams, 2 facets that immoderate executive would for illustration much of. “The situation there will beryllium to maintain and develop that spot pinch user to participate adjacent markets for illustration healthcare and financial services,” said Husson.
