The iPhone maker said on Monday that Ternus will take over on September 1, while Cook will become executive chairman.

The leadership change comes as Apple strengthens its focus on artificial intelligence, responding to competition from companies including Nvidia, Meta and Google.

Ternus joined Apple in 2001 and currently serves as senior vice-president of hardware engineering. He has worked on several of the company’s biggest products, including the Mac, iPad and AirPods.

He is also seen as an important figure in improving Mac sales in recent years, helping the product regain momentum against personal computer competitors.

Although he has kept a lower public profile than some Apple executives, the company has recently given him a more visible role.

Last year, Ternus presented the iPhone Air, a major redesign of Apple’s flagship device and one of the biggest changes to the product line in years.

At 50, he takes over at the same age Cook did when he succeeded Apple co-founder Steve Jobs in 2011.

Cook leaves the chief executive role after overseeing one of the most successful periods in Apple’s history. Since taking charge in August 2011, he has helped increase the company’s market value by about $3.6 trillion.

He was widely credited with expanding Apple’s global supply chain, especially through manufacturing partnerships in China, while also growing the company’s services and hardware businesses.

Cook also became the first Fortune 500 chief executive to publicly come out as gay in 2014 and often spoke on issues including workplace diversity and environmental policy.

Apple said Cook will remain involved in dealing with policymakers as executive chairman.

Ternus now inherits a company under pressure to show stronger progress in artificial intelligence.

Although Apple introduced Siri in 2011, it has struggled to match the pace of newer AI-focused companies.

Tech giants such as OpenAI and Anthropic have attracted millions of users with new chatbot products, while Nvidia has become the world’s most valuable listed company on the back of demand for AI chips.

In January, Apple reached an agreement with Google to use Gemini technology to improve Siri.

Ternus will also face competition in new devices. Meta Platforms has found success with smart glasses, while Apple’s Vision Pro headset has faced questions over its high price.

Alongside appointing John Ternus as CEO, Apple said Johny Srouji has been named chief hardware officer. He will continue leading the company’s custom chip and sensor teams.

The hardware engineering group previously led by Ternus will now be overseen by Tom Merieb.

His latest comments have revived fears of another trade challenge between the United States and China, pushing investor confidence down and triggering a fresh sell-off across key technology stocks.

Luxshare, a major assembler of iPhones and producer of AirPods, dropped 2.2%. Lens Technology, which provides mobile screens, declined 1.8%, while Goertek, another AirPods manufacturer, fell 1.1%. 

These dips are directly linked to Trump’s Friday warning that iPhones not made in the U.S. could face a 25% import tariff.

And he didn’t stop there. Trump also floated the idea of a 50% tariff beginning June 1, adding more pressure to global supply chains and increasing concerns that the trade truce of the last few weeks could unravel.

The U.S. had already slapped tariffs on imports earlier this year. Although the White House later stepped back, after a market issue shook U.S. bonds and the dollar, the 10% baseline import tax remains. 

Again, Trump had imposed a 145% tariff on Chinese products, which was later scaled down to 30%.

The impacts weren’t limited to Apple’s supply chain. China’s main stock indices also reflected investor anxiety. The Hang Seng Index in Hong Kong dropped by 1%, while the CSI 300, which tracks large-cap stocks in mainland China, slid 0.7%. 

Apple, anticipating the risks, is already acting. The company is making plans to manufacture most of its U.S.-sold iPhones in India by the end of 2026. 

The goal is to insulate itself from the geopolitical tug-of-war between Washington and Beijing. But shifting production isn’t simple, and bringing it to the U.S. may be even harder.

Commerce Secretary Howard Lutnick had claimed last month in an interview with CBS: “The work of millions and millions of human beings screwing in little, little screws to make iPhones will come to the United States and be automated, creating jobs for skilled trade workers such as mechanics and electricians.” 

However, when asked later by CNBC, he admitted that Apple CEO Tim Cook told him the necessary automation technology just doesn’t exist yet.

So what now? We’re looking at a scenario where rhetoric can move billions in market value within hours, and where companies are being forced to reconsider how and where they make their most iconic products. Apple is trying to outpace the politics, but the rules keep changing.

In the March quarter, Apple saw only “limited impact” from tariffs, but Tim Cook said that’s no guarantee the coming months will look the same. If global tariffs don’t change and no new ones are introduced, Apple expects the extra cost to stay around the $900 million mark in Q3. That’s a big “if” in today’s volatile trade environment.

Investors, though relieved it wasn’t worse, didn’t exactly cheer. Apple posted $95.4 billion in revenue and $28.4 billion in net profit — figures that beat expectations.

Still, shares slid 4% after hours. Tariffs are only one piece of the puzzle; legal pressure is increasing too, especially after a recent antitrust ruling. Uncertainty, not profit, is what’s moving the market now.

When asked to give a more detailed outlook, Cook shut the door on speculation. “I don’t want to predict the future, because I’m not sure what will happen with the tariffs.” Apple isn’t gambling on trade policy. Instead, it’s changing its supply chain out of China at a fast pace.

About half of iPhones sold in the U.S. now come from India. Macs, iPads, and other devices are produced in Vietnam. That’s a deliberate strategy and a response to years of growing geopolitical issues.

After a meeting with former President Donald Trump, Apple managed to avoid the harshest tariff spikes. At one point, tariffs on Chinese imports were set at 145%, but electronics were spared. That exemption may not last. “Our estimate assumes current global tariff rates, policies, and applications remain in place for the rest of the quarter,” Cook warned. It’s not a promise, just a possibility.

To Cook, Apple’s game plan hasn’t changed: stay focused, stay calm, and invest for the long term. “For our part, we will manage the company the way we always have, with thoughtful and deliberate decisions, with a focus on investing for the long term, and with dedication to innovation and the possibilities it creates,” he told investors. 

“As we look ahead, we remain confident, confident that we will continue to build the world’s best products and services, confident in our ability to innovate and enrich our users’ lives, and confident that we can continue to run our business in a way that has always set Apple apart.”

Behind the positiveness, there’s realism. Apple’s tight supply chain has given it breathing room, but Cook didn’t offer illusions about what comes next.

With global trade dynamics changing, even the biggest players can’t control the laws. Apple’s doing what it can, adapting quickly, communicating cautiously, and staying alert.