Tim Cook will resign as Apple’s CEO effective September 1, a surprising announcement made by the tech company on Monday afternoon.
At 65 years old, Cook will take on the role of executive chairman, while John Tarnas, age 50 and currently head of hardware, will assume the CEO position.
Apple stated that this leadership change was “unanimously approved by the Board of Directors” and came after a “thoughtful, long-term succession planning process.” Cook succeeded Apple’s co-founder Steve Jobs as CEO in 2011.
“John Tarnas possesses the heart of an engineer and the spirit of an innovator, along with the integrity to lead,” Cook expressed in a statement. “His contributions to Apple over the last 25 years are immeasurable, and he is certainly the best choice to guide Apple moving forward.
“I have every confidence in his capabilities and character, and I look forward to collaborating with him during this transition and in my new role as executive chairman,” the outgoing CEO added.
Additionally, Apple indicated that Cook’s new responsibilities will involve “engaging with policymakers globally.” Throughout his tenure, he has nurtured relationships with U.S. lawmakers across the political spectrum, even including President Trump.
After the news broke, Apple shares remained steady in after-hours trading.
Since Cook took over, he has significantly increased Apple’s market valuation from about $350 billion in 2011 to around $4 trillion now.
On the downside, the company has faced notable challenges lately, particularly with disappointing sales of its Vision Pro augmented reality headset.
Apple has also encountered difficulties implementing AI capabilities across its operations, facing bugs that have delayed updates to the Siri voice assistant.
John Gianandrea, the senior vice president of machine learning and AI strategy since 2018, stepped down in December amid shifts within the AI team.
Analyst Dan Ives from Wedbush described Monday’s announcement as “shocking.”
“Cook leaves behind a significant legacy in Cupertino, and Ternas will face immense pressure to lead effectively from the outset, particularly in the area of AI,” he noted in a message to clients. “While there had been speculation about Cook’s potential departure, investors are left with more questions than answers regarding the timing and implications for Apple’s broader strategy.”
Mr. Ternas was widely regarded as a likely successor due to his critical role in developing the iPhone and other hardware products, which remain a major source of Apple’s annual revenue. He joined Apple in 2001 and advanced through various positions before becoming an executive in 2021.
Rumors about Cook’s potential resignation began circulating last fall when reports emerged that the Apple board was enhancing succession planning.
Just last month, Cook had dismissed speculation regarding his departure, telling ABC’s “Good Morning America” that he “can’t imagine life without Apple.”
