Cook steps down but doesn’t retire; new Apple CEO faces the biggest challenge: how to steer the AI transformation under the watchful eye of the “old boss”?

Apple has completed a meticulously designed power transition, but with both the new and former leaders coexisting, the new CEO Ternus faces a unique challenge: how to truly establish his own leadership under Cook’s continued influence and lead Apple through an AI transformation.

On September 1, Cook officially stepped down as Apple’s CEO, with hardware division head Ternus taking over. However, Cook did not completely exit the company but instead assumed the role of executive chairman, continuing to participate in company affairs, including engaging with global policymakers. This means that as Ternus starts his CEO tenure, a former leader with profound influence over Apple still stands behind him.

This transition comes at a critical transformation period for Apple. Apple Intelligence continues to advance, the next-generation intelligent Siri is about to be launched, and the company is also facing supply chain pressures such as tightening memory chip supplies and the push toward in-house chip development. The market expects that Ternus, with his deep hardware background, can drive more innovative product forms and open new growth opportunities for Apple in the era of AI.

Cook Retention: Stabilizer and “On-the-Job Mentor”

Cook’s transition to executive chairman is not merely symbolic. Moor Insights and Strategy’s chief analyst Anshel Sag told MarketWatch, Cook is likely to continue handling certain external affairs, such as maintaining Apple’s relationship with the Trump administration and managing administrative matters not directly related to the product teams.

Over the past decade, Cook has maintained a subtle yet crucial relationship with the Trump administration, which brought Apple key tariff exemptions and led to commitments to expand domestic manufacturing in the United States. For Apple, these political and policy resources built up over years will not be immediately transferred with the CEO change.

“Cook will not just disappear,” Sag believes. Cook’s retention acts more as an “on-the-job training” period for Ternus. Previously, Ternus had rarely interacted with high-level political figures such as heads of state, and such experience takes time to accumulate.

Therefore, Cook’s presence not only provides Apple with stability during the transition but also allows Ternus to gradually take over the external relations and complex affairs required of a CEO, with support from his predecessor.

Ternus, 51: Can a Product-Oriented CEO Bring a “New Apple”?

At 51, Ternus is still among the younger CEOs. Data from Korn Ferry shows his age is about ten years below the average for CEOs.

Compared to Cook, who excels in supply chain, operations, and capital allocation, Ternus’s greatest strength lies in products and hardware. This directly aligns with the market’s most urgent expectation for Apple: as the AI wave hits, not just integrating AI features into existing devices, but identifying new hardware forms that can truly change the user experience.

“A new CEO who is more focused on products is exactly what Apple needs right now, as people are looking for new device forms to meet AI demands,” Sag stated.

But Ternus’s strengths are also matched by shortcomings in experience. Compared to Cook, he has limited expertise in fields such as geopolitics, government relations, and board management.

Apple has, in fact, been paving the way for this transition in advance. In March this year, Ternus hosted the launch of the MacBook Neo, and he appeared at Apple’s last two quarterly earnings calls, gradually moving from a behind-the-scenes hardware leader to the new public face of the company.

Biggest Test: Will Cook’s “Guidance” Become a Constraint?

From a corporate governance perspective, Apple’s arrangement is not uncommon; the real challenge lies in distinguishing the boundaries between “guidance” and “intervention.”

Workplace performance expert Henna Pryor points out that one of the biggest mistakes companies make is giving new leaders the title but not truly granting them decision-making power. The ideal transition requires a clear definition of which decisions the new CEO can make from day one, and which responsibilities are gradually handed over during the transition period.

Morningstar’s chief equity market strategist Michael Field believes that for a company long driven by the vision of a single leader, a CEO transition itself is risky. Keeping Cook reduces transition volatility, but if Ternus is never fully empowered, it may also undermine the changes that a new leader should bring.

“If you swap out a person but don’t give him the full freedom to act, you really won’t get that kind of growth,” said Field.

New York University psychology professor Tessa West also reminds new leaders not to over-interpret the actions of their predecessors. Instead, they should maintain direct communication and focus on concrete decisions and actions.

For Apple, the true test lies in: can Ternus use the experience and resources left by Cook, while gradually stepping out of his predecessor’s shadow to build his own leadership identity?