From Fortune · Sheryl Estrada · · 2m
Apple's fifty-year profit surge under new leadership
John Ternus takes over as CEO from Tim Cook, inheriting a company that grew annual profit from $2 billion to $112 billion in two decades.
In brief
John Ternus takes over as CEO from Tim Cook, inheriting a company that grew annual profit from $2 billion to $112 billion in two decades. Apple's new CEO John Ternus inherits a company transformed from device dependency to recurring revenue, with annual profit rising nearly sixty-fold since two thousand six…
Ternus takes Apple's helm
John Ternus became CEO of Apple on September first, taking over from Tim Cook. The transition marks a leadership change at the company after Cook's tenure building Apple into a five trillion dollar company.
iPhone still drives sales
The iPhone remains Apple's single most powerful engine, accounting for roughly half of twenty twenty-five sales. But the company has successfully diversified its revenue streams beyond hardware.
Services become a powerhouse
Services, including the App Store, iCloud, Music, TV, payments, and advertising, barely existed fifteen years ago. They are now projected to generate more than a quarter of this year's revenue.
Apple goes truly global
While the U.S. remains Apple's largest market, substantial sales now come from Europe, Greater China, Japan, and the broader Asia-Pacific region. Apple operates more than five hundred stores worldwide.
Profit surges nearly sixty-fold
Annual profit rose from roughly two billion dollars in two thousand six to about one hundred twelve billion dollars in twenty twenty-five. This nearly sixty-fold increase occurred in under two decades.
Cook's legacy of discipline
Tim Cook built Apple through supply-chain discipline and cash-flow strength rather than Steve Jobs-style stage presence. He built his own respected legacy not in spite of being unlike Jobs, but because of it.
“Cook ultimately built his own respected legacy, not in spite of being unlike Jobs, but because of it.”
Apple bets on privacy over AI arms race
While Microsoft, Google, Meta, Amazon, and Oracle pour tens of billions into data-center buildouts for the AI race, Apple has deliberately avoided the hyperscaler arms race. It bets instead on privacy-first, on-device AI delivered through premium hardware.
Restraint will test Ternus's leadership
Whether Apple's deliberate avoidance of the AI hyperscaler arms race proves prescient or costly will determine whether Ternus's Apple keeps growing. The decision represents a fundamental bet on a different path than competitors.
The essence
Apple's new CEO John Ternus inherits a company transformed from device dependency to recurring revenue, with annual profit rising nearly sixty-fold since two thousand six.
