Mark Gurman on Apple's future

Bloomberg's chief Apple correspondent discusses John Ternus becoming CEO and what it means for the company's next chapter, from new products to AI strategy.

Ternus debuts with iPhone Duo

John Ternus held his first major product launch as CEO less than two weeks after taking over from Tim Cook, introducing the iPhone Duo foldable smartphone.

Playing it safe with AI

The event felt like Apple's greatest hits. Ternus introduced an intelligent personal hub concept echoing Steve Jobs' digital hub, but Apple showed no major new AI features.

Ternus brings decisive leadership

Unlike Tim Cook's collaborative decision-making style, Ternus comes with strong opinions and a clear viewpoint on AI, signaling a different management approach at Apple.

“if you come to him and you want him to make a decision, he'll make a decision. He'll have an opinion.”

Six new AI devices coming

Apple is developing a smart home hub with a square screen and new operating system, a robotic arm version, home security system, smart glasses, and AirPods with cameras.

Smart glasses arriving in 2027

Apple's long-awaited smart glasses are expected to launch and ship in 2027, marking a major new product category for the company.

“Within 365 days, you will be wearing them and have video footage of you wearing them at the Steve Jobs Theater.”

From Jobs to Cook to Ternus

Steve Jobs' era was about revolutionary devices. Tim Cook's era became corporate and institutional, focused on scale and privacy. Ternus must define his own era.

Biggest executive overhaul ever

Apple orchestrated a multi-year leadership transition starting in 2023. The CFO, COO, general counsel, and CEO all stepped down or transitioned between 2024 and 2026.

Hotel California strategy

Tim Cook stayed on as executive chairman. Other departing executives like Jeff Williams and Luca Maestri kept advisory roles, keeping senior talent available during transitions.

Phil Schiller steps back

The same week Ternus became CEO, Phil Schiller left his roles running the App Store and Apple Events. He believed Apple was squeezing developers too hard.

Eddy Cue gains more power

With Schiller out, Eddy Cue now has firm control over all Apple services. He and Ternus are exploring new ways to extract more revenue from the App Store.

Johny Srouji becomes chief hardware officer

The creator of Apple Silicon was nearly lost to competitors. Tim Cook created a new chief hardware officer role to keep him, making him the second most important person at Apple.

Srouji may leave soon

Despite the promotion, Srouji has already conquered major challenges like replacing Intel modems. He likely wants new challenges and may transition out within a year or two.

Back to functional structure

Apple is moving away from having legendary individual leaders like Jony Ive as chief design officer. Design now reports to Ternus through vice presidents instead.

Retention crisis brewing

Vice presidents under long-serving executives like Eddy Cue are leaving for opportunities elsewhere because they know they'll never get promoted internally.

Apple missed the AI wave

Apple's lack of younger talent with disruptive ideas prevented the company from seeing AI's potential early. The Cook Doctrine of owning foundational tech didn't apply to AI.

Google partnership is temporary

Apple partnered with Google on AI as a stopgap solution while building its own models. But there's zero evidence the company is actually working on that plan now.

Jony Ive at OpenAI

Steve Jobs' design partner is now working with Sam Altman at OpenAI to build AI devices using natural language as the interface, potentially disrupting Apple's legacy products.

Apple sues OpenAI

Apple accuses OpenAI of stealing internal information and product plans. OpenAI says it's normal business practice. A former iPhone engineer is at the center of the dispute.

Apple can fast-follow OpenAI

If OpenAI's AI device succeeds, Apple can quickly copy it by partnering with Anthropic or Google for models. Apple doesn't need to own the frontier AI to compete.