# 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.
- Title: Apple's fifty-year profit surge under new leadership · Fortune
- Summary: 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…
- Keywords: apple, john ternus, tim cook, ceo transition, profit growth, services revenue, iphone, on-device ai, Apple's, fifty-year, profit, surge
- Source: Fortune — https://fortune.com/2026/09/22/from-2-billion-to-112-billion-annual-profit-how-apple-transformed-business-cfo
- Author: Sheryl Estrada
- Read time: 2 min
- Topics: apple, john ternus, tim cook, ceo transition, profit growth, services revenue, iphone, on-device ai
## 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.
## Key takeaway

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.