Apple’s next CEO faces a company reshaped by Tim Cook’s 15-year tenure, which ended with the tech giant valued at over $3 trillion. The company’s revenue grew from $108 billion in 2011 to $383 billion in 2025, driven by services and the iPhone’s dominance. Hardware sales, once Apple’s core, now account for 52% of revenue, down from 70% in 2011. Services—including the App Store and Apple Music—now contribute $85 billion annually, a segment Cook prioritized after taking over from Steve Jobs.
The shift reflects Cook’s operational focus. Supply chain efficiency became a hallmark, with Apple reducing production costs by 18% in key markets. The company also expanded into wearables, with the Apple Watch outselling the Swiss watch industry by unit volume in 2024. Regulatory scrutiny intensified under Cook, particularly over the App Store’s policies, leading to a $32 billion fine from the EU in 2025.
John Ternus inherits a company facing new threats. China’s smartphone market, once Apple’s second-largest, contracted by 12% in 2025. India’s growth offsets some losses, but local brands like Xiaomi and Realme now control 45% of the market. Services face pressure as regulators in the U.S. and Europe push to open app ecosystems, potentially reducing Apple’s 30% commission on digital sales.
Ternus must also address Apple’s environmental goals. The company pledged carbon neutrality by 2030, but 70% of its emissions still come from manufacturing partners. A 2025 report found only 12% of suppliers met the 100% renewable energy target.
Cook leaves a company transformed but tested. His successor faces a slower-growth era, with iPhone sales flat since 2023 and AI integration proving costly. The next CEO’s ability to balance innovation with compliance will define Apple’s next decade.
Source: techcrunch.com