Apple, once synonymous with innovation, finds itself at a pivotal moment. Amid mounting pressure to solidify its artificial intelligence strategy and calls for CEO Tim Cook’s replacement, attention is increasingly turning to John Ternus, Apple’s SVP Hardware Engineering.
Widely cited by insiders as the leading internal contender to succeed Cook, Ternus represents a product-focused executive well-regarded within the company. His increased public visibility, orchestrated by Apple’s PR teams, further fuels speculation about his future role. This speculation is underscored by a strategic shift in April, when Apple’s secret robotics unit was moved from the oversight of AI chief John Giannandrea to the hardware division led by Ternus, suggesting a focus on integrating AI more deeply into Apple’s devices.
Wall Street analysts and former executives are increasingly vocal, offering both critical assessments and strategic advice as the company navigates a complex financial landscape. Leading the charge of critics are Walter Piecyk and Joe Galone of LightShed Partners. They argue that Apple’s recent AI struggles necessitate a “product-focused CEO, not one centered on logistics,” and have explicitly called for Tim Cook’s replacement. Their perspective underscores a growing concern about the company’s innovation pipeline in the fiercely competitive AI arena. While Apple’s reputation was built on groundbreaking products like the iPod and iPhone that reshaped entire industries, recent failures include Apple Vision Pro and iPhone Air.
Apple’s voice assistant, Siri meanwhile, has been widely criticized as severely outdated compared to competitors. The major generative AI overhaul, Apple Intelligence, has been repeatedly delayed, with a full release for its key features pushed back until at least 2026.
Dan Ives of Wedbush Securities, while generally bullish on Apple, warns that the company must act swiftly to avoid a “BlackBerry Moment” in AI. Adding historical weight to the debate, former Apple CEO John Sculley has also weighed in, urging a pivot to “agentic AI” and hinting at Cook’s nearing retirement. Whether hardware-driven AI innovation is the answer to Apple’s lag in AI software innovation remains to be seen.