Apple Inc. (NASDAQ: AAPL) entered a new leadership era on September 1, 2026, when John Ternus took over from Tim Cook after 15 years of Cook’s tenure at the top of the company.
Ternus became only the third CEO since Steve Jobs returned to Apple in 1997, bringing with him 25 years of experience at the company and a tenure leading hardware engineering since 2021.
On September 9, 2026, the Wall Street Journal reported that Ternus took the stage for his first product launch as CEO, introducing the foldable iPhone Duo alongside a strategic shift away from baseline iPhone models.
Rather than refreshing its entry-level iPhone and Air lines, Apple concentrated its newest hardware on Pro, Pro Max, and the new foldable Duo, steering buyers firmly toward its highest-margin devices.
The flagship iPhone Duo carries a starting price of $1,999, while Apple raised iPhone 18 Pro and Pro Max starting prices by $100 to $1,199 and $1,299 respectively, citing surging memory and storage costs across the electronics industry.
Ternus personally oversaw development of the foldable iPhone during his time leading hardware engineering, making the Duo a product that reflects his direct fingerprints before he even formally assumed the CEO role.
Tim Cook did not exit Apple entirely following the transition, instead moving into an executive chairman role that gives Ternus access to continuity at the leadership level as he builds out his own strategic vision.
Apple’s premium-first approach carries real risk, as the company must persuade consumers that its newest hardware justifies significantly higher prices at a time when component inflation is already pressuring household budgets.
Ternus also inherits an AI challenge, with Apple still working to establish Siri AI and Apple Intelligence as compelling everyday products while rivals continue to invest aggressively in generative AI capabilities.
Apple reported a 48.1% gross margin excluding tariff benefits in fiscal Q3, and management warned that significant supply constraints could restrict product availability during what is shaping up to be a critical first product cycle for the new CEO.
On the institutional side, hedge fund exposure to Apple was nearly flat at 169 funds in the second quarter compared with 170 in the first quarter, though combined position value rose to $124.80 billion from $107.48 billion, according to Insider Monkey’s database.
Ternus now faces the central challenge of his early tenure: converting his deep product-development credentials into sustained iPhone demand, credible AI differentiation, and healthy margins without pushing consumers away from Apple’s most expensive devices yet.
