Apple under Ternus: what comes next for the tech giant’s hardware strategy

As Apple gears up to enhance its competitiveness in the AI landscape while grappling with tariff challenges and supply chain complexities, a significant transformation is on the horizon with new leadership. The tech giant recently announced that John Ternus will step into the CEO role later this year, succeeding Tim Cook. Cook played a pivotal role in elevating Apple into a $4 trillion global titan, expanding its services division, and guiding the company through some of the most lucrative periods in the tech sector. In contrast, Ternus, a veteran hardware executive, has dedicated his career to developing Apple’s devices rather than overseeing the broader corporate landscape. Since joining Apple in 2001, he has climbed the ranks of hardware engineering and has been instrumental in the creation of flagship products such as AirPods, the Apple Watch, and the Vision Pro. Ternus's leadership marks a renewed emphasis on hardware at a crucial time when Apple is under pressure to chart its next chapter. Instead of directly competing with firms vying to create the largest AI models, Ternus may steer Apple towards enhancing AI capabilities within its devices—whether handheld, wearable, or embedded in home environments. Speculation abounds regarding potential new product launches, including smart glasses, a wearable camera-equipped pendant, and AirPods enhanced with AI functionalities. According to reports from Bloomberg, the vision is for these innovations to seamlessly integrate with the iPhone, with Siri taking on a significant role in user interaction. Ternus is also anticipated to advance projects that have been stagnant, such as foldable iPhones, which have been long-rumored. While competitors have already launched their versions, Apple has opted for a more measured approach, ensuring that the technology aligns with its high standards. Reports suggest that the eagerly awaited foldable model may debut in September, placing Ternus in charge of its launch. Moreover, Apple is reportedly delving into robotics, particularly for home applications. Concepts under exploration include a tabletop device equipped with a robotic arm and a display—essentially a smart assistant that can engage with users. This aligns with Ternus’s personal interests in robotics; he previously designed a device enabling quadriplegics to control a mechanical feeding arm using head movements during his college years. There are also intriguing ideas for mobile robots capable of following users, performing simple tasks, or serving as portable FaceTime screens. Some reports even touch upon experiments with humanoid robots, although these innovations may still be years away from realization. While the future remains uncertain, these concepts provide insight into Apple’s strategic direction. However, challenges loom on the horizon. Ongoing shortages in memory chips, fluctuating tariff policies from the previous administration, and reliance on Chinese manufacturing for about 80% of iPhone production may pose significant hurdles. In response, Apple has begun to diversify its manufacturing, shifting around 25% of its iPhone production to India last year, according to Bloomberg.