What Tim Cook built

Source: TechCrunch

Apple CEO Transition Overview

After 15 years as Apple’s CEO, Tim Cook will be stepping down from the role in September.
On the latest episode of TechCrunch’s Equity podcast, Kirsten Korosec, Sean O’Kane, and I discussed Apple’s big announcement. We reflected on how Apple has changed since Cook took over from Steve Jobs in 2011, and what challenges incoming CEO John Ternus will be facing.

“If you look at a certain camp, it is very much like, ‘John Ternus is a product guy and this is going to be amazing’ and it’s very nostalgic and going back to Steve Jobs,” Kirsten said. “But I think what people forget is that Tim Cook actually made another product, which was completely around operations.”

Similarly, Sean noted that Cook has given Ternus a strong “running start” as “the company’s numbers just sort of keep going up.” But a running start doesn’t guarantee victory:

“How much volatility is around the corner? Are we really looking at a situation [with] the breaking apart of a global economy, along with the rise of artificial intelligence changing how business gets done?”

Keep reading for a preview — edited for length and clarity — of our full conversation.

Conversation Excerpts

Anthony

The decisions that Apple makes also trickle down to a bunch of other companies, because there are all kinds of startups that maybe don’t build their entire business on the iOS platform, but certainly a significant part of their business comes on the iPhone.

Kirsten

I think it’s been really interesting to see the different pockets of the tech world responding to whether this is a good or bad move and [asking] what were the successes of Tim Cook and what does Apple need now?

Kirsten (continued)

If you look at a certain camp, it is very much like, “John Ternus is a product guy and this is going to be amazing” and it’s very nostalgic and going back to Steve Jobs. But I think what people forget is that Tim Cook actually made another product, which was completely around operations. There has been some really interesting coverage—even books that have done deep dives into this. His operations strategy is an Apple product, and it changed whole economies.

The question to me is: What happens when a strategist and operations guy leaves? Who is filling that void? You can make great products, and that’s very important in the Apple universe, but you also need an operations strategy. The world is changing; it isn’t the same as it was when Tim Cook was first building this out.

Sean

It isn’t, but it’s hard to imagine a better running start for a new CEO than the company Tim Cook has built.

As much as people complain about some of Apple’s products stagnating, the iPhone hasn’t really changed design in many generations; newer products—like the Vision Pro—are niche and over‑thought. Still, the company’s numbers just keep going up. They’re pulling in massive revenue from the services business Tim Cook spun up.

Apple is also doing better brand‑building than in a while, even winning an Oscar for a movie (see here). It feels like a sturdy business, even in turbulent times, so Ternus doesn’t have to worry too much about the first year.

We should note: Tim Cook is resigning as CEO in September this year and will become executive chairman. He isn’t going away; he’ll still be a shield and partner for Apple, even with the Trump administration. Donald Trump even posted on Truth Social about Cook’s relationship with him (link).

So the question is: With such a comfortable start for Ternus, how much volatility is around the corner? Are we really looking at a situation with the breaking apart of a global economy, alongside the rise of AI changing how business gets done? Will Ternus have the right people alongside him to handle it?

Anthony (continued)

Apple seems to have a very durable business right now—both on hardware and increasingly on services—but to what extent can it continue to thrive by just playing the old hits? At what point does it need to create a new product category?

I don’t know the exact answer. The iPhone—and the creation of the smartphone category—was a once‑in‑a‑generation event; you can’t expect that every ten years.

There’s also the AI question. Apple hasn’t had a lot of success in that category, and maybe that’s okay; perhaps the breakthrough products will be software on iPhone or Mac, with Apple leveraging partnerships instead of building everything in‑house. But that isn’t guaranteed, and there’s a lot of stress and concern about what that future looks like.

Kirsten (final)

Just really quickly, I was going to say that also Apple can and does have t… (truncated)

Sean (continued)

The cash on hand gives Apple the flexibility to make big bets and acquisitions, and I’m really curious to see how John [Ternus] executes on that.

I mean, one of the places where I reported on Apple was the special‑projects team, Project Titan—the supposed Apple car. That effort seems to have petered out after a lot of money was spent. Is he going to make any big bets?

You guys were talking about cash on hand, and I think it’s more than $45 billion at the end of 2025. So they have a lot of money to play around with. Is he going to do anything with it in the near term?

Sean (App Store)

The other thing I think we should point out is, as we talk about Apple having a durable business, the App Store is also really crushing it lately. Sarah Perez wrote a really good story this week for us about all the different ways that numbers are up in the App Store—installs, new releases, etc. It’s a fascinating look for anybody who wants to dig into data from one of the biggest software marketplaces in the world.

In a world where everybody’s talking about how your ability to “vibe code” anything is going to remove the need for distributed software, the App Store is clearly proving that wrong.

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