- Apple shares fell nearly 3% after CEO Tim Cook announced his resignation effective Sept 1
- John Ternus, senior VP of hardware engineering, will succeed Cook as Apple's CEO
- Cook will become executive chairman following a long-term succession plan by Apple’s board
Apple shares fell nearly 3% on Tuesday after the company confirmed that Chief Executive Officer Tim Cook will step down on Sept. 1, ending a 15-year run at the helm of the iPhone maker and ushering in one of the most closely watched leadership transitions in global business.
Cook will move into the role of executive chairman, while John Ternus, Apple's senior vice president of hardware engineering, will take over as CEO.
The iPhone-maker's scrip hit a low of $265.4 on Nasdaq, down 2.9% as against the previous day's close.
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Apple, earlier in the day, said Cook's stepping down followed a long-term succession plan approved by its board, signalling continuity rather than a "sudden shake-up".
The market reaction reflected investor caution over whether the upcoming CEO Ternus can maintain Apple's growth trajectory at a time when the company faces mounting pressure in artificial intelligence and reportedly slowing momentum in some product categories.
Cook, 65, succeeded Steve Jobs in 2011 and oversaw one of the most profitable periods in corporate history.
During his tenure, Apple's market value rose from roughly $350 billion to more than $4 trillion, making it the first publicly traded company to cross several historic valuation milestones.
Under his leadership, Apple expanded beyond the iPhone with products such as the Apple Watch and AirPods, while rapidly growing its services business through the App Store, Apple Music, iCloud and Apple TV+.
Meanwhile, Ternus, who joined Apple in 2001, has long been viewed as a leading internal contender for the top job. He has overseen major hardware programmes across the Mac, iPad and iPhone ranges, and his appointment suggests Apple is betting on product expertise as it enters a more competitive era.
The incoming CEO inherits significant challenges. Apple has been criticised for moving cautiously in generative AI, while rivals such as Microsoft and Google have accelerated their consumer AI offerings.
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The company has also faced mixed demand for newer products including the Vision Pro headset and questions about where its next breakthrough device will come from.
For now, the limited share decline indicates markets see the transition as manageable — but investors will be watching closely for Apple's next chapter after Cook.
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