Why is Tim Cook leaving from Apple? AI rollout flop could be to blame,
Industry insiders have revealed what they claim is the real reason for Tim Cook’s departure from Apple.
After 15 years in the top spot, the CEO will make way for John Ternus, the current head of hardware engineering, who has been at the company for 25 years.
Now, experts suggest the real reason for Mr Cook’s ‘surprise’ departure might be the underwhelming launch of Apple’s AI system, Apple Intelligence.
The system was announced to great fanfare in 2024, hailed by the company as a ‘new chapter in Apple innovation.’
However, it soon faced significant criticism due to slow implementation, underwhelming features, and the absence of advanced AI capabilities.
According to industry experts and insiders, Apple’s executives no longer felt that the 65-year-old CEO had what it takes to lead Apple through the AI transition.
Rebecca Crook, head of tech consultancy MSQ DX, told the Daily Mail: ‘Apple’s setbacks in AI have been a consistent focal point, with analysts pressing Cook repeatedly on whether the company was prepared for a future beyond the iPhone.
‘When a CEO finds themselves on the back foot about the most strategically critical technology of the decade, that’s always going to be tough.’
Tim Cook will be stepping down as CEO of Apple after 15 years in the top spot, and experts say the real reason could be the disappointing failure of Apple Intelligence
Mr Cook will not be leaving Apple entirely and will stay on as executive chairman of Apple’s board of directors to handle the company’s geopolitical connections with world leaders.
After a transition period through the summer, Mr Ternus will then take the reins.
Apple says that this ‘follows a thoughtful, long–term succession planning process’, but industry experts don’t necessarily agree.
Dan Ives, global head of tech research at Wedbush Securities, told the Daily Mail that Mr Cook’s sudden move was a ‘stunner’ that hadn’t been anticipated until late next year.
‘Apple is making a major transition on its AI strategy, and longtime CEO and legendary Cook leaving now is a surprise,’ says Mr Ives.
However, the key factor may have been a ‘growing pressure on Apple to produce a successful AI strategy’.
In late 2024, Apple revealed its suite of AI features collectively dubbed Apple Intelligence, which Mr Cook dubbed: ‘The next big step for Apple’.
Prior to the release, Mr Cook had come under fire for focusing on massive hardware flops like the Apple Vision Pro rather than investing in AI capabilities.
Mr Cook, right, will hand over to John Ternus, left, the current head of hardware engineering, who has been at Apple for 25 years
In late 2024, Apple launched a suite of AI features dubbed Apple Intelligence. However, the launch was widely panned as a flop
Hopes were, therefore, extremely high that the new AI features would help Apple keep up with new rivals like ChatGPT maker OpenAI.
However, Apple Intelligence ultimately proved to be an embarrassing failure.
Flagship features like an improved AI-powered Siri still haven’t materialised, and the launch was held up for months in Europe due to a legal dispute with the EU.
With Apple’s most important yearly event, the Worldwide Developers Conference (WWDC), coming in June, Mr Cook may now see it as the right time to step aside.
Ben Wood, chief marketing officer at CCS Insight, told the Daily Mail: ‘AI is widely regarded as an area where Tim Cook made a decision to let others, such as Google, Gemini, and OpenAI with ChatGPT, take a lead.
‘All eyes will be on Apple WWDC in June to learn more about Apple’s plans in this area, in particular what it does with Siri, and its partnership with Google.’
There is a growing feeling within Apple and among experts that John Ternus would be a much better CEO to lead Apple through this transition.
Mr Cook will leave an astonishing legacy at the company, having grown it from a market capitalisation of approximately $350billion to $4trillion and nearly quadrupling yearly revenue.
Mr Cook came under fire for focusing on high–profile hardware flops like the Apple Vision Pro, rather than investing in AI capabilities
However, his expertise lies more in the areas of supply chain organisation and navigating the turbulent complications of geopolitics.
As the focus now shifts towards delivering an AI strategy, the feeling is that Apple needs a CEO with a better feel for products and innovation.
Ms Crook told the Daily Mail: ‘The AI era requires a different kind of leadership, one that’s closer to the product and the engineering.
‘Choosing John Ternus, a hardware engineer with 25 years at Apple, signals that the company believes the future of AI will run through tightly integrated devices, not just software.’
Analysts also suggest that this is a sentiment Mr Cook may have shared, making the choice to focus his attentions where they would be more useful and leaving the innovation to Mr Ternus.
‘Cook is too smart and too controlled to be pushed, but he’s also astute enough to know when the era that suits him best has passed,’ says Ms Crook.
‘Stepping aside now, while Apple is still a $4trillion company, is the power move. It protects his legacy far better than clinging on through another difficult AI cycle would.’
Within Apple, there is a feeling that Mr Ternus’s leadership style could help bring the company back to something resembling its organisation under co–founder Steve Jobs.
Industry experts believe Apple and Mr Cook recognise that Mr Ternus is a better CEO to lead through the AI transition
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One person who has worked with both executives told Bloomberg: ‘If you go to Tim with “A” or “B”, he won’t pick. He’ll ask a series of questions instead if he has concerns.’
They added: ‘Ternus will make decisions. It could be right or wrong, but at least it’s a decision.’
Mr Ternus is expected to take a much more centralised position as a decision maker, making the biggest decisions himself rather than leading by committee.
For example, Mr Ternus has already overhauled the company organisation around a so-called ‘AI platform’ designed to speed up product development and improve device quality.
In light of these moves, Ms Crook describes Mr Cook’s sudden departure as a ‘deliberate strategic bet’.
She adds: ‘I wonder whether Ternus can do what Cook couldn’t and make Apple feel genuinely essential in an AI-first world, not just the best hardware wrapper for someone else’s intelligence.’
Apple has been contacted for comment.
THE TRILLION DOLLAR RISE OF APPLE
1976: Founders Steve Jobs, Steve Wozniak and Ronald Wayne created the company on April 1, 1976, as they set about selling computer kits to hobbyists, each of which was built by Wozniak.
The first product was the Apple I.
1977: Apple released the Apple II in June, which was the first PC made for the mass market.
Steve Jobs unveils Apple Computer Corporation’s new Macintosh in California on February 6, 1984
1981: Jobs became chairman.
1984: The Macintosh was introduced during an ad break for the Super Bowl and later officially unveiled during a launch event. It was discontinued a year later and Jobs left the firm.
1987: Apple released the Macintosh II, the first colour Mac.
1997: Apple announces it will acquire NeXT software in a $400 million deal that involves Jobs returning to Apple as interim CEO. He officially took the role in 2000.
Steve Jobs, then-chief executive officer of Apple, with the iPhone
2001: Apple introduced iTunes, OS X and the first-generation iPod.
The first iPod MP3 music player was released on October 23, 2001, at an event in Cupertino and was able to hold up to 1,000 songs.
2007: Apple unveils the iPhone.
2010: The first iPad was unveiled.
2011: Jobs resigned in 2011 due to illness, handing the CEO title to Tim Cook. Jobs died in October from pancreatic cancer.
2014: Apple unveiled the Apple Watch. It also unveiled its first larger iPhones – the 6 and 6 Plus.
2015: After purchasing Beats from Dr Dre, Apple launched Apple Music to compete with Spotify and other music streaming services.
2016: Apple returned to its roots and announced the 4-inch iPhone SE. Meanwhile, the firm is embroiled in a legal battle with the FBI, involving the agency demanding access to the locked phone used by Syed Farook, who died in a shootout after carrying out a deadly December attack in San Bernardino, California, with his wife. The court order was dropped on March 28 after the FBI said a third party was able to unlock the device.
2017: Apple introduces the iPhone X, which removes the home button to make way for a futuristic edge-to-edge screen design and a new FaceID system that uses advanced sensors and lasers to unlock phones with just the owner’s face.
Jobs at an Apple event at the company’s headquarters in Cupertino, California
2018: In a first for the company, Apple introduces new features in its latest operating system, iOS 12, that encourage users to manage and spend less time on their devices. The move was spawned by a strongly worded letter from shareholders that urged the firm to address the growing problem of smartphone addiction among kids and teenagers.
2019: In January, Apple reports its first decline in revenues and profits in a decade. CEO Tim Cook partly blamed steep declines in revenue from China.
2020: In March, Apple closes all its brick-and-mortar retail stores outside of China in response to coronavirus.
2021: In an online virtual event in April, CEO Tim Cook declares Apple’s goal of becoming carbon neutral for Earth Day. Later in the year, the iPhone 13 was announced.
2022: In September, the iPhone 14 was announced. One of the new features included a new sensor to detect if a user had been in a car crash, as well as an improved camera system.
2023: Apple brings back its ‘Home Pod’ after the first generation was discontinued. The ‘Home Pod’ can be seen as an alternative to Amazon’s Alexa or Google Home, as it is powered by voice commands.
2024: Apple makes its first steps into artificial intelligence with the release of Apple Intelligence. The features are not all released at once, with many delayed until the following year.
2026: Apple announces a leadership shakeup. After 15 years leading the company, Tim Cook steps aside from his position as CEO to become executive chairman. John Ternus, 51, Apple’s widely respected hardware chief, will take over as CEO on September 1.
