Khaberni - Analysts said that Apple's appointment of John Ternus, who led the company's hardware division, as CEO, underscores its renewed focus on its core hardware strengths and on integrating artificial intelligence capabilities into its current products to support growth.
Ternus has 25 years of experience at "Apple" where he supervised the development of key products including multiple generations of iPhones.
Ternus is scheduled to take over his new position in September, succeeding Tim Cook, after more than a decade of strong growth that saw Apple's market value rise to about 4 trillion dollars.
Although "Apple" faced investor concerns about the pace of deployment of generative AI technologies, and lost its position as the world’s most valuable company to "Nvidia", Wall Street analysts said this leadership change reflects that the current hardware ecosystem still lies at the heart of the company’s growth story, according to "Reuters".
Ben Barringer, head of technology research at Kilter Cheviot, said: "The market will be relieved that the new CEO was managing Apple’s hardware business, which remains a key driver for the group. This suggests continuity rather than a strategic shift."
OpenAI is considering developing a device that relies on artificial intelligence in cooperation with Jony Ive, the former head of design at "Apple", a move that could pose a long-term threat by challenging the iPhone-centric ecosystem that underpins Apple's growth.
Apple's shares have risen about 20 times during Tim Cook’s tenure as CEO, supported not only by the iPhone, but also by steady growth in services and incremental updates across all its products—a model that analysts expect to continue under Ternus.
Dave Mayer, senior partner at Lippincott, stated, "The brand transition to John Ternus, a leader in hardware engineering, signifies Apple’s ongoing commitment to its technological product ecosystem, which remains the essential competitive advantage for the company's success moving forward."
This opinion suggests that Apple’s strategy in artificial intelligence will likely focus on integrating capabilities into existing devices rather than relying on one revolutionary product, even as competition intensifies and pressure mounts to accelerate innovation.
For the time being, it appears that investors are reassured that Apple is not abandoning the formula that has underpinned its successes, but rather is betting that its large customer base and expertise in device manufacturing and incremental innovation will continue to drive growth, even without a new device centered around artificial intelligence.
Daniel Bines, the global CEO of the consulting firm Elmwood, said: "His appointment signals that Apple’s board wants to restore the company's reputation as a leading product brand, not necessarily to announce a shift towards a specific category of devices."
He added: "The narrative of an 'AI-first device' is compelling, but it's still early."
