Apple Appoints John Ternus as New CEO, Succeeding Tim Cook
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 hours ago
0mins
Should l Buy AAPL?
Source: seekingalpha
- Significant Revenue Growth: Under Tim Cook's leadership, Apple's revenue surged from approximately $108 billion in fiscal 2011 to around $416 billion in fiscal 2025, reflecting a compound annual growth rate of 10-11%, indicating steady expansion at scale.
- Dramatic Net Income Increase: Apple's net income rose from about $26 billion in 2011 to approximately $112 billion in 2025, more than quadrupling, supported by margin expansion and effective operating leverage.
- Outstanding Stock Performance: Apple's stock price climbed from about $13 (split-adjusted) in 2011 to a recent close of $271, representing a roughly 20-fold increase or 1,900%, with over $800 billion returned to shareholders through buybacks and dividends since 2012.
- Market Value Milestones: Apple became the first U.S. company to reach a $1 trillion market value in 2018, followed by $2 trillion in 2020 and $3 trillion in 2022, currently valued at approximately $4.1 trillion, showcasing its formidable position in the global market.
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Analyst Views on AAPL
Wall Street analysts forecast AAPL stock price to rise
27 Analyst Rating
17 Buy
9 Hold
1 Sell
Moderate Buy
Current: 273.050
Low
239.00
Averages
306.89
High
350.00
Current: 273.050
Low
239.00
Averages
306.89
High
350.00
About AAPL
Apple Inc. designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services. Its product categories include iPhone, Mac, iPad, and Wearables, Home and Accessories. Its software platforms include iOS, iPadOS, macOS, watchOS, visionOS, and tvOS. Its services include advertising, AppleCare, cloud services, digital content and payment services. The Company operates various platforms, including the App Store, that allow customers to discover and download applications and digital content, such as books, music, video, games and podcasts. It also offers digital content through subscription-based services, including Apple Arcade, Apple Fitness+, Apple Music, Apple News+, and Apple TV+. Its products include iPhone 16 Pro, iPhone 16, iPhone 15, iPhone 14, iPhone SE, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio, Mac Pro, iPad Pro, iPad Air, AirPods, AirPods Pro, AirPods Max, Apple TV, Apple Vision Pro and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Enhanced Multi-Tasking: The new Siri version is anticipated to better handle multiple commands, support external AI agents, and effectively utilize personal data and on-screen content to answer queries, increasing the assistant's utility.
- Performance Improvement Focus: Apple plans to emphasize performance enhancements in the next software cycle, including bug fixes, faster operations, and improved battery life, particularly optimizing for enterprise users, schools, and developing markets.
- Hardware Release Delays: Due to industry-wide memory shortages, the launch of new Mac Studio models is expected to be delayed until October, while the redesigned touchscreen MacBook Pro with M6 chips may also be postponed to late 2026 or early 2027.
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- Long-Term Investment Value: The management emphasized Netflix's commitment to being a 'must-have service' for users, which not only aids in increasing retention rates but also solidifies its leadership position in a competitive market, attracting more investor attention.
- Strategic Development Focus: Netflix aims to enhance user engagement and content quality for sustainable growth, planning to tackle industry challenges through innovation and technology investments to ensure its competitive edge in the future.
See More
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- Optimistic Earnings Forecast: Analysts project Apple's second-quarter earnings per share at $1.94 and revenue at $109.35 billion, reflecting strong fundamentals that are expected to bolster market confidence and sustain robust financial performance.
- Market Reaction: Although Apple's stock dipped slightly following Cook's announcement, analysts generally believe that his decision to retire during a period of strong performance indicates continued growth momentum, particularly with record iPhone sales.
- Future Product Focus: Ternus's appointment may suggest a renewed emphasis on hardware and product development, with analysts predicting that 2027 could be a significant product year, potentially introducing AI-enabled wearables and AR glasses, enhancing Apple's innovation and competitive edge.
See More
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- Potential Refund Amount: The U.S. Customs and Border Protection has opened a portal for importers to apply for over $160 billion in potential tariff refunds, representing a significant financial opportunity for major retailers like Levi Strauss and Gap.
- Levi Strauss Expectations: Levi Strauss's CFO indicated the company expects to receive around $80 million in tariff refunds, which would significantly enhance its financial position amid the current trade environment.
- Gap's Financial Impact: Gap's CFO noted that the tariff impact has been significant on performance, and while refunds have not been factored into their outlook, the company is closely monitoring the situation, which may lead to future adjustments in financial forecasts.
See More
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See More
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- Apple CEO Change: Apple announced that hardware chief John Ternus will replace Tim Cook as CEO in September, with Cook transitioning to executive chairman; this surprising move shocked investors but is seen positively, as Ternus must address Apple's lag in artificial intelligence, impacting the company's strategic direction.
- Fed Nomination Hearing: Trump's nominee for Federal Reserve chair, Kevin Warsh, will face the Senate Banking Committee for confirmation, emphasizing the need for Fed independence from political influence, a stance that may affect his confirmation prospects amid Trump's push for lower interest rates.
- Market Volatility: The Nasdaq Composite ended its longest winning streak since 1992, while the S&P 500 also retreated, as market uncertainty grew due to Trump's military threats against Iran; however, small-cap stocks showed resilience, with the Russell 2000 reaching new highs.
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See More
