Apple Names John Ternus New CEO Amid Hardware Engineering Challenges
Apple Inc. has named John Ternus as its new CEO, effective immediately. This move follows Tim Cook's transition to Executive Chairman. According to reports, Ternus will receive an annual base salary of $3 million and a target equity award of $55 million for the fiscal year ending September 25, 2027.
The change in leadership comes as Apple faces challenges in its hardware engineering division. Jefferies downgraded AAPL to Underperform and reduced its price target to $263.66 from $285.56 due to manufacturing yield issues affecting premium and all-glass iPhone designs for 2027.
In related news, the company may increase prices of the iPhone 18 by 10-20% due to a significant surge in memory costs, which rose by around 400% year-over-year. Additionally, Apple is reportedly producing limited quantities of its first foldable iPhone, with some traders interpreting this as a potential supply signal.
The App Store revenue experienced an annual decline of 1% in August, according to Evercore, marking the first such drop since November 2022. This decrease was largely attributed to weakness in gaming sales.