Ternus Faces AI and iPhone Challenges as He Takes Over at Apple

Apple's stock price fell by 1.8% on Monday as John Ternus prepares to take over as chief executive, succeeding Tim Cook after more than a decade at the helm.

Ternus will inherit a company valued at nearly $5 trillion and will have to sustain Apple's growth from its current scale, one of his biggest challenges. The incoming CEO takes control of a business that has expanded significantly under Cook's leadership.

Under Cook, Apple sold about 72 million iPhones in the year he became CEO, while Counterpoint Research estimates the company will sell 255 million this year. Cook also implemented disciplined capital allocation and regular product launches, leading to a substantial expansion of Apple's services business.

The company has returned more than $1 trillion to shareholders through dividends and buybacks. However, investors are now looking for Apple's next major growth driver, particularly as artificial intelligence reshapes the technology industry.