According to sources familiar with the matter, Tim Cook, after serving as Apple's CEO for 14 years, could step down as early as next year. John Ternus, the 50-year-old Senior Vice President of Hardware Engineering, is seen as the most likely successor. Ternus joined Apple's product design team in 2001 and has since been involved in the engineering of nearly all major hardware products. He has also played a key role in multiple product launches, including the unveiling of new iPhones and Air models.

Apple (AAPL.US) typically announces major leadership changes following its late-January earnings report. If the company follows tradition and names a new CEO early next year, the new leadership would have time to settle in before key events like June’s WWDC and September’s iPhone launch. Sources emphasize that this succession plan has long been in place and is unrelated to Apple’s current performance.

If appointed, Ternus would take the helm at a pivotal moment for Apple. While products like the iPhone and AirPods have driven immense success over the past two decades, the company has lagged behind competitors in artificial intelligence. Compared to Meta, Amazon, Alphabet, and Microsoft, Apple’s AI investments have been notably lower, drawing criticism this year for lacking a clear AI strategy.

However, recent investor concerns over the massive AI spending by OpenAI, Meta, and Microsoft have made Apple’s stock a "safe haven" in the tech sector. Although Apple has approved a "multi-billion dollar" budget for its in-house cloud-based AI model by 2026, reports suggest the company is still evaluating whether to integrate OpenAI or Anthropic’s models to power an upgraded Siri.

Earlier this year, Apple announced that its next-generation Siri, originally slated for 2025, would be delayed until 2026 or later due to technical challenges. Meanwhile, since January, several key AI executives have left Apple, with many joining Meta—including Ruoming Pang, who led Apple’s foundational model and core generative AI teams.

Apple also faces competition from its own former executives. In May, OpenAI acquired startup io for approximately $6.5 billion, bringing on board former Apple Chief Designer Jony Ive to collaborate on AI devices. Ive, instrumental in designing the iPhone, iPod, and iPad, was a defining figure in Apple’s hardware aesthetics.

Cook, who turned 65 this month, has overseen Apple’s market cap surge from $350 billion to $4 trillion since taking over from Steve Jobs in 2011. Under his leadership, Apple became the first publicly traded company to reach $1 trillion in 2018 and $3 trillion in 2022.

Regardless of who succeeds Cook, the next CEO is expected to come from within Apple. Cook has previously stated the company prefers internal promotions and has a "very detailed succession plan" in place.