Tim Cook will step down as Apple CEO and be replaced by hardware chief John Ternus

Apple $AAPL said Monday that Tim Cook will step down as CEO on Sept. 1, ending 15 years leading the tech giant that saw him succeed the visionary Apple co-founder Steve Jobs and grow the company to a $4 trillion market cap. John Ternus, Apple's senior vice president of hardware engineering, will become chief executive, and Cook will become executive chairman, Apple said.

Apple's board of directors approved the transition unanimously after what the company called a long-term succession planning process. The handoff will be gradual, with Ternus working alongside Cook before formally assuming the top job in September.

"John Ternus has the mind of an engineer, the soul of an innovator, and the heart to lead with integrity and with honor," Cook said in a statement. "He is a visionary whose contributions to Apple over 25 years are already too numerous to count, and he is without question the right person to lead Apple into the future."

Ternus joined Apple's product design team in 2001, became vice president of hardware engineering in 2013, and joined the executive team as senior vice president in 2021. He has overseen hardware engineering for the iPhone, iPad, Mac, Apple Watch, AirPods, and Vision Pro. Ternus will join Apple's board of directors on Sept. 1, becoming the company's eighth CEO. Johny Srouji, previously senior vice president of hardware technologies, will move into a newly expanded chief hardware officer position, adding hardware engineering to his responsibilities.

Arthur Levinson, who has served as Apple's non-executive chairman for 15 years, will become lead independent director on the same date, Apple said.

Cook joined Apple in 1998 and became CEO in 2011, succeeding Jobs. Apple's market capitalization reached $4 trillion by the time of the announcement, a roughly 24-fold increase under Cook's leadership. Annual revenue climbed to more than $416 billion in fiscal year 2025, the company said. Cook's tenure saw Apple move into wearables and spatial computing, launching Apple Watch, AirPods, and Vision Pro. Apple Services also grew into a segment that now exceeds $100 billion in annual revenue, according to the company.

Ternus inherits a company facing pressure around artificial intelligence. Investor and industry criticism have mounted over what many see as Apple's slow pace in generative AI, with a long-delayed Siri overhaul drawing scrutiny. A leadership shake-up in the AI division brought in Amar Subramanya — who previously worked at Google $GOOGL and Microsoft $MSFT — and Apple has committed to shipping a rebuilt Siri powered by Google's Gemini technology. Apple also pursued an on-device AI strategy through its Foundation Models framework, giving developers access to AI tools without relying on cloud infrastructure.

"I am profoundly grateful for this opportunity to carry Apple's mission forward," Ternus said in a statement. "I am humbled to step into this role, and I promise to lead with the values and vision that have come to define this special place for half a century."