Apple’s John Ternus will run one of the world’s most powerful companies; the job is a minefield

Over his 15-year reign as Apple’s CEO, Tim Cook became one of the most powerful and wealthy executives in the world. Most estimates peg Cook’s net worth at roughly $3 billion, largely amassed through performance-based equity awards as Apple’s market cap grew more than 11x during his tenure to roughly $4 trillion.

But the job comes with baggage. Cook navigated two Trump administrations and one Biden administration, each with its own posture toward Big Tech, China, and regulation. He faced down the FBI over encryption, spent years defending the App Store against monopoly accusations, made controversial compromises to operate in China, and watched Apple’s ambitious Vision Pro headset struggle with consumers. Meanwhile, the outcome of Apple’s AI strategy remains uncertain.

Incoming CEO John Ternus inherits all of it.

The Encryption Standoff

In 2016, following a mass shooting in San Bernardino, California, the FBI demanded that Apple help unlock the gunman’s iPhone. Cook refused, arguing that encryption was the only meaningful countermeasure against exposing people’s private data and that breaking it would set a dangerous precedent.

The standoff ended when the FBI found another way into the device. The episode cemented Apple’s identity as a privacy-focused company and set up years of tension with governments worldwide. Ternus will inherit both that identity and its obligations.

App Store Antitrust Battles

The App Store has been at the center of prolonged legal challenges. Epic Games sued Apple over its requirement that apps use Apple’s in-app payment system and its 30% commission. In 2021, the court declined to label Apple a monopoly but ordered it to allow developers to link to external payment options.

Apple complied narrowly, charging a 27% commission on those external purchases. Courts later found the company in contempt. The Ninth Circuit Court of Appeals upheld that ruling in late 2025. After a rehearing request was denied last month, Apple is preparing to petition the Supreme Court, which had already declined to hear its earlier appeal. A lower court still must determine what fee Apple can ultimately charge.

The Epic case is only part of a broader antitrust fight. In March 2024, the U.S. Department of Justice sued Apple, accusing it of unlawfully dominating the smartphone market by restricting third-party app and device developers — including competing smartwatches, digital wallets, and messaging services — in ways that make it harder for users to switch from the iPhone. A federal judge denied Apple’s motion to dismiss, meaning the case could continue for years.

Apple also disclosed it faces a potential $38 billion fine in India, where regulators found it guilty of abusing its dominant position in the app market and accused it of refusing to hand over required financial data. The case is complicated by Apple’s relatively modest market share in India, around 9%.

Ternus steps into this fight with the App Store’s revenue model under direct judicial threat.

China and Geopolitical Risk

China has long been a delicate balancing act for Apple. Cook built the company’s manufacturing operations around Chinese supply chains, making Apple deeply dependent on a country whose government has grown more assertive and less predictable.

To remain in the Chinese market, Apple removed VPN apps from its App Store in China and stored Chinese users’ iCloud data on state-controlled servers — moves that drew criticism from human rights groups.

During Trump’s first term, Cook cultivated a personal relationship with the president and helped shield Apple from tariffs and trade war fallout. Apple has indicated that Cook will continue to assist Ternus as executive chairman, underscoring the complexity of managing these geopolitical relationships.

An Unfinished AI Strategy

Artificial intelligence may be the most immediate unresolved challenge facing Ternus. Apple’s AI chief, John Giannandrea, is leaving the company following numerous delays in launching a more capable AI-powered Siri.

Rather than relying solely on in-house models, Apple has turned to Google’s Gemini and OpenAI’s ChatGPT to power certain Apple Intelligence features. Bob O’Donnell, a longtime market research analyst, told Reuters that Ternus’ biggest challenge will likely be “getting a better AI story and offering together that relies more on Apple’s own capabilities and less on third parties.” Others argue Apple may ultimately benefit from not overspending in the current AI arms race.

Leadership Turnover

Ternus is also inheriting a largely rebuilt leadership team. Over the past year, Apple has seen the departures of its longtime COO, general counsel, and head of UI design. The turnover presents both a challenge and an opportunity for Ternus to quickly establish his own leadership imprint.

A Broader Existential Question

Cook’s defining strength was managing complex relationships with governments and partners while keeping Apple’s business thriving. Whether Ternus shares that skill — or whether Cook’s continued presence as executive chair is meant to bridge potential gaps — will be closely watched.

A deeper uncertainty looms over Ternus’ tenure: whether the conditions that made Apple the world’s most valuable company will endure. Some industry observers believe AI agents could become the primary interface for digital services, potentially diminishing the relevance of the App Store and its 30% commission model. Combined with the possibility of compelling new hardware — including whatever OpenAI may be developing — that could weaken the iPhone’s dominance, Ternus may face challenges that extend far beyond litigation and geopolitics.