Apple AAPL announced on Monday that Tim Cook will transition to Executive Chairman while long-time hardware leader John Ternus will take over as CEO from September 2026. This move, part of a well-planned succession strategy, reduces uncertainty — often a key overhang for mega-cap stocks — and reinforces continuity given Ternus’ 25-year tenure at Apple.
The transition appears low-risk. Cook will remain actively involved at the board level, while Ternus brings deep product expertise, having overseen major innovations across iPhone, Mac and wearables. Equally important is the appointment of Johny Srouji as Chief Hardware Officer, consolidating Apple’s silicon and hardware strategy. Apple’s in-house chip ecosystem has been a major competitive moat, driving performance gains and margin expansion.
Nevertheless, Ternus is expected to face the heat related to Apple’s AI strategy that has been lagging compared with peers Microsoft and Google. Apart from stiff competition in the smartphone and personal computer (PC) domains, AAPL shares have suffered from issues with its AI initiatives, with the postponement of several features, which has been a concern for investors. Apple’s AI ambitions comprise Siri with personal context, onscreen awareness, and app actions, in addition to including broader Apple Intelligence features across devices. Ternus’ first job apparently looks at improving execution, which Apple has lagged in its AI endeavors.
AAPL is facing stiff competition from the likes of Lenovo, Dell Technologies DELL and HP HPQ in the PC domain. Per Gartner, worldwide PC shipments totaled 62.8 million units in the first quarter of 2026, up 4% year over year. Lenovo led with 26.5% market share, trailed by HP and Dell Technologies with 19.3% and 16.5%, respectively. Apple had a 10.6% market share.
However, HP’s forecast of a decline in fiscal 2026 PC shipments, with only slight revenue growth coming from higher specifications, not from more buyers, raises concerns about its near-term growth prospects. Dell Technologies expects the Client Solutions Group segment that offers branded PCs, including notebooks, desktops and workstations, to climb 1% year over year in fiscal 2027.
The smartphone segment is chock-a-block with competition from Chinese vendors, as well as Samsung and Google Pixel. Per Counterpoint’s latest data, global smartphone shipments declined 6% year over year in the first quarter of 2026, with Apple leading with 21% market share and shipments growing 5% year over year, driven by strong iPhone 17 demand and improved performance in China. Samsung’s shipments declined 6% year over year with 20% market share.
