John Ternus takes over as Apple CEO on Tuesday, succeeding Tim Cook after more than a decade at the helm.
- In an interview with CNBC, Futurum Group CEO Daniel Newman said Ternus’s biggest challenge will be finding Apple’s next major computing platform beyond the iPhone.
- Newman said Apple has an opportunity to become the “experience layer” for AI, but stated that the company has not “gotten it right” with Siri.
- The analyst pointed to OpenAI and Meta as competitors developing new devices that could challenge the iPhone’s role in computing.
Apple (AAPL) needs to find its next iPhone, and that will be incoming CEO John Ternus’s biggest challenge, according to Futurum Group CEO Daniel Newman.
“I think Apple needs to own this,” Newman said in a CNBC interview, referring to the next generation of computing devices. “And I think that’s Ternus’s big job.”
Ternus takes over as Apple CEO on Tuesday, succeeding Tim Cook after more than a decade at the helm. Newman said Ternus faces an immediate question over Apple's AI strategy, particularly the company's efforts to improve Siri. However, he stated the bigger issue is whether Apple can identify and lead the next major computing platform after the smartphone.
“Is the handset going to be the device of the future?” Newman asked. AAPL stock fell more than 1% in morning trade amid broader market weakness.
Apple’s Next CEO Faces The Post-iPhone Question
Newman noted that people increasingly experience services such as Claude and ChatGPT through Apple devices, particularly the iPhone. He called Apple the “experience layer” for AI, giving the company an opportunity to control how consumers interact with the technology.
According to him, the problem is that Apple has yet to fully capitalize on that position. Siri has not developed into the AI assistant many users expected, while Apple's other attempts to establish new product categories have also produced limited results.
“We’ve seen the headsets kind of flop. Cars didn’t work out. Apple’s smart home never really became a thing,” Newman said.
Newman pointed to OpenAI and Meta as companies working on new devices that could change how consumers interact with technology. If those products gain traction, Apple could find itself defending its existing hardware ecosystem rather than defining the next one.
“The device of the future, we know OpenAI is trying to develop stuff. We know Meta is trying to develop stuff,” Newman said. “I think Apple needs to own this.”
Apple’s Next CEO Faces A High Bar
According to Newman, Cook built a global supply chain and what he described as some of the strongest unit economics in tech. He added that Ternus brings a different skill set, having risen through Apple’s hardware and engineering ranks, which also leaves him with “some big shoes to fill.”
Newman said that Apple’s stock performance has been only “mid-table” among its Magnificent Seven peers, trailing Google (GOOG, GOOGL), Amazon (AMZN), Tesla (TSLA) and Nvidia (NVDA). AAPL stock has gained over 2,200% under Cook’s tenure, but underperformed peers.
Newman calculated that the company spent about $877 billion on share buybacks during Cook’s tenure, more than the combined buybacks of the rest of the Magnificent Seven.
Retail Traders Look Beyond Cook To The Next iPhone
On Stocktwits, retail sentiment around the iPhone maker fell to ‘extremely bearish’ from ‘bearish’ territory over the past day. Retail investors are also looking to Ternus to bring a change in Apple's product strategy.
One Stocktwits user believes that Cook's departure could pave the way for a new iPhone design, while another said that the first big test comes at Apple’s “Surprise and Shine” event.
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AAPL stock has gained over 15% this year and more than 37% in the last 12 months.
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