Apple shares opened at $316.98 and rallied to hit an intra-day high of $327.30, up 3.29% from the previous close of $316.85, as investors digested the pre-announced handover as an orderly executive succession rather than a disruptive departure. The market reaction reflects confidence in John Ternus's deep technical background as a strategic asset for the company's upcoming hardware and artificial intelligence inflection point. As per ET Now, investors viewed the transition positively, with the stock closing at $319.70 as of the latest trading session, up 1.63% on the day, with shares sitting about 6% below the record close after Apple's brief climb to a $5 trillion market cap in July.
John Ternus will receive a compensation package worth approximately $58 million in fiscal 2027, according to Apple's SEC filing made on Tuesday, the first day of his tenure. The new CEO will earn a $3 million annual base salary and receive a stock grant with a target value of $55 million next year. Tim Cook's role as executive chairman will pay around $47 million, with his annual salary reduced from $3 million to $2 million as part of his new role. Cook's 2027 stock package has a target value of $45 million, with only half tied to Apple's performance compared to the S&P 500. The 51-year-old Ternus will receive a prorated amount of restricted stock units worth about $2.5 million in fiscal 2026, with three-quarters based on Apple's performance relative to the S&P 500 and the other 25% tied to time-based stock units that vest semiannually.
John Ternus brings 25 years of Apple experience to his new role, most recently leading hardware engineering across the iPhone, Mac, and Apple Watch lines. His product portfolio also included the iPad, AirPods, and Vision Pro headset. Cook will continue as executive chairman from September 1, 2026, focusing on global policymaker engagement and government relations in his new post. Arthur Levinson becomes lead independent director. Bank of America reiterated its Buy rating on Apple ahead of the switch, with analyst Wamsi Mohan expecting Apple's core business to stay steady while Ternus considers a bigger AI budget. Options activity in AAPL has stayed elevated heading into the handoff, with sentiment described as mixed rather than clearly one-sided.
Apple's incoming CEO John Ternus is reportedly preparing to shift the company's focus toward AI-powered smart glasses, with the first AI-powered smart glasses expected to launch in 2027. According to reports, the glasses will feature Siri-powered Visual Intelligence, cameras, and built-in speakers rather than a traditional display. The device is being developed as AI glasses, with Siri expected to use cameras to understand user surroundings, answer questions, and provide context. The glasses will also feature built-in speakers for music and audio, effectively providing an open-ear headphone setup. Apple analyst Ming-Chi Kuo confirmed in June that the company's Vision product roadmap had been scaled back to two smart glasses projects, including display-less AI glasses targeted for 2027 and a display-equipped augmented reality glasses product planned for 2029. Apple has cut more than 200 positions across its Vision Pro, Siri and software teams, with around 100 of the cuts coming from the Vision Pro group as the company reshuffles teams working on these projects.
Tim Cook's 15-year tenure transformed Apple into a $4.67 trillion giant with exceptional operational achievements. Cook joined Apple in 1998 and became CEO in August 2011, when Apple shares were trading at around $13.74 apiece on a split-adjusted basis. Since then, the stock has soared to close at $319.70 on Friday, reflecting a gain of approximately 2,226% during his tenure. Apple's annual sales rose from $108 billion at the start of Cook's tenure to $416 billion in the last fiscal year, while profit grew more than fourfold to $112 billion. The company's wearables business, home to Cook-era iPhone accessories such as the Apple Watch and AirPods, brought in $35 billion in sales in fiscal 2025. However, critics have long accused Apple of losing its innovation edge in the Cook era, with AI identified as the single biggest challenge for Ternus. As per Zacks Investment Management, Apple needs to demonstrate that AI will be more than an app on the iPhone, more than Siri. The company's bet on the Vision Pro augmented-reality headset, which debuted at $3,499 in 2023, failed to produce strong sales, and its products have lagged in AI features, including delays in revamping Siri.
