What Tim Cook wants Apple's incoming CEO to focus on
What's the story
As Tim Cook prepares to hand over the reins of Apple to John Ternus, he has shared some valuable advice. Speaking during Apple's second-quarter earnings call, Cook said that one of the most important decisions Ternus will have to make is where to spend his time. He emphasized that it should be where it would benefit both the company and its users the most.
First appearance
Ternus makes Wall Street cameo
During the earnings call, Apple introduced Ternus early in the discussion, with Cook acknowledging the upcoming leadership transition, offering praise, and then handing him the floor for a short statement. In his remarks, Ternus thanked Cook and long-term shareholders, highlighted Apple's strong financial discipline under Cook's leadership, and signaled that this approach would continue. He also pointed to an "incredible roadmap" ahead for the company. This marks Ternus's first public appearance following the leadership transition announcement.
Performance review
Apple's financial growth under Cook's leadership
Under Cook's leadership, Apple has witnessed a massive increase in its market cap and annual revenue. The company's market value has increased by over 1,000%, and its annual revenue has nearly quadrupled to $416 billion last year. This financial success comes as Cook prepares for his transition out of the CEO role later this year.
Future hurdles
Preparing for the AI challenge
Ternus, who joined Apple in 2011 and is currently its senior VP of hardware engineering, will inherit a company at the peak of its financial success. However, he will also face new challenges, such as defining Apple's long-term AI strategy. Cook stressed that products that enrich lives should remain Apple's "north star," as Ternus prepares for his new role in September.
Financial achievements
Apple's Q2 FY2026 in numbers
Apple's second-quarter earnings call revealed a 17% year-on-year (YoY) increase in quarterly sales to $111.2 billion. The company's net income also rose by 19% to $29.5 billion. The iPhone was the top performer, raking in $56.9 billion in revenue, a 21% increase since the launch of the iPhone 17e series in March this year.
Growth sectors
Services and R&D spending on the rise
Apple's services division, which includes Apple News and Apple TV, also hit a record $31 billion in revenue. Cook highlighted this strong performance as an ideal moment for a leadership transition. He also noted that Apple's rising investment in research and development signals its ambitions in the AI space. R&D spending increased to $11.4 billion this quarter from $8.5 billion last year.