Apple's new CEO wants faster launches, leaner teams, more AI
What's the story
John Ternus, Apple's new CEO, is said to be reimagining the tech giant's future. The changes he proposes include faster product launches, a slimmer workforce, more use of artificial intelligence (AI), and cost-cutting measures. Ternus also hopes to find new revenue streams for the company. These plans were revealed by Bloomberg's Mark Gurman after internal discussions at Apple.
Launch strategy
Shift in product launch strategy
Ternus intends to move away from Apple's long-standing practice of launching products twice a year.
He thinks a more frequent launch schedule could keep the brand competitive in the AI era.
This change would be a major departure from Apple's traditional development processes and could redefine how the company introduces new products to consumers.
Organizational changes
Push for a leaner organization
Ternus is pushing for a leaner organization that hires fewer people but expects more from its existing engineers.
This philosophy has already been implemented, with Apple's hardware engineering division laying off several engineering program managers in the last two weeks.
The cuts have impacted several program managers and half a dozen directors, all of whom were given time to find other positions within Apple.
AI adoption
Integration of AI into AppleCare support
Apple had previously considered cutting around 5,000 AppleCare positions and using AI agents for some of the work done by support staff.
The plan is now on hold indefinitely, but the company has already started integrating AI into AppleCare support.
It is using a generative AI assistant for customer calls in the US and Canada to troubleshoot problems before transferring customers to human advisers when necessary.
Future plans
Anticipated new product launches and service enhancements
Apple is also planning a series of new launches for next year, including camera-equipped AirPods, smart glasses, and a revamped iPhone to mark the brand's 20th anniversary.
The company is also looking for new ways to boost revenue growth in its services business and App Store economics. This includes launching new services and generating more revenue from existing products and offerings.