A Hardware Engineer at the Top
John Ternus is a hardware engineer at heart, and his move to run Apple (AAPL) marks a new era for the company. Tim Cook built a powerful operating machine and supply chain, made the iPhone part of daily life, and grew shareholder value hugely. Cook stays very involved, along with the other C-suite executives.
Ternus takes over one of the most successful companies on the planet, with a balance sheet second to none, valued at almost $4.7 trillion. The direction should be more hardware driven. Ternus has worked at Apple for 25 years on hardware engineering, including iPad development, AirPods, and the MacBook Neo, which got strong reviews.
No Need to Reinvent, but Pressure to Push Forward
Ternus does not have to reinvent Apple; the company already works. The next phase points to biointegration. Apple already has many wearable technologies, and even the iPhone fits this idea.
Technology exists now for non-invasive glucose testing. For someone with diabetes, a wearable like the Apple Watch could track glucose without pricking a finger and drawing blood. If Apple takes this path, it could change health care worldwide. Related areas include behavioral health, such as tracking drug and alcohol involvement and body chemistry, plus studies on things outside human biochemistry, like detecting food spoilage. These fields fit Ternus's hardware engineering background.
Health Data Instead of Chasing AI
If the Apple Watch becomes a hardware-plus-services revenue stream and moves from wellness tracking into health care, it could ease the pressure on Apple's AI position. Apple is often called the laggard in the AI race. The market will decide, but Apple does not need to be the fanciest AI product on the market; plenty of other firms do that. There are pending lawsuits with OpenAI over allegedly poaching Apple employees. Apple should focus on hardware development, with software alongside it. This focus helps Apple pass the test of a leadership change and compete in a space few are watching because of the current AI buzz. AI will be a background effect, not the be-all and end-all for Apple.
Risk, Regulation, and Trust
Moving deeper into health care raises risk and regulatory questions: how much body and biometric data people will share with Apple, and who is at fault if a reading is wrong. Apple already does some of this, monitoring heart rate and blood pressure and giving reports. Building consumer trust matters, and some features will need regulatory approvals. Apple has a proven track record of making progress on that front.
The Foldable iPhone
A foldable iPhone is likely coming. Projections put the price around $2,000, making it a luxury item. Some competing foldable models have been unimpressive. One thing Cook does well is take a product and make it stronger; the iPhone used to smash when dropped and is now more durable.
For the foldable to pass the consumer test, it must avoid the common problems: ripping, poor folding, and not being able to see the content in the middle crease when opened. If it clears those simple metrics, it could be a big success alongside Apple's other product lines. The hope is that it holds up far better than the old flip phones.
