Is John Ternus on the hunt for Apple’s next major innovation?

Today, I’m diving into a conversation with Mark Gurman, renowned for his deep insights into Apple as Bloomberg’s chief Apple correspondent and the host of the upcoming podcast Power On.

Earlier this month, Apple held its annual iPhone hardware event, where nearly every detail was leaked beforehand, thanks to Mark’s reporting. This event was particularly noteworthy for several reasons. It marked the first major product launch for new CEO John Ternus, who took over from Tim Cook just weeks prior. Additionally, it introduced the iPhone Duo, Apple’s first foldable smartphone. The timing of these developments was intentional, as Mark will explain. Apple treats these hardware events and the narratives they create with utmost seriousness.

This year’s narrative reveals a lot about Apple’s current state, how Cook managed leadership changes over the past year, and how these shifts might influence Apple’s culture. It also hints at Ternus’ strategy to transition Apple from the iPhone era into the AI era.

Let’s jump into the discussion with Bloomberg’s Mark Gurman about Apple’s future.

This interview has been lightly edited for length and clarity.

Mark Gurman, welcome to the show. It’s great to finally catch up on all things Apple.

Thanks for having me! It’s been a while, and I’m excited to discuss the recent event where Apple announced the iPhone Duo. This was John Ternus’s first event as CEO, and it’s a significant moment for the company.

There’s been a lot of restructuring at Apple, and you’ve been closely following these changes. Let’s start with the event. Do you ever miss the days when you didn’t know what to expect at the iPhone launch?

Honestly, I don’t think about it that way. My focus is on delivering the news. Apple fans are eager for every detail, and I’m here to provide that. I’ve always been a huge Apple fan, and I feel fortunate to cover a company whose products I genuinely love. It’s exciting to glimpse the future and keep the community informed.

You’ve been in this space for a long time, starting as an Apple blogger. The culture around Apple has evolved significantly over the years, influenced by different hardware eras and leadership styles. With Ternus now at the helm, do you sense a shift in the community? How has it changed, and what impact do you think Ternus will have?

Interestingly, this event felt quite similar to a Tim Cook event. It could have been either of them on stage. However, Ternus did come out strong with his perspective on AI, which was a notable difference. His management style contrasts with Cook’s; Ternus is more decisive and opinionated, while Cook often encourages collaborative decision-making.

Ternus’s focus on AI was refreshing, especially since Apple has been working on AI for a couple of years without a clear narrative. This event marked a shift in how they present their AI strategy, which I found intriguing.

I noticed that Ternus was telling a story about the product and its place in the tech landscape. However, it also felt like they were playing it safe by leaning on familiar themes from the past. The concept of an “intelligent personal hub” echoes Steve Jobs’ vision of the iMac as the digital hub. It seemed like Apple was ensuring Ternus’s success by sticking to what they know works.

I agree. They played it safe, and Ternus’s introduction of the iPhone Duo was a calculated move. Apple is known for its storytelling, and they’re trying to pivot from the Mac-centric narrative to one centered around AI. However, the lack of significant new AI features at this event was telling. They spent a lot of time reiterating what they’ve already introduced over the past two years.

Apple is positioning the iPhone as their primary AI device for now, but they’re likely to shift that narrative once they have a more compelling AI product. It’s a PR-driven approach, and while it’s understandable, it does feel cautious.

Looking ahead, we’re expecting new smart home products that could be more AI-native. You’ve reported on several upcoming devices, including a smart home hub and wearables. What can you share about these innovations?

There are several AI-native devices in the pipeline, with the smart home hub being the first. It will feature a square screen and a new operating system designed around Siri AI. The goal is to create a device that recognizes users and provides personalized content. They’re also working on a home security system and smart glasses, which I believe will be introduced in 2027.

The relationship between Apple and its community has shifted over the years. The Steve Jobs era was defined by groundbreaking devices, while the Tim Cook era has focused more on scale and privacy. How do you see Ternus’s leadership impacting this dynamic?

Ternus’s introduction of the iPhone Duo just after Cook’s departure signals a new era. While Cook’s tenure saw some successes, like the Apple Watch and AirPods, he didn’t have a major new product to define his legacy. Ternus has the opportunity to shape the future of Apple, but he’ll need to identify what comes next after the iPhone.

You’ve reported extensively on the leadership changes at Apple. Can you share insights into the succession planning and how Ternus was chosen as Cook’s successor?

In 2023, Cook emphasized the need for succession planning, recognizing that many top executives were nearing retirement. The transition has been gradual, with key figures stepping down and Ternus being positioned as the face of the new product roadmap. This strategic decision reflects a desire to mark a clear shift in leadership and direction.

As Ternus takes the reins, what do you think are the biggest challenges and opportunities he faces?

The biggest challenge and opportunity for Ternus will be navigating the transition from Cook’s Apple to his own vision. He’ll need to find the next centerpiece product that can define Apple’s future, especially as the company moves beyond the iPhone. This is a critical time for Apple, and Ternus’s success will depend on his ability to innovate and adapt.

In closing, what are your thoughts on the iPhone Duo and its potential impact on the smartphone market?

I believe the iPhone Duo could redefine the smartphone landscape, much like the original iPhone did for smartphones. Even as a latecomer to the foldable market, Apple’s brand strength and integration will likely drive consumer interest. The iPhone Duo could pave the way for foldables to become the new standard in the coming years.

Thanks for sharing your insights, Mark. I look forward to seeing how these developments unfold in the future.