On September 9, 2026, John Ternus debuted as Apple Inc. (NASDAQ:AAPL)'s new chief executive, marking a significant transition as he became the third CEO since Steve Jobs' return in 1997. Ternus, who previously led hardware engineering at Apple for over two decades, introduced the foldable iPhone Duo and announced the decision to discontinue baseline iPhone 18 models, encouraging customers to opt for the higher-end Pro and Pro Max versions.
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Ternus succeeded Tim Cook, who served as CEO for 15 years and transitioned to the role of executive chairman on September 1, 2026. Ternus is recognized for his extensive product development experience, having overseen the development of key products such as the iPhone, iPad, Mac, Apple Watch, and AirPods. His leadership introduces one of Apple's most significant hardware redesigns in years with the foldable iPhone, priced at $1,999.
To mitigate rising memory and storage costs, Apple has increased the prices of its premium devices; the iPhone 18 Pro now starts at $1,199, while the Pro Max is priced at $1,299. The decision to forgo updates for entry-level iPhone and Air models reflects a strategic focus on higher-end products, aimed at sustaining revenue per device as component inflation pressures the industry.
The launch of the foldable iPhone under Ternus signals a substantial product strategy shift rather than merely a change in leadership. Alongside the iPhone Duo, Ternus also outlined an AI strategy centered on on-device processing and privacy.
However, the premium pricing strategy may lead to increased price sensitivity among consumers. As Apple elevates the prices of its newest devices, it will need to effectively communicate the value of these advancements to justify the significant price hikes.