Apple's 2025 record masked what's really happening as it prepares for post-Cook era

Apple wrapped up a banner year with record-breaking sales and a historic market value, but the tech giant is now managing a wave of leadership exits that could reshape its future direction.

The iPhone maker brought in $109.2 billion from its Services division alone this year while pushing its total worth past $4 trillion. That makes Apple only the second company ever to hit that mark, joining Nvidia in an exclusive club. But behind the scenes, several key executives are heading for the door.

Jeff Williams, who served as chief financial officer, has retired from the company. His departure is significant because many inside Apple viewed him as the top candidate to eventually replace Tim Cook as chief executive. Two other longtime leaders are also on their way out. Lisa Jackson, who handles government relations, plans to retire in late January. Kate Adams, the company’s top lawyer, will leave in late 2026.

The changes don’t stop there. John Giannandrea, who runs Apple’s artificial intelligence work, is stepping down. His replacement will be Amar Subramanya, who previously worked on AI projects at Google and Microsoft. Alan Dye, a vice president focused on design, left Apple to take a job running a new design studio at Meta’s Reality Labs division.

Cook prepares his successor

These moves come as Cook appears to be grooming John Ternus, a senior vice president who oversees hardware engineering, to take over when he decides to step aside. The Financial Times reported Cook might leave as soon as early 2026, though Bloomberg reporter Mark Gurman says no firm date has been set.

Cook took charge of Apple 14 years ago when company founder Steve Jobs died. Jobs had rescued Apple from near collapse after returning in 1997, following his earlier dismissal in 1985. He then launched a series of hit products like the iPod and iPhone that transformed the company.

Since Cook joined Apple in 1998 and later became chief executive, he has kept that momentum going. Under his watch, Apple introduced the Apple Watch and AirPods. The company’s services business exploded in size. Cook also pushed Apple to design and use its own computer chips, giving the company greater control over how its devices work.

Cook’s skills as a negotiator helped Apple survive several tough spots. The company faced off against the Justice Department, dealt with the pandemic, and navigated trade tensions with China under President Trump. Trump eventually decided not to put tariffs on smartphones and some other tech products from China.

These decisions paid off for shareholders. Apple’s market value jumped from $1 trillion in 2018 to $4 trillion this year. Total revenue climbed to $416 billion for fiscal 2025, compared to $391 billion the year before.

Major product updates on the horizon

Looking ahead, Apple is preparing major product updates. According to Gurman, the company plans to release its first foldable iPhone in the second half of 2026. That could push iPhone sales even higher than current record levels. Apple is also working on a cheaper MacBook model, which would make its laptops available to more buyers. While a budget laptop might not generate as much profit per sale, it could bring in new customers who then pay for Apple’s subscription services.

Whoever follows Cook will take over a company at the height of its success. Phone sales have slowed down overall, but Apple still benefits from hundreds of millions of customers who upgrade their devices regularly and increasingly pay for Apple services.

The next leader will face challenges too. Investors want to see Apple make more progress on artificial intelligence. The company needs to show off its improved version of Siri. Apple will also need to compete with Meta, Google, and Samsung in smart glasses. Meta already sells two different smart glasses models, and Google and Samsung are both developing their own.

For now, Cook remains in charge. Whether that changes next year remains to be seen.

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