Shock exit of chief exec Tim Cook wipes more than £80bn off the value of Apple
Apple shed more than £80billion of its value last night after the shock announcement that Tim Cook would step down as chief executive after 15 years at the top.In a move that took the tech world by surprise, the company on Monday night revealed he would be succeeded by Apple’s long-term hardware boss John Ternus on September 1. That sent shares down nearly 3 per cent on Wall Street when trading resumed yesterday – trimming its value by $112billion (£83billion) to leave it worth $3.9 trillion (£2.9 trillion).Cook, 65, has been credited with turning the iPhone maker into one of the world’s most successful companies since he took over from co-founder Steve Jobs in 2011, when Apple was valued at around $350billion.Under Cook’s leadership, Apple became the first US company to hit a $1 trillion valuation in 2018 and it topped $4 trillion for the first time last year. Cook is not leaving Apple altogether, instead moving into the role of executive chairman. Logging off: In a move that took the tech world by surprise, Apple revealed chief exec Tim Cook (right) will be succeeded by long-term hardware boss John Ternus (left)‘He stepped into the world’s biggest shoes – the biggest shoes that anybody on the planet has ever had to step into – and he’s done an amazing job,’ said Peter Oppenheimer, who was Apple’s chief financial officer from 2004 to 2014.The day-to-day running of the business would fall to Ternus, who at 50 is the same age as Cook was when he succeeded Jobs.Having joined Apple’s product design team in 2001, Ternus has overseen some of the company’s most consequential hardware, including the iPhone, iPad, Mac, Apple Watch and AirPods.‘Everyone loves him at Apple – all the execs I know speak very highly of him,’ said Ben Bajarin, an analyst at data firm Creative Strategies.But the changing of the guard comes with Apple facing doubts over its artificial intelligence (AI) offering, as well as pressure to develop new products that once again change the way households and businesses use tech.Dan Ives, an analyst at Wedbush Securities, said: ‘These will be big shoes to fill and the timing of Cook exiting stage left could make sense but also creates questions. Apple is making a major transition in its AI strategy and long-time CEO and legendary Cook leaving now is a surprise.’Dan Coatsworth, head of markets at AJ Bell, said: ‘Ternus is a product expert and has worked under both Cook and Jobs – meaning he lives and breathes the true Apple ethos. His background will raise hopes that Apple can regain its mojo and come up with new products that are trailblazers and disrupt the market, just like the old days.’DIY INVESTING PLATFORMSAJ BellAJ BellEasy investing and ready-made portfoliosHargreaves LansdownHargreaves LansdownFree fund dealing and investment ideasinteractive investorinteractive investorFlat-fee investing from £4.99 per monthFreetradeFreetradeInvesting Isa now free on basic planTrading 212Trading 212Free share dealing and no account feeAffiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.Compare the best investing account for you
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Shock exit of chief exec Tim Cook wipes more than £80bn off the value of Apple
