Apple's New CEO John Ternus Plans Faster Products and a Leaner Company

John Ternus has led Apple for roughly one month, and the new CEO of the $4.8 trillion company has already shipped the iPhone Duo, Apple's first foldable. The device positions Apple to compete with Samsung, which has sold foldables for seven years.

But the foldable is only part of the plan. According to a new Bloomberg report citing unnamed sources, Ternus has communicated a strategy to colleagues: to move forward, Apple must develop products more quickly and venture into experimental markets fearlessly.

Ternus, 51, succeeded Tim Cook, who led Apple for 15 years. His proposals, shared internally with employees, provide the clearest early view of how he plans to put his stamp on the company, Bloomberg reports.

What does Ternus want to change at Apple?

The former hardware engineering chief is pushing to expand Apple's device lineup and remake the company's inner workings. The reported agenda includes:

• Breaking from Apple's familiar spring and fall launch calendar and introducing products more frequently
• Cutting management layers that distance engineers from the company's top decision-makers
• Cost-cutting to fund Apple's next wave of products
• Making the business more efficient, from its internal structure to how executives manage hardware and software

Changing Apple's usual cadence of announcements could take years, employees who spoke with Bloomberg said.

Ternus is also looking for additional growth engines and ways to generate more revenue from Apple's vast array of devices, per Bloomberg.

Why is the pressure acute in services?

The urgency is particularly sharp in services, long one of Apple's most profitable divisions. The segment spans the App Store, subscriptions, advertising, payments and cloud offerings.

Services revenue climbed 12% year over year to a record $30.74 billion in Apple's June quarter — but fell short of Wall Street expectations.

What products are coming next year?

Apple is reportedly preparing a packed lineup of devices for next year, according to Bloomberg:

• AirPods with built-in cameras
• Smart glasses, a market where Meta is the undisputed leader and Snap is introducing competitors
• A special-edition iPhone marking the product's 20th anniversary

The ambitious pipeline gives Ternus a reason to move quickly. It also intensifies the pressure to deliver more products without adding more people or ramping up spending.

Are job cuts coming?

That philosophy has long shaped Ternus's view of Apple's organization. As head of hardware engineering, he urged employees at an all-hands meeting to keep hiring in check, per Bloomberg. In one presentation, he showed Apple's annual headcount growth and argued the company needed to increase output without continuing to expand headcount at the same pace.

That background fuels anxiety within Apple that a round of job cuts could come later this year or early next year, even as the company prepares to release highly anticipated products. If Ternus executes his reported plans, Apple's next two years will test whether a leaner, faster machine can out-ship rivals who moved first.