Overview
- Apple confirmed that Tim Cook will step down as CEO and become executive chairman on Sept. 1, handing the chief executive role to longtime hardware chief John Ternus.
- Bank of America reiterated a Buy rating with a $380 price target and said it expects Ternus to raise risk appetite by increasing R&D, boosting capital expenditures and pursuing larger acquisitions.
- Apple’s most recent quarter beat expectations with earnings per share of $2.02 and $109.42 billion in revenue, including a June-quarter record $54.25 billion in iPhone sales.
- Shares were trading around $317 on Aug. 20, up about 16% year-to-date, but some analysts trimmed ratings and reports of an roughly 18% drop in App Store commission revenue have raised fresh concerns about Services growth.
- Cook leaves Apple with a vast cash build and multiyear returns that limit near-term upside from new products, so investors will watch upcoming capital deployment decisions, any acquisitions and next month’s iPhone 18 Pro reveal for signs of a strategic shift.