Apple stock price today: Share tumbles 1% as Tim Cook steps down as CEO

Apple shares edged lower on Tuesday, slipping 1%, as the company confirmed a leadership transition that will see Tim Cook step down as chief executive on September 1. After stepping down as the CEO, Cook is set to move into the role of executive chairman, handing over the reins to John Ternus, a long-time company insider who rose through its hardware engineering division.The change comes at a crucial moment for Apple, which has continued to dominate the consumer devices market and built a valuation of $4 trillion, even as it has largely stayed on the sidelines of the artificial intelligence surge. However, investor expectations are shifting, with attention now turning to how Ternus will position the company in a rapidly evolving AI landscape.Cook’s departure will mark the end of a 15-year tenure leading the iPhone maker. Ternus, who has overseen hardware development for years, will become only the second chief executive since Steve Jobs stepped down in 2011.As the transition unfolds, the company faces a series of operational and strategic challenges. Its global supply chain remains under strain amid geopolitical tensions, while rising memory costs, driven by heightened demand linked to AI infrastructure, add further pressure. At the same time, the incoming chief executive will be expected to sharpen the company’s direction in artificial intelligence, an area where it trails several of its largest peers.Until now, Apple has avoided the kind of heavy capital spending seen across the sector. Rivals such as Microsoft, Google, Amazon and Meta have committed hundreds of billions of dollars annually towards building data centres and acquiring specialised chips to support AI development. Apple, by contrast, has not pursued its own foundational model, instead relying on external partnerships. Its current approach includes using Google’s Gemini to power features such as an anticipated upgrade to Siri, which is expected later this year following delays.The company introduced its own suite of AI-driven tools, Apple Intelligence, in 2024. The offering includes image generation, text rewriting, notification summaries and integration with OpenAI’s ChatGPT. While consumer reaction has been mixed, demand for Apple’s devices remains strong, with users increasingly accessing AI capabilities through third-party services on its hardware.