Tim Cook, who will pass Apple’s CEO baton to John Ternus September 1, brought the executive along to the company’s earnings call today to say a quick hello.
“We have an incredible roadmap ahead. And while you’re not going to get me to talk about the details of that roadmap, suffice it to say this is the most exciting time in my 25-year career at Apple to be building products and services,” Ternus told analysts after the tech giant posted a blowout March quarter. “I couldn’t be more optimistic about what’s to come.”
Cook noted that this was his 89th earnings call and said that after 28 years at Apple, 15 as chief executive, it was time for a change. He’ll step up to executive chairman and said, “I very much look forward to it.” When he was named to succeed Steve Jobs at the helm. Apple’s iconic founder famously told him, “Never ask what I would do, just do what’s right” — advice he recalled today was incredibly liberating.
Asked about his own kernel of wisdom for Ternus, the company’s highly regarded head of hardware engineering, Cook said: “I think my advice is that one of the most important decisions you’ll make is where to spend time. And I would spend it where the greatest benefit to the company and the users are. And never forget the North Star for the company. We’re about making the best products in the world that really enrich other people’s lives. And if you keep focusing on that and make your decisions around that, it will produce a great business, and we’ll be able to build more products and do it all over again.”
Ternus started at Apple on the product design team in 2001.
“The moment for the transition is the right one for a number of reasons,” Cook said. “First, our business has been performing extremely well. The first half of this year was very strong, growing double each year over year. Second, our roadmap is incredible, and most importantly, we have the right leader ready to step into the role. As I have said, there’s no one on this planet. I trust more to lead Apple into the future than John Turnus. John is a brilliant engineer, a deep thinker, a person of remarkable character and a born leader. I know he will push us to go further than we think is possible.”
Turnus called Cook “one of the greatest business leaders of all time.”
“Stepping into the role of CEO is an incredible honor, and it means a great deal to me to have Tim’s trust and confidence … As you know, one of the hallmarks of Tim’s tenure has been a deep thoughtfulness, deliberateness, and discipline when it comes to the financial decision making of the company. And I want you to know that is something Kevan and I intend to continue when I transition into the role in September,” he said, referring to Apple CFO Kevan Parekh.
Apple has two major divisions Products, the biggest, led by the iPhone, and Services, led by — it’s not clear. Apple will not break them out. Services set an all-time revenue record for the March quarter at $31 billion “with double digit growth in both developed and emerging markets [and] new, all-time revenue records across most of the services categories,” Cook said. But in his commentary on the quarter, Apple TV was one of the only services he described at length.
“There’s no better place to find celebrated storytellers than Apple TV,” he said. “Audiences are plotting the return to shows like Your Friends & Neighbors, Shrinking, and For All Mankind, while discovering new favorites like Widows Bay.
“Apple TV has also earned its place among the most decorated names in entertainment with more than 800 wins and more than 3,400 nominations in the six years since launch,” he said. He unveils that tally every quarter. It won’t be clear until the fall if Ternus will continue the tradition.
“This is a great time for sports fans on Apple TV too. Formula 1 season kicked off in March and Apple TV subscribers in the U.S. have one of the best views of the track. The new MLS season is also well underway, and subscribers in more than 100 countries and regions can watch every match with no blackouts. And Friday night baseball returned for its fifth year on Apple TV with a full season of marquee matchups,” Cook said, before moving on to Apple retail stores.