John Ternus, Apple’s new CEO, inherits a rebounding China business—and some messy headaches |
John Ternus, Apple’s new CEO, inherits a rebounding China business—and some messy headaches
John Ternus, Apple’s senior vice president of hardware engineering, takes over as CEO on Sept. 1, ending Tim Cook’s 15-year tenure at the top of the world’s most valuable consumer technology company.
Apple’s presence with China is perhaps the defining relationship of the Tim Cook era. Chinese factories, managed by Global 500 companies like Foxconn and Luxshare, made the iPhones that turned the company into a global juggernaut. Chinese consumers also snapped up Apple products, making the country one of Apple’s most important markets. Cook was also a frequent visitor to Beijing, meeting senior officials and dropping by Apple stores and major partners throughout the country.
“There is a Chinese proverb I love: ‘A single tree does not make a forest,’” Cook said earlier this year at the China Development Forum, a summit organized by Beijing. “Together, I believe we can plant that forest.”
It’s not clear how much experience Cook’s successor has with China. Apple’s statement announcing his appointment doesn’t mention any specific global market, let alone China. In fact, the only mention of global markets is attached to Cook’s new role as executive chairman, which will include “engaging with policymakers around the world.” Ternus’s extremely sparse Linkedin page doesn’t mention China.
Ternus inherits a China business that’s turned a corner from a tricky few years, yet still brings significant headaches, from a protectionist Washington and a prickly Beijing to a Chinese consumer who has grown less reflexively loyal to Western brands.
Why China matters to Apple
China is home to much of Apple’s supply chain, a decision that’s primarily due to Cook, who met Terry Gou, the........