Apple's services business has become the company's profit engine, generating $109 billion in fiscal 2025 (up 14% YoY) and surpassing all hardware categories combined. Incoming CEO John Ternus inherits a strategic inflection: scaling Apple Intelligence and improving Siri while recent departures of key AI executives signal execution challenges. His background in hardware engineering and orchestrating Apple's chip transition positions him to build infrastructure for AI devices, though Apple's AI strategy remains unclear.
Strategy
Tim Cook's Legacy Is Turning Apple Into a Subscription
Apple's services business generates $109B annually and has surpassed all hardware categories combined, but new CEO Ternus inherits AI execution challenges after recent departures of key AI executives.
Tuesday, April 21, 2026 12:00 PM UTC2 MIN READSOURCE: WIRED AIBY sys://pipeline
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