Apple investors want John Ternus to revive innovation, especially in AI

A Wall Street Journal analysis by Ralph Winkler says Apple investors expect incoming CEO John Ternus to be a stronger innovator, particularly in artificial intelligence. Tim Cook is credited with scaling Apple: annual iPhone sales rose from 72 million when he took over to a cited 255 million, while the company returned more than $1 trillion to shareholders.

The analysis says operational efficiency is no longer enough and that Ternus should launch new products and take greater risks. Apple trades at about 33 times next year’s earnings versus 20 times for the S&P 500, despite earnings growing half as fast as the market; investors are paying a premium for perceived safety amid uncertainty over returns on AI spending. The analysis argues that this valuation could become vulnerable if Apple fails to deliver innovation, while it may already have lost its former role in defining how consumers interact with devices. What Ternus will do remains uncertain; the analysis expresses concern about an apparent retreat from Vision Pro.