Apple shares edged lower on Tusday, slipping nearly 1%, after the company announced a leadership transition that will see long-time CEO Tim Cook step down and hand over the reins to insider John Ternus. The iPhone maker said Ternus, currently its hardware chief, will take over as chief executive, marking a significant shift in leadership as the company prepares for an industry transition driven by artificial intelligence.

Cook, who has led Apple since 2011, will move into the role of executive chairman. The stock reaction remained muted but negative, reflecting near-term uncertainty around leadership transition even as the succession plan appears internally stable.

Ternus, who joined Apple in 2001, has been closely associated with the company’s hardware engineering division and played a key role in reviving growth in product lines such as Mac computers, which have gained market share in recent years.

His elevation signals a shift in leadership emphasis—from Cook’s operational and supply chain excellence to a stronger focus on product design and engineering, especially at a time when artificial intelligence is expected to reshape consumer technology.

Industry analysts see the move as forward-looking rather than reactive. Ben Bajarin, CEO of Creative Strategies, described Ternus as well-regarded internally and said he is likely to bring “fresh energy” to the role.

Cook’s transition marks the end of a defining chapter for Apple. Since taking over from Steve Jobs in 2011, he has overseen a period of massive scale and profitability, turning Apple into one of the world’s most valuable companies. The company’s stock has surged roughly twenty-fold during his tenure.

Initially brought in by Jobs for his supply chain expertise, Cook built one of the most efficient global manufacturing and distribution systems, enabling Apple to produce and sell hundreds of millions of devices annually.

Over time, he also emerged as a prominent public-facing CEO, taking positions on issues such as privacy, sustainability, and workplace diversity. He became the first Fortune 500 CEO to publicly come out as gay in 2014.

Alongside the CEO transition, Apple announced that Johny Srouji, who has led the company’s custom chip and sensor design efforts, will take on the role of chief hardware officer. The move consolidates leadership in key technology areas as Apple doubles down on silicon and integrated hardware capabilities.

While the immediate stock reaction was modest, investor attention is likely to shift quickly to execution under the new leadership, particularly around Apple’s artificial intelligence strategy, product innovation pipeline, and ecosystem expansion.