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Apple has accelerated its succession plans as the company prepares for Chief Executive Tim Cook to potentially step down as early as next year, Financial Times reported.

Apple’s board and senior leaders have recently increased their focus on a smooth leadership transition after Cook’s more than 14 years at the helm of the $4 trillion tech giant, the news report said.

John Ternus, senior Vice-President of hardware engineering, is seen by many inside Apple as the top contender to become the next CEO. However, no final decision has been made yet.

Transition not linked to Apple’s current performance

The leadership shift has been in the works for years and is not connected to its present performance, the news report said. Apple expects a strong year-end sales season, especially for the iPhone.

The company is unlikely to introduce a new CEO before its earnings report in late January, which covers the crucial holiday quarter. An early-year announcement would allow the next leadership team time to settle before Apple’s major annual events — the Worldwide Developers Conference in June and the iPhone launch in September.

Cook’s tenure marked by massive growth

Cook, who turned 65 this month, became Apple’s CEO in 2011 after the passing of co-founder Steve Jobs. Under his leadership, Apple’s market value has grown from around $350 billion in 2011 to $4 trillion today.

Apple’s stock is near a record high following strong results last month. But the company’s roughly 12 per cent gain this year trails rivals like Alphabet, Nvidia and Microsoft, which have soared amid enthusiasm for artificial intelligence.

Executive turnover adds to transition momentum

Apple has seen several top-level changes this year. Longtime Cook ally and chief financial officer Luca Maestri stepped back from his position earlier in the year. In July, chief operating officer Jeff Williams, considered another Cook protege, also announced he would step down.

If Ternus is appointed, it would bring a hardware-focused leader back to the top at a time when Apple is working to expand into new product categories and keep pace with Silicon Valley competitors in AI.

Cook favours internal successor

Cook has previously said he prefers an internal candidate, noting that Apple has “very detailed succession plans”.

“I love it there and I can’t envision my life without being there so I’ll be there a while,” he told singer Dua Lipa on her podcast in November 2023.