Tim Cook Praises John Ternus During Final Q3 Earnings Call

Apple CEO Tim Cook used his final quarterly earnings call to report $109.4 billion in revenue for the third fiscal quarter and reiterate his confidence in incoming CEO John Ternus, who takes over the role on September 1.

Apple shares dipped about 7 percent in after-hours trading. Outgoing chief executive Tim Cook pointed to severe supply chain pressures affecting advanced chip manufacturing as a primary concern for the upcoming quarter.

Tim Cook Marks a 15-Year Run as CEO Ahead of the Handover to John Ternus

The quarterly call marked a historic milestone for the company, serving as Tim Cook’s final earnings appearance before he transitions to the role of executive chairman on September 1. Cook has led Apple’s quarterly financial calls every quarter since taking over as CEO in 2011, presiding over more than 60 sessions without missing a single one.

Cook noted that future quarterly calls will be led by Ternus as the company moves into its next corporate era.

“This will be my final earnings call, and John will lead these calls going forward. The transition is going seamlessly, and I am beyond excited for John to step into his new role and lead Apple into its next era.”

Tim Cook, CEO, Apple

The public display of unity between the outgoing and incoming executives has been carefully cultivated across recent public appearances. Days before the financial call, Cook and Ternus appeared side by side on the red carpet at the Academy Museum in Los Angeles for the Season 4 premiere of Ted Lasso, wearing matching navy suits and lapel pins provided by the streaming production.

Hardware Strength Meets Memory Cost Pressures and Supply Constraints

Beneath the headline financial figures, the earnings report laid bare the delicate balancing act facing Apple’s supply chain. Services revenue reached $30.74 billion, while the iPad division and sales in Greater China came in below Wall Street estimates.

Tim Cook Praises John Ternus During Final Q3 Earnings Call — Photo: Mashable

Wall Street analysts pressed executives on how the company plans to navigate rising component expenses. Cook explained that the enterprise is confronting a global mismatch between supply and demand for memory chips, particularly at advanced nodes used for system-on-a-chip silicon.

Apple implemented hardware price increases in June, though Cook indicated during the call that it remains too early to measure the full impact of those hikes, and confirmed that iPhone pricing has not yet been adjusted.

John Ternus Steps Into the Spotlight on Artificial Intelligence and Entertainment

Deftly sidestepping detailed competitive disclosures, Ternus replied that he would just reiterate what Tim said, emphasizing that the organization sees substantial opportunity in the space and remains focused on its internal roadmap.

Apple's Tim Cook and John Ternus are excited for the succession

Beyond hardware and silicon, Ternus also inherits responsibility for Apple’s expanding entertainment footprint. On the red carpet for the Ted Lasso premiere, Ternus told Reuters that he intends to build upon the streaming app’s existing momentum, which spans Oscar-winning films like CODA and exclusive Formula 1 race broadcasting partnerships.