John Ternus as CEO could bring ‘bigger acquisitions,’ new product categories: analyst

Tim Cook is in his final weeks as Apple CEO, with John Ternus set to take over the top job on September 1. And per Bank of America analyst Wamsi Mohan, Ternus could usher in a bolder, riskier era at Apple.

John Ternus expected to take more risks as CEO with new products, acquisitions, R&D

Apple’s CEO transition is almost complete. So far, the company has worked very hard to emphasize the continuity Ternus will bring to the role.

But not everyone at Wall Street seems to believe Ternus will follow Cook’s example as closely.

In a research note seen by The Street, Bank of America analyst Wamsi Mohan reiterates a strong ‘Buy’ rating for Apple. And a key part of that endorsement relates to expectations that Ternus will maintain Cook’s legacy while also having a bigger “risk appetite.” Moz Farooque writes:

The bank underscored Apple’s move away from its net-cash-neutral objective as an early signal that its management might be more willing to deploy capital. That would translate into heavier R&D spending, more CapEx, and potentially bigger acquisitions, areas that weren’t major features of Cook’s strategy.

Under Ternus, BofA sees the possibility of Apple moving much more quickly into new categories, including AI glasses, camera-equipped AirPods, smart rings, home automation, personal assistants, and robotics.

Essentially, BofA believes Ternus will maintain Cook’s legacy of turning Apple into a highly profitable global machine. But he’s also expected to leverage the company’s position of strength to make riskier moves in the future.

We likely won’t see any major changes right when Ternus takes over as CEO. But perhaps in the months to come, any potential differing priorities will start to become clear.

What are you expecting from John Ternus as Apple’s CEO? Let us know in the comments.

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