Tim Cook unquestionably had a stellar run at the head of Apple (AAPL +0.46%). When he took over the CEO job in August 2011, Apple was already a force -- the iPhone was a hit, the iPad was relatively new, and the customer base was fiercely loyal.
But what Cook did over the next 15 years was remarkable. Apple's annual revenue nearly quadrupled, growing from $108 billion in fiscal 2011 to $416 billion in fiscal 2025. And iPhone sales, which were already enormous when Cook arrived, climbed from roughly $47 billion to nearly $210 billion.
Now John Ternus has taken over as Apple's CEO. And investors have an interesting question to consider: Can he build on Cook's success, or has Apple already experienced its greatest years of growth?
Tim Cook turned Apple into a much bigger business
Cook didn't invent the iPhone. But he deserves considerable credit for turning it into one of the most successful consumer products in history. Under his leadership, Apple expanded the iPhone's availability worldwide while introducing new models at different price points. That helped the company reach more customers without abandoning its premium pricing strategy.
Apple also expanded its lucrative services business, which includes the App Store, Apple Music, iCloud, and Apple Pay. Those products generate recurring revenue from customers who are already using Apple's devices, and they can be extremely profitable -- and they come without the overhead of developing new hardware product lines.
Former Apple CEO Tim Cook. Image source: Apple.
Apple's services segment generated $30.74 billion in revenue during its fiscal third quarter of 2026 (ending June 27), with a gross margin exceeding 75%.
Cook also used Apple's enormous cash flow to repurchase shares, helping increase earnings per share and rewarding long-term shareholders.
What John Ternus inherited
Ternus, who became CEO on Sept. 1, has a different challenge than Cook faced in 2011.
Apple already has more than 2.5 billion active devices worldwide, giving it an enormous customer base for new products and services. But expanding a company generating more than $400 billion in annual revenue isn't nearly as easy as growing a smaller business.
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And Apple has been playing catch-up in artificial intelligence (AI).
The company introduced an upgraded Siri AI assistant earlier this year, hoping to make artificial intelligence a more useful part of its devices. On Oct. 13, Apple unveiled HomeView, a $299 smart home display that uses Siri AI to compete with products from Amazon and Alphabet.
But investors shouldn't expect another fourfold increase in annual revenue simply because Cook accomplished it. Apple's enormous size makes that a much more difficult proposition.
For Ternus, the opportunity isn't necessarily to duplicate Cook's growth. It's about finding new ways to make Apple's massive customer base even more valuable -- and giving shareholders a reason to stay invested for the next chapter.
