Apple spent 2025 setting itself up for the future — and its biggest moves weren’t about AI

It’s been quite a year for Apple (AAPL). The company reported record revenue on the back of strong iPhone sales. Its Services business continued its impressive growth, hitting $109.2 billion in sales. And its market capitalization topped $4 trillion, joining Nvidia (NVDA) as just the second company to reach the milestone.

But the company is also contending with major changes amid its executive ranks. CFO Jeff Williams retired — he was previously considered the top choice to take up the mantle of CEO after Tim Cook eventually steps down.

Head of government affairs Lisa Jackson and general counsel Kate Adams are retiring in late January and late 2026, respectively.

And then there’s AI chief John Giannandrea and design vice president Alan Dye. Giannandrea is retiring and turning Apple’s AI efforts over to Amar Subramanya, who previously worked on AI initiatives at Google (GOOGL, GOOG) and Microsoft (MSFT).

Dye, meanwhile, left Apple to lead Meta (META) Reality Labs’ new design studio.

All of this comes as Cook is reportedly preparing senior vice president of hardware engineering John Ternus to take over as CEO when he departs.

It all adds up to an Apple in flux as it transforms itself for a post-Cook era. According to the Financial Times, Cook could step down as soon as early 2026. Bloomberg’s Mark Gurman, meanwhile, said there’s still no firm timeline for when Cook will leave his post.

Regardless of exact timing, Apple will eventually have to say goodbye to Cook, and 2025 helped the company set itself up for its biggest change in years.

Cook, who joined Apple in 1998, took over as CEO 14 years ago following the death of founder Steve Jobs. Jobs turned around an ailing Apple when he returned to the company in 1997 after being fired in 1985. He subsequently released a string of groundbreaking products, including the iPod and iPhone, which continues to bring in the majority of Apple’s revenue.

Cook has carried that success forward during his time at the company’s helm, overseeing the debut of the Apple Watch and AirPods, as well as the explosion of Apple’s Services business. He has also pushed Apple to use its own chips in its products, giving the company more control over the design and functionality of its devices.

That, coupled with Cook’s deft abilities as a negotiator, helped Apple weather a series of crises, including showdowns with the US Department of Justice, the COVID-19 pandemic, and President Trump’s ongoing trade war with China. Trump eventually exempted smartphones and certain other tech products from his tariffs on Chinese goods.

Cook’s decisions drove Apple’s stock price ever higher. As a result, the company’s market cap has increased from $1 trillion in 2018 to a whopping $4 trillion in 2025.

Revenue has also continued its steady upward pace, with Apple reporting $416 billion in total sales for its fiscal 2025, up from $391 billion in the prior year.

Apple is also reportedly preparing some of the biggest changes in years to its iPhone lineup in 2026. According to Gurman, the company will roll out a foldable iPhone, a first for Apple, in the latter half of the year.

That could help further goose already record iPhone sales. Apple is also reportedly preparing a new low-cost MacBook model, which would open up the company to a broader customer segment.

And while it may not have the same margins as a high-powered MacBook Pro, a lower-cost MacBook could still help draw more customers to Apple’s services, driving increased revenue over the long run.

If Ternus is chosen to succeed Cook, he’ll inherit an Apple at the peak of its power. While smartphone sales have slowed over time, the company is reaping the benefits of its massive install base, which still upgrades devices every few years and increasingly subscribes to Apple’s various services.

But he’ll also have to navigate his share of headaches. Wall Street is eagerly awaiting some kind of movement on Apple’s AI strategy. And though the company is making progress on its AI rollout, it still needs to showcase its next-generation version of Siri.

He’ll also have to prepare to take on the likes of Meta, Google, and Samsung (005930.KS) in the smart glasses space. Meta already has two smart glasses on the market, and Google and Samsung are each working on their own intelligent eyewear.

For now, though, Cook is still Apple’s CEO. We’ll just have to see if that changes in 2026.

Email Daniel Howley at dhowley@yahoofinance.com. Follow him on Twitter at @DanielHowley.

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