Tim Cook’s time as CEO of Apple is coming to an end on September 1. He leaves behind a legacy of strong growth and smooth operations, guiding Apple into its trillion-dollar era. One of his key achievements has been focusing on Apple’s services business, which includes offerings like iCloud, Apple Music, and the App Store. This part of the business has become essential, drawing many users into the Apple ecosystem through tools like Messages.
In its most recent earnings report for the quarter ending December 2025, Apple’s services generated an impressive $30 billion—an increase of 14% from the previous year. This revenue surpasses that of Mac, iPad, and other hardware combined. For the entire fiscal year of 2025, services brought in over $109 billion, again marking a 14% rise from 2024.
In 2011, when Cook took the reins, services weren’t grouped into a separate category. Back then, iTunes alone made about $6 billion annually. According to analyst Ben Thompson, the groundwork for this growth began before Cook’s time. The App Store launched in 2008, driven by Steve Jobs’ vision to charge a 30% fee on paid apps. Phil Schiller and Eddy Cue were instrumental in making this happen. Schiller even adjusted the fee structure in 2016 to better support app developers.
Under Cook, Apple transformed from a hardware-focused company into a powerful platform with services taking center stage. The question now is whether John Ternus, the incoming CEO, can usher Apple into the age of generative AI. Apple has been slow to adopt advanced AI compared to competitors. For instance, Siri, Apple’s virtual assistant, has faced challenges since its launch in 2011.
In 2024, Apple rebranded its AI initiatives as “Apple Intelligence,” but the rollout of AI-enhanced Siri was delayed, leading to several exits from its AI team, including senior executive Robby Walker. Craig Federighi now oversees Siri as they attempt to refine the technology.
Ternus comes from a hardware background, having led Apple’s chip development, including the shift from Intel to Apple Silicon. Analyst Ming-Chi Kuo highlighted this transition as a significant achievement, allowing Apple to position itself strongly for future AI projects.
In summary, Cook’s leadership reshaped Apple into a multi-faceted platform company, but moving forward, the challenge lies in navigating the complexities of AI. The direction Apple takes in this new tech landscape will be crucial for its future success.
For more insights, you can check out the full earnings report here.
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