Tim Cook’s Legacy Is Turning Apple Into a Subscription

Tim Cook’s Era: From Hardware to Services

As Tim Cook prepares to leave his position as Apple CEO, his legacy stands out for reshaping Apple from a hardware giant to a service-focused powerhouse. Since stepping in after Steve Jobs, Cook guided the company through record-breaking financial growth, bolstered largely by a rapidly expanding suite of services such as iCloud, the App Store, Apple Music, and Apple TV+. These services have become tightly integrated into Apple's software ecosystem, making it even harder for users to switch from iPhones to competing devices.

The Rise of Apple’s Services Business

Under Cook, Apple’s services revenue soared, hitting an all-time quarterly record of $30 billion by the end of 2025. For the year, services brought in over $109 billion—outpacing the combined revenue of Mac, iPad, Apple Watch, and other accessories. While groundwork for the services business started under Jobs, Cook’s focus and operational prowess elevated subscriptions to become Apple’s fastest-growing division.

Preparing for the Next Phase: AI and John Ternus

With Cook set to step down on September 1, John Ternus, known for leading Apple’s hardware engineering, takes over as CEO. Ternus played a pivotal role in the Mac’s switch from Intel to Apple Silicon chips—a transition that required deep coordination across teams, laying the foundation for future Apple platforms.

The AI Challenge

Despite Apple’s historical use of machine learning, its approach to generative AI is still evolving. Efforts to revamp Siri and introduce advanced AI features have faced delays and leadership turnover. Now, Apple is exploring partnerships—like its integration of Google Gemini—as well as leveraging its own hardware for a stronger AI presence.

The Future of Apple Subscriptions in the AI Age

As Apple heads into an AI-driven future, the challenge for Ternus will be to integrate intelligent features seamlessly within the company’s services and devices. Whether through enhancing existing apps, expanding its advertising business, or unveiling new hardware, Apple’s next transformation could see its platform become the definitive foundation for AI-powered experiences.

For the original article by Lauren Goode, visit WIRED.