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Tim Cook steps down as Apple names John Ternus as CEO
Market experts said Apple’s ecosystem and recurring services revenue should support the stock near to mid term, but the company’s high valuation increases sensitivity to volatility.
Tim Cook has stepped down after nearly 15 years as Apple’s CEO, leaving John Ternus to take over, with investors now focused on whether the transition can sustain Apple’s high market valuation, according to LiveMint Markets.
LiveMint Markets cited market experts who described Apple’s fundamentals as still strong, pointing to the company’s large ecosystem and its ability to generate recurring revenue beyond iPhone hardware sales. They said the stock’s short to medium term outlook depends in part on continued iPhone demand, which can support earnings, while weaker consumer spending or supply constraints could weigh on expectations.
Experts also highlighted AI execution as a key medium term opportunity, arguing Apple can benefit by integrating AI into devices and services in a way that encourages upgrades and increases engagement. They added that services growth matters because it is tied to recurring revenue and attractive margins, the outlet reported.
At the same time, LiveMint Markets noted potential challenges for the new CEO, including rising component costs, exposure to China, regulatory pressure, and competition, factors that could affect performance even if the longer range outlook remains constructive.