TLDR
- Apple COO Jeff Williams is retiring after 27 years, with Sabih Khan replacing him as Chief Operating Officer
- Williams was once considered a potential successor to CEO Tim Cook but their similar ages shifted company thinking
- Apple is reportedly in talks to acquire Perplexity AI, valued at $14 billion, to boost its AI capabilities
- The stock has dropped 15% year-to-date as investors worry about delayed AI features for iPhones
- John Ternus, senior VP of hardware engineering, is now viewed as Cook’s most likely successor
Apple (AAPL) is experiencing major leadership changes as Chief Operating Officer Jeff Williams prepares to retire after nearly three decades with the company. The 62-year-old executive will step down from his COO role this month before leaving Apple entirely later in the year.
Sabih Khan, a 30-year Apple veteran, will take over as COO. Khan joined Apple’s executive team in 2019 as senior vice president of operations, where he managed the supply chain, procurement, and manufacturing. Bloomberg reported last year that Apple had positioned him to eventually succeed Williams.
Williams joined Apple in 1998 and became COO in 2015. He previously worked at IBM starting in the 1980s. At Apple, he built a supply chain capable of handling hundreds of millions of devices annually while managing thousands of suppliers worldwide.
The outgoing COO was once considered a potential successor to CEO Tim Cook. However, their small age gap and Williams’ desire to retire relatively soon changed the company’s succession planning. Cook is 64 years old.
New Leadership Faces Major Challenges
Khan will inherit substantial operational challenges. Apple continues shifting iPhone production from China to India to reduce tariff impacts from potential trade policies. The company also faces global regulatory scrutiny and has lagged in artificial intelligence development.
John Ternus, Apple’s senior VP of hardware engineering, is now viewed as Cook’s most likely successor. Ternus recently took on additional responsibilities including the Vision Pro headset and robotics initiatives.
Williams oversaw engineering for the Apple Watch and health technologies. Apple has not announced where these responsibilities will be placed within the company. The design team will now report directly to Cook instead of through Williams.
Khan’s deputy, Priya Balasubramaniam, is expected to take a larger role managing Apple’s supply chain. The transition comes as Apple’s operations group handles procurement, sustainability, and manufacturing across global locations.
AI Acquisition Talks Surface
Apple is reportedly in talks to acquire Perplexity AI, according to Bloomberg. The AI company is valued at approximately $14 billion based on recent funding rounds. Perplexity focuses on developing chatbots as answer engines, prioritizing real-time web searches and cited responses.
If Apple buys Perplexity, that would be its biggest ever acquisition pic.twitter.com/Kxl6E3HbWK
— Rohan Paul (@rohanpaul_ai) June 25, 2025
The acquisition could enhance Apple’s AI capabilities while reducing dependence on external chatbots. Perplexity has about 15 million active monthly users, compared to ChatGPT’s 400 million weekly users. However, the company has grown in popularity among AI alternatives.
Apple has over $28 billion in cash and cash equivalents as of March, making the acquisition financially feasible. For Perplexity, Apple’s resources could help compete more effectively against established chatbots.
The AI acquisition discussions come as Apple stock has declined 15% year-to-date. Investors express frustration with delayed AI feature rollouts for iPhones. Some advanced AI features have been pushed to next year’s timeline.
iPhone sales remained essentially flat over the past six months at around $116 billion. Without next-generation features, customers may have little incentive to upgrade their devices. The company faces pressure to accelerate AI integration.
Apple’s conservative approach to AI emphasizes security and privacy over speed. This strategy contrasts with competitors who prioritize rapid feature deployment. Perplexity has faced copyright infringement issues that could create legal challenges.
The core challenge remains incorporating advanced AI features into iPhones rather than simply owning a chatbot. Apple’s management philosophy may limit how quickly acquired AI capabilities can be implemented.
Williams departure represents another step in Apple’s leadership transition. CFO Luca Maestri stepped down last year, and hardware engineering boss Dan Riccio retired in 2024. Marketing leader Phil Schiller moved to a smaller App Store role in 2020.
Most Apple executives are similar ages, making a broader transition expected among company insiders. The leadership changes occur as Apple navigates AI competition, regulatory challenges, and shifting global manufacturing requirements.
On Monday, Apple’s top AI executive was hired by Meta Platforms, highlighting ongoing talent challenges. The company continues exploring partnerships with external firms to improve its AI technology.
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