But when incoming Apple CEO John Ternus takes over from Tim Cook this fall, he will face a question that is key to the company's survival in the AI age, testing the limits of Apple's practice of curating which apps and services can tap into its hardware.

Cook charted his own path as chief executive after the death of Apple co-founder Steve Jobs in 2011. Over nearly 15 years, he expanded Apple's business and navigated the company through major challenges.

John Ternus is a hardware expert who must help Apple catch up in the AI race as it looks for its next big hit.

When incoming CEO John Ternus assumes leadership of Apple later this year, he'll inherit a series of significant challenges facing the tech giant. But his decades of experience within the company should position him well to navigate those tides.

John Ternus, Apple Inc.’s next chief executive officer, is up against a major challenge as he settles into the role: retaining top talent during a time of historic turnover.

The market's muted reaction to Apple's leadership handoff is shortsighted. Cook's deliberate, Steve Jobs–approved succession puts Apple ahead of AI rivals.

Apple's new CEO, John Ternus, will have to deal with a lot of issues when he takes the reins of the company in September. But undoubtedly the biggest challenge Ternus will have to immediately reckon with is AI.

Bloomberg Technology is the only daily news program focused exclusively on technology, innovation and the future of business.