"Second-in-command" hands over the baton! Apple executives welcome a major leadership change

According to Zhitong Finance APP, Apple (AAPL.US) Chief Operating Officer Jeff Williams is set to retire. His departure, after a long tenure as the company's second-in-command, marks a significant management change for the iPhone manufacturer during turbulent times.

Apple stated in a release on Tuesday that Williams will step down as COO this month and officially retire later this year. Before his departure, he will continue to lead the design team and oversee health projects. Sabih Khan will succeed him as COO, while the Apple design team will report directly to CEO Tim Cook.

Khan, who has been with Apple for 30 years, joined the executive team in 2019 as Senior Vice President of Operations, taking over supply chain management, including procurement and manufacturing. Reports last year indicated that Apple had identified him as Williams' designated successor. Khan will continue to report to Cook and may also take on departments like AppleCare.

In his new role, Khan will face a series of challenges ranging from tariff costs to slowing iPhone growth. Apple is also under global regulatory pressure and is lagging in the field of artificial intelligence (AI). It is reported that several AI-focused startups are developing hardware products that could potentially replace Apple's iPhone, iPad, and Mac devices.

At 62, Williams was once seen as a potential successor to 64-year-old Cook, but the slight age difference and Williams' desire to retire early changed the company's plans. Reports suggest that Senior Vice President of Hardware Engineering John Ternus has now become the most likely successor after Cook's retirement.

"He is clearly not the person to succeed Cook," commented former Apple hardware engineering chief Bob Mansfield on Williams, "He is the same age as Cook, which doesn't make sense. The Apple operations team will greatly miss Jeff."

Williams joined Apple in 1998 and became COO in 2015. He previously worked at IBM (IBM.US) in the 1980s, known for building a supply chain system capable of producing hundreds of millions of devices annually and integrating thousands of suppliers worldwide. As Cook's trusted deputy for over a decade, he led the supply chain management and engineering design for the Apple Watch and oversaw AppleCare customer service operations. For a long time, Williams has been regarded as a core decision-maker at Apple, and his departure is one of the most significant personnel changes in the company's history.

"Jeff has made tremendous contributions to Apple, even though the public may not fully understand," said former Apple operations vice president Tony Blevins, who reported to Williams. "As a shareholder, I feel regret. Time is relentless, and this legendary team is disbanding. His departure is a significant loss."

Apple has not specified who will take over Williams' responsibilities for the Apple Watch engineering and health technology. However, earlier this year, the company transferred management of hardware projects like the Vision Pro headset and robotics to Ternus, while some software teams were reassigned to software engineering chief Craig Federighi Cook stated in a statement: "The exceptional team that Jeff built is his true legacy. While we will deeply miss him, he has entrusted the future of the business to outstanding talent."

Mansfield added that, given Williams' "reach across the company," the successor will face challenges.

Former Apple operations engineer Matthew Moore said, "Sabih is a complete replica of Cook. Jeff had a more product-oriented mindset; whereas Sabih is an operations expert just like Cook." Moore believes Khan has effectively been in charge of the operations team, and the transition will go smoothly, but other areas overseen by Williams may face challenges.

Former health project team member Myoung Cha stated that Williams' "personal passion for health" profoundly influenced the development of the Apple Watch, and "the team will deeply miss his leadership."

This personnel change comes at a tumultuous time for Apple's operations department. In recent months, Apple has been shifting iPhone production from China to India to avoid tariffs. There may be further capacity shifts in the future, and the introduction of robotics technology in production.

After taking office, Khan will also need to address the challenges of AI development—on Monday, Apple's AI model head was poached by Meta (META.US), and the company is considering enhancing its technology through external partnerships. Meanwhile, regulatory pressures are mounting, including the EU's mandatory changes to App Store rules and the U.S. Department of Justice potentially terminating its $20 billion annual revenue lawsuit with Google (GOOGL.US).

Unlike Williams, who often hosted Apple Watch launch events, Khan has been consistently low-key. After becoming COO, he may need to make more public appearances. Insiders expect his deputy, Priya Balasubramaniam, to take on greater responsibilities in supply chain management.

Williams' departure continues the trend of executive turnover at Apple. Last year, long-serving CFO Luca Maestri transitioned to a non-active role to pave the way for retirement; former hardware engineering head Dan Riccio will retire in 2024; marketing veteran Phil Schiller has been stepping back since 2020; and design visionary Jony Ive left to start his own company in 2019. Given that most executives are of similar ages, a large-scale transition has long been anticipated internally