John Ternus has taken over as Apple's CEO, inheriting a company with a $4.6tn market capitalisation but a relatively light fixed-asset base of just $51bn — ranking 40th in the S&P 500. Under Tim Cook, Apple avoided the massive data-centre and chip spending spree seen at Microsoft, Meta Platforms, and Alphabet, whose fixed assets grew 285%, 200%, and 180% respectively over four years. Apple's strategy focused on devices and services rather than building frontier AI models or vast cloud infrastructure, leaving it reliant on partners such as Google for Siri's AI.

Investors have rewarded this restraint, with the stock trading at 33 times forward earnings, a premium to most Magnificent 7 peers. Ternus inherits two powerful off-balance-sheet assets: a global supply chain spanning more than 60 countries and over 2.5bn active devices that lock users into Apple's ecosystem. A hardware expert, he is expected to drive next-generation products including foldable phones, camera-equipped headphones, and tabletop robots.

Analysts project $156bn of free cash flow in 2027, giving Ternus ample optionality to invest in design, acquisitions, or manufacturing while rivals collectively burn $185bn on data centres.