Apple's board is increasingly eyeing John Ternus, the company's head of hardware engineering, as a potential successor to CEO Tim Cook, according to sources familiar with internal discussions. Ternus's rise within Apple has been marked by his ability to balance innovation with profitability, a crucial skill as the tech giant navigates an increasingly competitive market.

Around 2018, Ternus played a key role in the decision to include a LiDAR sensor in only the iPhone Pro models. This strategic choice, which involved adding a $40 component, allowed Apple to introduce advanced features like improved augmented reality and enhanced photography without significantly impacting the profit margins of its standard iPhone models. The move catered to Apple's most loyal customers, who are typically more willing to pay a premium for cutting-edge technology.

This decision reflects a broader trend within Apple: a focus on maximizing revenue from its high-end products. The iPhone Pro line, while representing a smaller percentage of overall iPhone sales, contributes a disproportionately large share of the company's profits. By segmenting its product line and offering advanced features in its Pro models, Apple has been able to maintain its industry-leading profit margins, which consistently hover around 30%. This strategy is particularly important as the smartphone market matures and overall growth slows.

Ternus's influence extends beyond individual product decisions. As head of hardware engineering, he oversees the development of all of Apple's core products, from the iPhone and iPad to the Mac and Apple Watch. His leadership is seen as crucial to Apple's ability to continue innovating and delivering products that resonate with consumers. He joined Apple in 2001 and has steadily risen through the ranks, earning a reputation as a pragmatic and effective leader.

Looking ahead, the choice of Cook's successor will be pivotal for Apple. The company faces increasing competition from rivals like Samsung and Google, as well as new challenges in areas like artificial intelligence and augmented reality. Ternus's experience in hardware engineering, combined with his understanding of Apple's business model, positions him as a strong contender to lead the company into the future. The coming years will likely see him take on an even more prominent role, further solidifying his position as a potential heir apparent.