Apple's COO Retires, Sabih Khan Takes Over Amid Challenges

Apple Inc. is undergoing a significant leadership transition as its Chief Operating Officer (COO) is set to retire, marking a major shift in the management of the iPhone manufacturer during a period of turbulence. The COO, who has long served as the company's second-in-command, will step down from the role this month and officially retire later this year. Prior to their departure, they will continue to lead the design team and oversee health projects. Sabih Khan, who has been with Apple for 30 years, will take over the COO position. The design team will now report directly to Chief Executive Officer Tim Cook.

Khan joined the executive team in 2019 as Senior Vice President of Operations, taking over the management of the supply chain, including procurement and manufacturing. Reports from last year indicated that Apple had designated Khan as the COO's successor. Khan will continue to report to Cook and may oversee additional departments such as AppleCare. The new COO will face a range of challenges, from tariff costs to slowing iPhone growth, as well as global regulatory pressures and the need to catch up in the field of artificial intelligence (AI). Several startups focused on AI are reportedly developing hardware products that could potentially replace Apple's iPhone, iPad, and Mac devices.

The retiring COO, who is 62 years old, was once considered a potential successor to the 64-year-old Cook. However, the small age difference and the COO's early retirement plans altered the company's succession strategy. The hardware engineering senior vice president is now seen as the most likely candidate to succeed Cook. The COO, who joined Apple in 1998 and became COO in 2015, was known for their work at IBM in the 1980s, where they built a supply chain system capable of producing hundreds of millions of devices annually and integrating thousands of global suppliers. As Cook's trusted deputy for over a decade, the COO oversaw the supply chain management and engineering design of the Apple Watch and managed the AppleCare customer service division. The COO has long been considered a key decision-maker at Apple, and their departure is one of the most significant personnel changes in the company's history.

Apple has not specified who will take over the COO's responsibilities for Apple Watch engineering and health technologies. Earlier this year, the company transferred the management of hardware projects such as the Vision Pro headset and robots to the hardware engineering senior vice president, while some software teams were placed under the software engineering senior vice president. In a statement, Cook praised the COO's legacy, saying, "The excellent team Jeff built is his true legacy. While we will deeply miss him, he has entrusted the future to outstanding talent."

The transition comes at a time when Apple's operations division is facing multiple challenges. In recent months, Apple has been shifting iPhone production from China to India to avoid tariffs and may further relocate production capacity and introduce robotics technology. The new COO will also need to address the challenges posed by AI development, as Apple's AI model manager was recently poached by Meta. The company is considering external collaborations to enhance its technology. Additionally, Apple faces regulatory pressures, including the European Union's mandatory changes to App Store rules and potential legal action from the U.S. Department of Justice regarding its collaboration with Google.

Unlike the outgoing COO, who often hosted Apple Watch launch events, Khan is known for being more low-key. As the new COO, Khan may need to make more public appearances. Insiders expect that Khan's deputy will take on a larger role in supply chain management. The COO's departure is part of a broader trend of leadership changes at Apple. Last year, the long-serving Chief Financial Officer transitioned to a part-time role to prepare for retirement. The former senior vice president of hardware engineering is set to retire in 2024, while the marketing veteran has stepped back from frontline duties since 2020. The design visionary left the company in 2019 to start their own business. Given the similar ages of most executives, internal expectations of a large-scale leadership transition have been growing.