John Ternus faces a turbulent start to his tenure as Apple CEO, including massive RAM pricing spikes that will impact the fall iPhone launch. With continued pressure to manufacture in the U.S, supply chain changes could be on the way.
The arrival of John Ternus as Apple CEO in September will be a big event for Apple, but it will also include some tough early choices. Some that will affect how Apple's massive supply chain operates in the future.
At present, Apple is dealing with the industry-wide problem of memory pricing, with RAM skyrocketing in cost and affecting the price of electronics in general. So far, Apple has managed to insulate itself from the problem through strategic contracts with suppliers, but it won't last forever.
According to executives, supply chain experts, and analysts speaking to the Financial Times, Ternus will have some major decisions shortly after the CEO transition. Some of those decisions may also be made before he takes the role, forcing him to maintain or change depending on his plans for the company.
The memory pricing issue is a massive problem, with analysts believing the surges could raise the component cost significantly. Currently, memory accounts for a 10 percent share in the bill of materials for an iPhone, but that is expected to be 45 percent by the end of 2026.
RAM is under pressure because of AI infrastructure buildouts, with firms paying billions to secure production capacity in advance. A memory industry said that for Apple, it's gone from being able to dictate terms due to its size, to being one of a number of rivals seeking supplies.
A shift from China
Aside from fighting for suppliers in a tough market, Ternus will also have to consider where Apple uses those components to build its products.
Tim Cook visits Luxshare factory in 2017. Image Credit: Apple
Apple has been quickly shifting its supply chain from a China-centric one to a more spread-out operation. This has included a major build-out of the supply chain in India, which is also keen to secure more iPhone production.
Diversification brings multiple issues to Ternus, including keeping China happy. With the growth of the Indian iPhone supply chain, China's worried about a reduction in investment from Apple, despite the attentiveness of Tim Cook on the issue.
Ternus won't just have to keep China happy. It has to do the same in the United States.
Trump maintenance
President Donald Trump has repeatedly called for an increase in manufacturing in the United States, and has made some headway with Apple.
In 2025, this involved a pledge to invest $600 billion into the U.S. economy. In March 2026, this also included another 14-year plan to spend another $400 million on component production in the United States.
Apple's AI factory in Houston will soon make the Mac mini - Image Credit: Apple
Despite the investments, they didn't really help with Trump's wish to make iPhones on U.S. soil. However, it does help other products, such as the Mac mini assembly plant revealed in February.
As yet, the massive payments haven't resulted in meaningful shifts in iPhone production to the United States. But it seems to have helped Trump's mood on the topic.
All of the investment pledges under the reign of Tim Cook will have to be fulfilled by Ternus, or face having to manage the Trump Administration's inevitable response.
Cook has already done a lot to keep Trump happy, and to avoid the worst of the tariff war so far. It's plausible that, in his new executive chairman role, Cook will continue his pacification work.
Even so, Ternus will still have a tricky balancing act to keep the U.S. and China happy, analysts say.
