Apple’s new CEO is reviving a Steve Jobs strategy from 25 years ago

The assertion from Apple’s new CEO, John Ternus, that the iPhone isn't going anywhere, echoing a strategy Steve Jobs employed decades ago, is more than just reassuring for Apple loyalists; it signals a deliberate recalibration in response to evolving market pressures. Jobs, facing skepticism around the iPod’s longevity in the mid-90s, famously doubled down on the Macintosh, demonstrating a commitment to core strengths while subtly hinting at future innovation. Ternus’s keynote appears to be a similar maneuver, a confident declaration amidst a landscape increasingly dominated by foldable devices and the rapid advancement of AI. The unveiling of the Apple unveils its first foldable, the iPhone Duo is a testament to Apple's exploration of new form factors, but Ternus’s emphasis on the iPhone’s continued relevance suggests a prioritization of refining and enhancing an already dominant platform, rather than a wholesale shift to a new paradigm. It’s a strategic move that acknowledges the inherent risks of abandoning a proven winner, especially when that winner holds such a significant portion of the market share.

This strategy is particularly astute given the current AI landscape. Apple's positioning of the iPhone as the "best AI device," as outlined in Apple CEO John Ternus says the best AI device is still the iPhone, hinges on the argument of on-device processing and enhanced privacy—a compelling differentiator in a world increasingly concerned about data security. While competitors are aggressively integrating cloud-based AI features, Apple's approach allows for a more controlled and arguably more secure AI experience. The iPhone, with its established ecosystem and loyal user base, provides a fertile ground for deploying and refining these AI capabilities, offering a gradual and iterative evolution rather than a disruptive overhaul. The success of inDrive, expanding beyond ride-hailing as described in Uber rival inDrive scales beyond ride-hailing to capture more consumer spending, further underscores the power of leveraging an existing platform to diversify and capture new markets – a principle Apple seems to be applying with its iPhone strategy.

The brilliance of Jobs’s approach, and seemingly Ternus’s now, lies in recognizing that innovation doesn't always mean discarding the past. It often means building upon it, refining it, and integrating new technologies seamlessly into existing workflows. The iPhone has become more than just a smartphone; it's a central hub for countless aspects of modern life, a platform for creativity, communication, and productivity. To abandon that foundation would be to risk alienating a vast and deeply invested user base. Instead, Apple appears to be betting on the iPhone’s adaptability – its ability to evolve and incorporate new features, like enhanced AI capabilities and, potentially, the foldable form factor, without fundamentally altering its core identity. This isn't about resisting change; it’s about strategically managing it, ensuring that the iPhone remains the cornerstone of Apple's ecosystem.

Ultimately, Ternus’s message reinforces Apple’s focus on user experience and long-term value. It’s a pragmatic approach that prioritizes stability and refinement over chasing fleeting trends. The question now becomes: can Apple continue to innovate within the confines of the iPhone’s established framework, delivering compelling new features and experiences that keep users engaged and attract new ones, while simultaneously navigating the increasingly competitive AI landscape? The success of this strategy will depend on Apple’s ability to leverage its hardware and software integration to deliver truly unique and valuable AI experiences—experiences that genuinely empower users without compromising on privacy or security.