Apple reorganizes its teams: Eddy Cue takes health, Federighi software, Ternus hardware

Apple reorganizes its teams: Eddy Cue takes over health, Federighi software, Ternus hardware

A subtle upheaval is happening at Apple Park. As Jeff Williams, the Chief Operating Officer and Tim Cook’s right-hand man for over a decade, approaches retirement, Apple is undertaking a significant internal reorganization.

According to Mark Gurman (Bloomberg), several major divisions — including Health, Fitness+, and watchOS — are being reassigned. The goal is to clarify the strategic priorities of a company preparing for its next decade.

Three Key Divisions, Three New Leaders

This reorganization is more than a simple game of musical chairs; it is redefining Apple’s core structure.

As reported by Bloomberg, the changes are as follows:

  • Health and Fitness+ will be merged and come under the leadership of Eddy Cue, head of services (Apple Music, TV+, iCloud…).
  • watchOS will join Craig Federighi’s team, who oversees the operating systems (iOS, macOS, iPadOS).
  • The hardware aspect of Apple Watch will now fall under the direction of John Ternus, the current head of hardware engineering, who is also seen as a potential successor to Tim Cook.

The outcome is that Jeff Williams’ extensive portfolio, which included everything from supply chain to product R&D, is now divided between the pillars of hardware, software, and services.

A Reorganization That Signals the Future of Apple

This reshuffle is significant. By placing health and wellness within the services domain, Apple affirms that its future hinges on recurring revenues.

Fitness+ is already a subscription service, and according to various sources, a paid Health+ service is set to be developed for 2025. Eddy Cue, experienced in managing high-margin divisions, appears to be a logical choice to transform connected health into a sustainable business.

On the other hand, Craig Federighi continues to bolster his software empire. With watchOS now under his control, he oversees all of Apple’s major systems — iOS, macOS, iPadOS, and now watchOS. This consolidation should streamline interactions between devices and enhance the integration of Siri, AI, and continuity features.

Lastly, John Ternus inherits the most hardware-centric part, solidifying his position as a favorite for Tim Cook’s succession. His direct involvement with the Apple Watch lineup confirms that Cupertino still views the watch as a strategic pillar, intersecting wellness and technology.

Context & Challenges

  • Jeff Williams has overseen the design of the Apple Watch since its launch in 2015.
  • His retirement signifies the end of an era — that of the engineers from the Steve Jobs era.
  • Apple is strengthening its internal synergies across the three growth pillars: hardware, software, and services.
  • This clearer structure prepares for the arrival of a new generation of leaders and potentially new products related to health and AI.

This change marks a new phase: Apple is preparing for the post-Tim Cook era.


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