Ternus, a 25-year-old Apple veteran and the company’s hardware chief, who will be taking over the top boss’ role, inherits a business with enormous financial strength, a global installed base of more than 2.5 billion active devices, and an annual revenue of more than USD 416 billion, but one that has struggled to match the AI innovation pace set by rivals such as Google, Microsoft, and OpenAI.

After completing his 15-year record-breaking tenure as CEO, during which he led Apple to unprecedented heights, Cook will assume the role of executive chairman, allowing him to remain engaged in policymaking.

The choice of Ternus is significant. Unlike Cook, who built his reputation on operations and supply-chain management, Ternus is an engineer and product executive. He joined Apple’s product design team in 2001, became vice-president of hardware engineering in 2013, and joined the executive team in 2021.

He has overseen hardware developments across the iPhone, iPad, Mac, Apple Watch, and AirPods. His work on Apple silicon strengthened the Mac business by giving Apple greater control over processors and improving performance.

Apple’s effort to build “Apple Intelligence” has faced significant delays, especially regarding a more advanced version of Siri. As it strives to deliver AI capabilities across its devices, the company has sought outside technology, including partnerships with OpenAI and Google.

That strategy gives Apple access to powerful models but also raises questions about whether the company can develop enough proprietary AI technology to compete over the long term.

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The scheme is available on the Apple Store online, in the Apple Store app and at Apple Store locations across the US. The leasing itself is provided by Klarna, the buy now, pay later specialist, which runs a credit application with a soft credit check that does not affect the applicant’s credit score. There is no down payment and no upfront fee, a large part of the programme’s appeal.

Apple is pitching the change as a win for flexibility. The programme gives customers “a more flexible way to pay for the products they love”, in the words of Karen Rasmussen, Apple’s vice president of the Apple Store online, announcing the launch.

How the lease works

Customers choose a 12 or 24 month lease for an iPhone or Apple Watch, or a 24 or 36 month lease for an iPad or Mac. Anyone leasing an iPhone must connect it to AT&T, T-Mobile or Verizon at enrolment, although iPads, Macs and Watches can be leased without a carrier.

Trading in an existing Apple device at the start lowers the monthly payment, and Apple Card holders can earn Daily Cash on what they pay. One quirk worth noting is that a device ordered for store pickup must be collected within seven days or the lease is cancelled.

The programme also skips Apple’s entry-level hardware. The iPhone 16 and 16 Plus, Apple Watch SE, MacBook Neo, Mac mini, iPad (A16) and Studio Display are all excluded, meaning the cheapest routes into the ecosystem still require an outright purchase or instalment plan.Why Apple wants you to lease
For Apple, the logic is straightforward. Leasing converts lumpy, unpredictable hardware sales into steady recurring revenue, keeps customers on a regular upgrade rhythm and binds them more tightly to the ecosystem.

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Apple stated that it was “aware of a report that this issue may have been actively exploited.”

Apple recently published two security assessments regarding the problem, but nobody outside of tech media paid them much attention.

Users of the iPhone 6S and subsequent models, the iPad models starting with the fifth generation and later, the iPad Pro models, and the iPad Air 2, as well as Mac computers running macOS Monterey, have been advised by security experts to upgrade the affected devices. Several iPod models are also impacted.

Apple’s report of the flaw, states that a hacker could gain “complete admin access to the device” and “run any code as if they were you, the user,” according to SocialProof Security CEO Rachel Tobac.

People “in the public spotlight,” such as activists or journalists, who could be the focus of sophisticated nation-state eavesdropping, should pay extra attention to updating their software, Rachel Tobac said.

The number of users who were impacted by the vulnerability was not specifically stated by Apple. It consistently referenced an unnamed researcher.

Commercial spyware organizations like Israel’s NSO Group are renowned for spotting and exploiting these weaknesses in malware that covertly infects targets’ smartphones, siphons their information, and continuously monitors the targets.

The US Commerce Department has placed NSO Group on a “blacklist.” Its spyware has reportedly been used against journalists, dissidents, and human rights campaigners in Europe, the Middle East, Africa, and Latin America.

Will Strafach, a security expert, claimed that he has not seen any technical examination of the vulnerabilities that Apple has just patched.

According to Will Strafach, the corporation had previously disclosed comparable critical problems and highlighted that it was aware of claims that these security weaknesses had been exploited about a dozen different times.

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Keith Cornelius – Trustee of the American Express UK Pension Fund, Mette Charles – Senior Investment Research Consultant, Alistair Sutherland – Consulting Director, Investment Services Team, Ravi Cheema – Senior Associate, Investment Team, Greg Fedorenko – Vice President, Manager Research and Brendan Maton – Freelance Journalist were the participants at the round table.

The White Paper considers the opportunities offered by Multi-Asset Credit (MAC) and investigates what the future holds for this asset class, both in this current macroeconomic climate and going forwards. Three MAC asset managers, Eaton Vance Investment Managers, Franklin Templeton Investments and Investec Asset Management also provided their own views and insights, helping to illustrate the benefit that can be derived from a Multi-Asset Credit Strategies (MACS) approach.

Sean Thompson, Managing Director, CAMRADATA said, “Global economic growth remains lacklustre and the outlook for inflation highly uncertain. Also, Government bonds are losing their income generating qualities, leaving investors no choice but to look elsewhere.”

“As a result MAC strategies have become increasingly popular over the past few years because of their flexible and diversified approach that makes them attractive to investors investing in this asset class,” adds Mr Thompson.

Key findings from the White Paper

MAC strategies typically offer a higher yield, while offering defensive qualities through dynamic risk management using several different credit asset classes. The strategy seeks to provide a strong income element on a consistent basis that few other assets can provide.

Credit is now seen as the go-to asset class to keep pension funds and insurers in good health. Bundles of mortgages, car loans, High Yield and Emerging Market debt are deemed more attractive on a risk-adjusted basis than holding company shares; and more generous than safer government bonds. As Justin Bourgette, a credit portfolio manager at Eaton Vance comments in the White Paper, “Credit is going to be part of the portfolio because of the attractive risk-adjusted returns.”

It is not just market returns that have caused investors to alter their traditional allocations. The regulation of pension funds and insurers has also supported more exposure to credit.

As Jeff Boswell, Strategy Leader of Developed Market Credit at Investec, points out, “Pension funds are being forced to look for more return by hunting further along the risk spectrum.” That journey brings asset owners to the likes of high yield, leveraged loans, structured credit and private debt, with a vast spectrum of available debt and credit options.

But the variety of opportunities in debt and credit also begs the question of how pension funds and insurers allocate. Do they employ specialist managers for each niche of their liking or do they appoint managers with flexibility to invest in a range of debt markets on a dynamic basis?

Alistair Sutherland, Consulting Director at Deloitte says, “Asset owners say they have the governance to oversee discrete mandates but most don’t. Better to give the discretion to the asset manager and leave them to use the building blocks as they see fit.”  Many at the round table agreed.

Assets under management in MACS have boomed over the past three years. Tom Raftery, Credit Product Manager at Franklin Templeton, added that the popularity of MACS has led to massive product proliferation. “Buyers of MACS are in a tremendous position,” noted Raftery.

Essentially every offering is unique given the range of credit sectors that fit this type of mandate, and the differences in the philosophy, expertise, and/or geographic reach of the managers creating them. “To the extent that their research resources allow, consultants, other advisors, and investors can shop the market for MACS that offer exactly what they want in terms of sector exposure, risk/reward profile, and liquidity,” adds Raftery.

Looking ahead

Looking to the future, the challenge for MACS is establishing their territory. Plenty of pension funds and insurers are currently looking for Alternative Credit managers. Some of the funding will come from Investment Grade portfolios. MACS managers need to win the argument that they can cover the range from IG to Alternatives.

The consultants at the CAMRADATA round table said the variety of MACS meant that they could be appointed in combination to increase diversification. If large bond ETFs and long-dated bond funds get hurt in a rising rate environment, then MACS will put on assets.

However, most MACS themselves have not experienced a period of rising rates; the big question for investors is which type of strategy will better suit the times ahead, when neither businesses nor governments will be able to rely on cheap money.

Sean Thompson, Managing Director, CAMRADATA adds, “The current yield challenges facing many investors undoubtedly require a new way of thinking in terms of asset allocation. While credit has long been a core income generating component of many traditional asset allocation models, the evolution of financial markets, coupled with the complexities of investing in the current environment, have cultivated a different way of credit investing. Our White Paper is therefore, essential reading for investors looking at MAC strategies now and in the future.”

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