Apple gets slow start without Steve Jobs
SAN FRANCISCO -- Apple shares sank 2%, to $83.38, a day after its CEO and co-founder said he would take a medical leave through June to cope with lingering health issues. "Talking to investors today, the general feeling is, why own Apple shares in front of what could be more bad news?" says Piper Jaffray analyst Gene Munster.
A survivor of pancreatic cancer, Jobs, 53, last week disclosed he is suffering from a hormone imbalance that resulted in significant weight loss and his cancellation to speak at the Macworld trade show this month. In a letter to Apple employees Wednesday, Jobs said, "During the past week I have learned that my health-related issues are more complex than I originally thought."
"Apple is a special case, with such a high-profile figurehead," says Charles King, principal analyst at tech consultant Pund-IT. "There's not really a strong sense of who, if anybody, could replace him at the company."
For now, it is Tim Cook, Apple's chief operating officer. In 2004, he filled in for two months as interim CEO while Jobs recovered from pancreatic cancer surgery.
Cook, 48, a 10-year Apple veteran who cut his teeth at IBM and Compaq Computer in manufacturing and logistics, will probably assume the role of caretaker, tech analysts say. The soft-spoken Cook, who hails from Mobile, Ala., is known for his meticulous management style.
"The executive team already runs 90% of Apple, and the handover will be fairly smooth," says Leander Kahney, author of Inside Steve's Brain, a book about Jobs and Apple. "Cook will handle the day-to-day, and (senior vice president of industrial design Jonathan) Ive, design and new product development."
Analysts expect little impact on Apple's current product cycle, which lasts 18 to 24 months. But they are worried about plans three years and beyond. "The next revolutionary Apple product is usually envisioned by Jobs," Munster says, citing Jobs' input in helping create products such as iPhone and iPod that redefined consumer-electronics markets.
