The recent news about Apple CEO Steve Jobs taking an indefinite leave for health reasons has sent aftershocks across the tech industry. Jobs, who is a pancreatic cancer survivor and has undergone a liver transplant, had taken time off from Apple twice before but always made the date of his return known to employees and investors.
In his letter to staff which was circulated to the press, Jobs noted that, “at my request, the board of directors has granted me a medical leave of absence so I can focus on my health. I will continue as CEO and be involved in major strategic decisions for the company.”
A New York Times story published Monday reported that, “In recent weeks, Mr. Jobs began a down cycle and slowed his activities at Apple, said the person, who refused to be identified because he was not authorized to discuss Mr. Jobs’s condition. Mr. Jobs has been coming to the office about two days a week and has appeared increasingly emaciated, the person said. He has frequently had lunch in his office, rather than in the company cafeteria, the person said.”
While the nature of Jobs’ health and his reason for having to take a leave now are purely speculative and of a private nature. It has spurred on a debate on whether Apple needs to disclose more information on the situation. If this were any other CEO from any other company, chances are it wouldn’t attract as much attention and speculation.
Still, Apple’s performance as a company has been amazing with their announcement today of highest revenues and highest earnings ever with revenues growing by 71 percent and earnings growing by 78 Percent.
“We couldn’t be happier with the performance of our business, generating $9.8 billion in cash flow from operations during the December quarter,” said Peter Oppenheimer, Apple’s CFO. “Looking ahead to the second fiscal quarter of 2011, we expect revenue of about $22 billion and we expect diluted earnings per share of about $4.90.”
Two Steves: Jobs and Wozniak at the cusp of the personal computer revolution
It is difficult to grasp an Apple without Steve Jobs.
Just as it is hard to imagine the next great device being unveiled on stage without the man in the black mock turtleneck and jeans revealing that “one more thing” that sets techies hearts aflutter and generates immeasurable amounts of excitement and hype.
Apple’s Chief Operating Officer Tim Cook will take over as he has in the past instances where Jobs was unavailable.
Analysts and Apple watchers agree that Jobs has assembled a prodigiously talented executive team at Apple who have been ingrained with his vision and longview for the company and its products. Public perception and investor’s confidence in the company can be shaken by Jobs’ absence specially because of the sensitive and possibly critical nature of this leave.
Accepted as the heart and soul of Apple Inc., Jobs is also considered a technology and lifestyle visionary. His keen and often uncanny penchant for creating successful and iconic products is as legendary as his quick wit, razor focus and brash manner.
After being ousted from Apple in the 80’s by John Sculley, Jobs set up Next Computers which he eventually dovetailed back into Apple the mid-90’s once he got hired back.
His return to Apple and subsequent re-engineering of the company is the stuff of legend. “The cure for Apple is not cost-cutting. The cure for Apple is to innovate its way out of its current predicament,” Jobs was quoted as saying as he took on the post of iCEO (interim CEO) and innovate they did and in grand fashion. Starting with the all-in-one iMac, Apple clawed its way back into the computer marketplace, often starting trends that its competition would copy.
The hits kept on coming one revolution at a time with the iPod, the hugely successful iPhone, advanced notebooks and desktops and most recently the popular and genre defining iPad tablet.
Insanely Great: Apple's iPad defined its own market and in less than a year dominated it completely
It is now 2011 and Apple is the second most valuable company in the US, second only to Exxon Mobil Corporation. Ten years ago, Apple stock was worth $7 a share, last week its latest high was $348.48.
Last year, Apple passed rival Microsoft in market capitalization to become the world’s most valuable technology company. Revenue reached a new high with $26.74 billion for the quarter that ended December 25, 2010, and net quarterly profit hit a high of $6 billion.
With or without Steve Jobs, Apple’s success is expected to continue at least in the short term. It will thrive though its consistent focus on innovative products and superior customer service. It is hard to deny that his personality and creative spirit is an indelible part of the company’s culture and character.
