Questions for Apple
With Apple chief executive Steve Jobs taking medical leave without telling the public what is wrong or when he’ll return, a whole host of questions have been posed by the media as to the future of the man and his company. Here we take a look at the questions and speculation arising.
Apple so far has been somewhat guarded with information, so here we take a look at the most pertinent questions and the main commentators attempting to answer them.
What is wrong with Steve Jobs? Jobs might be the public face of Apple, but that doesn't mean the public have been made privy to every last detail about his health. NewScientist speculates on his condition: “Most likely is one of two possible outcomes: first, that a rare form of pancreatic cancer diagnosed and successfully treated in 2004 has returned; second, that his body is rejecting the liver transplant he received in 2009.”
When will he be back? Jobs is quoted as saying: "I love Apple so much and hope to be back as soon as I can", but there is no indication of when this will be. “It raises the bigger question about whether he will ever return,” A.M Sacconaghi, an analyst with Sanford C. Bernstein, told the New York Times.
How key to Apple is Jobs? More so than any other chief executive, Jobs is inseparable from his company’s success. “He may be the most vital CEO of our era” said Michael Useem, a professor at the University of Pennsylvania in the Boston Globe.
Will there be an interim CEO? COO Tim Cook will become de-facto leader, taking responsibility for Apple's day-to-day operations, but as yet no interim CEO has been named. The Telegraph explains: “Cook, who has a hawk's eye for operational detail, presided over a 60 per cent share price rise last time Jobs was off”.
Has the company met its legal obligations to keep investors informed? Apple doesn’t have to say any more, according to legal experts, despite whatever happens to Jobs mattering to shareholders. The Wall Street Journal’s opinion section says: “Apple has chosen to let this uncertainty stand, amid the many uncertainties that all investors face. It hasn't said Mr. Jobs is fine and is taking a vacation. It long ago put out enough information for the world to understand that Mr. Jobs' prognosis was permanently problematic. It has let the world see him, a pale and skeletal reflection of his healthy self. And on investors' most legitimate worry, replacement leadership, the company has quietly and impressively put concern to rest.”
Just how bad is the timing? This is a critical time for Apple. Its market lead built up through the iPhone and iPad is being rapidly eroded by the likes of Google and Samsung. “The timing here is bad. Verizon about to launch its version of the iPhone, and any glitch in performance will start to shift previous network quality complaints from ATT to the Apple product” said Quentin Hardy in his Forbes blog.
What has the impact been on Apple's share? Share in Apple immediately fell after the announcement; they were down by 7.6% in Frankfurt. Markets were closed in the US for a public holiday. But, according to Reuters today: “Apple Inc landed blockbuster results and a strong outlook on dazzling sales of the iPhone and iPad, reassuring investors that visionary CEO Steve Jobs's medical leave will have no impact on growth.”