Huge news out of Cuppertino: the legendary Steve Jobs has resigned as Apple CEO and former COO Tim Cook has been named as his replacement. Jobs will still serve Apple as chairman of the board. As many of you know, Jobs has been suffering from numerous health issues over the last few years. Many believed that Cook would be his successor. Despite the inevitability of it all, it still feels a bit shocking. Apple without Steve Jobs steering the ship seems…not right. Before I get to some analysis and explanation, here’s a clip from the press release:
Apple’s Board of Directors today announced that Steve Jobs has resigned as Chief Executive Officer, and the Board has named Tim Cook, previously Apple’s Chief Operating Officer, as the company’s new CEO. Jobs has been elected Chairman of the Board and Cook will join the Board, effective immediately.
For those of you not familiar with Cook, he is one of the biggest reasons that Apple enjoys the profit margins that it does. The man knows how to work supply chains, setting up favorable deals for components needed in Apple products years in advance. For example, Cook set up deals for high-quality LCD displays years before the iPad and iPhone took off. This helped Apple secure relatively cheap prices for these goods. A nifty side effect, particularly on the tablet side, is that Apple’s competitors have had a tough (and comparatively expensive) time getting LCD screens for its products.
The reaction from the stock market has been a completely expected overreaction. According to Wired, Apple shares closed at $376.18, but dipped to $357.10 in after-hours trading. I understand that people are jumpy on someone other than Steve Jobs leading Apple, but there’s no need to panic (yet). Jobs is still around and working for Apple. More importantly, Apple plans things out so far in advance that an immediate stock dip seems a bit stupid to me. I would be shocked if there were drastic changes to how Apple does business over the next five years (at least).
What are your thoughts on Steve Jobs resignation and the future of Apple? Is it a sign of an inevitable fall? Or is it simply due to health issues? At the very least, Tim Cook will do a better job taking over Apple then Steve Ballmer did taking over Microsoft, right? Is going with an “operations” guy instead of a “vision” guy the best thing for Apple’s future?
I am still not sure on whether this is due to health related issues or not. I'm no expert in what it takes to be a ceo, or a member of the board, and the fact that he made a transition in job title while stepping down as ceo tells me he still wants to work with Apple—meaning I am leaning more towards not a completely health related issue. If he were not requesting a position on the board then I would be more inclined to jump to the conclusion of health related issue. Perhaps this is merely a transition job in order to cast doubt, as is done in my scenario.
As far as where the company stands I feel that while the dip in stock prices may be called stupid, it is understandable. Jobs (with the help of Microsoft) brought Apple beak to life in 97, and Jobs has been synonymous with Apple ever since. This would be like the Colts losing Peyton Manning, in my opinion. Yes there are flaws in that comparison, but Manning is the face of the Colts and the secret to their success. Jobs is seen as the secret to Apple's success and the face (or should I say clothing—turtleneck and new balance shoes) of the company.
I'm sure Apple will still do just fine in the years to come, but this time in the future will go on to show how much Steve Jobs really has or has not guided the company as a whole. I am pretty much a self-proclaimed Apple-hater, but Jobs is a one-of-a-kind person which has lead the company for a long time now. What I found interesting earlier today were the old Gizmodo articles where they speculated that Apple couldn't afford to lose Jobs (circa 2008, when Jobs took a major leave of absence I believe). There are plenty of comparisons to other companies and transition periods which they have made that are no doubt similar in some way, but something as big as this could go any number of ways and in my opinion we can really only wait and see what actually happens.
I don't see how it can't be about his health. Jobs has taken leaves before, leaving Cook to run the show. It looks like he knows that he can't take the day-to-day grind anymore, but still wants to contribute.
I found it funny that you called Jobs the secret to Apple's success. If anything Cook is more of the "secret". He gets incredible deals for parts. He keeps inventory low. He keeps the sales chain moving quickly. He's a big reason behind Apple's success for the last decade.
Here's a great CNN article on Cook from 2008:
http://money.cnn.com/2008/11/09/technology/cook_a…
Yes most places and people I have read discussing this topic have mentioned his health, and since it has been an issue in the past it is worth mentioning now. From what I wrote above and what Jobs stated in his letter, I would agree with what you just said about not being able to take the day-to-day grind. This also could be a slow transition stage for him as well. A slower pace than before, but still involved. Later if he needs to step away due to health related issues again then the gears will already be moving within the company and his lack of presence won't be too overwhelming to the company as a whole.
Yes that is true, Cook would be considered the secret more so than Jobs. Steve Jobs is still the face you see when you think of Apple though. He is the person people think of when they think of innovation and new products at Apple, not Tim Cook. To stick with a football analogy like above, a football team is motivated by a quarterback they know they can trust. In a recent discussion I heard about Michael Vick vs Vince Young being the starting QB for the Eagles, it doesn't matter if Young has more talent than Vick, the team is behind Vick therefore it would be a mistake to start Young and bench Vick.
Tim Cook may be a great ceo and do a lot for the company behind the scenes, but he is no Steve Jobs.
ps- I have added that article to my reading list for tomorrow morning.
We can only dream to one day be powerful enough to pull off the turtleneck & jeans.
I agree with all of your points.
-"What are your thoughts on Steve Jobs resignation and the future of Apple?"-
This is touchy. See… Jobs got kicked out of Apple back in the day after they went public. The shareholders didn't want his young, hothead ass (which he totally was back then) in charge of their shares so they voted him out. This pissed him off (as it should).
Imagine… RPad.tv becomes enormously successful to the point where going public is a viable option. The shareholders hold a meeting and say "we don't like you in charge Ray for blankety blank reasons". (not verbatim)… but wouldn't that plant the revenge seed deep in your heart?
Well… it did Jobs, and this happens to be the man who possesses the brain and capabilities of Steve Jobs. He failed horribly with Next… and Apple got to a point where they were sinking fast. A deal got made that never would have been made if Jobs didn't approve and he came back… with the OG iMacs and the iPod in tow.
At this point right here is when he started setting up this situation. I firmly believe that Jobs' visions will still stretch out for quite some time to come. No matter what… you know he's gonna have new ideas and want to share them. It's when he dies that we should really be having this conversation.
"Is it a sign of an inevitable fall? Or is it simply due to health issues?"
Health issues for sure. The man had his liver removed and somebody else's liver replace it. Believe it or not, a liver transplant is more delicate than any other practiced surgical operation (from what they told me). They have to reroute every fluid that goes through your liver to keep you alive while they cut it out and put one in from somebody who was killed hours earlier that day, had healthy organs, and said "yes" when they got their ID card.
The recipient is usually passed out on several medications for a couple weeks in the ICU. They watch them in the ICU because of rejection on top of many other reasons.
Then they are typically in the hospital for 2 months or more depending on their health and ambition making the entire stay 3 months or more (my dad broke his hospital's record and was out in 2 months from the transplant). After release… they are on immune system suppression drugs to help fight rejection for YEARS afterwards as well as a myriad of antibiotics and other medications. My dad was in regular contact with his transplant coordinator until he died (7 years, and 3 grandchildren later).
Long story short (too late for that…) As active as Jobs has been, it can't be good for him. Sniffles to us could be deadly pneumonia to him because of the anti-rejection drugs. If he wants to survive, he has to settle down.
-"At the very least, Tim Cook will do a better job taking over Apple then Steve Ballmer did taking over Microsoft, right?"-
All signs point to yes.
-"Is going with an “operations” guy instead of a “vision” guy the best thing for Apple’s future?"-
I think I answered half of this earlier, but I think the better question is will Cook's replacement be as up to par as Cook? As far as "vision" guys go… there is no real replacement for Jobs. There's no real replacement for Bill Gates either. There was really no real replacement for Walt Disney, Thomas Edison, or Henry Ford. But what all those people have in common is that they changed the world with product.
If you read this far… I greatly appreciate it, but if you didn't… then I'm too polite to say anything nasty behind your back (since you aren't reading this). But it's cool.
read it all, just wanted to confirm for you that somebody did.
I kinda started typing… and it didn't stop.
Fantastic comment! A few things to note:
– In addition to the liver transplant, Jobs also fought pancreatic cancer. Those are two major illnesses. I read a stat that said 95% of people diagnosed with pancreatic cancer die within five years.
– Jony Ive's contributions to Apple design are immense. I think he's SVP of industrial design these days. I expect Apple products will be just as beautiful as they've been for the last decade. I'm not sure who the marketing guys at Apple are. I imagine design and marketing execs will be elevated in order to complement Cook's strengths in operations.
Random, random note. My uncle died of pancreatic cancer a few years ago. They found it late and I believe he died within a year. Also, my dad in on anti-rejection drugs for a kidney transplant, so I'm familiar with those issues too.
Wow… sorry to hear that.
But that's what I'm saying, anybody familiar with the health issues he's had knows that he's been moving too fast for his own good.
If I were in his position… all I would want to do is spend time with my family. He has 4 kids and a wife… ya know.
I just wish them all the best.
I think he'd drive his family insane if he if he didn't have Apple.
Yeah… but it's worth it.