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?








