Showing posts with label apple. Show all posts
Showing posts with label apple. Show all posts

Wednesday, August 24, 2011

With Jobs Out As CEO, Apple Looks To The Future

FILE - In this file photo taken Jan. 11, 2011, Tim Cook, Chief Operating Officer of Apple, announces that Verizon Wireless will carry Apple's iPhone, SAN FRANCISCO – Since Steve Jobs' return to Apple Inc. in 1997 as CEO, the company has been on an unparalleled upswin g, highlighted by the immense popularity of the iPad and iPhone.
Now, with Jobs no longer leading, Apple will have to prove it can keep its momentum. If the recent past is any indication, the company will continue to move forward.
Apple said late Wednesday that Jobs, 56, resigned from the CEO post, in a move that seems motivated by his ongoing, yet still unspecified health issues. Jobs had taken an indefinite medical leave in January, marking his third such leave in seven years. Jobs, who co-founded Apple in 1976, previously survived pancreatic cancer and received a liver transplant.
Taking on the role of board chairman, Jobs now passes the CEO role Tim Cook, 50, the company's chief operating officer. Cook had been acting CEO since January. For years, he has been running Apple's day-to-day operations, and has long been seen as the natural successor. He also served as Apple's leader for two months in 2004 while Jobs battled cancer, and again for five-and-a-half months in 2009 when Jobs received a liver transplant. The company has thrived under Cook's leadership, briefly becoming the most valuable company in America earlier this month.
Cook is not nearly as recognizable as Jobs, who after returning from a 12-year hiatus in 1997 became the very public face of Apple, clad in his signature blue jeans, black turtleneck and wire-rimmed glasses when trotting out the company's iPhones, iPads, iPods at immensely popular and anticipated media events. Though Jobs has looked increasingly frail, he emerged from his leave twice this year to tout products at such events: First, he unveiled the second version of Apple's iPad tablet computer in March. Then, in June, he resurfaced to show off Apple's iCloud music synching service.
But while Jobs is the most recognized person at Apple, he is not the only one responsible for the company's success. Many industry watchers believe that despite his importance, Apple will continue to innovate and not just survive, but thrive.
Says Cross Research analyst Shannon Cross: "Steve Jobs put in place at Apple a culture of innovation."
And its innovation has translated to sales. With Cook running the company, Apple sold 9.25 million iPads during the most recent quarter, which ended in June, bringing sales to nearly 29 million iPads since they first began selling in April 2010. Apple also sold 20.3 million iPhones in the same period, which was millions more than analysts expected. The company's stock has risen 8 percent since Jobs announced his most recent medical leave.
Cook's track record at Apple is strong. The first time he was in charge back in 2004, things went so well that Apple promoted him from executive vice president to chief operating officer in 2005.
During the second time, which lasted from mid-January to the end of June 2009, Apple released a new version of the iPhone and updated laptop computers on schedule. The company also announced that its iTunes app store hit a major milestone: More than one billion apps were downloaded within the first nine months of its existence.
Apple's stock rose 62 percent during that time, satisfying investors' concerns over Jobs' absence.
Cook, an Alabaman with short, gray hair and a broad, thin-lipped smile, has been an asset to Apple since his arrival in 1998. He is credited with tuning Apple's manufacturing process to solve chronic product delays and supply problems. His inventory management skills helped Apple build up its $72.6 billion hoard of cash and marketable securities — funds that it can use to keep its lead in the portable electronics market.
Like IBM, McDonald's or Ford, all of which lost visionary CEOs, Apple is not necessarily dependent on the immortality of the genius behind it, says Terry Connelly, dean of the Ageno School of Business at Golden Gate University in San Francisco.
"A company is dependent on its ability to institutionalize that genius in the corporate DNA," he says. "Apple shows every sign of having done that. We will see that when we see how Cook responds to competitive pressure."
And, as Cross points out, Cook won't be leading Apple alone. His supporting team includes Jonathan Ive, who oversees the elegant, minimalist design of Apple's products; Ron Johnson, who runs Apple's stores; Philip Schiller, the marketing chief; and Scott Forstall, who supervises the iPhone software.
"The bench at Apple is extremely strong," Cross says. "He has a good group of executives behind him."
And consumers — the group Apple really depends on to make its products popular — may not be that affected by the change.
Apple customers don't buy the company's products because of Steve Jobs, Gartner Research analyst Michael Gartenberg says, they buy Apple products because they're Apple products. Without Jobs, he believes the company's challenge will be the same as it was with him: continuing to find ways to raise the bar with its consumer electronics.
"Yes, this is quite some transition at the end of Steve's role and his time at Apple, but it doesn't mean Apple itself will fundamentally change," he says. "Certainly Apple's competition would be foolish to think this is a situation they could somehow capitalize on."

Steve Jobs, Apple CEO and creative force, resigns

Steve JobsSAN FRANCISCO – Steve Jobs, the mind behind the iPhone, iPad and other devices that turned Apple Inc. into one of the world's most powerful companies, resigned as CEO on Wednesday, saying he can no longer handle the job but will continue to play a leadership role.
The move appears to be the result of an unspecified medical condition for which Jobs took a leave from his post in January. Apple's chief operating officer, Tim Cook, was quickly named CEO of the company Jobs co-founded 35 years ago in his garage.
In a letter addressed to Apple's board and the "Apple community," Jobs said he "always said if there ever came a day when I could no longer meet my duties and expectations as Apple's CEO, I would be the first to let you know. Unfortunately, that day has come."
The company said Jobs gave the board his resignation Wednesday and suggested Cook be named the company's new leader. Apple said Jobs was elected board chairman and Cook is becoming a member of its board.
Genentech Inc. Chairman Art Levinson, in a statement issued on behalf of Apple's board, said Jobs' "extraordinary vision and leadership saved Apple and guided it to its position as the world's most innovative and valuable technology company."
He said that Jobs will continue to provide "his unique insights, creativity and inspiration," and that the board has "complete confidence" that Cook is the right person to replace him.
""Tim's 13 years of service to Apple have been marked by outstanding performance, and he has demonstrated remarkable talent and sound judgment in everything he does," Levinson said.
Jobs' health has long been a concern for Apple investors who see him as an industry oracle who seems to know what consumers want long before they do. After his announcement, Apple stock quickly fell 5.4 percent in after-hours trading.
Jeff Gamet, managing editor of The Mac Observer online news site focused on Apple, said Jobs' departure has more sentimental than practical significance, and that he has been telegraphing the change for several years.
"All Apple really has done is made official what they've been doing administratively for a while now, which is Tim runs the show and Steve gets to do his part to make sure the products come out to meet the Apple standard," he said.
"I expect that even though there are a lot of people that right now are sad or scared because Steve is stepping back from the CEO role, that ultimately they'll be OK," Gamet said.
But Trip Chowdhry, an analyst with Global Equities Research, said Jobs' maniacal attention to detail is what set Apple apart. He said Apple's product pipeline might be secure for another few years, but predicted that the company will eventually struggle to come up with market-changing ideas.
"Apple is Steve Jobs, Steve Jobs is Apple, and Steve Jobs is innovation," Chowdhry said. "You can teach people how to be operationally efficient, you can hire consultants to tell you how to do that, but God creates innovation. ... Apple without Steve Jobs is nothing."
Earlier this month Apple became the most valuable company in America, briefly surpassing Exxon Mobil. At the market close Wednesday its market value was $349 billion, just behind Exxon Mobil's $358 billion.
Jobs' hits seemed to grow bigger as the years went on: After the colorful iMac computer and the now-ubiquitous iPod, the iPhone redefined the category of smart phones and the iPad all but created the market for tablet computers.
His own aura seemed part of the attraction. On stage at trade shows and company events in his uniform of jeans, sneakers and black mock-turtlenecks, he'd entrance audiences with new devices, new colors, new software features, building up to a grand finale he'd predictably preface by saying, "One more thing."
Jobs, 56, shepherded Apple from a two-man startup to Silicon Valley darling when the Apple II, the first computer for regular people to really catch on, sent IBM Corp. and others scrambling to get their own PCs to market.
After Apple suffered a slump in the mid-1980s, he was forced out of the company. He was CEO at Next, another computer company, and Pixar, the computer-animation company that produced "Toy Story" on his watch, over the following 10 years.
Apple was foundering as he returned as an adviser in 1996 — a year it lost $900 million as Microsoft Windows-based PCs dominated the computer market. The company's fortunes began to turn around with its first new product under Jobs' direction, the iMac, which launched in 1998 and sold about 2 million in its first 12 months.
Jobs eventually became interim CEO, then took the job permanently. Apple's popularity grew in the U.S. throughout the 2000s as the ever-sleeker line of iPods introduced many lifelong Windows users to their first Apple gadget. Apple created another sensation in 2007 with the iPhone, the stark-looking but powerful smart phone that quickly dominated the industry.
The iPad was introduced less than a year and a half ago but has already sold nearly 29 million units as it inspired myriad rivals in a tablet computer market that scarcely existed before Apple stepped in.
There have been some setbacks. Apple was swept up in a massive Securities and Exchange Commission inquiry into stock options backdating in the mid-2000s, a practice that artificially boosted the value of options grants. But Jobs and Apple emerged unscathed after two former executives took the fall and eventually settled with the SEC.
As Jobs was praised for his vision, concerns about his health persisted. The January leave was Jobs' third medical leave over several years. He had previously survived pancreatic cancer and received a liver transplant.
Shannon Cross, an analyst at Cross Research, said Cook is a good choice to replace Jobs.
"He has taken over for Jobs twice in two medical leaves and the company has functioned extremely well," she said, adding that Cook has been Jobs' "right hand guy" for many years.
Cross also said Jobs put in place a "culture of innovation" that will help Apple remain a creative force in the industry.
"Steve Jobs is an extremely strong leader and clearly has made Apple a leading consumer electronics company and one of the most innovative companies in the world," she said. "However, he didn't do it alone."