Markets adjust to news of Apple chief's departure

THE DECISION by Apple founder Steve Jobs to step down as chief executive of the consumer electronics giant was shrugged off by markets yesterday with the share price closing down less than 1 per cent after trading closed in New York.

Mr Jobs, who founded Apple in his parents’ garage in 1976 and is credited with turning the company’s fortunes around in the last decade, announced late on Wednesday that he was no longer able to meet his “duties and expectations as Apple’s CEO”.

In 2009 Mr Jobs, who has survived pancreatic cancer, had a liver transplant and has been on “medical leave of absence” from Apple since the start of this year.

The announcement that Mr Jobs was to assume the role of chairman, and that chief operating officer Tim Cook would become chief executive, saw Apple shares fall in value by 7 per cent in after-hours trading before yesterday’s recovery.

Mr Cook moved quickly to assure Apple staff by e-mail that the company “is not going to change” under his leadership.

Mr Jobs revolutionised consumer technology with Apple’s products, and is deemed the heart and soul of a company that became the most valuable in the world for a period this month.

The brief letter announcing his resignation and a separate statement from the Apple board raised more questions than they answered about Mr Jobs’s health and the future of the company.

While it is unlikely his departure as chief executive will derail Apple’s ambitious product-launch roadmap in the near term, there are concerns over whether the company will be as creative without its visionary at the helm.

In the company statement, Apple co-lead director Art Levinson, on behalf of the board, praised Jobs’s “extraordinary vision and leadership” and said he would continue to serve the company with “unique insights, creativity and inspiration”.

Mr Jobs’s battle with pancreatic cancer, which has stretched over several years, has been of deep concern to Apple fans, investors and the company’s board. Over the past two years even board members have confided to friends their concern that, in his quest for privacy, Mr Jobs was not being forthcoming with them about the true condition of his health.

The 56-year-old Mr Jobs had briefly emerged from his medical leave in March to unveil the latest version of the iPad and later to attend a dinner hosted by US president Barack Obama for technology leaders in Silicon Valley.

His often-gaunt appearance had sparked questions over how bad his illness was and his ability to continue at Apple.

Mr Cook (50), an Alabama native, is a former Compaq executive and an acknowledged master of supply-chain management.

One Silicon Valley chief executive who declined to be identified said the tone of Mr Jobs’s statement indicated his health might be worse than feared.

The Apple chief has earned a reputation for commanding every aspect of operations, from day-to-day running to strategic decisions, suggesting he would not give up the job if he had a choice. – (Additional reporting: Reuters)