Steve Jobs Resigns From Post as Apple's CEO

In shocking announcement from Cupertino this afternoon, Apple has announced that founder Steve Jobs will no longer act as the company's CEO. In a letter sent to the Apple board today, Mr. Jobs admitted that the time has come where he can no longer fulfill his duties as Chief Executive Officer of Apple. Jobs went on to "strongly recommend" Chief Operating Officer Tim Cook be his replacement and said he would like to stay on as Chairman if the company's board sees fit.

I have 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.

I hereby resign as CEO of Apple. I would like to serve, if the Board sees fit, as Chairman of the Board, director and Apple employee.

As far as my successor goes, I strongly recommend that we execute our succession plan and name Tim Cook as CEO of Apple.

I believe Apple's brightest and most innovative days are ahead of it. And I look forward to watching and contributing to its success in a new role.

I have made some of the best friends of my life at Apple, and I thank you all for the many years of being able to work alongside you.

Steve

Apple has since confirmed the news with a press release announcing Tim Cook as Steve's replacement and revealing that the board has named Jobs Chairman. New CEO Cook will also be joining the board.

Steve Jobs has been on medical leave from Apple since January 2011. Neither Jobs nor Apple have explained the reason behind the extended leave, except to say that Steve was leaving to "focus on his health." The Apple founder took a leave of absence in January 2009 and it later emerged that he had undergone a liver transplant in the spring of 2009. Jobs was also treated for pancreatic cancer in 2004. He is said to have attempted to treat the islet cell neuroendocrine tumor with a special diet before agreeing to have surgery to remove the tumor. The surgery was successful and Jobs did not require chemotherapy or radiation.

Tim Cook has acted as CEO during all of Jobs' absences. According to Apple, Cook was previously responsible for all of the company's worldwide sales and operations, including end-to-end management of Apple's supply chain, sales activities, and service and support in all markets and countries. He also headed Apple's Macintosh division.

Given Steve Jobs prominent role in the day-to-day operations at Apple, the company's stock routinely suffers when news, or even rumors, regarding his health do the rounds. It's often said that Apple would suffer significantly if Steve Jobs were to leave the company. To that end, his health, and indeed his medical leave from Apple, frequently leads to debates about whether or not shareholders deserve to know personal details about Steve Jobs' health. Today's news comes at a time when Apple is rumored to be on the verge of announcing a new iPhone (and possibly a new iPad, too). Both events will likely have an impact on Apple shares.

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  • Apple shares to do a nose dive in the foreseeable future, sell sell sell. lol
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  • Apple will be fine. He is still on the board.
    The shares will only dive when he eventually passes away(sad to say) or leaves the company all together
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  • I've not lost any sleep worrying about Apple's future nor will I now but I do sincerely hope that Jobs' health isn't suffering and subsequently isn't the reason for his standing-down despite it being the most likely of reasons for his doing so.


    On a business related point though, I agree with others in that I think this will be the ultimate test of Apple's true share valuation. If stock prices fall suddenly and don't recover almost instantly it will surely be proof that the company's worth has for a long time been unrealistic if not blown out of all proportion to it's real value and been based upon the presence of a sole individual who, let's face it, hasn't been the innovator he once was for a very long time for many reasons besides his health.


    I would however also see the move to the position of chairman from CEO as a means to avoid a complete collapse of the share price rather than Jobs' retiring as he respectably could have. He obviously takes great pride in, and has massive loyalty for, 'his' company as I for one couldn't say that I would have done much other than think 'screw the share price, my health and wellbeing comes first!'.


    Let's just hope the changes don't go down in Job's final chapters with Apple as 'the era of rotten Apples' (did you see what I did there?!) as a result of this change.


    All the best Steve.
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