The last time Tim Cook ran Apple
Apple (AAPL) shares dropped 7.56% to $78.88 in after-hours trading in New York on news Wednesday that COO Tim Cook was taking over day-to-day operations — a $6.7 billion hit on Apple's market capitalization.
This is not the first time Cook has stepped in while Steve Jobs dealt with a serious medical condition.
Cook ran the shop for a month in 2004 while Jobs recovered from surgery that removed a malignant tumor from his pancreas (see here). The stock fell then too — down 2.3% on Aug. 2, 2004, the day after Apple announced the news — a loss that widened to nearly 8% by week's end.
But by Sept. 1, 2004 the stock had not only recovered, but gained 10.9% on its July 30 price — closing at what now seems an impossibly low $35.86.
Some of that bump may be attributed to investor relief that Jobs was due back at the helm. But whether or not Jobs returns from his latest medical leave, the fact is that Tim Cook has been running day-to-day operations at Apple for some time, as Adam Lashinsky's long profile in Fortune makes clear. (See The genius behind Steve.)
In July 2004, two weeks before Jobs' operation, Apple reported earnings of $61 million on sales of $2.014 billion and was holding just under $5 billion in cash.
In its last quarterly statement, Apple reported earnings of $1.14 billion on sales of $7.9 billion, with nearly $25 billion in cash.
In other words, it's the same company, only four or five times bigger.
@anonymous…
"'Mac = No Viruses, No Spyware, No Problems. Can you say that about your P.C.?'
^ This is someone with a lack of knowledge of computers. All computers of all kinds are attacked, every day."
Sorry, anonymous, you are the one with no knowledge of computers. I have run Macs online since the days of 300 baud modems. I have never had malware on any of them. None. Ever.
Interesting that the posting interface says the moderator won't allow anonymous posting. Either Philip agrees with anonymous, is anonymous, or just wants a flame war.
Of more risk to Apple than losing Jobs leadership is the fact that they are a niche market.
They are much pricier than they should be and that hobbles their competitiveness in the market (talking computers here).
In this economic climate especially, it would be wise to reconsider their elitism when it comes to product pricing.
John Feuling…I accuse you of being an Apple Marketing agent disguised as a Applephile consumer posting on this board.
"Mac = No Viruses, No Spyware, No Problems. Can you say that about your P.C.?"
You know why this is? Because no one cares to mess with an OS that has such a small share of the market.
Let it become the major business OS and see what happens.
And my company is 300,000+ employees scattered across the globe. Regardless of what OS is in place, there is going to be a huge IT staff.
Mr Feuling, you just discredited your own post yourself. standard mac-fan.
apple relies on Jobs, simply because he's an icon – and he can sell overpriced nifty things to anyone. congrats, that's super.
however, you oversimplify large businesses and their actual use of systems behind the scenes in IT – UNIX, Linux, AIX, HP…and dozens of other systems and subsystems that are not Mac, and could never be Mac – simply because they're more anal about how they "allow" things to be done than Microsoft.
relax, it's hard to admit that Mac can't do everything – especially when you've always been told (sold) that by Mr. Jobs himself!
Mac fans, PC fans…whatever fans. who cares? Jobs is human, and *gasp* can fail. the image-selling that goes on from Apple really is inspiring, but…i'll still continue to use the hardware/software combination that is both cost effective, and useful for the need and the long-run. regretfully, 90% of the time – it's not Mac or anything Apple.
"Mac = No Viruses, No Spyware, No Problems. Can you say that about your P.C.?"
^ This is someone with a lack of knowledge of computers. All computers of all kinds are attacked, every day.
First of all, Apple is about people and products, not stocks, or CEOs. All of you market players and ignorant PC freaks can spout all of your soulless dribble. Go ahead and push the price of the shares around all you want. We in the Apple family could care less. What we do care about is our leader. We wish him the best of luck in his ultimate challenge to recover his health. Not for the company, but for a good man and his family.
PCs continue to hold business hostage in this country by relying on an unstable operating system, plagued by architecture and OS problems. The largest business unit in any big company is ALWAYS the IT division. Why? Because they use a flawed computer with a flawed operating system. Meanwhile, a team of 1-3 Mac techs can keep a huge network of Macs running smoothly. Just walk in to any smart school district, or major publication, and even the FBI.
And all of you millions of PC IT people know it, and you're scared beyond belief. I'd be protecting my 6-figure salary, too. (Shhhh – CEOs may be reading!)
Mac = No Viruses, No Spyware, No Problems. Can you say that about your P.C.?
Apple is not a hardware company, or a software company. It's both. Can you say that about your PC? 'Fraid not! Apple is the Ferrari of computers, and there is no comparison.
We love you, Steve. Get well! And when you join your maker, long from now, know that I, and thousands like me, will continue to "think different."
I am surprised if they don't have any counter plan and stocks fears are already there. GOD bless you Steve.
to josh from jacksonville, an essential nutrient that only be found in abundance in meat is Vitamin B. which doctors believe helps reduce cancer risk. lack of vitamin B causes these symptoms….anemia, tiredness, loss of appetite, abdominal pain, depression, numbness and tingling in the arms and legs, muscle cramps, respiratory infections, hair loss, eczema , weight loss. so the fact that you think mark from cupertino is wrong is proof you are not a nutrionist either. No matter what you eat there are good things and bad things about it. Our bodies are designed by nature to be Omnivores take meat away and something is bound to go wrong. its just like feeding meet to a herbivore or grains to a carnivore. lets keep this post positive instead of trying to prove someone is wrong. I hope steve has a quick recovery and my prayers are with him and his family.
Guys… Apple will survive.. even though i am a microsoft fanatic and love the imagination behind their software, I find that a company behaves like their CEO. We have seen this through the financial crisis that USA is experiencing. I believe the loss of Steve Jobs will be a huge crisis for the company. His vision and idea processing will make have a toll on the company once he is gone. It is not easy to pass the company to someone else.
Im glad Steve was able to back out of his position to take care of himself because he is again, just another paid employee, just with the greatest power that you can have.
Look what happened to Apple when Steve Jobs was fired, the company almost went down under, so Microsoft had to buy them out and rehire Jobs to sell off their shares. Even Bill Gates knows that he is important to the Tech world because he is a genius.
The only thing left that I will say is that they get publicists, especially with the traders freaking out lately, they need a little control in that department so you dont go into a drepression.
—– Long live Microsoft
I hope that Steve Jobs recovers his health very soon. For anyone interested, Jobs had a rare form of pancreatic cancer…an islet or endocrine tumor. This does not have the same dismal life expectancy of the more common forms of pancreatic cancer. Less than 1% of pancreatic cancer patients have his type of tumor. So….don't just assume what you hear about pancreatic cancer applies to him. His Whipple procedure may be contributing to this weight loss…no one knows for sure. We should all wish him a complete recovery.
The writing's been on the wall for a while. It looks like Jobs is losing his fight with cancer. He should be focusing on his family 100% instead of Apple.
I woud agree with Drew.
I face the fear of change and innovation every business day as I call into Fortune 1000 companies with a unique idea that is simple, cost effective, and easy to implement that can speed up collections and reduce costs in AR departments. It requires no CAP EX and can be piloted at no risk. And yet the fear and skepticism I face daily is absolutly absurd.
My concern is that this refusal to consider innovation and new ideas, and this extreme risk aversion is a symptom of more deep-seated problems in our nation that ultimately could bring us down.
If you consider all of Jobs' foibles and mis-steps during his two tenures at Apple over the past 30 years, the bottom line is he is creative, innovative, and doesn't allow pre-conceived notions to get in his way of viewing the future.
Our nation didn't get where it is by looking toward the past, and it won't make progress and maintain its leadership in the world by stifling creative ideas in business, technology, and biology.
Sometimes I think some very wealthy people have focused on preserving their wealth at all costs, including refusing to allow those who work for them to innovate, just as our conservative politicians resist any sort of change in the way we govern our nation, how we fund health care, how we procure at the Pentagon, how the armed forces are organized, how we market goods and services, etc.
Apple cannot/will not be the same without Steve Jobs, he has had his hands in everything that has made them successful over the last 10 years. You can't replace that kind of vision. In fact, I would even argue, he is the best CEO of all time, or at least have his name mentioned in that same breath breath.
Josh in Jacksonville write "@Mark from Cupertino: the fact that you think that a vegan diet is linked to a hormonal imbalance, or is an unhealthy lifestyle, is proof that you are not a nutritionist. I would postulate that you don’t understand anything about a vegan diet. Answer this (not here, but to yourself): what essential nutrient is gained from products produced from animal-dependent compounds that cannot be gained in another manner?"
Simple, vitamin B12 or cobalamin. Josh do a Google search and figure out how important B12 is in your diet. There are tons of scientific studies on the topic.
George McKittrick – what does his sexual preference have to do with ANYTHING? Does it make him more qualified or less qualified than Jobs? No – it has nothing to do with the type of businessman he is. Glad to hear that he is fearless and that you have faith he will lead Apple properly as it deserves in the wake of Jobs' departure. But to bring his sexuality into the discussion is inappropriate…this is business, nothing to do with his personal life. I want people to see me as a successful business person, not a successful lesbian. Leave it that way for everyone.
As for Steve Job's right to privacy, that is all fine by me. I own shares in Apple and I could care less what the reasons are that he can't be around. What I do care about as a share holder is what the plan is while he is not around. Since when did the personal lives of people become so important? He could wear a pink dress on the weekends and go in drag to the local bar. I don't care. Does the stock price go up and does the company have a plan to deal with his potential permanent absence – that is all I care about. Not the why, but the what.
"Dead in 3 months?" Go buy a HEART, man. Good luck to Steve in his battle – life, ANY life, is much more important than stock prices or corporate direction.
Wow, Paul, you must not have any idea what it means to slander or insult someone as nothing in the posting is either slanderous or insulting. They are merely statements of fact other than the obtuse tangent about veganism/vegetarianism.
Case in point, Steve Jobs did NOT invent the iPod, as stated, some group of engineers was told to come up with something and they did…viola! No company exists in a vacuum, and Steve Jobs health is an important factor in Apples health as well.
No one is hounding Steve Jobs, like some of you believe, he came out and announced it on his own, without any hassle…he just wanted to be up front and clear about Apples disposition.
Some of you are frightening in your zealotry about Apple…it is ONLY a company. I know, BLASPHEMY…burn him at the stake, but really, c'mon people…your Apple is just a computer, the iPod is just a music player…get over it.
I love it when the vegetarians start talking. Don't you know that plants have feelings too? You guys are so ignorant. I bet you believe in the Easter Bunny as well.
I would tell you to go hug a tree, but that would be sexual harassment because the tree didn't tell you that you could.
The guy needs a good hamburger.
This is what happens when you don't eat animals.
When he's on his deathbed he will regret not ordering a big mac.
Sorry to hear about Steve, but I know from experience that Tim is a fearless, take no prisoners, accept no failure leader who will lead Apple in the days ahead. I am proud to have another gay businessman lead this company without turning the Apple lavender.
As far as blaming his "hormone imbalance" on his vegan diet, that just doesn't hold water. Remember, he had pancreatic cancer, of which the 5 year survival rate is a dismal 5%, lowest of any cancers out there. One of the ways pancreatic cancer presents itself is dramatic weight loss due to hormonal imbalances triggered by the cancer. Also, studies have linked diets low in grains and vegetables and high in red meat to an increased incidence of pancreatic cancer, so smart money says it's not the diet.
Regardless of how you examine it, Steve Jobs is always the smartest guy in the room – any room – but especially when you consider technology issues.
I've admired the guy for the 24+ years I've been involved with consulting on Macs and Mac-PC network integration. If Bill Gates was half as creative as Steve, he'd be 10 times richer.
Apple is in a very precarious time in its life-cycle and I wish Tim Cook lots of luck. Tim's a good guy but he's no Steve Jobs.
I hope Steve all he best in his recovery. However, off topic I have to respond to this quip.
"As for the hormone imbalance, sure he has it, but that just show eating and living VEGAN is NOT healthy." Umm. No. Hormone imbalance? He had cancer on his pancreas. The gland that controls and produces the hormones. Being a Vegan does not correlate with his current condition of "hormone imbalance." As his cancer was on the Pancreas.
Apple will be fine. The stock market tends to drop stocks whenever large companies change leadership; traders do not like uncertainty.
Jobs is like Gates: a salesman. The fact they he isn't personally inventing the devices that his company sells means nothing. Jobs has the incredible ability to take technobabble and translate it into an understandable presentation, as well as to pitch innovations as "common sense". Don't believe me? Look at the iPod reveal videos.
@Mark from Cupertino: the fact that you think that a vegan diet is linked to a hormonal imbalance, or is an unhealthy lifestyle, is proof that you are not a nutritionist. I would postulate that you don't understand anything about a vegan diet. Answer this (not here, but to yourself): what essential nutrient is gained from products produced from animal-dependent compounds that cannot be gained in another manner?
Say what you will about Steve Jobs, but he represents what we need more of from corporate CEO's, vision. Most CEO's of today are all about risk management and maintaining status quo. Case in point: Retail company CEO's & Auto Manufacturer CEO's. Neither retail companies nor the Big three have truly had a revolution in the past decades which is why those companies are where they are today. Steve Jobs had the vision to develop and brand the idea of a device that not only functioned as a portable computer, but was also a phone..When this project started, Apple didn't know a thing about the phone business…And how about the idea of walking around with a device that could hold 1 million songs in hardware the size of a credit card???Seems pretty easy now, but who would have thought this at the time? And yes, the 100K engineer built these products not Steve Jobs, but it was Steve Jobs that had the vision and understanding of his consumers to build the products that now we can't live without…Did Robert Nardelli or Rick Waggoner do this with GM or Chrysler…Absolutely Not…Now as we witness CEO's on private jets looking for government bailout money or CEO's receiving record bonuses for managing companies operating in the red, we should take a look at the CEO's who represent what a CEO should be. And, as history will show, Steve Jobs is the CEO that all other should strive to be.
I beg your pardon, Mark, but I have been a vegetarian for more than 25 years and a vegan for the last eight, and I am a very healthy person, thank you very much. Just because someone is a vegetarian or vegan does not make them bullet proof to diseases; we are just a lot less likely to get them.
I do not criticize you for whatever your diet is, and I (along with other vegetarians and vegans) expect the same respect for our choices — not arrogant, ridiculous, disrespectful comments like yours.
The next time you think about making a blanket statement based on little but your prejudices (e.g., Steve Jobs' is sick; Steve Jobs is a vegan; ergo, veganism = unhealthy), perhaps you should do your homework and speak from a perspective of intelligence, not ignorance.
Editor: I know this is Fortune (business) magazine, but I'm sick of people like Mark making blanket remarks about vegetarianism and veganism, topics about which he obviously knows nothing. Thank you.
To Mark from Cupertino…. clearly you do not understand the importance of leadership and vision. Steve may not have invented the iPhone or iPod, but without him these products would have never been created.
Yes, Apple will continue to be successful after Steve is gone (at least for some years) because of the processes and the way of thinking that he has put in place.
So you can slander and insult him all you want, but it does not change the simple fact that you don't know what you are talking about.
When the health of your CEO greatly impacts the shareholder value of your company, YES, health disclosures should be more forthcoming. You owe this to your investors which have, in no small part, made you the company you are.
Let's face it…Apple has a great image, no thanks to the guy that still wears the black turtle neck and jeans. He has been good a launching products, but when it all comes down to it he SUCKS at releasing news to wall street…Case in point why does the company sell a ton of product and yet still drop in value after they release earnings. Lets face it, Jobs got rid of the rainbow Apple logo, and turned the company around but as far as products go he did not invent the iPod, instead a $100,000.00 a year engineer did. He did not invent the iPhone, the same type of guy did. Tim Cook is a great leader and has been running the company for many years. As for the hormone imbalance, sure he has it, but that just show eating and living VEGAN is NOT healthy.
I wish Steve Jobs well, and give him tons of credit for turning a company that was heading for death around. Long live Tim Cook, and lets move on. I hope Steve does not come back in June otherwise the dumb analysts will take one of the strongest companies out there and turn it back down.
Question….Has anyone given Tim Cook a physical??????
I am not aware of any legal obligation for the head of any company to disclose his/her health status. Jobs it taking a leave. He chose to provide an explanation, but I don't believe he is legally obligated to do this.
I was shocked to see Jim Goldman write sentencet that Steve Jobs may not approve of if he were to read it. This article makes Goldman look like an high school girl that got stood up for the prom.
Unreal – some tool on this blog actually found a way to blame George Bush. GWB is the root cause of all evil – even post-nasal drip. What a moron.
Steve Jobs is a genius, but should have been more forthcoming about his health. That said, Tim Cook will run the company effectivly – Apple will continue to prosper. SouthWest survived when Kelleher left, Microsoft when Gates, Home Depot after Bernie Marcus and so will Apple. The only way Apple does not make it is if they hire someone from the outside like Nardelli, or another John Sculley. Tim Cook understands what Apple is, why it is unique.
There was never going to be a good way to replace Steve.
Oh, and Phil… I'd love to hear your thoughts on the new Palm Pre.
It looks pretty sexy (minus the Sprint exclusive). I'd even go so far as to say it's the ONLY legit competition the iPhone has encountered since its debut.
@Randolph Belli
How do you know what is in Apple's pipeline?
Unless you are a fly on the well, don't assume what you don't know.
Yes you are correct Apple is public and does have an obligation to the stock holders. I guess as a stock holder if your belief is that one man can make/break a company….maybe you should not be playing in the market…I will buy your stock and we will see if Steve returns…even if he does not I will still hold Apple stock…your too…..
This represents nothing more than a good time to buy. Prices will rebound whether or not Steve Jobs returns.
True, Jobs made Apple what it is today… but Apple is more than just Steve Jobs. It's not like the guy still makes every product by hand in his garage.
From what I've seen, Tim Cook is more than capable.
Look, people's rights do NOT include anything that threatens a person's HEALTH!!!
SO GET OFF STEVE JOBS'S BACK, YOU PACK OF VULTURES!
Steve, all the best in your attempt to regain your health. Don't worry about Apple, she'll be just fine!
I agree! Let Steve Jobs take care of his health without worry of stockholder panic. It seems as though the company is in good hands with Tim Cook. Let's support Apple and not panic sell – they are solid and worth holding on to!
Agreed, Apple will survive without him because they make great products. His Privacy needs to be respected as he deals with this issue with his family. Are investors going to dump Apple stock if he does not return….NOT…they are stupid if they do……Apple has made great headway into a market where just 2 years ago they were the new kid on the block…and now predictions for the iphone sales through 2013 77 million phones sold….Let Steve be…..
Get well wishes to Steve Jobs. He is a force of nature and has made a lot of lives a whole lot better.
It's a public company dude. It's the CEO obligation to run the company, if he can't run that company for whatever reasons he and/or the board has an obligation to tell the other owners of the business that he is unable to run the company.
If Steve doesn't want his health issues to be know he should retire or take Apple private.
I believe Apple – and any company for that matter – has a legal responsibility to its shareholders to release information about CEO's health conditions that could adversely affect the company's stock value. If Apple violated this they would be in a heap of legal trouble, as well as the ensuing catastrophic dive in stock value. I don't think Jobs is that stupid, nor is anyone else at Apple. Jim Goldman seemed disappointed this morning but the NY Times reported Jobs is – relatively – OK. For the moment. The best line I heard about Jobs' weight problem is that he should go on the Oprah diet. He'll gain ten pounds a day ;^)
As someone who has an inefficient metabolism – I can lose a pound by eating a light lunch (I know, no sympathy) I think there's something to Jobs' veracity relative to his condition. Jobs does need to chill out for awhile and put on a few pounds and work on getting healthier.
In answer to L. Drake's comment. Steve Jobs is the head of a publicly traded company and owes an explanation to his shareholders as to his ability to run the company. By taking the position, the money,and the stock options he has given up the right to his privacy. He owes it to his shareholders to be up front and honest as to his health.
The difference between this time and the last time Jobs gave control to Cook is the economy and it was for a month. It looks as if Jobs health is far more serious than a month long recouperation. With little in the pipeline to stimulate sales, and a weak economy for expensive toys, it doesn't look as if Apple will be spared the problems all the other tech stocks are experiencing.
Whatever happened to the right to privacy, especially regarding your health? I thought we had laws about this. I'm sure Steve Jobs, being of sound and body, has intelligently taken into consideration his absence from APPLE and provided the company with compitent people in his absence. Leave the poor guy alone so he can focus on the important things in his life now.
Re: In this economic climate especially, it would be wise to reconsider their elitism when it comes to product pricing.
If you've ever worked on a Mac, or with people who earn their living on them, you would know that their cult-like obsession to the platform is based on the solid performance of it's hardware and software. Mac hardware and software are just better products that demand a premium. Their user base accepts this, even if the outside investor doesn't.
You get what you pay for. You don't see Mercedes lowering their MSRP to compete with Kia, do you?