Mr Jobs said in a letter last week that he would remain at Apple's helm despite the hormone deficiency, and said he had already begun the 'relatively simple and straightforward' treatment for the problem. -- PHOTO: ASSOCIATED PRESS
SAN FRANCISCO - APPLE Inc Chief Executive Steve Jobs will take a medical leave of absence till end-June because of health problems 'more complex' than he thought, stunning investors and sending its shares down 10 per cent on the prospect of the company without its visionary leader.
Mr Jobs, a pancreatic cancer survivor, dropped his bombshell only nine days after he sought to soothe persistent concerns about his health by saying his dramatic weight loss over the past seven months was due to a hormone imbalance that was relatively simple to treat. He had promised to remain at the helm throughout his treatment.
Jobs used bravado, charisma as public face of Apple
LOS ANGELES - STEVE Jobs became a household name as the founder and chief executive of Apple Inc, marshaling his bravado and charisma to drive the innovation machine behind the iPod and iPhone.
Deemed irreplaceable by legions of Apple fans and investors alike, Jobs said on Wednesday he would take a medical leave of absence until the end of June because his health problems are 'more complex' than he had thought.
SAN FRANCISCO - STEVE Jobs proved his technological genius long ago. Now Mr Tim Cook will provide some insight into whether Jobs was smart enough to groom an executive who can keep the shine on Apple even when Jobs isn't around.
Those familiar with Cook and his contributions to Apple's success are confident he will prove the Cupertino, California-based gadget and computer maker isn't a one-man show.
LOS ANGELES - APPLE Inc probably will be sued by investors unhappy with the company's about-face on the health of its visionary chief executive, but the law is not clear on what duty the company has to disclose personal medical information, legal experts said on Wednesday.
Apple said CEO Steve Jobs, 53, will take a medical leave of absence until June. The announcement that comes just nine days after the pancreatic cancer survivor downplayed investor concerns about his dramatic weight loss in recent months, saying it was caused by an easily treatable hormone imbalance.
Wednesday's announcement comes at a difficult time for the company behind iPod media players and iPhones, now grappling with rapidly worsening consumer spending brought on by a global economic slowdown.
Mr Jobs, 53, vowed to remain involved in major strategic decisions while he is away. Chief Operating Officer Tim Cook will take responsibility for day-to-day operations in Jobs' absence, in what experts say could be a test-run for a permanent CEO stint.
It will be a familiar role for Cook, who stepped in to run the company's operations in 2004 when Jobs sought treatment for cancer.
'Unfortunately, the curiosity over my personal health continues to be a distraction not only for me and my family, but everyone else at Apple as well,' Mr Jobs said in a letter to employees that was released by the company.
Brian Marshall, an analyst with Broadpoint Amtech, said Jobs' announcement was merely a prelude to a formal transfer of power.
'The next six months are going to be basically a trial period for Tim Cook to be CEO. And if that period goes well, my expectation is that Steve will pass the baton over to Tim in June and basically Steve will be his senior adviser.' An Apple spokesman would not elaborate on Jobs' health on Wednesday.
Speculation about Mr Jobs' health resurfaced in June 2008, when he appeared markedly thinner at an Apple event. Mr Jobs is widely viewed as the driving force behind Apple's popular consumer-friendly products, which also include Macintosh computers.
Investors and analysts have criticised the company for failing to announce a succession plan, considering how vital Mr Jobs is to Apple's success.
'Apple is more dependent on its CEO than most other companies,' said Roger Kay of Endpoint Technologies. 'Steve is a critical judge of the company's business, and that maestro role that he performs is what makes Apple great. But there is no maestro-in-training to take over Steve's role.'
With details scarce in Wednesday's statement, fears about Mr Jobs' health will continue to haunt investors.
Adam Harter, an analyst at Financial Enhancement Group, said last week that his company had added to its position in Apple a couple of months ago, when the stock was trading in the mid-US$80s, thinking that the so-called 'Jobs premium' had already been discounted from the share price.
Now, Mr Jobs' apparently seesawing health complicates what is expected to be a difficult year for Apple and the consumer electronics industry, as a severe downturn saps consumers' spending appetite.
'Steve Jobs is known as the company but we have to see how well his 'support system' - the people he put in place - will hold up,' said Tom Sowanick, chief investment officer of Clearwater Financial.
Some fear that without a big product launch - such as last year's 3G iPhone - Apple will lack a share catalyst in 2009.
Customers at the Apple store in San Francisco said they knew about Jobs' health-related issues from the media, but said his absence from the company wouldn't immediately influence their buying decisions.
'A visionary man draws visionary people to him, so even if he isn't at the helm, the company is still in good hands,' said Sam Brown, a 22-year-old Pittsburgh resident.
Mr Jobs is also a board member and the largest individual shareholder of Walt Disney Co, a position he took when Disney bought his animation company, Pixar Animation Studio, now known as Disney-Pixar, in 2006.
Disney did not respond to queries about whether Jobs would continue to serve on the company's board.
Apple's stock fell as much as 10 per cent following Jobs' announcement, before paring losses to trade at $79.64 after hours. The stock had closed down 2.71 percent at $85.33 on Nasdaq. -- REUTERS
