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Apple shares fall 2 percent
ASSOCIATED PRESS
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Apple stock numbers are displayed at NASDAQ in New York, Tuesday, Jan. 18, 2011. Stocks are opening mixed as Wall Street weighs another round of corporate earnings reports. Apple's stock is dragging the technology-heavy Nasdaq lower.
Associated Press
Shares of Apple Inc. fell modestly Tuesday after the company’s disclosure that Steve Jobs, the CEO who transformed the niche computer-maker into the most-envied consumer- electronics brand today, is taking another medical leave of absence.
Analysts believe the company Jobs shepherded from garage startup to a $65 billion technology trendsetter is in good hands with the current slate of talented executives — even as Apple, now the Silicon Valley player to beat, faces increasing competition from Google Inc. and others.
Investors appeared to agree. Although shares fell nearly 7 percent in Frankfurt on Monday, when markets in the U.S. were closed, Apple lost only $7.17, or 2 percent, to $341.31 in midday trading Tuesday. Earlier Tuesday, stock traded as low as $326.
In the last decade, Jobs, 55, has survived a rare but curable form of pancreatic cancer and undergone a liver transplant. The news that he again will step back from his day-to-day role raises serious questions about the CEO’s health.
Investors have pinned much of their faith in the company on Jobs himself, sending shares tumbling on every bit of news or rumor of his ailing health. That’s because Jobs is an industry oracle of sorts, inventing new products he knows consumers will want even before they realize it. He is also known as a demanding and hands-on leader who is involved in even the smallest details of product development.
In a note to employees, Jobs said he will continue as CEO and will be involved in major decisions.
Chief Operating Officer Tim Cook will be responsible for all day-to-day operations.
For now, very little is known about Jobs’ current condition.
Many analysts believe the company can function successfully even without Jobs in the corner office full time — and with Apple at the forefront of a new revolution in personal computing.