The health of Apple chief executive Steve Jobs was set to overshadow quarterly sales numbers on Tuesday from the consumer electronics powerhouse, whose iPhone and iPad excited holiday shoppers. The world’s most valuable technology company said on Monday Jobs was taking a medical leave of absence without specifying a return date or detailing his condition.
Apple shares rose more than 4 percent in European trading on Tuesday, regaining some of the 6 percent lost after the announcement on Monday, a U.S. market holiday. They have gained 62 percent in the past 12 months on Nasdaq. Aside from Jobs’s health, the company is entering 2011 on a roll, a cash-generating machine with surging sales across its product lines. Wall Street has forecast Apple’s quarterly revenue to rise more than 50 percent to $24.4 billion after a bumper holiday shopping season.
James Cordwell, an analyst at London-based Atlantic Equities, said investors were realizing Apple was more than Jobs. “His absence is unlikely to affect the company’s performance over the next two years or so give the strong position they have in the market.” Other analysts, however, said Jobs’s influence in the company he co-founded could not be overstated, particularly in guiding product development. “Steve Jobs is seen by the market to be a major force in Apple’s strategic direction,” said Richard Windsor, global technology specialist at Nomura. “If his pancreatic cancer has returned, one could be quite worried.”
Jobs’s leave came nearly two years after he took a six-month break to undergo a liver transplant. He also took time off after pancreatic surgery in 2004. Apple has not dwelt on Jobs’s health, and Jobs himself asked for respect for his privacy in a memo to employees made public on Monday. In Jobs’s absence, it will be up to chief operating officer Tim Cook to decide how much to tell investors about the absent chief executive, and what Apple plans to do with its $50 billion-plus pile of cash and investments.
Less of a showman than Jobs, the 50-year old Alabama native was not expected to make any grand pronouncements. Cook is regarded as a safe pair of hands for the company, having stood in for Jobs twice before. In Asia, tech shares gained, helped by hopes of a recovery in chip prices and expectations that nimble firms may slow the runaway success of Apple after the news on Jobs.
Rivals’ hopes could be misplaced, however. “Apple’s roadmap is all set and its iPhone 5 is ready to go, leaving little room for competitors to cut into its share,” said Bonnie Chang, an analyst at Yuanta Securities in Taipei.
