Apple Drops 10 Percent, Analysts Say ‘Buy’, Apple in Good Hands
By Chris Maxcer
The financial news has been all over Apple’s announcement that Steve Jobs would take a leave of absence until the end of June to address health issues. Apple stock dropped 7 percent in after hours trading, hovering just under $80.
Last Monday, in an open letter, Jobs acknowledged a “hormone imbalance” as a nutritional problem with a relatively straightforward treatment. Today, Jobs noted, “During the past week I have learned that my health-related issues are more complex than I originally thought.”
As CEO, he plans to remain involved in major strategic decisions while he is out, and the Apple board of directors supports the decision. Tim Cook, chief operating officer, will take the helm while Jobs recuperates.
Jobs, of course, survived pancreatic cancer in 2004, but has been dogged by questions of his health any time he coughs in public or looks thin. The public “curiosity” (more like intense scrutiny) Jobs noted, has been a distraction to him, his family, and Apple employees, which is one of the reasons he gave for taking the leave.
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CNBC pounds on the Apple issues in a good 17-minute video featuring Apple-watching Gene Munster, a senior research analyst for Piper Jaffray.
“There’s no way to replace Steve Jobs,” Munster said.
So what about Tim Cook? Who is this guy, anyway?
Tim Cook
“Tim Cook is a pretty unemotional person but in terms of his ability to run the company, is second tonone. He’s basically been Steve Jobs’ heavy right hand man, and there’s stories about him being incredibly intense, as intense as Steve Jobs,” Munster said.
“He is very capable of running the operations of the company — obviously, replacing the magic of Steve Jobs is impossible,” he added.
Jonathan Ive, senior vice president of industrial design, is the product genius handling the creative side of Apple products.
“Steve Jobs is basically a combination of Jon Ive and Tim Cook,” Munster said.
Jonathan Ive
Overall, with $28 billion in the bank, and strong growth — Apple has been growing faster than Dell, Microsoft, and HP — most everyone seems to think Apple stock is a great buy right now, if not grossly undervalued.
“There’s no doubt Apple is losing the greatest pitch man on Earth, but at the end of the day, people want great products,” Munster said.
Filed Under: Apple Action
About the Author: Chris Maxcer is editor and publisher of 