CNBC just announced that Apple Inc. (NASDAQ: AAPL) shares are halted after hours for news.The story is developing. Updates pending.
Update 4:40: According to CNBC, Apple CEO Steve Jobs is taking a medical leave of absence to focus on his health until June.
Steve Jobs, who successfully battled pancreatic cancer several years ago, was rumored the whole past year to be having serious health problems. He kept losing weight and looked gaunt.
Just last week, in a move that was very unlike him, Jobs revealed he suffers from a hormone imbalance that caused his weight loss. He said then he will continue as Apple's CEO during his recovery.
The questions investors will no doubt ask is how severe is this problem and how Jobs' absence will affect the daily operations at Apple. There has been talk of successors, but they have been more in the realm of remote possibility so far. This situation will now make the board, management and shareholders face reality of Apple without Jobs -- at least until June.
Jobs is synonymous with Apple's name. The legendary CEO has been hailed as one of the visionaries in the industry. When trading resumes, it's possible the shares, which closed down 2.7% today along with the overall market to $85.33, will take a hit.
Update 5:00 pm: The leave of absence will be until the end of June. Jobs said that his "health-related issues are more complex than [he] originally thought."
Apple Chief Operating Officer Tim Cook will take responsibility for day-to-day operations in Jobs' absence, and Jobs said he will remain involved with major strategic decisions.
Here is Jobs' email to Apple employees.
Update 5:10 pm: Trading resumed and shares are down over 8% to around $78.50 in quite busy activity.
And who is Tim Cook? Silicone Alley Insider points out a recent Fortune profile on the second in command at Apple. It seems the consensus is that while Cook could do a great job and "bring excellent operational skills to the position," to replace the visionary CEO that is Steve Jobs several people will be needed. Many will now be watching to see if Cook be up to the task.
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Reader Comments (Page 1 of 1)
1-14-2009 @ 10:50PM
Beltway Greg said...
Whew, I'm glad we finally got that out of the way. To begin, Steve you're still the man and if any of these nitwits could actually begin to read financial statements
they would tell the truth. Apple is firing on all cylinders, yes? Yes. Earnings not quite sure yet but far above projections but then everything is off of the table for the coming months. Apple's fault? No. Two runs to $200 in the space of a year.
Thanks. Your health is a private matter.
Everybody needs to shuffle over to YouTube and watch Steve's commencement address at Stanford.
Good luck and see you in June. Your choice. Good luck and god speed.
Beltway Greg