Apple's Jobs, beset by health issues, resigns - Business - US business - msnbc.com
Silicon Valley legend Steve Jobs, who has been on medical leave for an undisclosed condition since Jan. 17, resigned as chief executive of Apple Wednesday, saying he could "no longer meet" the duties and expectations of the job.
Interim CEO Tim Cook was immediately elevated to CEO, while Jobs, 56, will stay on as chairman of the board.
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"I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple's CEO, I would be the first to let you know," Jobs said in a letter to "the Apple community" that was released by the company. "Unfortunately, that day has come."
While the move was stunning, it was not entirely unexpected.
Jobs had been seen only rarely this year, including at a San Francisco event in March where he unveiled Apple's iPad 2, the hugely successful follow-on to its hugely successful tablet computer.
"His health clearly wasn’t improving and there was going to come a time when he was going to have to step aside,” said Rob Enderle, longtime technology analyst with Enderle Group.
Still, Enderle said it will be a blow for the company. The company's stock fell about 5 percent in after-hours trading after the news was announced, shortly after 3:40 p.m. PT (6:40 p.m. ET).
“Apple was designed around Steve Jobs, so there was really never going to be a great time for this,” Enderle said.
The move triggered an outpouring of comments across the Internet from the company's legendary base of intensely loyal customers, many of them expressing concerns for the executive's health.
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"I'm sad. He's the greatest entrepreneur ever," said Fred Wilson, a venture capitalist and principal of Union Square Ventures.
Jobs has suffered from health problems for at least seven years. In 2004 he took a leave of absence to get treatment for pancreatic cancer.
In January 2009 he took another leave, and it was later revealed that he received a liver transplant.
Cook, who has been at the company for 13 years, is widely respected as a strong No. 2 leader but hardly the visionary that Jobs is.
“He’s not that kind of a person and invariably that’s going to be a weakness,” Enderle said.
Jobs' story is virtually unparalleled in the annals of American business.
Pushed out of the company he co-founded in the mid-1980s, Jobs went on to found Pixar Animation Studios, the force behind some of Hollywood's most successful animated films. That company alone made Jobs a billionaire and was eventually acquired by the Walt Disney Co.
Jobs returned to Apple as CEO in the mid-1990s and presided over a string of hit products, refashioning the company as a maker of consumer products and integrated services including the iPhone and iPad as well as laptops and desktop computers.
The company's high-flying stock has more than tripled in value since 2009 and now Apple rivals Exxon Mobil as the most valuable American company with a market capitalization of nearly $350 billion. Jobs himself has a net worth of about $8.3 billion, ranking him No. 34 among the richest Americans, according to Forbes.
Jobs' resigning after storied career
Although Jobs has been silent about his the details of his condition, his sudden departure, combined with his medical history, suggests that his condition has worsened to the point where he is “not in functional capability,” suggested Dr. Timothy Donahue, a doctor with the UCLA Center for Pancreatic Disease.
“It could potentially mean pain, lethargy, tiredness,” Donahue said, all of which would preclude running a global enterprise and even raise worries about Jobs’ survival.
Despite treatment for a neuroendocrine pancreatic tumor, first diagnosed in 2004, and a liver transplant, the cancer likely has re-emerged, Donahue said. In other patients who have liver transplants after neuroendocrine pancreatic tumors, the median survival rate is typically about two years.
“He’s pretty much reached the median survival,” Donahue said.
Industry analysts expressed confidence in Cook's leadership.
"The real takeaway is not to underestimate the bench," said Kevin Dede, analyst at Brigantine Adviseors. ""He's got an amazing cast supporting the operation of the company."
Apple's Jobs steps down, says can no longer serve
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