It's been a week of commotion for Apple, and company's investors and potential investors find themselves at a bit of a crossroads.
First came the bad news: On Monday, CEO Steve Jobs announced he was taking a leave of absence to focus on his health. He's been battling pancreatic cancer and its aftershocks for years, and he's living on a transplanted liver, so the fact that he'd need to take a major time-out isn't all that unexpected.
As always, Apple's keeping details regarding exactly how well or unwell Jobs is very close to the vest. All we know is, he's stepping aside and letting COO Tim Cook handle day-to-day operations, but Jobs will still be making the company's Great Big Decisions, and he hopes to return to full-time work soon.
Even though Jobs' health issues have been common knowledge for years, the market's reaction was sharp and swift. The news came on Martin Luther King Jr. Day, and when trading resumed Tuesday, Apple shares had dropped more than 5 percent. That ended a steady climb investors had been enjoying since about mid-November as their stocks rose to an all-time high near $350 per share.
Just like the last time Jobs had to sideline himself for health reasons, Tim Cook will take over daily operations in his absence. Even though Apple's lack of a publicly known, set-in-stone succession plan gives some investors the creeps, Cook's generally viewed as a competent captain who can keep the company on track and follow through on whatever plans it has in store for the coming months.
The question that's sent some investors running, though, concerns what happens after the next few months if Jobs still isn't able to return. Planning out and executing the next umpteen generations of iPhones, iPads and Macs is one thing; dreaming up a totally new product that will turn a whole category on its ear all over again is another. Cook can take Apple to iPad 2 and iPhone 5 and beyond, but how well can he and the rest of Apple's top execs dream up and launch the next iThingy a few years down the road? Can they kick down doors and twist arms with content partners the way Jobs can? Inspire the same maniacal following and get crowds frothing at the mouth every time they unveil a new toy?
Of course, Jobs is still very much alive. For all we know, he could return to top form in a couple of months and keep running Apple for years. But the uncertainty surrounding the company's perceived visionary is compelling some investors to run far and fast.
