End of an era as Steve Jobs steps down as Apple CEO

SAN FRANCISCO: Silicon Valley legend Steve Jobs relinquished the reins at Apple Inc to right-hand man Tim Cook on Wednesday, after 14 years in command at a company he brought back from the brink and turned into the world’s largest technology corporation.

Jobs, who fought and survived a rare form of pancreatic cancer and revolutionised the technology arena with the iPhone in 2007, is deemed the heart and soul of a company that started in a garage and is today neck-and-neck with Exxon Mobil in the race to become the largest US corporation.

Analysts do not expect Jobs’ resignation – which was more a question of when than if – to derail Apple’s fabled product-launch roadmap, including possibly a new iPhone in September a third iteration of the iPad tablet in 2012.

[caption id=“attachment_57700” align=“alignleft” width=“380” caption=“Steve Jobs started up Apple Computer in a garage and built it into the world’s most innovate technology company. Beck Diefenbach / Reuters”] [/caption]

But the company’s shares still dived as much as 7 percent in after-hours trade after the industry icon, who has been on medical leave for an undisclosed condition since 17 January, announced he will be replaced by COO and heir apparent Cook.

“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. Unfortunately, that day has come,” he said in a brief letter announcing his resignation.

The 55-year-old CEO had briefly emerged from his medical leave in March to unveil the latest version of the iPad and later to attend a dinner hosted by President Barack Obama for technology leaders in Silicon Valley.

Jobs’ often-gaunt appearance has sparked questions about his health and his ability to continue at Apple.

“I will say to investors: don’t panic and remain calm, it’s the right thing to do. Steve will be chairman and Cook is CEO,” said BGC Financial analyst Colin Gillis.

End of an era

Jobs’ resignation marks the end of an era at Apple.A college dropout, a Buddhist and a son of adoptive parents, he started Apple Computer with friend Steve Wozniak in the Jobs family garage in Silicon Valley in the late 1970s.

The company soon introduced the Apple 1 computer. But it was the Apple II that became a huge success and gave Apple its position as a critical player in the then-nascent PC industry, culminating in a 1980 IPO that made Jobs a multimillionaire.

Despite the subsequent success of the Mac, Jobs’ relationship with internal management soured, and in 1985 the board removed most of his powers and he left the company, selling all but one share of his Apple holdings.

Apple’s fortunes waned after that. However, its purchase of NeXT – the computer company Jobs founded after leaving Apple – in 1997 brought him back into the fold. Later that year, he became interim CEO and in 2000, the company dropped “interim” from his title.

Analysts again expressed confidence in the Apple bench, headed by longtime company No. 2 and supply-chain maven Cook.

“Investors are very comfortable with Tim Cook even though Jobs has been a driver of innovation and clearly an Apple success. Tim has shown Apple can still outperform extremely well when he’s been acting as CEO,” said Cross Research analyst Shannon Cross.

“I don’t know if it’s a health issue. I don’t know if it is a shock. Most likely it was going to happen at some point. Why today versus another day? I don’t know.”

‘That day has come’

Following is the text of Jobs’ resignation letter:

To the Apple Board of Directors and the Apple Community:

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. Unfortunately, that day has come.

I hereby resign as CEO of Apple. I would like to serve, if the Board sees fit, as Chairman of the Board, director and Apple employee.

As far as my successor goes, I strongly recommend that we execute our succession plan and name Tim Cook as CEO of Apple.

I believe Apple’s brightest and most innovative days are ahead of it. And I look forward to watching and contributing to its success in a new role.

I have made some of the best friends of my life at Apple, and I thank you all for the many years of being able to work alongside you.

Apple fans pay tribute to Jobs

Meanwhile Apple Inc fans paid tribute to Steve Jobs on Wednesday, but expressed mostly sadness at his resignation as CEO and aired their fears for the health of the technology giant’s guiding visionary.

Jobs, who has been on medical leave since January, will carry on as chairman of the company he co-founded in the late 1970s, but it is unclear how much he will contribute.

“Go out while you’re still on stop - well played, Steve Jobs. Well played,” tweeted a user called Lance Robotson, under the hashtag “#fanboy”, the half-mocking slang for Apple fanatics.

“Live long Mr. Jobs”, a user called ’tmizerek’ posted on AppleInsider, a news site for Apple followers.

“Please God don’t let him be that sick” added ‘guch20’

Apple’s go-it-alone philosophy and sleek gadgets have attracted legions of fanatically obsessed, mostly male, followers over the years. They worship the company as the antithesis of Microsoft Corp, which they view as hopelessly clunky and corporate.

“Not gonna lie - I teared up upon the #stevejobs news,” said Bob Skrezyna, who goes by ‘wordrebel’ on Twitter. He added the hashtags #fanboy, #notashamed and #applejustworks.

“Gonna sit in a darkened room and cry about the Steve Jobs news,” tweeted Will Orchard, under the handle WJFOrchard.

“I really hope this doesn’t come across as crass, but I don’t want to see a Steve Jobs obit for a long time,” commented ‘Santoanderson’ on AppleInsider.

SHOPPERS, EMPLOYEES CARRY ON

Apple shoppers and employees were less emotional.

At the company’s flagship San Francisco store, the only sign something was amiss was a couple of groups of employees, huddled together discussing the news. They heard by word of mouth, they said, with no formal announcement by late afternoon to retail workers.

Some customers had already heard.

Robert Cory, waiting for help with a broken laptop, learned of Jobs’ resignation from a news alert on his phone. “I feel bad,” said the New York resident. “But Apple will be okay.”

Other customers echoed that sentiment. San Francisco resident Erich Blazeski proclaimed that “Apple is not Steve Jobs”.

Honeymooning British tourist Stuart Marsten-Smith said that a vast team is involved in the design of Apple products. But Andre Reznik, visiting from Russia, said while things would likely continue in the same way for a year or two, he expected medium- and longer-term changes with the new chief executive, Tim Cook.

REUTERS