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What isn't Apple saying about CEO's health?

Posted Jan 14 2009, 04:52 PM by Kim Peterson
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Steve Jobs, the chief executive of Apple (AAPL), is taking a six-month medical leave to recuperate, the company said Wednesday.

And just when we thought the prolonged Jobs health drama was settled. Last week, Jobs said he was getting treatment for a hormone deficiency that was blocking key proteins from his body. But those health issues are more complex than thought, he said in an e-mail to employees Wednesday.

The news will undoubtedly rattle investors who have been on edge about Jobs's health for months. Stock index futures dropped after the announcement, and I expect a lot of turmoil in the market Thursday. After-hours trading of Apple shares was halted Wednesday.

The news also raises big questions about what Apple isn't sharing with investors and employees. The company has bungled the Jobs health issue from the get-go, and investors remain skittish because Apple's secrecy and misleading statements give no confidence in its management. 

One analyst, Brian Marshall of AmTech Research, thinks Jobs will step down as CEO this year but remain an adviser to the company. That could cut $10 to $15 from the stock price, he told the AP.

There are serious questions about Apple's future, not the least of which is the shape of the product pipeline. Apple's chief operating officer, Tim Cook, will take over for Jobs during the medical absence. But can Cook and other executives move the company forward, or is Apple headed to the sidelines for the next six months?

No CEO is more important to his company than Jobs. The company needs to do whatever it can this week to reassure investors and customers that it will remain an industry leader for the next six months, even without Jobs at the helm.

Here's what others are saying about the news:

Forbes: "But after months of shocking weight loss, and after weeks of a Kim-Jung Il style disappearance from public view, the notion that he is only now realizing the extent of his health issues defies all credulity. People might be disinclined to say so out loud, but on the subject of Jobs' health, no one believes these Victorian-like subterfuges."

Silicon Alley Insider: "Unless Jobs’ health suddenly deteriorated in the last week, Jobs misled investors when he addressed the issue. Perhaps he was himself misinformed. Nonetheless, issuing misleading statements to shareholders will certainly open Apple to potential liability."

Needham analyst Charles Wolf: "It is reasonable to expect, given the history of Steve’s illness, that the market is probably going to assume that he is not going to return to Apple."

Piper Jaffray analyst Gene Munster: "At the end of the day, investors need to come to grips with the reality of a post-Steve Jobs world. This is the most urgent wakeup call they have had.”

Related reading:

Apple CEO admits health problem

Apple losing its shine? Oh, please

Is it fair to analyze Steve Jobs's appearance?

Apple can't escape health drama

Steve Jobs's demise greatly exaggerated

Apple CEO blames hedges for health drama

Comments

 

To Emily C - Amen Sister, I vote for you running Apple, and maybe in 2012 too!  Seriously!

When it comes to people's health, including the CEO of a major corporation, everyone, including stockholders like me, should mind their own business. Steve Jobs is a greate CEO and take Apple a long way, however, Apple will not fail just because a visionary such as Jobs won't be at the helm of the company much longer. It doesn't matter whether his health issues are "manageable" or not, Jobs has NOT done the company or it's shareholders a disservice by keeping his health issues private. He acknowledge his health isseus, the severity is nobody's business.

adam why would you say something like steve jobs deserves his fate. the man is sick and you say something like that , it is almost like you are saying that you hope that he dies.what if your mother or father was that sick and someone said that about them or someone that you love.should he be in jail no i do not think so, be cool my friend and watch what you say because that could be you or worse it could be someone very close to you.

hey it's not like we are loosing Bill Gates

In the end, in this life, we all go out with what we came in: nothing. I hate to be so cliche, but it's true, life is the journey, not the destination. If we can live each moment fully, then will have a life filled with living. If we spend all our time worrying about what's ahead or behind us, we are not living. It's hard to drive while looking in the rear view mirror or not paying attention. To Mr. Jobs: I salute you as one of the greats, and I thank-you for your gifts to humanity. My prayers and thoughts are with you for your recovery.

Steve Jobs deserves privacy to his personal health care issues. There is a law that protects patients from disclosing personal health care known as Health Information Privacy Protection Act (HIPPA). We should pray for his speedy and full recovery and you all need to do a little soul searching and get your priorities straight. Does anyone have any empathy or sympathy?

It wouldn't bother me so much except that he and the company lied.  That cost me around $175,000.   I am willing to take my lumps on no information, or just as a matter of making wrong moves.  But when a company directly lies to the public by saying that he's fine, just an easily treatable hormone imbalance, then I feel suckered and abused.  

My fault for loading up calls and believing in this company. Their fault for lying to me.   But I'm the only one taking the hit.  Not the lying company.

To pretty irritated.

Got your health? Then stop whining. Do you think $175,000 loss is the worst that can happen to you? Put your big boy pants on tomorrow and count yourself lucky you aren't seriously ill.

MP

It isn't taking a loss.  It is being lied to.  I don't take stockholder fraud well, and

I am willing to bet I'm not the only one.  

I take wins and losses in stride based upon available information, or lack thereof.  But if Jobs and the Company elect to make public statements to shareholders then they have a duty not to lie.

They lied.   Pure and simple.

I agree with the thought that companies are not just run by CEOs - man is sick - I guess "the company" tried to see if he could hang in there but guess it's out of his hand so he broke the news - yes the "name" does have a cradibility attached to it and like any other company who is doing well, bit of bump will come if main man goes out of the picture,but if the company, like apple, is doing well I think they will pick back up in no time- Jobs has put in his life to raise an empire and I don't think he will ruin it all now, but there is a time when someone else has to take lead - we have to stay positive - these are tough times for us all - for the whole world - let's pray for his health and good future for us and our children - Amen

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