Apple's (AAPL) Steve Jobs Passes Away

After battling cancer and sickness for years, Apple (NASDAQ:AAPL) co-founder and former CEO Steve Jobs has died, according to the company.

In 2004 Jobs told employees he was being treated for pancreatic cancer, as weight loss and his looking sick generated questions as to his health, as well as the health of Apple at the time.

In 2009 it was discovered that Jobs had had a liver transplant while he had taken a six-month leave from the company, again generating concerns over the future of the company, which had relied on Jobs so much for its success.

The death of Jobs and the failure of its latest iPhone release are not a good sign for investors and the company going forward; as the combination of the two couldn't have come at a worse time, as the market is under immense pressure from the ongoing recession, which looks to be about to make a turn for the worst.

Jobs is survived by four children and his wife Laurene.

Apple (AAPL) Open to Returning to Company

The founder of Apple (NASDAQ:AAPL) said he's open to returning to the company again, taking an active role. Okay. Not that founder, but co-founder Steve Wozniak is the person we're talking about.

When you hear this type of talk though, it does make you wonder about the health of the other founder of Apple, and current CEO, Steve Jobs, as it is almost certain that Wozniak has some idea of what's happening with his friend and colleague.

Obviously if something happens to Jobs, there will be a huge vacuum left in the visionary department, which the company would have to fill. Wozniak is someone who, at least as a figurehead could fill that spot, although he's not a slouch by any means, and could add something to the company for sure.

But where he could clash with the existing Apple culture is in Jobs propensity to offer more closed products and services, whereas Wozniak is more a fan of open systems.

“My thinking is that Apple could be more open and not lose sales,” said Wozniak to Reuters, but “I’m sure they’re making the right decisions for the right reasons for Apple.”

Wozniak isn't quite the competitor Jobs is either, as he has a different view on life, shown by when he chose to teach rather than continue on as he had in the early years of Apple.

Apple closed Friday at $335.06, dropping $3.02, or 0.89 percent.

Apple's iPad (AAPL) Makes Nice Leap Forward

There was a somewhat tempered outlook on the release of the iPad 2 by Apple (NASDAQ:AAPL), and even though its release was highly anticipated, the unveiling was largely in line with expectations, and it did make a nice jump forward in quality, even it was was more incremental, with nothing exactly screaming at you.

While the announcement wasn’t a game-changer, I think we have become jaded to a degree when it comes to some of the incremental improvements to Apple products. In this case, the ability to increase speed dramatically and add two cameras and various other new bells and whistles to the operating system while decreasing the thickness of the device by one-third is pretty remarkable.

Much of the credit goes to its proprietary A5 chip produced by Apple’s “chip wizards,” as Jobs refers to his semiconductor engineers. These enhancements were achieved without decreasing battery life and increasing the price. As the WSJ and others have noted, Apple’s lower production cost, superior retail channel and aggressive pricing seems to be its biggest competitive advantage.

I held the iPad2 in one hand and my own personal 1.0 iPad in the other, and the difference in weight was certainly noticeable. Certainly, the version 1.0 black cases are also heavier than the new “smart covers” held by magnets.

Will it change your life? Hardly. But from an engineering standpoint, and you can ask any smartphone engineer about this, adding considerably more functionality while decreasing the overall real estate footprint is a very impressive accomplishment.

Apple closed Wednesday at $352.12, up $2.81, or 0.80 percent.





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Apple's (NASDAQ:AAPL) Jobs Back in Spotlight, Unveils iPad 2

The highly-anticipated unveiling of iPad 2 and appearance of Apple (NASDAQ:AAPL) CEO Steve Jobs has become a reality, as Jobs came on stage to a standing ovation after taking another medical leave from the company.

Reuters noted, "The familiar sight of the Silicon Valley legend in a black turtleneck and jeans cheered fans and investors who had fretted about the health of the charismatic company co-founder. Shares of Apple, which had been flat, climbed as much as 1.4 percent after he strode onstage.

"In the run-up to the event, there had been almost as much speculation about whether Jobs would appear as there was about the device itself. Jobs, who has been treated for a rare form of cancer, had been on indefinite medical leave for an undisclosed condition."

Some of the features of the iPad include speeds which are double the first iPad, is thinner than iPhone 4, and comes with a camera installed.

In what is unusual for an Apple product, the iPad is priced at levels that create a serious moat against competitors. It appears they don't mind competing with lower margins in order to gain market share, but also turn over more units, which will generate more earnings even in a low-margin environment.

Apple (NASDAQ:AAPL) Must Answer Succession Plan Concerns

Apple (NASDAQ:AAPL) is going through a similar situation as Berkshire Hathaway (NYSE:BRK-A) when concerns over the aging Warren Buffett were aired as to what type of succession plan the company had in place when Buffett stepped down.

Shareholders in Apple have been saying similar things over the years, understanding how vital CEO Steve Jobs was to the success of the business.

The point isn't necessarily to reveal what is happening to Jobs, but to let shareholders and potential investors in Apple know what the company will do if Jobs will no longer be able to function as CEO.

This doesn't even mean naming a specific successor if that happens, but to reveal what type of plan is in place if it does.

For example, Berkshire and Warren Buffett eventually revealed to shareholders they had three potential candidates to fill Buffett's shoes if something happened to him or he retired.

Then they laid out what the qualifications for the position were in making their decision.

One reason Apple may not be talking of a plan is the effect it could have on the share price, but that's going to happen one way or the other concerning Jobs.

To talk of a succession plan and give details concerning the parameters of a replacement, is just good business, and being a public company, the shareholder public not only deserves to know, but need to know in order to make informed decisions.

Even though Steve Jobs may be a private individual, the second he became the CEO of Apple he no longer had the privacy privileges he had before he took on the role.

Again, this isn't referring to specific details of his condition, but could talk about his general condition, and, as mentioned, what the criteria for replacing him would be.

Institutional Shareholder Services said, "Such a report would enable shareholders to judge the board on its readiness and willingness to meet the demands of succession planning based on the circumstances at that time."

In the past when Andy Grove revealed he was battling cancer, it didn't hurt Intel (NASDAQ:INTC), and neither did it hurt high-flying Southwest Airlines (NYSE:LUV) when CEO Herb Kelleher announced he had cancer as well.

The point isn't whether or not Jobs has cancer again, but that those CEOs above were considered vital to the success of their companies as well, and Kelleher especially, was extremely charismatic and considered indispensable to Southwest at the time.

Apple could easily put together a plan that respects Jobs' privacy, but at the same time reveal a plan, and possibly a general prognosis as to Jobs' health.

Minimally a succession plan must be revealed by Apple; something they should have done far before Jobs' health became an issue.

Wells Fargo (NYSE:WFC) on Apple's (Nasdaq:AAPL) Jobs Taking Leave of Absence

With Steve Jobs being such an integral part of the Apple (Nasdaq:AAPL) success - possibly too much of a part - everyone is talking on the effect of Jobs taking his third medical leave of absence over the last several years.

Wells Fargo (NYSE:WFC) noted they believe there will be a short-term hit on the company, but the overall condition of the company and its existing management should be enough to hold things together in the minds of shareholders.

Wells Fargo said, "While there will likely be some negative stock response resulting from this headline, we are more than comfortable with the rest of the management team. We believe that the company has its product plans set in place for the next few years, and do not expect to see any change in strategy...While it is clear that Jobs can't be replaced, we believe Apple's brand, strategy, and depth of talent is in place and the company should be able to continue to execute well. We believe that the current valuation already reflects some of the risk investors have associated with his health concerns." Maintains Outperform rating.

Apple was trading at $337.46, down $11.02, or 3.16 percent, as of 11:49 AM EST.