Los Angeles — One of the most legendary Silicon Valley businessmen in American history, Steve Jobs on Wednesday resigned as CEO of Apple Inc. in a stunning move that ended his nearly 14 years reign at the helm of the technology empire he co-founded in a garage in 1976, saying he could no longer fulfill the duties and passed the reins to his right-hand man Tim Cook, Apple’s chief operating officer, Apple announced.
Jobs, who transformed three separate industries on their head in the 35 or so years of his iconic career has been involved in the technology industry has wrestled with cancer in recent years and took an indefinite leave of absence starting in January, saying he wanted to focus on his health, and thereafter revolutionized the technology arena with the iPhone and the iPad in the past four years, is deemed the heart and soul of a company that this month briefly became the most valuable in America.
In its statement, Apple did not quoted why Jobs was stepping down as CEO or make any reference of his health. Jobs has been elected chairman of Apple’s board, effective immediately, and Cook has been made a board member, the statement said.
“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,” Jobs, who takes on the new position of chairman, said in a short letter announcing his resignation.
“Steve’s remarkable vision and leadership saved Apple and guided it to its position as the world’s most innovative and valuable technology company,” Art Levinson, chairman of Genentech and an Apple board member, said in a statement.
“Steve has made immeasurable contributions to Apple’s success, and he has attracted and inspired Apple’s exceptionally creative employees and world class executive team,” the statement added.
He said that the board has full confidence in Cook, who has commanded the company during both of Jobs’ leaves of absence. In his new role as chairman of the board, Steve will continue to serve Apple with his unique insights, creativity and inspiration, Levinson said.
Jobs tendered his resignation earlier Wednesday and “strongly recommended that the board enforce its succession plan” and name Cook as CEO, the statement said.
Apple released Jobs’ resignation letter, which read as follows:
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.
—Steve
Jobs is “an icon and what he has done with Apple is something probably unprecedented in business,” said IDC analyst Al Hilwa. “It will be a case study in business school books for decades.”
Jobs’ first stint at Apple commenced with the company’s founding on April 1, 1976 as a medium for selling Jobs’ and Steve Wozniak’s Apple I personal computer kit. Co-founder Ronald Wayne left shortly thereafter, but Jobs and Wozniak went on to help usher in the personal computing revolution with innovative machines that were among the first to use graphical user interfaces, helping knock IBM from its perch as the dominant PC vendor.
In recent years, Jobs’ health has led to extended leave of absence from his regular duties as CEO. In 2004 he underwent surgery to treat a rare form of pancreatic cancer and returned to work soon after. But in early 2009 Jobs took six months off to treat what he called a “hormone imbalance” that made him appear gaunt. During that leave he underwent a liver transplant.
Interestingly, His second appearance at Apple was even more rewarding than his first. Jobs rescued Apple from irrelevance with a string of popular products using the letter “i” as calling card—the iMac, iPod, iPhone, and iPad—and even referred to himself in 2000 as Apple’s “iCEO.”
Regardless of his sufferings, the 56-year-old Jobs had briefly emerged from medical leave in March to unleash the latest iPad and later attended a dinner hosted by President Barack Obama for technology leaders in Silicon Valley. But his often-gaunt appearance had sparked questions about how bad his illness was and his ability to continue at Apple.
Here are some of Apple’s milestones:
1976 – High-school buddies Steven Wozniak and Steve Jobs start Apple Computer. Their first product, Apple I, built in circuit board form, debuts at “the Homebrew Computer Club” in Palo Alto, California.
1977 – Apple II is unveiled, the first personal computer in a plastic case with color graphics.
1983 – Apple starts selling the “Lisa,” a desktop computer for businesses with a graphical user interface, the system most users are familiar with today.
1984 – Apple debuts the Macintosh personal computer.
1985 – Jobs leaves Apple after a power struggle.
September 1997 – Jobs is named Apple’s interim CEO after the company records losses of more than $1.8 billion.
November 1997 – Jobs introduces a new line of Macintosh computers called G3, and a website that lets people order directly from Apple.
1998 – Apple unveils the iMac desktop computer.
2001 – Apple introduces the iPod.
2003 – The iTunes Store opens, allowing users to buy and download music, audiobooks, movies and TV shows online.
August 2004 – Jobs announces he underwent successful surgery to remove a cancerous tumor from his pancreas.
October 2005 – Tim Cook is named Apple’s chief operating officer, after serving as executive vice president of worldwide sales and operations since 2002.
January 2007 – Apple introduces the iPhone.
2008 – Apple opens its App Store as an update to iTunes.
January 2009 – Jobs takes leave for health reasons. COO Cook leads the company in the interim.
June 2009 – Jobs returns to the company after undergoing a liver transplant.
April 2010 – Apple begins selling the iPad, a 10-inch touchscreen tablet, and has an 84 percent share of the tablet market by year’s end.
January 17, 2011 – Jobs announces that he will take another medical leave.
March 2, 2011 – Apple launches the iPad 2.
August 9, 2011 – Apple briefly edges past Exxon Mobil Corp to become the most valuable U.S. Company.
(Compiled by Paritosh Bansal, Liana B. Baker, Ilaina Jonas and Franklin Paul; Editing by Gary Hill)
While it is unlikely that his departure as CEO will derail Apple’s aspiring product-launch roadmap in the near term, there are concerns about whether the company would stay a creative force to be reckoned with beyond the next year or so without its founder and visionary at the helm.
That is why Apple’s stock declined as much as 7 percent in after-hours trading when Jobs’ departure was announced.
Nevertheless, the litmus test of Jobs legacy may come in the years after he is gone. Has Jobs’ management DNA been instilled at Apple? Tim Cook has shown he is very capable and can run Apple well. Meanwhile, Apple’s management bench is deep. The challenge for Cook and the Apple management team will be to keep the company rolling and deliver new innovations going forward.
What is vague is whether the Jobs drive and design knowhow carries on within Apple. It is possible that Apple will slip without Jobs’ eye for design.