In news out of the United States today Apple’s Board of Directors have announced long time Chief Executive Officer Steve Jobs has resigned. To take his place as Apple’s CEO is current Chief Operating Officer Tim Cook.
For all those Apple lovers though fear not because Steve Jobs has not totally relinquished his management of the company, as he has been elected Chairman of Apple’s Board. Whilst this means Jobs will not control the day-to-day running of the company, he should still retain some directional control through as Chairman of the Board.
In a press release issued by Apple Inc., Art Levinson, Chairman of Genentech, on behalf of Apple’s Board said,
“Steve’s extraordinary vision and leadership saved Apple and guided it to its position as the world’s most innovative and valuable technology company.”
“Steve has made countless contributions to Apple’s success, and he has attracted and inspired Apple’s immensely creative employees and world class executive team. In his new role as Chairman of the Board, Steve will continue to serve Apple with his unique insights, creativity and inspiration.”
Steve Jobs’ recommendation to appoint Tim Cook as the new CEO did not help Apple’s share price which dropped following the news of his resignation. Apple Inc. shares fell to $US356.10 after closing normal trade at $US376.18, according to News.com.au. During Steve Jobs’ tenure Apple’s shares, according to Bloomberg have risen 9,020 percent since July 29, 1997, the day before the San Francisco Chronicle broke news that Jobs would be interim CEO. Over that period, the market value rose to $348.7 billion from $2.06 billion.
Crikey have published Steve Jobs’ resignation letter in full. In his letter, Mr Jobs said,
“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.”
To read the full letter, click here.
New CEO Cook has vast experience with Apple and as its COO had responsibility for all of the company’s worldwide sales and operations, including end-to-end management of Apple’s supply chain, sales activities, and service and support in all markets and countries.
Apple is primarily known as the home of Mac, iPods, iPads, iPhones, but it is also one of the world’s most influential media companies, especially through the iTunes store, which is the world’s #1 music store. For example in December 2010, sales of the Apple TV topped 1 million, whilst in February last year Apple sold its 10 billionth song on iTunes. The iTunes Store has a growing catalog of over 12 million songs, over 55,000 TV episodes and over 8,500 movies (February 2010 figures). Meanwhile iTunes users are renting and purchasing over 400,000 TV episodes and over 150,000 movies per day through Apple TV.
It is unclear if there will be any major long-term affect on Apple’s dominance and continued growth following today’s announcement. Based on Apple’s third quarter results where revenue grew to US$28.57 billion and quarterly net profit was a record US$7.31 billion it seems that the hunger for the company’s products will continue to grow. With this growth means that Apple’s importance as a media player will grow as its digital media stores and media delivery products have further penetration in consumer markets worldwide.