Apple CEO Steve Jobs Takes Another Medical Leave of Absence

Steve JobsApple Inc. CEO Steve Jobs, the charismatic frontman for the company that overturned the smart phone industry and invented a new category of tablet computers, is taking a second medical leave of absence in two years.

In the last decade, Jobs, 55, has survived a rare but curable form of pancreatic cancer and undergone a liver transplant. The news that he will again step down from his day-to-day role raises serious questions about the CEO's health.

But analysts believe the company Jobs shepherded from garage startup to a $65 billion technology trendsetter is in good hands with the current slate of talented executives - even as Apple, now the Silicon Valley player to beat, faces increasing competition.

Jobs has played the role of industry oracle, seeming to know what consumers want even before they do. He is also known as a demanding and hands-on leader who is involved in even the smallest details of product development. Investors have pinned much of their faith in the company on Jobs himself, sending shares tumbling on every bit of news or rumor of his ailing health.

For now, very little is known about Jobs' current condition. Apple did not provide any information beyond a six-sentence note from Jobs to employees announcing his leave, leaving unanswered questions about whether the CEO is acutely ill, whether the leave is related to his 2009 liver transplant or whether he is at home or in a hospital.

Also See: Steve Jobs' Letter to Employees

Unlike Jobs' 2009 leave of absence, when he vowed to return to work in just under six months, Jobs did not say in the note made public Monday how long he would be on leave this time. He said he will continue as CEO and will be involved in major decisions. Chief Operating Officer Tim Cook will be responsible for all day-to-day operations.

"I love Apple so much and hope to be back as soon as I can," Jobs wrote. "In the meantime, my family and I would deeply appreciate respect for our privacy."

The company announced Jobs' leave a day before the company is set to report quarterly earnings. U.S. stock markets were closed for the Martin Luther King Jr. holiday.

In Europe, investors reacted sharply and Apple's shares closed in Frankfurt a staggering 6.6 percent lower at 243 euros ($323.02).

While some analysts expect Apple shares to sink Tuesday in the U.S., many believe the company can function successfully even without Jobs in the corner office full-time - even with Apple at the forefront of a new revolution in personal computing.

In 2010, investors seemingly grew accustomed to Jobs' extreme thinness, focusing instead on the early success of the iPad with consumers. Shares increased 53 percent last year to top $300. With Apple no doubt polishing the second version of the iPad and competition among tablet makers expected to heat up this year and next, some stockholders may fear that without Jobs, Apple could lose its lead to tablets running Google Inc.'s Android software or Microsoft Corp.'s Windows.

Analysts believe Apple has plans for several years' worth of products in the pipeline. And Cook, who is seen as a logical eventual successor to Jobs, is no stranger to investors. He ran the Cupertino, Calif.-based company for two months in 2004 while Jobs battled pancreatic cancer, and again in 2009 during Jobs' most recent medical leave. Apple chugged along smoothly then, releasing a new version of the iPhone and updated laptops on schedule.

Since Cook, 50, began with Apple in 1998, he has been credited with tuning Apple's manufacturing process to solve chronic product delays and supply problems.

"Steve is clearly still the visionary behind Apple," said Tim Bajarin of Creative Strategies, who has been covering Apple for decades.

But, Bajarin said, Cook "understands the way Steve thinks, how Steve manages. He understands Steve's vision and probably more important than anything else, he understands Apple. And I don't see any changes in direction or vision or execution even though Steve's not day-to-day."

Apple's products can command a premium in part because of the design and the materials, choices made by Jonathan Ive, Apple's top design executive, and his team. Ive has been with Apple since 1996 and has overseen the industrial design of the iPod, the aluminum-body Macbook laptops, the iPhone and the iPad.

"He's responsible for the look and feel of the stores, the products, the software. And no slight to Tim (Cook), but we think he's the most important person in the company," said Shaw Wu, an analyst for Kaufman Bros.

Without more information about Jobs' medical condition, it's impossible to say when the CEO might be able to return to work - if at all.

Apple has a history of extreme secrecy when it comes to the iconic CEO's health, disclosing major illnesses only after the fact.

The company waited until after Jobs underwent surgery in 2004 to treat a very rare form of pancreatic cancer - an islet cell neuroendocrine tumor - before alerting investors. That type of cancer can be cured if diagnosed early, unlike the deadlier and more common adenocarcinoma.

By 2008, Jobs had lost a noticeable amount of weight, but Apple attributed his gaunt appearance to a "common bug." In January 2009, Jobs issued a statement saying the weight loss was caused by a hormone imbalance, and that the treatment was simple. He backtracked less than two weeks later, however, announcing a six-month medical leave. During that time, he received a liver transplant that came to light two months after it was performed.

Methodist University Hospital Transplant Institute in Memphis, which performed Jobs' 2009 transplant, said Monday that he is not a patient. It declined to comment on his current condition.

Medical experts who do not treat Jobs can make some educated guesses.

Dr. Michael Poryako, medical director of liver transplantation at Vanderbilt University Medical Center in Nashville, listed a slew of conditions that might be affecting Jobs, including jaundice and kidney and vascular problems - not to mention side effects from the immunosuppressant drugs patients take following an organ transplant.

However, he said it's unlikely Jobs' body is rejecting his liver two years after the transplant.

"If the liver is functioning appropriately, people tend to return to normal muscle mass and normal physiologic functioning, which makes them feel better and look better," he said.

Dr. Roderich Schwarz, director of surgical oncology at the University of Texas Southwest Medical Center, said it is possible cancer has invaded Jobs' new liver.

Schwarz, who also has not treated Jobs, said it's possible the CEO is also having problems linked to his initial surgery targeting the pancreas, which controls key digestive enzymes.

Apple's board members approved Jobs' request for medical leave. Most did not immediately return messages seeking comment.

Arthur Levinson, chairman of Genentech, declined to comment. Millard Drexler, CEO of J. Crew Group, was unavailable for comment, according to a spokeswoman. Former U.S. Vice President Al Gore referred a reporter to Apple's press office.

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Can the man have no privacy about his health? This is a tired story.

January 19 2011 at 8:52 AM Report abuse +1 rate up rate down Reply

Steve found a way in this life to be a huge asset to humanity; it is something we all want to do, and he found a way. ...Steve, give yourself a chance to heal properly and love your family as long as you can. There is still so much to be done and I believe that you will continue to be on the forefront of that. Peace

January 19 2011 at 12:08 AM Report abuse +1 rate up rate down Reply

I wonder if they will ever unveil the cancer cure,you know they have it,all the genious's in this world and all the money raised for it and you think they havn't come up with something that prevents and erases cancer cells,oh yeah that would mean they would have to give up their cancer kingdom and all its riches,that ain't gonna happen...

January 18 2011 at 8:18 PM Report abuse -1 rate up rate down Reply

An open letter to Steve Jobs........ May God bless you and may you have a quick return to good health.

January 18 2011 at 6:47 PM Report abuse +2 rate up rate down Reply

Steve Jobs showed John Scully and the world that it is NOT about Corporate Leadership, Hype, nor "just competing". For Steve, it is about INTRODUCING THE FUTURE TO THE WORLD, in the form of beautiful, earth shattering products.

January 18 2011 at 5:12 PM Report abuse +1 rate up rate down Reply

Let's see, what do I feel like doing today? Do I want to speculate, judge, make unrelated political comments or parade my spiritual sensitivity? How about if I contribute some information about Steve Jobs that would enrich the story and broaden the perspective? Nah, who would want that?

January 18 2011 at 4:03 PM Report abuse rate up rate down Reply

Jobs obviously has serious health issues. His continuing health issue are all related. He is doing a remarkable job of fighting his cancer but appears the cancer is winning. He has a remarkable ability to understand what people want and how to provide it. Its doubtful that Cook can provide that type of insight. I am sure its true that APPLE has a number of projects in the works but without Jobs insight they become a traditional technology company. For that reason they stock will adjust backwards to a level that makes more logical sense. Without Jobs other technology companies will quickly catchup with AAPLE. A good example is Microsoft. Since Gates has left everyday operations the Microsoft has gone sideways. The biggest threat to APPLE is Samsung. they have greater sales than AAPLE, and are now the leader in LED TV and 3D TV. Samsung can use this leadership to develop products that enter act with consumers on the big / littel screen. Tie this technology into the mobile area and become the new AAPLE. AAPL is now a sell. The momentum is gone. One mans thoughts.

January 18 2011 at 9:30 AM Report abuse -2 rate up rate down Reply

maybe it's because of the way he has treated people in the past? I heard he's an *******. I don't care how rich he is...karma's a bitch.

January 18 2011 at 8:44 AM Report abuse -1 rate up rate down Reply
mike edwards

shove the money give me my health so many people envy this guy i take pity on his way of having canser and the poor health he has had no money can cure and his quality of life must really suck so again if you have your health count your blessings money means nothing when quality of health fails

January 18 2011 at 6:24 AM Report abuse +2 rate up rate down Reply

Liver disease, pancreatic disease ? 1 + 1 equals alcohol. The man is a genius. You would think he'd have the self control not to pickle his organs. Get well, Al-

January 18 2011 at 6:05 AM Report abuse -2 rate up rate down Reply