Apple boss takes six months of sick leave

THE chief executive of global technology giant Apple has been granted six months' medical leave of absence to concentrate on his health problems, his employees were told yesterday.

• Steve Jobs is taking a second leave of absence from the company he co-founded back in 1976. Picture: Getty Images

It is the second time in two years that Steve Jobs, 55, who co-founded the company in 1976, has had to take time off for health-related matters.

Mr Jobs' request for medical leave is believed to be connected to the cancer of the pancreas for which he was treated in 2004, and the consequent liver transplant he had in April 2009.

Chief operating officer Tim Cook will be responsible for the California-based company's day-to-day operations in his absence.

The news of Mr Jobs' temporary departure sent Apple stock tumbling, with the firm's shares falling 6.21 per cent in Frankfurt yesterday. It was a holiday in the United States, meaning markets there were closed, thus saving the stock from a certain sharp dip.

When Mr Jobs made a similar health-related announcement in 2009, trading in Apple shares was briefly suspended, after they fell more than 10 per cent in the hours after his announcement.

In his e-mail to staff yesterday Mr Jobs said: "At my request, the board of directors has granted me a medical leave of absence so I can focus on my health. I will continue as CEO (chief executive officer] and be involved in major strategic decisions for the company.

"I have asked Tim Cook to be responsible for all of Apple's day-to-day operations."

The charismatic chief executive is unusual among global business leaders for being so closely associated with his firm's products.

Many analysts see Apple as Mr Jobs' creation, with his "DNA" running through new products' designs and he being the person who makes the final decisions.

He is regarded as an iconic presence at Apple and is widely credited as the architect of its current run of success based around products such as the iPad and iPhone.

The company is due to report quarterly results today and is expected to say that revenues rose 50 per cent as sales of its iPad tablet computer built on the momentum of the popular iPhone and earlier iPod.

Mr Jobs' absence comes as Apple is rumoured to be preparing to launch the second version of its iPad, the successor to the tablet computer it launched in 2010.

Mr Jobs returned to work at the end of June 2009 after taking a six-month break to recover from a liver transplant. After a long summer of speculation about what would roll off the Apple production line, the products took second billing to Mr Jobs' appearance.

"I'm vertical and I'm back," he joked at a press event in San Francisco.Apple has been closely identified with Mr Jobs, who revived the computer maker's fortunes in 1996 after a 12-year absence from the company.

Analysts said the effect on Apple's operations of his absence should be limited in the short term, since its product line-up was strong, but it would be a worry if it became prolonged.

"It wasn't expected. This will come as a surprise to Apple investors and definitely take some shine off the Apple stock," said Alexander Peterc, an equity analyst at Exane.

"But even if Steve Jobs never returns to Apple, I would not expect a visible, tangible impact on how Apple is executing over the next couple of years."

Richard Windsor, a global technology specialist at Nomura, agreed that Mr Jobs' absence should not have a fundamental effect but added: "Perception of the company is another matter."

"Steve Jobs is seen by the market to be a major force in Apple's strategic direction. If his pancreatic cancer has returned, one could be quite worried."

Atlantic Equities analyst James Cordwell said he was advising clients to hold on to Apple shares until more information emerged.