Less than 24 hours after the jarring revelation that Apple’s revered leader, Steve Jobs, would be stepping down from his post as CEO, his replacement has set the stage for the beloved company’s continued growth and success.
Tim Cook, who previously served as Apple’s COO and as interim CEO during Jobs’ previous medical leaves of absence, sent a note to all Apple employees today promising them the company they knew under Steve Jobs won’t change under his leadership.
The note, originally obtained by Ars Technica, reaffirms Jobs’ commitment in his resignation letter that Apple will continue to be a successful and innovative leader in the always-competitive tech sector:
I am looking forward to the amazing opportunity of serving as CEO of the most innovative company in the world. Joining Apple was the best decision I’ve ever made and it’s been the privilege of a lifetime to work for Apple and Steve for over 13 years. I share Steve’s optimism for Apple’s bright future.
Steve has been an incredible leader and mentor to me, as well as to the entire executive team and our amazing employees. We are really looking forward to Steve’s ongoing guidance and inspiration as our Chairman.
I want you to be confident that Apple is not going to change. I cherish and celebrate Apple’s unique principles and values. Steve built a company and culture that is unlike any other in the world and we are going to stay true to that—it is in our DNA. We are going to continue to make the best products in the world that delight our customers and make our employees incredibly proud of what they do.
I love Apple and I am looking forward to diving into my new role. All of the incredible support from the Board, the executive team and many of you has been inspiring. I am confident our best years lie ahead of us and that together we will continue to make Apple the magical place that it is.
Cook is no stranger to the tech community, often appearing alongside Steve Jobs at Apple events and giving important keynote speeches in Jobs’ absence. Cook has been a part of the Apple team since 1998, joining as Senior Vice President of Global Operations, and rising to his previously-held position of Chief Operating Officer in 2005.
Cook’s execution of supplier contract negotiations has made it virtually impossible for competing firms to deliver comparable products at a competitive price. Cook previously held executive positions at Compaq and IBM.
With Jobs remaining as Chairman, and a suite of Jobs-era products in the pipeline, Apple likely won’t even see a hiccup for the next few years. Jobs created a system of excellence and creativity and instilled these values in every Apple employee, and Tim Cook will continue to execute Apple’s mission of innovation and growth. Investors and insiders are confident in Cook’s ability to lead – Apple stock is down just 1 percent through midday trading Thursday.
Trading of Apple shares was halted late Wednesday pending the major breaking news that Steve Jobs, the company’s iconoclast leader has resigned from his long-held position as CEO. Below is the note Mr. Jobs sent to the Apple board and to the Apple community:
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.
After-hours trading of $AAPL resumed shortly thereafter, sending Apple shares down a relatively modest 5 percent. The move would likely have had much greater impact two years ago, as investors have recently priced Jobs’ impending departure into the stock. Business Insider’s Henry Blodget projected the announcement would have sent Apple shares tumbling 25 percent or more just two years ago.
Art Levinson, Chairman of Genentech, released a statement on behalf of Apple’s board: “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.”
Following the announcement of Steve Jobs’ resignation, Apple promptly named COO Tim Cook as the new CEO. Cook led Apple in 2004 and 2009 during Jobs’ medical leave. Cook is known for his calm demeanor, astonishing work ethic and tendency to challenge subordinates with impossible-to-answer questions.
“The Board has complete confidence that Tim is the right person to be our next CEO,” added Levinson. “Tim’s 13 years of service to Apple have been marked by outstanding performance, and he has demonstrated remarkable talent and sound judgment in everything he does.”
Our thoughts are with Steve Jobs and his family, and we wish him well during these challenging times. As a small token of appreciation, we direct you toward Business Insider’s “The Life and Awesomeness of Steve Jobs.”
Under the tutelage of Bill Gates, Microsoft exploded into one of the world’s largest and most valuable companies, generating billions of dollars in profits annually for shareholders. The dot-com boom made many employees and investors millionaires, and the company appeared unstoppable.
As the company matured, growth stabilized and new tech darlings like Google stole the spotlight. Delayed product launches of centerpiece operating systems, failed products and advertising campaigns, broken acquisition deals and an apparent lack of internal innovation gave Microsoft a reputation as a “has been” that had passed its prime, and current CEO Steve Ballmer lost the confidence of many investors.
However, new data is showing that Microsoft may be experiencing a reversal of fortunes, as the company’s investments in search are beginning to pay off. The brutally competitive search engine market has had one dominant player for the last decade – Google – which has held as much as 80 percent of the United States search market.
In October 2010, the U.S. search marketshare breakdown was as follows: Google (72.15%); Yahoo + Bing (23.64%). The most recent Hitwise data shows Bing has made substantial gains at the expense of Google and Yahoo. Bing-powered search now controls 30.01% of the U.S. search market, while Google’s share has fallen to 64.42%. (See below: Image courtesy of Mashable.)
These gains may be the result of a major multi-platform ad push by Microsoft for Bing, but the trend is a positive sign for investors and spectators that have remained loyal to the company.
Strong performance in search, high expectations for tablet and PC versions of the upcoming Windows 8 platform, new developer confidence in the Windows Phone platform following the recent Nokia partnership announcement, the smashing success of Kinect and Xbox 360 and widespread adoption of Microsoft’s iPhone and iPad apps are powerful indicators of a possible Microsoft mindshare and marketshare resurgence.
Less than a decade after Wall Street and Silicon Valley critics alike pronounced the death of Apple as a legitimate player in the lucrative personal computer market, the world has witnessed the resurgence of the Cupertino-based company as the dominant force in the rapidly-growing world of consumer electronics. Could we be seeing the beginning of an Apple-esque Microsoft turnaround? Critics will call it wishful thinking, but with Google in the process of a massive leadership change, Yahoo! undergoing a drawn-out transition phase and the tenure of Apple CEO Steve Jobs uncertain, the competitive landscape is changing and Microsoft has substantial opportunities in search, PCs and mobile.
[UPDATE 1/7/2011: It is official – we are proud to announce Let’s Chat Business has been named the Top Business & IT Blog of 2010 by SoftCity. Thank you for your support – we could not have done this without you!
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Earlier this year, after two short months on the market, Microsoft decided to retire its “Kin”, a social media-centered mobile phone. In spite of strong reviews, the phone sold poorly, and Microsoft faced a key decision for its future in a market they had experienced relatively little success. On Thursday, a key executive in Microsoft’s mobile business revealed that the company will no longer pursue development of a new smartphone device.
The statement from Tivanka Ellawala, Microsoft’s CFO of mobile communications, comes at a critical juncture for the company’s efforts to become a true player in the mobile industry. Microsoft has developed Windows Phone 7 software, which has been promised to be a drastic improvement upon earlier versions of Windows’ mobile OS. Microsoft has thus far refused to reveal the manufacturers of the phones that will utilize the Windows Phone 7 software, but the company included hardware specifications, which Ellawala allows for “more predictability in what it takes to make the hardware work with the software.”
One of the crucial elements that the success of Windows Phone 7 hinges on is the adoption by the developer community. In an effort to stimulate development of mobile applications for WP7, Microsoft released a software development kit intended to help developers maximize revenue earned from advertisements.
To many investors, the shuttering of the failed Kin line was indicative of Steve Ballmer’s willingness to move on from products and projects that are losing money. In the past, Ballmer has been criticized for holding on too long to projects that were outside of Microsoft’s areas of expertise and were bleeding money. As Ellawala noted, Microsoft is in the software business, and that is where they need to maintain their focus. When one explores Microsoft’s efforts in mobile, the slang term “diworseification” comes to mind.
In spite of record cash flows and revenues, Microsoft’s stock price has remained relatively flat over a five-year period, getting lapped by competitors like Apple and Google. With the booming success of Halo: Reach, growing anticipation for Windows Phone 7, and the enticing prospects of an enterprise PC refresh cycle, Microsoft is in a healthy position moving forward.