9:00 PM - Apple's Core Problem
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max,For almost a decade Apple could do no wrong. Under the
leadership of cofounder and CEO Steve Jobs, this Cupertino, Calif.
outfit clawed its way back from close to oblivion to its present
spot as the hottest consumer-electronics company in the world.
Along the way Apple has acquired a reputation for placing out PR
that is every bit as sleek and slick as its goods. Even an
options-backdating scandal from 2006 couldn't trip these guys up;
Jobs and his PR handlers deftly sidestepped the charges. (Apple
largely blamed the mess on the company's CFO and general counsel,
however the SEC found that Jobs had been aware of or suggested the
choice of some favorable grant dates.)But on Wednesday, that
altered. All of a sudden Apple's notoriously disciplined PR
operation appears like the gang that could not shoot straight.
Following six months of dodging questions about Jobs's well being,
Apple announced that he could be stepping down for six months due
to his ailing health. This comes only 9 days after Jobs published
an open letter declaring that his current severe weight loss was
brought on by a hormone imbalance and could be easily treated. This
isn't just bad PR. It may end up costing Apple money. Shareholder
lawsuits will most likely be rolling in.The whole factor began last
June when Jobs, who underwent surgery for pancreatic cancer 4 many
years ago, appeared onstage at a conference searching terribly
gaunt. Apple's PR wizards claimed Jobs had lost excess weight due
to a common bug. When that did not wash, Apple stonewalled, saying
that Jobs's health was a personal matter. Quickly following,
nevertheless, word leaked that he had undergone surgery a couple of
months before and suffered complications afterward. Later, Jobs
phoned a brand new York Occasions columnist and known as him a
slime bucket after which stated he would speak about his health,
but only if the conversation was off the record. The columnist
reported that he could not say what Jobs told him, but that from
what he'd heard, Jobs was fine.But in December, Apple announced
Jobs would not make his keynote speech at the annual Macworld
display in January, and fears about his health flared up once more.
Around the eve of the conference, Apple attempted to assuage those
fears by putting out the hormone imbalance story. And now this:
Jobs says he'll be out for six months, and Tim Cook, Apple's chief
operating officer, will run the ship while Jobs
recuperates.Hard-core Apple fanboysthe ones who've insisted for
months that there is nothing incorrect with Jobsno doubt will now
also swallow the story about Jobs returning to work in June. For
those of us not residing under the well-known Steve Jobs reality
distortion field, nevertheless, is there truly any cause to think
Jobs will ever return? To put this an additional way: can we truly
ever think anything Apple says about anything again?Mistrust could
easily result in lawsuits, particularly if the company's stock
continues to drop in response to Jobs's medical leave, especially
if it turns out that the business made false statements about
Jobs's well being.My guess is the fact that yesterday's
announcement was, in effect, Jobs's letter of resignation, and that
he'll never be back. It's a sad day for Apple. Nobody will ever
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