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January 14, 2009, 4:55 pm

Steve Jobs takes a medical leave; says health problems are “complex”

Steve Jobs in June

Steve Jobs in June

In his second public health update in as many weeks, Apple CEO Steve Jobs acknowledged Wednesday that his health problems are “more complex” than he thought and that he would be stepping down until the end of June to deal with them.

The news came in an e-mail sent to employees — and released by Apple after the close of trading.

In the interim, chief operating officer Tim Cook will run the company, as he did four years ago when Jobs underwent surgery to remove a malignant tumor from his pancreas.

After-hours trading in Apple (AAPL) shares was halted in advance of the news. The stock closed Wednesday at 85.33, down 2.71% for the day, dropped another 8% when trading resumed at 5 p.m., and then recovered slightly to end the day at just under $80 a share.

Wall Street was still recovering from the surprise announcement — made three weeks before the big Macworld trade show — that Jobs would not be giving his traditional keynote address. That announcement revived speculation that his cancer had returned. The day before the keynote, Jobs issued an open e-mail in which he described his condition as an easily treated nutritional deficiency caused by a “hormone imbalance”  — an explanation that many medical experts found unconvincing. See What’s going on with Steve Jobs’ hormones?

Wednesday’s e-mail, while consistent with the six-month recovery timetable that Jobs offered last week, suggests that his health problems are, indeed, more complex than a nutritional deficiency.

Below: Jobs’ latest e-mail.

Team,

I am sure all of you saw my letter last week sharing something very personal with the Apple community. Unfortunately, the curiosity over my personal health continues to be a distraction not only for me and my family, but everyone else at Apple as well. In addition, during the past week I have learned that my health-related issues are more complex than I originally thought.

In order to take myself out of the limelight and focus on my health, and to allow everyone at Apple to focus on delivering extraordinary products, I have decided to take a medical leave of absence until the end of June.

I have asked Tim Cook to be responsible for Apple’s day to day operations, and I know he and the rest of the executive management team will do a great job. As CEO, I plan to remain involved in major strategic decisions while I am out. Our board of directors fully supports this plan.

I look forward to seeing all of you this summer.

Steve

For further reading, see:

Harry and John

There are always two types of people… you know what I mean.

John,
Why do you suggest there is no succession plan – what don’t you understand in this “In the interim, chief operating officer Tim Cook will run the company, as he did four years ago when Jobs underwent surgery to remove a malignant tumor from his pancreas”. As for your comment that the stock is up and down etc – lets see if you can spot another company like Apple whose stock is down recently. You make it clear you are not on reality street or another shareholder that doesn’t like to accept the downside of your decisions.

Not unlike Harry who immediately thinks of going legal. Harry when did you buy and sell stock. Sounds to me like you could be shorting it for all its worth right now. Seems to me that folks that think as you do are the cause of more damage to a good company than adverse market or economic forces.

Posted By Jeremy Tomlinson, Vancouver BC : January 15, 2009 6:10 pm

Well, it’s going to lead to a shareholder lawsuit over two issues. (1) We’re Apple shareholders being kept in the dark regarding the condition of Steve for too long? (2) And did the letter he issued last week disclose the seriousness of the issue at hand? To address the first question, yes, shareholders were kept in the dark for too long on even the ware abouts of Mr. Jobs. Until he issued the letter, the news space was buzzing about his health and overall disappearance from public appearance (except for Yogurt) for 6 weeks. This on top of the fact that it has been since June 2008 that no one was able to receive any answers as to why he had lost so much weight. To answer the second question, no, the letter he issued did not express the seriousness of the issue, nor did it hint that he was on his way out. The letter promised that he would have no more to say about his health, implying that his condition was stable enough that it would not need to be addressed again. More on this here: http://tinyurl.com/a48kq4

Posted By Harry, Los Angeles, CA : January 14, 2009 11:37 pm

Steven Job really need the break. I felt bad of his health problem it seem a waste of life in a person were very focus to reach the cloud 09 and making all that money do not seem to help him at all. With all his money, Steven could hire a private person to manage his daily diet. What would and could do
a person who has a cancer a determined diseases that no one can possibly fix it. My advices, leave of absent or go to what people does go microbiotic health healing process. Eat healthy non-process food with all his money can not buy back your health but it will keep going down the tube. I follow his empire thru’ fortune report and it is sad that “health” will take control if the person is more into making money but disregard her or his life or health. Best of luck and find better remedy, a cancer is big time.

Posted By Lincoln, NE : January 14, 2009 11:11 pm

I made the mistake of buying Apple stock thinking it was different from the other tech companies. But boy was I wrong.

I find it hard to fathom how this so called genius of electronics could not have a seccession plan in place.

The stock has gone up and down with no real direction. I don’t care if Apple sells 10 billion phones, it doesn’t do any good if the comapny has no clear direction or future planned out.

And apparently Apple doesn’t

What gives Steve?

As soon as this stock bounces back up I am selling.

Posted By John – Fairfax, VA : January 14, 2009 11:11 pm

I am disgusted with the negative business talk by so called, ‘business analysts’. By this standard, I’M the expert:

“Apple’s business is suffering,” said Trip Chowdhry, an analyst at Global Equities Research in San Francisco. “They haven’t had any home runs recently, and they’re suffering from macro conditions too,” he said.

in the same CNN article, the VERY next sentence proves quite the opposite:

In October, Apple said sales of Macintosh computers in the fourth quarter rose 21%, while iPod sales were 8% higher than year-ago levels. In the third quarter, however, Mac sales were nearly twice as high and iPod sales were up 12% year over year.

http://money.cnn.com/2009/01/14/technology/apple_jobs/index.htm?postversion=2009011418

Someone explain to me how “Trip” knows ANYTHING with his, ‘Apple is suffering’ business when the very next sentence completely contradicts that, with 12% sales growth in the past year?? hmm? What other company has had an increase over the past year, much less 12%, that’s pretty darned awesome in my sales experience.

Can someone tell me where “Trip” went to business school?? In my experience, 12% growth in a stagnant economy is pretty phenomenal.

How about a bit of optimism for an American company that isn’t begging for a handout??

Steve Jobs is a visionary, but Apple is made up of visionaries…That is who they hire from the bottom to the top.

For once, could the so called ‘experts’ stop trying to show off their wannabe insider knowledge?– Everyone knows Steve Jobs is synonymous with Apple, that’s not ‘insider news’…Why not try and stick to the FACTS???

TWELVE PERCENT GROWTH!!!

…Steve had a little help with his brilliant concepts…and he hires peeps just like himself.

Posted By Doni, Austin, Texas : January 14, 2009 11:00 pm

A caution on anything Swiss, Sweet Jesus. They can be weird, ask cynik.

If you do go there, make sure you stay out of the clutches of Dignitas.

SJ is unique in today’s business environment in that he rose to the top empathising with the customer rather than obsessing over the self.

Posted By Dreamdeceiver, Silicone Valley, CA : January 14, 2009 9:10 pm

Best wishes for your health, Steve. Don’t worry about Apple, she’ll be fine.

Posted By Sacto Joe, Sacramento, CA : January 14, 2009 6:56 pm

Steve

To echo Michael Neal’s suggestion check out Dr. Thomas Rau of Paracellsus Clinic in Switzerland. In fact call him direct and discuss this. He is undoubtedly an authority on the issue.

Posted By Jeremty Tomlinson, Vancouver, BC : January 14, 2009 6:31 pm

Best of wishes Steve. We love all your products in our household!

Posted By Betty, Orange County : January 14, 2009 6:18 pm

Steven,
my wife and I have been dealing with NET’s for 4 years now and if you research, you will learn that your best and only true option is to go to Basel, Switzerland for Y-90 treatments. We just returned and I would be glad to provide you with details.
I absolutely assure you that this is the only non-surgical options for NET’s, period and is systemic. Functioning tumors can be eliminated in this way.
Michael
michael@isletcellcancer.com

Posted By Michael Neal, Washington, PA : January 14, 2009 6:16 pm

Wishing Mr. Jobs a speedy recovery…we have all benefited from his amazing innovations over the years and hopefully many more years of innovations to come.

Posted By Jeremy, Los Angeles, CA : January 14, 2009 5:41 pm

really amazing how much of apple from an outside view of the company still depending on steve. hopes he gets better soon.

Posted By twitter.com/r9rafael : January 14, 2009 5:21 pm

Look out below!

Posted By Chris, San Diego, CA : January 14, 2009 5:10 pm
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Philip Elmer-DeWittSilicon Valley veterans like to joke that Steve Jobs must be surrounded by a reality distortion field; if you get too close to him, you start to believe what he's saying. Thanks to the success of the iPod, the launch of the iPhone and the renewed interest in the Mac, Apple has made believers out of millions of customers - and made a lot of investors rich. But Philip Elmer-DeWitt believes that an ounce of skepticism never hurts when writing about the company. He should know. He's been covering Apple - and watching Steve Jobs operate - since 1982, first for Time Magazine, then for Business 2.0, and now for Fortune.
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