Analysts suggest Apple's withdrawal from the Macworld expo is tied to the CEO's health

Dec 18, 2008 16:19 GMT  ·  By
Apple has tried numerous times to convince the media that Steve Jobs is fine
   Apple has tried numerous times to convince the media that Steve Jobs is fine

This week, Apple officially announced its last stop at the Macworld expo, arising concern among company watchers. Furthermore, Apple revealed that its iconic CEO would not be delivering the much-anticipated keynote. Instead, the company's SVP of Worldwide Product Marketing, Phil Schiller, will be making the presentation. This, coupled with the previous news, has impacted Apple's stock and spawned new speculation on the CEO-succession-plan front.

Before we sink our teeth into the subject, we'd like to point out to our suggestion that Apple's Senior Vice President of Design, Jonathan Ive, looks very fit for the role of Apple CEO. We encourage you to express your opinion on the topic, using the comments column (even more if you disagree). Since Apple’s announcement about the company no longer attending the popular trade show known as Macworld (starting next year), analysts have become extremely vocal on Apple's current status. For once, the announcement caused Apple’s shares to drop almost 7% to $88.95 a share at midday on Wednesday trading, reports show. By announcing that Steve Jobs would not speak at the event, Apple again raised questions, this time concerning Mr. Jobs' health. As you will notice, every living soul holding a piece of the “Apple pie” is first of all concerned with Mr. Jobs' well-being. Product sales and market-share always seem to come in second place at times like these.

According to a World of Apple report, Yair Reiner of Opeenheimer & Co. was the most drastic of all the analysts, lowering Apple’s stock from “buy” to “neutral.” Not only that, but Reiner withdrew his 12-18 month price target, replacing it with “N/A.”

“Six months have passed since Jobs appeared at the Apple Developers Conferences looking drawn and unwell,” Reiner wrote. “It’s past time for Apple to either disclose the state of his health or elaborate a viable plan for eventually transferring power. Until such time, we can no longer continue to recommend Apple as a long-term investment.”

Reiner expressed his concern that Mr. Jobs might not be “feeling well,” but admits the possibility that Apple's CEO “Just has nothing to say” this time around. “Whatever the reason, the unexpected announcement has underscored the greatest risk to Apple’s long-term success — its dependence on Jobs’ health and its apparent lack of a succession plan,” the researcher concluded.

Piper Jaffray's Gene Munster chimed in releasing a note to his own clients based on Jobs' absence at next year's show. Munster wrote that, “Steve Jobs remains CEO of Apple, however, yielding this year’s Macworld keynote to Phil Schiller, along with the participation of Tim Cook and Phil Schiller at the October event is, in our view, a clear message that a leadership shift is underway.” The Piper Jaffray analyst holds his stance acknowledging that Steve Jobs is an “irreplaceable face of Apple.”

For those interested more in the Apple products and less in the company's future, there is also some concern regarding whether or not Apple is planning on introducing anything big at its last Macworld keynote. The same Gene Munster asserts that, with Phil Schiller on stage, Macworld 2009 attendees aren't likely to witness any bombshell dropping. Upgrades to the company's desktop solutions (the iMac and the Mac mini), is all to be expected from Apple, Munster says.