Analyst says Steve Jobs' spirit has been institutionalized
Investment bank Kaufman Bros. on Tuesday downplayed renewed concerns over the health of Apple chief executive Steve Jobs, arguing that although the co-founder has been critical to the company's resurgence, his spirit and drive have since been instilled in thousands of other Apple employees.
After recovering to $100 per share earlier this month, Apple's stock again came under downward pressure last week when the company announced that next month's Macworld Expo would be its last and that Jobs would not delivering his traditional keynote presentation.
Apple attributed the decision to end its near 25-year commitment to the annual Mac conference to a move away from trade shows in general, saying the increasing popularity of its retail stores and website enable the company to "directly reach more than a hundred million customers around the world in innovative new ways."
Some industry watchers poked fun at the decision, mocking the company in a parody press release titled "Apple Announces Last Year of Christmas," joking that while the Cupertino-based firm has been honored to work with the North Pole for the last several years, it has decided "that this is the last year for Christmas."
"Apple has been steadily scaling back on holidays in recent years, including Valentine's Day, Columbus Day, President's Day and Grandparents Day in Japan," the mock release said.
Others didn't take the announcement so lightly, like those within the Apple community who feel an exit from Macworld serves as a slap in the face to an industry that has supported the Mac maker for more than two decades, arguing that the decision could ultimately prove detrimental to the Apple ecosystem going forward.
The biggest concerns came from Apple investors, however, some of which couldn't help but wonder if the move had anything to do with the health of Jobs, which has been a topic of public scrutiny ever since the cancer surviver appeared overly gaunt at this year's Apple Worldwide Developers Conference. They also question why the company waited until just three weeks before the conference to make its plans known.
In a note to clients, Kaufman Bros. analyst Shaw Wu offered his own thoughts and perspective on the situation, arguing against the notion that Apple is one man show but rather a vast family of enthusiastic professionals who share Jobs' leadership skills and penchant for innovation.
"While CEO Steve Jobs deserves a lot of credit for the revival and success of Apple and, as one of the founding fathers of technology, helping revolutionize the world with the Apple I, Apple II, Lisa, Macintosh, NeXT, Pixar, Mac OS X, the Apple Store, iTunes, iPod, and iPhone, we believe Apple today has a deep bench and its culture of innovation and execution or 'spirit' has more or less been institutionalized," he wrote.
Wu said that, in his view, Apple has an uncanny ability to attract and hire "fanatics" who are "entrepreneurial, work hard, and are looking to change the world." He believes that unlike years past, the Apple of today is not only innovative but a company with world-class operations and execution, driven by many people other than Jobs, from its senior management team down to its 32,000 individual employees.
"We believe Apple has always been an innovative company and we would like to note that most overlook that the company actually had some hit products while Mr. Jobs was not there that defined the computer industry, including the Macintosh Quadra, QuickTime, PowerMac and PowerBook, and Apple IIgs," the analyst added.
Wu maintained his Buy rating and $120 price target on shares of Apple, saying the most recent pull back in shares makes the risk-to-reward more favorable for long term investors.
After recovering to $100 per share earlier this month, Apple's stock again came under downward pressure last week when the company announced that next month's Macworld Expo would be its last and that Jobs would not delivering his traditional keynote presentation.
Apple attributed the decision to end its near 25-year commitment to the annual Mac conference to a move away from trade shows in general, saying the increasing popularity of its retail stores and website enable the company to "directly reach more than a hundred million customers around the world in innovative new ways."
Some industry watchers poked fun at the decision, mocking the company in a parody press release titled "Apple Announces Last Year of Christmas," joking that while the Cupertino-based firm has been honored to work with the North Pole for the last several years, it has decided "that this is the last year for Christmas."
"Apple has been steadily scaling back on holidays in recent years, including Valentine's Day, Columbus Day, President's Day and Grandparents Day in Japan," the mock release said.
Others didn't take the announcement so lightly, like those within the Apple community who feel an exit from Macworld serves as a slap in the face to an industry that has supported the Mac maker for more than two decades, arguing that the decision could ultimately prove detrimental to the Apple ecosystem going forward.
The biggest concerns came from Apple investors, however, some of which couldn't help but wonder if the move had anything to do with the health of Jobs, which has been a topic of public scrutiny ever since the cancer surviver appeared overly gaunt at this year's Apple Worldwide Developers Conference. They also question why the company waited until just three weeks before the conference to make its plans known.
In a note to clients, Kaufman Bros. analyst Shaw Wu offered his own thoughts and perspective on the situation, arguing against the notion that Apple is one man show but rather a vast family of enthusiastic professionals who share Jobs' leadership skills and penchant for innovation.
"While CEO Steve Jobs deserves a lot of credit for the revival and success of Apple and, as one of the founding fathers of technology, helping revolutionize the world with the Apple I, Apple II, Lisa, Macintosh, NeXT, Pixar, Mac OS X, the Apple Store, iTunes, iPod, and iPhone, we believe Apple today has a deep bench and its culture of innovation and execution or 'spirit' has more or less been institutionalized," he wrote.
Wu said that, in his view, Apple has an uncanny ability to attract and hire "fanatics" who are "entrepreneurial, work hard, and are looking to change the world." He believes that unlike years past, the Apple of today is not only innovative but a company with world-class operations and execution, driven by many people other than Jobs, from its senior management team down to its 32,000 individual employees.
"We believe Apple has always been an innovative company and we would like to note that most overlook that the company actually had some hit products while Mr. Jobs was not there that defined the computer industry, including the Macintosh Quadra, QuickTime, PowerMac and PowerBook, and Apple IIgs," the analyst added.
Wu maintained his Buy rating and $120 price target on shares of Apple, saying the most recent pull back in shares makes the risk-to-reward more favorable for long term investors.
Comments
While CEO Steve Jobs deserves a lot of credit..... 'spirit' has more or less been institutionalized"
Warning.... clown alert.
I think some analysts need to be institutionalized...
I agree. The Press is all about the headlines and skinny or deceptive on the facts
Whether the analyst was making a forward looking statement or is privy to inside information on the Apple, Inc. CEO is not currently known.
Actually, and although poorly stated by Kaufman Bros., the gist is that Apple has a "succession plan.".... Apple "spirit" can carry it forward to even greater heights if it is genuine. If fact, this is Apple's most critical period and should not be downplayed by enthusiast or investor alike.
Well, plans are all well and good, but without good leadership, a plan quickly goes by the wayside. The spirit and the plan have to be executed by the chief executive, and if that is a dull man like the guy doing the Macworld keynote, Apple will lose its sparkle no matter how much talent they hire. Look at Microsoft. They have talent to spare, but no sparkle. If Apple doesn't come up with another Steve Jobs, I'll be selling my stock.
I wonder if some of these changes are just designed to remove some of the rabid instability from Apple's stock price. It must drive the shareholders mad to see the price drop on the crazy speculation from the press, analysts and bloggers. Less Steve in the news, less events to speculate about and more products released in their own time have got to help a little.
Good call. I think 2009 will be the year Apple attempts to be viewed as a fundamentally strong
company, rather than a personality cult. It would really help if someone other than Steve Jobs
would announce an unexpected great new product at MacWorld. Minds would be blown.
Well, plans are all well and good, but without good leadership, a plan quickly goes by the wayside. The spirit and the plan have to be executed by the chief executive, and if that is a dull man like the guy doing the Macworld keynote, Apple will lose its sparkle no matter how much talent they hire. Look at Microsoft. They have talent to spare, but no sparkle. If Apple doesn't come up with another Steve Jobs, I'll be selling my stock.
Hmmmmm. Investing based upon the sparkle of a company. I can't say I have heard of that
before, but I do know a woman who bets on horse races based upon the colors the jockeys
are wearing. Please post again when you do sell. I have been looking for a good buy signal.
Well, plans are all well and good, but without good leadership, a plan quickly goes by the wayside. The spirit and the plan have to be executed by the chief executive, and if that is a dull man like the guy doing the Macworld keynote, Apple will lose its sparkle no matter how much talent they hire. Look at Microsoft. They have talent to spare, but no sparkle. If Apple doesn't come up with another Steve Jobs, I'll be selling my stock.
Then you had better sell. Why would anyone want another Steve Jobs (I believe Jobs himself would be insulted if the Apple tried to replace him with another him)? Give the man his due, respect him for his accomplishments, and let history write the rest. Trying to emulate Steve Jobs, through his successor, is doomed to failure. One man alone cannot make a company. Apple has the right employees; without them Apple's, and Jobs' visions, would have never come to fruition.
BTW, MS has always been a third-rate company whose wealth is more a matter of legal enforcement than quality software.
Actually, and although poorly stated by Kaufman Bros., the gist is that Apple has a "succession plan."
An analyst would have no insider information on that account. He's blowing smoke up everyone's skirts.
Unfortunately, spirit and drive are not the same thing as vision. It is Steve's vision that makes Apple the company it is. When the time comes for Steve Jobs to retire, I'm sure there are very capable people at Apple who can carry on with the roadmap that Steve has set forth. What they can't do, however, is to continue with the "vision" thing. Only Steve sees what Steve sees until he tells everybody else!
Plus, the "vision" has changed a number of times. Having one key decision-maker is good when it comes to keeping the direction of the company nimble and able to respond to market forces, but when the decisions are bad, they can bring a company down quicker.
Then you had better sell. Why would anyone want another Steve Jobs (I believe Jobs himself would be insulted if the Apple tried to replace him with another him)? Give the man his due, respect him for his accomplishments, and let history write the rest. Trying to emulate Steve Jobs, through his successor, is doomed to failure. One man alone cannot make a company. Apple has the right employees; without them Apple's, and Jobs' visions, would have never come to fruition.
BTW, MS has always been a third-rate company whose wealth is more a matter of legal enforcement than quality software.
Put one or two knuckle-headed morons in the right spot and Mr Jobs' "institutionalized spirit" will fly from Apple faster than you can say "Bondi blue." And Silicon Valley is full of knuckle-headed morons just itchin' for a crack at Apple.
Unfortunately, spirit and drive are not the same thing as vision. It is Steve's vision that makes Apple the company it is. When the time comes for Steve Jobs to retire, I'm sure there are very capable people at Apple who can carry on with the roadmap that Steve has set forth. What they can't do, however, is to continue with the "vision" thing. Only Steve sees what Steve sees until he tells everybody else!
All these comments are merited, but I think the manner of the transition to a new
CEO could alleviate some people's fears. It won't be like the first time Steve Jobs left.
This time, I think his role will diminish very gradually, rather than abruptly ending like
before. He will probably be a consultant (providing his vision) for a long period of
time after he ceases to be involved in day-to-day issues. The knucklehead factor
will be avoided, because Jobs will be heavily involved in choosing his successor,
unlike the case of his previous departure.
All these comments are merited, but I think the manner of the transition to a new
CEO could alleviate some people's fears. It won't be like the first time Steve Jobs left.
This time, I think his role will diminish very gradually, rather than abruptly ending like
before. He will probably be a consultant (providing his vision) for a long period of
time after he ceases to be involved in day-to-day issues. The knucklehead factor
will be avoided, because Jobs will be heavily involved in choosing his successor,
unlike the case of his previous departure.
Well said. Happy Holidays!
In the past, this machine would have been hot swapped in order to benefit the customer. This is especially true for buyers who, like me, who invested in AppleCare for their computers. Now, tech support refuses to consider a hot swap and instead wants to attempt to fix the machine. They couldn't even force a Genius appointment at my local Apple Store in order to have someone actually look at the computer claiming there were no available appointments. My machine is now lying fallow at an Apple Repair Center "...awaiting parts."
To the reader, this issue may seem unindicative of any change at Apple, which is the topic of this thread, but as proof that there is a change in the culture, check out all the issues with the MacBook Pro under the Apple Discussion groups, especially with the myriad of display issues that are plaguing this new computer. Apple's quality has been much better than this in the past, as has their customer service. When the bottom line is the only focus, quality suffers, and that appears to be a possibility here.
I hope this isn't the first indication of Apple's disregard of their customers. Look at the Big 3 automakers, Eastern Airlines and Pan Am. They were all big corporations, and they're all suffering or suffered from hubris. I sure hope Apple isn't in that same line.
Finally, an analyst more idiotic than Kathryn Huberty!