Between the Lines

Larry Dignan, Andrew Nusca and Rachel King

Jobs' departure won't diminish Apple's brand

By | August 24, 2011, 4:43pm PDT

Summary: As Steve Jobs steps down as CEO of Apple, Inc., the immediate assumption would be that this will ruin Apple’s image and brand. That assumption would be wrong.

If you haven’t heard already, Apple CEO and co-founder Steve Jobs has officially stepped down as the chief executive and recommended acting CEO Tim Cook to fully replace him.

Naturally, many investors, analysts and Macheads are wondering what this might mean for the future of Apple. The Cupertino, Calif.-based company has been on such a roll lately that has seen it become the only major competitor in the tablet market and one of the only tech companies to actually be turning a profit off of consumer technology this year.

A lot of this can be attributed to the popularity of Jobs. Who else can garner as much applause and a standing ovation every time he steps out in public onto the keynote stage dressed in a now-signature black turtleneck?

However, to assume that Jobs’ resignation will lead to a downturn for Apple is unfounded. It will be a shift in the company’s history, certainly. But it has already been proven this year that Apple’s momentum can continue as Jobs steps back from the company. (And, FYI, he’s not completely gone from Apple as he’ll still be serving as chairman of the board if approved, which will undoubtedly happen.)

For example, Cook actually stepped up to the plate as acting CEO earlier this year when Jobs went on medical leave in January. Apple has since turned out blowout earnings the last two quarters. Although iPad shipments were slightly lower in April than expected (which were still nothing to cry about), the company propelled to outstanding earnings and shipment numbers in the third fiscal quarter, propelled by the new tablet and a smartphone that is over one year old already.

As for Jobs, well this almost makes look like a hero for sticking it out this long given his well-known health problems that have plagued him for almost a decade. That is sure to stick in the minds of consumers and investors alike as to how committed Apple’s employees are to its company.

Although the blog is known for its tongue-in-cheek humor, Gizmodo goes so far as to praise Jobs as “greatest businessman, CEO and product developer of our era,” adding that he has become “an icon and idol who has made this world we live in a better place.” Maybe that’s a bit over the top, but it doesn’t change the sentiment shared by many.

Of course, it would be wrong to hold Cook up to these kinds of standards from the get-go. Even more famous tech bigwigs like Facebook’s Mark Zuckerberg can’t compete with the aura around Jobs. Thus, the more that anyone tries to compare Cook to Jobs’ image, that in itself would tarnish Apple’s brand more than anything else.

Plus, just because Jobs is leaving does not mean that Apple doesn’t have any talent left. Just look at iPod-designer Jonathan Ive, Apple’s senior vice president of industrial design for one example.

The simplest thing to do for anyone who wants to see Apple’s continued success is let Cook have his own persona and image, and then watch Apple continue to sell millions of iPads and iPhones galore.

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Topics

Rachel King is a staff writer for ZDNet based in San Francisco.

Disclosure

Rachel King

Rachel King has no business relationships, affiliations, investments, or other potential conflicts of interest relating to the content posted in this blog.

Biography

Rachel King

Rachel King is a staff writer for CBS Interactive in San Francisco. Before serving as a contributing editor at ZDNet in New York City for two years, she previously worked for The Business Insider, FastCompany.com, CNN's San Francisco bureau and the U.S. Department of State. Rachel has also written for MainStreet.com, Irish America Magazine and the New York Daily News, among others. Rachel has a B.A. in Mass Communications and History from the University of California, Berkeley and a M.S. in Journalism from Columbia University, where she served as art director for the student magazine, Plated.

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RE: Jobs' departure won't diminish Apple's brand
HypnoToad72 25th Aug
@matthew_maurice -

Not to mention how the annual report is made even juicier:

@matthew_maurice -

http://www.zdnet.com/blog/government/is-apples-suicide-factory-outsourcing-to-even-cheaper-chinese-peasants/9537


For all the frothing the media does over Jobs, nobody should forget that (a) labor creates all wealth and (b) what those workers are enduring to help make Apple that much more special, since they pocket the difference in labor costs to help boost "profit".

http://www.pcworld.com/article/197312/foxconn_plans_safety_nets_may_raise_pay_after_12th_suicide.html

Oh, if "free market" was real, a paradigm that states lower costs means that more can purchase, as costs to build Macs (esp. the Mac Pro) go down, why don't the prices go down to follow suit? Like "trickle down economics", the "free market" paradigm isn't taken to its full concept. Not forgetting that supply-side economics pretends workers must get their money from the Easter Bunny because every corporation out there is demanding more work done for the same pay, or even less pay. When workers have less to spend... maybe that's why the banks needed bailing out...

http://motherjones.com/kevin-drum/2010/01/vicious-cycle-stagnant-wages
Well, it's NOT about Apple making more and more money, it's about Apple continuing to innovate. That still has to be seen. Tim Cook has been doing nothing but sue sue sue...
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There has been a lot of litigation in the air at apple
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Jobs has had nothing to do with the success at Apple. Apple's most successful years have been while Jobs was gone.

Bye bye Jobs, we won't even notice you are gone.
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@toddybottom
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Yes I do. Obviously you don't.
toddybottom Updated - 24th Aug
@matthew_maurice
Wait, you aren't truly naive enough to believe that Jobs has had anything to do with running Apple for the last few years, are you?
  • Flagged
@toddybottom
I am a business student. Let me teach you the role of a CEO.
1. Provide a vision for the company
2. Make sure people directly under you are doing their job

This is by far the most important job in any corporation. Apple's best engineer could disappear overnight and nobody would care, but without a good leader the company breaks down.

Sure some leaders will go above and beyond and do more, but the best leaders know how to delegate. That's why you can be a great business leader without moving a finger. With all that said, your assertion that Steve is nothing more than a figurehead is ridiculous.
  • Flagged
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a report helped made jucier by
HypnoToad72 25th Aug
@matthew_maurice -

http://www.zdnet.com/blog/government/is-apples-suicide-factory-outsourcing-to-even-cheaper-chinese-peasants/9537


For all the frothing the media does over Jobs, nobody should forget that (a) labor creates all wealth and (b) what those workers are enduring to help make Apple that much more special, since they pocket the difference in labor costs to help boost "profit".

http://www.pcworld.com/article/197312/foxconn_plans_safety_nets_may_raise_pay_after_12th_suicide.html

Oh, if "free market" was real, a paradigm that states lower costs means that more can purchase, as costs to build Macs (esp. the Mac Pro) go down, why don't the prices go down to follow suit? Like "trickle down economics", the "free market" paradigm isn't taken to its full concept. Not forgetting that supply-side economics pretends workers must get their money from the Easter Bunny because every corporation out there is demanding more work done for the same pay, or even less pay. When workers have less to spend... maybe that's why the banks needed bailing out...

http://motherjones.com/kevin-drum/2010/01/vicious-cycle-stagnant-wages
@matthew_maurice -

Not to mention how the annual report is made even juicier:

@matthew_maurice -

http://www.zdnet.com/blog/government/is-apples-suicide-factory-outsourcing-to-even-cheaper-chinese-peasants/9537


For all the frothing the media does over Jobs, nobody should forget that (a) labor creates all wealth and (b) what those workers are enduring to help make Apple that much more special, since they pocket the difference in labor costs to help boost "profit".

http://www.pcworld.com/article/197312/foxconn_plans_safety_nets_may_raise_pay_after_12th_suicide.html

Oh, if "free market" was real, a paradigm that states lower costs means that more can purchase, as costs to build Macs (esp. the Mac Pro) go down, why don't the prices go down to follow suit? Like "trickle down economics", the "free market" paradigm isn't taken to its full concept. Not forgetting that supply-side economics pretends workers must get their money from the Easter Bunny because every corporation out there is demanding more work done for the same pay, or even less pay. When workers have less to spend... maybe that's why the banks needed bailing out...

http://motherjones.com/kevin-drum/2010/01/vicious-cycle-stagnant-wages
@toddybottom

If you can't understand that, you know very little about Apple's business.
@Bruizer
If you can't understand that, you know very little about Apple's business.
  • Flagged
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I normally don't argue with idiots.
matthew_maurice Updated - 24th Aug
@toddybottom They bring you down to their level and beat you with their experience, but this time I'll make an exception.

Love Steve Jobs or hate him, you simply can't deny that he took over a moribund company in the midst of a serious cash-crunch, made a deal with long-time competitor that brought in a big pile of money, ended stupid clone licensing deals, and then revamped its entire product line starting with the fundamentals of the OS. At the same time, he prodded the industry into abandoning obsolete technologies (remember diskettes?), moved his entire product line to a completely different processor architecture, radically altered the smartphone market, and took tablet computing from niche market to a broad consumer play. These aren't things that just happened while Jobs was running Apple, they were things the he, personally, drove forward.

And it's not to say that he was perfect. Several of Steve's pet projects turned out to be stinkers. The Mac Cube was clearly his ideal computing form, but it was expensive, slow, and totally impractical for the majority of the market. Again, these weren't things that happened while he was there, they are things he personally managed.

So, while you can argue if the company he ran made the best computers, you can't argue that he ran Apple in his own way, and that by extension the accomplishments,and failures, of that company are his as well.
  • Flagged
I am guessing I understand substantially more of how Steve has impacted Apple's path of the last 14 years than you ever dreamed if you really believe:

"because Steve had nothing to do with Apple's success."

Heck, I bet you share that opinion with a single person. You.

It takes a little mind to miss the direction that Steve put the company on. From a disorganized collection of little fiefdoms (much like I see Google and MS acting now) with hundreds of side projects all in an effort to be different but not better to a company with solid foundations where there is a concerted effort to actually create a system of products all using a similar foundation of technology.

Steve is responsible for transforming Apple from a computer company into a Systems company. So ask your self: Can you honestly say that Apple would be where it is today if any of Steve's predecessors (Sculley , Spindler or Amelio) were at the helm?

Yea, he is a typically A type personality, perfectionist and bet harder than heck to work for or with because he expects others to be like him. Does not change the fact that he turned around Apple from a slow floundering.
  • Flagged
@toddybottom
I am a business student. Let me teach you the role of a CEO.
1. Provide a vision for the company
2. Make sure people directly under you are doing their job

This is by far the most important job in any corporation. Apple's best engineer could disappear overnight and nobody would care, but without a good leader the company breaks down.

Sure some leaders will go above and beyond and do more, but the best leaders know how to delegate. That's why you can be a great business leader without moving a finger. With all that said, your assertion that Steve is nothing more than a figurehead is ridiculoous.
  • Flagged
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I wouldn't call the Performa an excellent computer for it's time and that was when Jobs wasn't there. He brought out the Imac
@toddybottom

I am now fully convinced you are a sad individual toddybottom (aka NonZealot). Who in there right mind would think Jobs had nothing to do with the success of Apple?
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@dave95.

Glad to see I am not the only one to recognize NZ style.
@dave95.

Coincidence? I don't think so.
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instead
sportmac 25th Aug
@toddybottom
of repeating your nonsensical statements why don't you actually back them up with some facts? we'll wait here.
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Tim Cook is an operations guy.
matthew_maurice 24th Aug
Probably one of the best in the world. He'll leave "image and brand" to guys like Jon Ives, Scott Forstall and Phil Schiller. Cook will continue to do things like negotiate to buy Samsung's entire annual NAND production and keep FoxConn's production rates up. Apple won't be the same without Steve Jobs, but it won't be much different.
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Apple won't be any different
toddybottom 24th Aug
@matthew_maurice
@toddybottom
I am a business student. Let me teach you the role of a CEO.
1. Provide a vision for the company
2. Make sure people directly under you are doing their job

This is by far the most important job in any corporation. Apple's best engineer could disappear overnight and nobody would care, but without a good leader the company breaks down.

Sure some leaders will go above and beyond and do more, but the best leaders know how to delegate. That's why you can be a great business leader without moving a finger. With all that said, your assertion that Steve is nothing more than a figurehead is ridiculous
  • Flagged
@toddybottom
Gotta lova Anti-Apple Zealots. They spend the better part of a decade dismissing all of Apple's successes as Jobs' reality distortion field. Once he resigns, The success suddenly has always come from Tim Cook and Steve Wozniak. Pencil pushers and engineers not employed since the 80's.
@toddybottom

Wow, lots of trolling today. relax!
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Let's remember all his contributions to Society
Dietrich T. Schmitz * Your Linux Advocate 24th Aug
God Bless Steve Jobs.

May all the Journalists, Bloggers get the story out and leave the Man to his peace and privacy.
@Dietrich T. Schmitz * Your Linux Advocate

Bill Gates saves lives:
http://www.huffingtonpost.com/bill-gates/vaccines-save-lives-every_b_875785.html

Meanwhile, Steve Jobs parks in handicapped spots:
http://www.cultofmac.com/steve-jobs-still-parking-in-handicapped-spaces-the-pictures/2613
@toddybottom
I am a business student. Let me teach you the role of a CEO.
1. Provide a vision for the company
2. Make sure people directly under you are doing their job

This is by far the most important job in any corporation. Apple's best engineer could disappear overnight and nobody would care, but without a good leader the company breaks down.

Sure some leaders will go above and beyond and do more, but the best leaders know how to delegate. That's why you can be a great business leader without moving a finger. With all that said, your assertion that Steve is nothing more than a figurehead is ridiculouss
  • Flagged
@Dietrich T. Schmitz * Your Linux Advocate

Well said. Let him have his peace and privacy. If Steve desires to be in the public eye let that be his decision.

What is your perspective on his fist take at a UNIX OS (before returning to Apple and influencing the current generation of OS)?
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Never fear, fandroids.
Userama Updated - 24th Aug
Now you'll have Tim Cook to kick around.
And thank you for those words, DTS.
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Why are you thanking DTS?
toddybottom 24th Aug
@Userama
Is Steve Jobs your best friend? Your relative?

I'm just curious why you would thank someone for saying kind words about the ex CEO of the world's biggest company. I respect a lot of people (Jobs obviously isn't one of them) but I wouldn't even think to thank someone for saying something nice about them.

Just curious, you don't have to answer if you don't want to.
@toddybottom
I am a business student. Let me teach you the role of a CEO.
1. Provide a vision for the company
2. Make sure people directly under you are doing their job

This is by far the most important job in any corporation. Apple's best engineer could disappear overnight and nobody would care, but without a good leader the company breaks down.

Sure some leaders will go above and beyond and do more, but the best leaders know how to delegate. That's why you can be a great business leader without moving a finger. With all that said, your assertion that Steve is nothing more than a figurehead is ridiculus.
  • Flagged
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@toddybottom

Your extreme hatred of all things Apple make me think Jobs ran over your dog and did a deep evil cartoon laugh.
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What are you talking about? I have had nothing but praise for Apple, the fine job they've been doing (especially during the years that Jobs has been gone) and their fine products that I've always enjoyed using.

I really like Apple. I really like their products. Jobs has had nothing to do with it.

I'm not sure how you got to me having an extreme hatred of all things Apple. Can you explain why you believe that?
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Here's my answer, toddy:
Userama 24th Aug
@toddybottom
I know DTS has some pretty severe disagreements with Apple's philosophy, but he has the decency to put that aside and acknowledge Steve Jobs' contribution to the tech world as his career ends. It's not something everyone is willing to do. I may not always agree with you, DTS, but you got a lotta class! Thanks again.
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"For example, Cook actually stepped up to the plate as acting CEO earlier this year when Jobs went on medical leave in January. Apple has since turned out blowout earnings the last two quarters."

I don't think anyone expected Tim Cook to run the company into the ground during the few months he was acting CEO. All he had to do was to keep the ship steady and not to start selling printers. Steve Jobs had already laid the grounds for success.

Tim Cook will not be put to the test until Apple needs to come up with the next big thing or adapt to changes in the market. It might be years before that happens.
I've got my money on Apple going back to what it was while Jobs was gone. It has already lost in the OS market, is facing pressure from Google in the smart phone market, and eventually someone will build a better iPod and they'll be lost.

POLL: Now that Steve Jobs has resigned, what do you think will happen to Apple?
Vote: http://www.wepolls.com/p/2073012
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Really?
use_what_works_4_U 25th Aug
@zadocpaet
Apple doesn't need to win the PC marketshare fight, yet their marketshare grows every quarter. With HP effectively walking away it just got that much les competitive too.

I went from iPhone to Android. I like my Android phone, but if Sprint does get the iPhone, I'm switching back as soon as I can. I'm not alone either. There is no smartphone out there doing better than the iPhone. Android as a whole is, but that is largely due to the number of carriers that support it, IMHO.

A better iPod? OK, it's only been a decade since the iPod was introduced. For that entire time we've been hearing "someone will (or is!) do it better" yet no one has. It's a large capacity Walkman. It's the single simplest category of device in Apple's product line. Where's the competition? The Zune HD was the most serious threat to the iPod line. Where can I buy one today?

Apple is filled with talent and the company is not going anywhere anytime soon. Jonathan Ive is at least as visionary as Steve is. I've seen those two in conference and from that perspective my opinion on Apple's future is still quite bullish.
toddybottom is probably a hired thug who is paid to replay the same thing over and over again. Sure you can play that game.
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Will there be a next big thing with Steve Jobs out of the picture? Will Apple influence other companies to make their products work almost as well as the products Apple puts out or will the momentum stop and we will have a choice of lackadaisical products with no spark to them.
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@jamesweld@... :
I think SJ has already written down a business plan for new product designs covering the next ten years at least. He's already proven that he thinks far beyond the immediate with a concept by the fact that iOS was originally conceived as a tablet OS and SJ aimed it at the iPod Touch/iPhone first to crack the market to the point that the iPad came in to an established ecosystem with serious growth potential. What I see is Apple succeeding at what Bill Gates failed ten years ago with the Windows Tablet Edition and proving the tablet can be a viable tool for anybody.

But I think it's going to go much farther than that. I'm thinking that the Star Trek computer on the Enterprise D is where he's aiming the concept eventually and each release over the last ten years has been but a tiny step leading to that end product. We'll just have to see how much of a visionary he really was.
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RE: Jobs' departure won't diminish Apple's brand
LoverockDavidson_-24231404894599612871915491754222 24th Aug
Not yet anyway. The real test will be in 2 years to see if Apple can still design media products.
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...but Apple's cult following will go on as long as his successors continue to earn their support. The cult survived John Sculley; it will likely survive Tim Cook as well.
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Indeed
use_what_works_4_U 25th Aug
@John L. Ries
I worked at Apple. Tim is no Steve, but he has the shared vision and he is a very good and effective leader. Apple is in good hands as are its customers.
I just want to note that this article reads like somebody trying to convince themself that the end of Apple hasn't arrived.

Just a note to the author: I am sure they will be just fine. Have a drink and stop with the hyperventilating and hand-wringing.
@toddybottom When you are no longer a student and have some real world experience you might find yourself embarrassed at the statement you made about Jobs.
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Sing of the times?
wright_is 24th Aug
I wonder if it is a sign of the change at the top, that Apple is spending more time and money on promoting its competitors than it does its own products now?

I don't think that is something Steve would ever have done, but the "new" Apple is not only raising awareness of its competitors products to the public, they are also effectively endorsing their products.

The whole campaign against Samsung in Europe seems to be based aroud Apple saying that these products, which didn't have a very high profile outside the tech space (at least the Tab 10.1), are functionally equivalent to the iPad and iPhone.

Samsung couldn't get bettetr publicity for their products if they tried, a major endorsement from the market leader, you can't buy that sort of good press.

I can't see Steve having made that mistake, if he was active CEO.
Hmm - I have been following Apple since the release of the Apple II series of computers - have owned various incarnations of the II and Mac line.

I seem to recall a very similar discussion when Steve left for the NeXT project. And I seem to recall how much the Apple community tried to grit their teeth, smile broadly, and say everything is going to be okay.

In my opinion, it wasn't okay back then. And in fact, didn't turn around until Steve returned and kicked off the "i" projects at Apple.

Now, certainly this time there is a significant difference - Steve is still at Apple for now. With that, his energy (as much as he can spare), ideas and drive will continue to move Apple along.

Perhaps the next generation of Steve Jobs (clone? AI? zealous disciple?) will arise during this time to keep Apple along the "Think different" path.

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