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Asking More Commentary: Perspectives from Mendoza College of Business

Commentary Post - Mike Mannor

Steve Jobs' resignation is the best thing for Apple

August 26, 2011

 Although there will likely be endless speculation that the of resignation of Steve Jobs will usher in the end of the golden era of Apple, I believe this is the best thing that could have happened to Apple at this point.

The reality is that Apple has had a huge cloud hanging overhead for the last few years due to the rampant speculation and uncertainty regarding Jobs’ health. For a company that has defined itself on the bleeding edge of one technological frontier after another, the compounding level of uncertainty from market forces and the executive suite had become an ever present burden on an otherwise stellar firm.

Jobs' health has been news fodder since 2003 when he was diagnosed with pancreatic cancer, and rumors of his impending departure have repeatedly rocked Apple's share price over the last couple of years. Particularly in a market like the one we have seen this summer, the reality is that there is often more of a penalty for uncertainty than there is for bad news. People have become skittish, news has become speculative theater, and the markets have responded with enormous volatility.

By transitioning to his new role as chairman, Jobs may very well be able to continue on in one of the most important capacities he has been embracing for the last few years - master evangelist, a spiritual technological leader of sorts, and the grand oracle of Apple. With the exception of a short term ‘period of mourning’ for the passing of a great leader, this should help to usher in a breath of fresh air for Apple in the form of executive stability.

Tim Cook is a proven leader who is ready to lead Apple forward. Together with their fantastic recent performance, it appears that the sky is the limit for Apple.