It comes as little surprise that Steve Jobs’ resignation as CEO of Apple led to an immediate drop in the value of the technological powerhouse’s stock value. Jobs has been the face and perceivably the brain behind Apple from its genesis, taking it from a start up computer company to the innovative giant that it is today. Under Jobs’ reign, Apple effectively changed an entire industry by pushing out products that are far more advanced than that of its competitors. Dating back to the Mac, Apple has released quite possibly the most ground-breaking computer products and programs that have forever altered consumer expectations. Products such as the iMac, iPod and now the iPad have revolutionized our way of life. With Jobs being credited with much of the success of Apple and their line of merchandise, what does his resignation mean in the long run for Apple’s stock?
The company’s stock fell 5% during extended trading hours on August 24, the same day Jobs announced his inability to perform the role of CEO, but most analysts agree that this sell off was done out of false speculation, investor apprehension and the downward trend of all stocks that day. Despite its early fall, the company found immediate resurgence days after Jobs resignation. Selling your Apple shares at this time is regarded as unfounded by analysts for several reasons. One, Jobs is not leaving the company entirely. He remains the chairman on the company’s board of directors, meaning he will still contribute his brilliant insight and vision in Apple’s future decisions. Also, prior to his departure, Apple’s 2012 plans were strategized and, for the most part, put into effect.
Finally, Jobs handed over the CEO position to a well-known figure within Apple, Tim Cook, the same man Jobs enlisted as CEO of the company when he took a leave of absence back in 2009. Cook is widely regarded throughout Apple as the best candidate to replace Jobs and although he does not have the same level of creativity and vision as Jobs, few do. Cook possesses the experience and business savvy required to maintain Apple’s perception as the world leader in technological innovation. Cook, along with his incredible supporting cast of Apple employees will keep pushing out the type of products that consumers expect of Apple. Selling your stock now may result in missing out when, not if, Apple releases their next groundbreaking product.
Do you think Steve Jobs' resignation as CEO of Apple will have an effect on the company's stocks? Let us know!
This guest blog was written by PRowl Public Relations staff member Evan Galusha.