“Steven P. Jobs has turned Apple into a technology powerhouse — twice. But how much is he worth to the company? If one compares the value of Apple’s revenue streams to the company’s market capitalization, nearly $20 billion,” Rob Cox and Richard Beale report for The New York Times.
“That makes Mr. Jobs’s absence from a coming trade show where he’s historically the keynote speaker worrisome, especially given speculation surrounding his thin appearance this summer,” Cox and Beale report. “The premium that Apple fetches above the fair valuations of its businesses is a measure of investor faith in his ability to stitch Apple together. That’s why questions about Mr. Jobs’s health matter.”
“Apple is worth more than its parts because it has successfully harnessed the convergence and synergies of computers, cellphones and entertainmentr,” Cox and Beale report. “If the man who engineered this harmony were to fall ill, investors might not accord such a high premium. That’s all the more reason for Apple to reassure shareholders with a rock-solid succession plan.”
Full article here.
Cue the ‘Jobs is dying’ articles in 3, 2, 1… – MacDailyNews, December 16, 2008
He gets a dollar a year.
….and what would that rock solid succession plan have to look like – short of “immortal-clone-of-Steve-Jobs” – in order to spare us further fear and nattering by alleged analysts, investors, etc?
R U looking for Gates-for-Balmer rock solid? didn’t think so….you are looking for the impossible…btw, are you worried about Berkshire Hathaway as well? Warren is a lot older than Steve and at least Apple makes something tangible and WB’s vision and genius is just as hard – if not more so -to replace as Steve’s.
…and if SJ is worth $20B, why would you want him to waste his time showing up at a trade show that Apple has already thrown over the transom?
10 Billion Dollars. That’s about the value AAPL would tank if there were news of SJ’s demise.
If Steve was hit by a bus, do they think that the “harmony” will unravel or something.
The “harmony” is the OS X foundation that is key to all the products and services now and under development at this time for the years to come!
Hey, why worry about Steve getting hit by a bus when your asshole buddies on Wall Street are doing their best to throw him UNDER the bus?
Steve is probably just fine, thanks. But because of the friggin’ media and Wall Street rumor mongers and shorts, by all accounts, Steve is already worm food. Jesus H. Christ! I am so freakin’ sick of this crap. Enough already! Give the guy a break, and let’s move on to bigger news, like Brittany’s latest breakdown. Now THAT’S epic news!
Steve is the visionary; kind of like a pathfinder or scout who has provided Apple with the direction to go in. He’s also applied that vision to the task of assembling what’s probably the finest team of it’s type in the industry. The team is now together, in place, knows what to do and how to do it.
Steve could now virtually retire and simply bop in from time to time and provide guidance as to which direction to go in. The hard work is done, which was building the ship and crew that is now Apple. If his health is indeed an issue for him he could easily back off the stress level of day-to-day participation and Apple will continue to thrive and be healthy.
Innovation is not just about ideas, but how to make them a great reality. The “idea” part is something you think up; the “great reality” part is the hardest part where all the time-consuming, cost-consuming effort is, and that requires building a team and mechanism that is capable of turning idea into reality. He’s done it; the hard part is done.
If Steve decides to let the ship run itself basically in the very capable hands of the team he’s assembled, and all he does is check in to keep in touch with ideas and guidance, then Apple will continue to be what it is now. He hasn’t built the whole thing on himself; he’s not an idiot. He’s actually turned into a very savvy businessman as well as being a visionary; a rare combination. His visionary skills also apply to the company and business side of Apple.
As a stockholder I have every confidence in him and Apple. I’m much more concerned about the deliberate and slimy manipulations and abuse of Apple’s stock prices by unscrupulous traders, analysts working for traders, etc. Driving it down with “grim innuendo” reports or commentary so they or their clients can buy at the lower price.
So, how much is Apple’s cash worth to these so called analysts? Obviously, Apple’s cash is worth nothing. Everyone seems to be ignoring the fact that Apple has over $25 billion in cash. Yet, when they value the various business, they fail to mention this excess cash in any of their valuations. How can that be? You have a $80B market cap for a company that has in excess of $25B in cash. That means, the firm itself is worth $55B.
Has cash (the safe stuff), suddenly become worthless to the investing community? Seems that way. Based on the above analysis, if you add the cash into the equation, Steve Jobs provides negative equity to Apple. Only way you can justify the current market cap, with all that cash.
Josh
Steve owns the more stock than anyone in Apple, doesn’t he? So if it drops he’s losing more than any of us during these senseless extreme swings (though he probably can afford it more than us).
You nailed it, brother.
@doc e:
What he said.
Peace.
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Olmecmystic
@doc e
Yeah, and all the team has to do is chant to themselves, “baby steps”, “baby steps”… (like Bob).
If Jobs were gone today, how long before Apple’s board caves in from the visits of ghosts of Christmases past who would immediately begin phoning in their advice on how to weather the storm?
How long before we’d see a compromise on value? Someone is bound to present a compelling argument that Apple could own the sub-thousand dollar computer market without compromising value. Finally killing the idea that Macs are too expensive. Followed by an expansive line-up of Mac models of which the bottom five models could be found at Walmart (in total disarray).
In other words, how long before Apple becomes exactly the opposite of everything Jobs stood for? Five years? Ten?
When the thinkers run out of ideas, the sales people assume command and everything will become a dog & pony show all over again.
In spite of the Ten Commandments, Christians still lie, cheat, steal, kill, and fiddle with kids!
</rant>
After Disney died in 1966, the mantra of production was “What would Walt do?”
When that bleak day arrives – long for now – Apple’s will be “What would Steve do?”
If Philip announces some ground braking, game changing product, I will say that Steve Jobs is getting ready for his exit. I think that even it this is not the case, it is wise for him to stand low and demonstrate once and for all that Apple is not run by one person.
Steve is worth a REAL LOT. Macworld will nearly if not totally fail without his presence.
Steve is the face and spirit of Apple.
Steve is Apple. Apple is Steve. Without him it all falls to pieces.