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Jobs' health worth $25 billion to Apple?

updated 11:30 am EDT, Mon March 29, 2010

Executive makes list of 30 'most respected' CEOs

The health of Steve Jobs may be extremely critical to Apple's monetary worth, a new Barron's report claims. Compiling its annual 30 Most Respected CEOs list, on which Jobs is present, the publication notes that stock value dropped when word came out of the CEO's medical problems; the executive was forced to take a six-month leave of absence during 2009. Particularly considering that Apple's market value recently topped $200 billion, Jobs' life is estimated by Barron's to be worth about $25 billion.

The report otherwise highlights Jobs' rescue of Apple in the late '90s, and the havoc the CEO has wrought in the movie, music and cellular industries as a result of the iPod, the iPhone and the iTunes Store. The iPad and the iBookstore are expected to have a major impact on books, magazines and newspapers, despite being forged in part during Jobs' downtime. Simultaneously, Barron's also observes that Apple workers both revere and fear their boss, who is infamous for micromanaging the company to suit his personal vision.




by MacNN Staff

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  1. climacs

    Joined: Dec 1969

    +2

    Oh please

    $25 billion?

    I can't read the entire article because it requires a subscription. I'm going to go out on a limb and guess that Jobs' value to Apple (or, more precisely, AAPL) is very similar to the concept of 'goodwill' as an asset on a company's books.

    If Jobs' dropped dead tomorrow, the market would freak out for sure... and smart people would dive into AAPL, because the company will do just fine without him. Yes, it's better to have Jobs than not, but the days when Jobs was the alpha and omega of Apple are long gone.

  1. bjojade

    Joined: Dec 1969

    +9

    Long gone?

    Hardly. Yes, Apple would survive for a while on his legacy, but unless they find someone to replace him that had the same sort of tunnel vision, the result would be Apple eventually becoming like every other company out there.

    It wouldn't happen overnight, but eventually would. Just look what happened when he left the first time around. Instead of being run by someone that wants insanely great products, Apple was run by CEOs that only understood profit. How did that turn out for them the last time?

    Finding someone that can have the vision to select products that are insanely great AND profitable is quite rare.

  1. JulesLt

    Joined: Dec 1969

    +3

    Lessons learnt

    You can presume that lessons have been learnt from last time - it's pretty obvious to them where their success comes from (i.e. original product development). Outside observers can see that's Apple's strong point.

    But there is still a big gap between delivering good products, and great ones.

    If Jobs was to die tomorrow, I'd leap on the shares after they plummeted, but I would seriously consider selling within a couple of years, because I think we will see a slow decline (not within 2 years, but maybe 5-10 years after). It won't be like the mid-90s nadir, it's more likely to be a decline to boringly good.

    The other alternative is that Apple becomes eroded to merely a hardware company, if the next decade sees open (web/Android) software catch-up with and replace single-platform development. It's not happened yet, but there are powerful forces pushing it.

  1. Paul Huang

    Joined: Dec 1969

    +2

    Tunnel vision is good

    When the tunnel is aimed at the right place.

  1. starwarrior

    Joined: Dec 1969

    +1

    c***

    Why do you print c*** like this story.

  1. Constable Odo

    Joined: Dec 1969

    +2

    I think Steve Jobs is important because

    he knows how to "dumb down" products even if the designers say they can pack in more features. Designers and engineers will bring a product to Steve and he probably tells them "Take this extra stuff off. It's not necessary." I think that's a good thing although most geeks will say he's trying to rip off users. Steve probably likes to pare things to the bone just to make things easier for the user. Most companies try the kitchen sink approach of adding on everything just in case a few geeks need those functions. That's why most products end up with feature overload for most consumers. I'm sure it's not easy deciding which features to keep and which features to dump. I guess he understands exactly what "keep it simple" means.

    I just hope Steve stays healthy and with Apple at least three or four more years and lifts the share price up to $350 or so. At least long enough that Apple surpasses Microsoft's market cap. Steve will definitely have earned that one.

  1. tortenteufel

    Joined: Dec 1969

    0

    Guess Steve

    doesn't need Obama's health care plan....

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