Reaction on Wall Street and elsewhere to the death of Apple co-founder Steve Jobs Wednesday night is mixed. Analysts appear to be walking a fine line between reassuring worried investors and discounting the contribution Jobs made to the tech giant.
High profile Apple watcher Gene Munster of Piper Jaffray stressed CEO Tim Cook would continue the tradition set by the iconic Apple leader. “While there may be concerns among investors as to whether or not Cook can continue Jobs’ streak of innovation, we believe there is no better candidate to lead the company Jobs co-founded,” the analyst announced late Wednesday.
Some consumers, as well as financial onlookers, questioned Cook’s ability to spark interest in Apple’s products following Tuesday’s somewhat disappointing presentation of the iPhone 4S. The financial world spent much of Wednesday attempting to dispel the down mood, reminding consumers Apple was more than sleek and cool-looking hardware.
Elsewhere, Wall Street experts believe Apple has time to adjust to leadership without Jobs. Jobs “created a company and culture that will continue to innovate and succeed, with countless executives and employees who will carry on,” said Scott Kessler of Standard & Poors. The Cupertino, Calif. firm “was largely prepared for this loss,” he writes.
“We believe his leadership has left Apple with a highly innovative culture, a strong pipeline with a multi-year roadmap and a talented executive team that has driven Apple’s stellar execution in recent years,” writes Avi Silverman of CLSA Asia-Pacific Markets.
However, the uncertainty could mean more ups and downs on Wall Street. “In the near-term, the stock may remain volatile as Tim Cook gains confidence from investors,” according to Sterne Agee’s Shaw Wu.
In Asia, which supplied Apple with both its cultish products and its toughest competitors, analysts said the loss of Jobs opens the doors for rivals.
“Without Jobs, Apple’s rivals now have some time to step up and majors such as Google, Samsung, Microsoft and Facebook will try to fill the gap,” Shinyoung Securities analyst Lee Seung-woo told Reuters.
Some believe Apple has breathing room as the company introduces products already in the pipeline. The question becomes can the Cupertino, Calif. company “continue to launch iconic and successful products without [Jobs] (in the longer term),” asks Jan Dawson, chief telecoms analyst at the Ovum research firm. “Apple risks becoming an ordinary company without him.”
One Seoul analyst summed-up the problem for Apple without Jobs. “It was Jobs’ Apple, not Apple’s Jobs,” said Kim Young-chan. Apple stock opened down 1 percent in the United States, Thursday morning.
