Investors ponder Apple after Jobs

By Andy Goldberg Oct 6, 2011, 20:06 GMT

San Francisco - The share price of Apple swung up and down Thursday as investors and analysts pondered the effect that the death of Apple icon Steve Jobs would take on the world's most valuable technology company.

Jobs had resigned as CEO in August, citing the medical conditions that eventually led to his passing on Wednesday. He handed the reins to Tim Cook, who had run the Apple during Jobs' protracted medical leaves, but remained with the company as executive chairman, where he was expected to play a vital role in determining future strategy.

Apple's shares opened Thursday's trading in New York down some 1.4 per cent, before swinging up 1.5 per cent rise and then dropping back down 0.6 per cent in mid-afternoon.

Analysts expected Jobs' death to have a short-term impact on the stock, and said that he had put in place an executive team and long- term strategy that included strong growth in China. Those moves should enable Apple to keep delivering the stellar financial results under its iconic co-founder leadership since 2001.

'While Mr Jobs's passion, creativity and keen eye for consumer preference will be missed, we believe Jobs and Apple's executive team have built an unparalleled talent base and corporate culture that sets the table for future success and innovation,' wrote analyst Mike Walkley of Canaccord Adams.

Analyst Ittai Kidron of Oppenheimer & Co was less upbeat in his message to clients: 'While expectations for Mr Jobs's involvement as chairman were likely small given his health problems, he was still potentially available as an adviser and leader in the background,' he wrote.

'This intangible is no longer available, and we expect it will weigh on the shares over the next few days.'

Kidron stressed that he was confident that current management would 'execute on this course at a high level.'

According to financial news site Marketwatch, these analysts represented wider Wall Street sentiment, with 95 per cent of analysts rating the shares as a buy.

Jobs died on Wednesday surrounded by his family after a long battle with pancreatic cancer. Though his illness was widely reported, his death shocked the tech world and the millions of people who bought his products. Tributes poured in for Jobs from around the world, from US President Barack Obama down to the millions of admirers who expressed their admiration for Jobs on Twitter, and at spontaneous vigils at hundreds of Apple stores.

Obama called him 'one of the greatest American innovators' and said that 'there may be no greater tribute to Steve's success than the fact that much of the world learned of his passing on a device he invented.'

Jobs is credited with a formative influence on personal computers, and was the first to introduce the mouse and point-and-click control system. He also transformed the music industry with Apple's iPod and iTunes, revolutionized the smartphone world with the iPhone and re-molded the personal computer space with the introduction of the hugely popular iPad last year.