Apple will not wait to see what the market wants

The announcement that Steve Jobs is to resign as Apple’s CEO should come as no surprise.

There is no doubt the influence of Jobs has been hugely important in making Apple the company it is today.

Steve Jobs career (source: The Economist)

However, IMHO will continue its onward march, not least because the market has been well aware of Jobs’ health issues and there is certainly no ‘Jobs premium’ built into Apple’s valuation.

It is not by chance that Apple is the success it is. This is a company that:

  1. has a strategy well in place for the mid-term
  2. is dominant in the tablet market – a market that has barely considered adolescence let alone maturity
  3. is leader in the smart phone market
  4. though it still only has single figure market share in the PC market, IMHO will continue to take share.

This company does not wait to see what the market wants – it creates what the market did not know it wanted but when it has it, it wants more. It will continue so to do.
It also have a strong competitive position: Apple has developed some quite unique barriers to entry through the iTunes store and the AppStore – which has the effect of creating much ‘stickier’ customers. Additionally, through being vertically integrated they can now not only produce the best product but can do so at the best prices – their competitors are desperately struggling to match the iPad price without making losses.

For sure, Apple will not be better without Steve Jobs but I hope that he has injected enough of his DNA into the company to let her continue this success story without him.

All the best to Tim Cook, new CEO, who has already proved himself extremely capable.

Other interesting articles on the same subject:

Freakonomics: Was Steve Jobs’ Retirement Already Priced into Apple Stock?

The Economist: Steve Jobs resigns. The minister of magic steps down

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