Apple: Bruised or Burnished?

(page 2 of 2)

Cook would also be a likely candidate for a seat on Apple's board of directors. Apple currently has eight directors, and its corporate by-laws allow for a maximum of nine. Moreover, any of Apple's directors could opt to retire from the board in the near future.

Apple director Jerome York is over 70 years old, while William V. Campbell, chairman of Intuit, is 68, though neither has indicated an interest in stepping down from the board. Apple corporate-governance guidelines, however, say directors may not stand for reelection to the board after reaching the age of 75.

formalizing a solid bench

Such a managerial shakeup would in many ways be designed for external consumption and would simply formalize the division of labor that Jobs and Cook have forged in recent years. Jobs would continue to do what he's good at, which is leading product development and marketing and showing up as the closing negotiator on strategically important deals with vendors and partners. He would also be likely to continue to be the public face of Apple, unveiling important products in a way only he can, though with one key difference: He will be sharing the limelight. Like a basketball great in the later years of his career, Jobs could pass the ball to younger players, sharing the stage at important Apple events with up-and-coming managers such as Scott Forstall, senior vice-president and head of the iPhone software division.

Cook, meanwhile, would continue to do what he does best, which is running Apple's sprawling 35,000-person operation in concert with other senior managers, such as Phil Schiller, senior vice-president for worldwide product marketing, and Ron Johnson, senior vice-president and head of Apple's 252-store retail segment.

Back in January, Cook made a brief statement that essentially served as his notice to outsiders that an Apple under Tim Cook wouldn't differ significantly from Apple under Steve Jobs. "We are constantly focusing on innovating," he said. "We believe in the simple, not the complex. We believe that we need to own and control the primary technologies behind the products we make, and participate only in markets where we can make a significant contribution."

Meanwhile, Apple, which did not comment for this story, maintains that Jobs is expected to be back at work by the end of the month, though it has not yet been more specific about the date of his expected return.

Whether his return is full-time or part-time is almost beside the point. Any return by Jobs to his office at 1 Infinite Loop in Cupertino will be seen as good news by Apple investors and fans. "It takes some uncertainty out of the Apple story," says Needham's Wolf. "I talked to investors who thought seriously that Jobs would not return to Apple ever. Now it all looks like good news. He has a pretty good chance of being around for another five years at least."

Hesseldahl is a reporter for BusinessWeek.com.

Business Exchange

Track and share business topics across the Web.