Thursday, December 18, 2008

How Apple Could Survive Without Steve Jobs

Apple Inc. set off shock waves Tuesday by announcing Steve Jobs will not speak at what the company said would be its final appearance at the Macworld trade show. The news sent the company's stock downward, and raised questions about whether Mr. Jobs had new health problems or some new products were not ready.

But another question is likely to persist after the debate dies down: How well could Apple keep up the pace of new products without its iconic chief executive?

Speculation about the continued reign of Mr. Jobs -- which has popped up from time to time since his 2004 treatment for cancer -- underscore how closely Apple's fashion-setting products are identified with its co-founder. There is no sign of any change in his status; an Apple spokesman won't address the issue of his health, but said, "If Steve or the board decides that Steve is no longer capable of doing his job as CEO of Apple, I am sure they will let you know."

What if that situation does change? There is reason for optimism, based on the evolution of the team that develops Apple's hardware, software and services, some people familiar with the company's internal workings say. Some of them believe the group is now strong enough that, barring an exodus of top talent, the company could keep churning out innovative products without Mr. Jobs.

Mr. Jobs did not respond to a request for comment.

In one possible sign of confidence in the management team, an unprecedented number of executives presented during the company's press event to unveil its new MacBook lineup in October, though Mr. Jobs still dominated the event.

Mr. Jobs returned to Apple in 1997— he had left in 1985— and has since overseen the introduction of such ground-breaking products as the iMac, iPod and iPhone. He plays an unusually important role for a CEO in the gestation of such gadgets, agonizing over details that could impact users' experience.

Not that Mr. Jobs actually designs products himself. He serves more like an "editor in chief" in refining and improving ideas for Apple gadgets, according to former Apple executives.

"He didn't come up with the ideas, he just filtered them," says Bill Bull, a retired Apple engineer who worked for Mr. Jobs at Apple in the 1980s and again after Mr. Jobs returned.

The hands-on work of Apple's innovations depend more directly on subordinates such as Jonathan Ive, an Apple senior vice president who oversees the company's industrial design team. His group is primarily associated with the physical look and feel of products, such as the unusually slender Macbook Air.

Scott Forstall, another senior vice president, leads the team responsible for the iPhone's operating system and other software. In a sign of his growing importance at the company, Mr. Forstall was twice given the chance to speak at media and technical events earlier this year--and has shown some of the same showmanship that is Mr. Jobs' trademark.

Other crucial figures at Apple now include Ron Johnson, senior vice president of Apple retail, who has masterminded the success of Apple's stores, the hip electronics emporiums that have played a crucial role in the growth of the iPod and Macintosh in recent years.

One change to the team was the announcement in early November that Tony Fadell was stepping down as senior vice president of Apple's iPod division, which makes the innards of those popular gadgets carry out their products' slick features. He first conceived of the iPod, and convinced Mr. Jobs to support the idea despite skepticism from others in the company. Mr. Fadell said he will remain an adviser to Mr. Jobs; Mark Papermaster, a former International Business Machines Corp. executive, has been named to assume the iPod post.

For every design project in the pipeline, Mr. Jobs will hold meetings of two or three hours every week or two with key members of the product team. At those meetings, Mr. Jobs will critique the work in progress and also suggest adding or cutting features.

Read more wsj.com

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