I remember sitting in this same building in the beginning of 2007 and feverishly refreshing a plethora of sites live blogging that year’s MacWorld Stevenote. And then the iPhone came out and we all know how that turned out (my and my iPhone are inseparable). And now it’s happening all over, only this time I’m waiting for a tablet – a device that is very mysterious to many, myself included.

As many have posited, the soon-to-be-announced Tablet (or whatever it ends up being called), will have to be revolutionary in more ways than one – and that’s why it’s so mysterious. Apple simply can’t take an iPhone (or an iPod Touch), increase its screen size, and call it a day. I have a feeling that this device will hail the introduction of an all-new interface (be it touch screen or otherwise) that will make everyone think, “Why didn’t we think of this before? It’s so obvious.”

In essence, the beauty of the iPhone lies in its proportions – the ability to use the device with one hand and one thumb (on that same hand). In fact, I can touch any corner of the screen with my thumb while holding the iPhone in just one hand. But when it comes to a tablet-style device that has a much bigger screen (we’re talking 8-10 inches here), single-handed navigation becomes difficult. And that’s the reason, in my opinion, Apple will hail a new set of technologies that will make using a larger-screen tablet intuitive, easy, and unique (whether it will be one handed is up in the air). And that’s not to mention the content magnet that this device will become – ebooks and magazines, videos and podcasts – the Apple tablet will undoubtedly work to increase content consumption exponentially.

And so I (im)patiently await 10 am PST for the Steve Jobs to take stage at today’s Latest Creation media event. Let the refreshing begin self-refreshing javascipt magic do its thing on the live streams (and let’s hope Twitter doesn’t go down). I’ll be here during the live stream.

This was to be expected: Google CEO Eric Schmidt has resigned from Apple’s board today, citing a conflict of interest. Apple CEO Steve Jobs said that “Unfortunately, as Google enters more of Apple’s core businesses, with Android and now Chrome OS, Eric’s effectiveness as an Apple board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings due to potential conflicts of interest.”

For quite some time, Apple and Google have been serving the same markets:

• Web-based email, calendaring, and contact lists: Apple’s MobileMe and Google’s Gmail/Calendar/Contacts
• Cellular phones: Apple’s iPhone and Google’s Android
• Browsers: Apple Safari, Google Chrome
• Productivity applications: Apple’s iWork online and Google’s Docs
• Most recently, Google has announced that it will enter the desktop OS space with Chrome OS, which would compete head-on with the Mac OS

When initial whispers regarding the effectiveness of Mr. Schmidt on Apple’s board began to spread, many analysts pointed out that even though the two companies compete in many spaces, they have different business models for the aforementioned products: Apple charges a premium price while Google either gives its products and services away for free or doesn’t charge an OEM a fee for a license (in the case of Android and Chrome OS). As I’ve stated on our daily bit podcast before, this argument holds no merit: different business models or not, most consumers will end up purchasing only one of the above products/services – either an iPhone or a Google Android-based device. That is, unless the consumer has unlimited amounts of resources (read: money) – in which case the simple rules of economics no longer apply. The same goes for the rest of the markets in which the two companies have overlapping products/services. Now that any conflicts of interest are out of the way, I see the two companies becoming more competitive, especially in the following areas:

• Mobility: enhanced multitouch support on Google Android-based devices should more closely compete with the iPhone
• Productivity: Apple’s iWork online suite being made available as a standalone product to directly compete with Google Docs
• Operating Systems: Google’s Chrome OS not withholding any punches versus Mac OS X

Yet one has to wonder what words were exchanged between Jobs and Schmidt when Apple booted all Google Voice-related apps from its App Store last week. Would that alone have been a reason for Schmidt to step down as Apple board member? Most likely, not. But it must have played a role in his overall decision. Full press release after the break, if you’re interested: 

Dr. Eric Schmidt Resigns from Apple’s Board of Directors

CUPERTINO, California-August 3, 2009-Apple today announced that Dr. Eric Schmidt, chief executive officer of Google, is resigning from Apple’s Board of Directors, a position he has held since August 2006.

“Eric has been an excellent Board member for Apple, investing his valuable time, talent, passion and wisdom to help make Apple successful,” said Steve Jobs, Apple’s CEO. “Unfortunately, as Google enters more of Apple’s core businesses, with Android and now Chrome OS, Eric’s effectiveness as an Apple Board member will be significantly diminished, since he will have to recuse himself from even larger portions of our meetings due to potential conflicts of interest. Therefore, we have mutually decided that now is the right time for Eric to resign his position on Apple’s Board.”

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market with its revolutionary iPhone.

In a press release that is sure to surprise many, Apple released sales numbers for the first weekend of iPhone 3G S sales: 1 million units sold in a period of three days (Friday, Saturday, Sunday).  The surprise isn’t in the sales figures – it was widely expected that the updated iPhone would be a big hit – but rather with Steve Jobs being quoted in the actual press release.  This marks the first time Jobs’ name has officially come into the spotlight since the iconic CEO took a medical leave of absence in January of 2009.  But why would Apple quote Jobs in a press release if the CEO has not returned from his medical leave?  Hit the Read More button for the full TNR analysis.

Late last week, a report by Yukari Iwatani Kane and Joann S. Lublin for The Wall Street Journal stated that ”Steve Jobs, who has been on medical leave from Apple Inc. since January to treat an undisclosed medical condition, received a liver transplant in Tennessee about two months ago. The chief executive has been recovering well and is expected to return to work on schedule later this month, though he may work part-time initially.  Mr. Jobs didn’t respond to an email requesting comment. ‘Steve continues to look forward to returning at the end of June, and there’s nothing further to say,’ said Apple spokeswoman Katie Cotton.”  This report confirms earlier talks of Jobs being treated in Tennessee, most prominently – a report by Alexander Haislip of the PEHub blog, which covers the private equity and venture capital business:

I spoke with a well-connected business person in Memphis this morning who says that there is a house in a swank neighborhood there that has been bought for a princely sum and is undergoing minor renovations in preparation for its new resident.

He says he has reason to believe Apple CEO Steve Jobs is moving to the city to treat his pancreatic cancer.

Normally, I’d just throw this out as wild speculation. Except St. Jude Children’s Research Hospital in Memphis happens to be one of the best endocrinology centers in the world and one of the top oncology spots for kids. If there’s one place in the U.S. with researchers equipped to tackle Jobs’ health problems, St. Jude may be it.

Just to be clear, this is a single source tip. We’ve decided not to chase it further as it’s not about VCs, but I thought you might enjoy speculating about it.

In effect, the inclusion of the quote by Jobs in the press release could be a three-pronged move by Apple:

1. To calm people down about Jobs’ surgery/liver transplant
2. Show shareholders, stakeholders, and fans that Jobs is well enough to have been paying attention to the launch
3. Reverse a defensive play: the news of Jobs getting a liver transplant came as a surprise  to many, myself included, since his medical leave was for an “unknown medical condition.”  Since some were deeply surprised about these news, Apple’s PR department might have also been caught by surprise that this has gotten out and wanted to do some damage control, just in case there was any damage.  By issuing a press release that mentions Jobs’ name along side extremely positive iPhone sales figures, it’s a one-two punch to 1) turn the perception of Jobs’ condition around as well as 2) begin the public transition to an Apple sans-Jobs to an Apple with Jobs (the end of June is just over a week away).

Why do you think Apple quoted Steve in the press release instead of another high-ranking Apple executive such as Phil Schiller (SVP Marketing) or Tim Cook (SVP Operations)?

As always, we wish Mr. Jobs good health, a long and joyful life, and – if it’s possible – at least some degree of privacy in his personal life.

I’m sure that by now the story of Steve Jobs taking a medical leave of absence from Apple has presented itself to your ears at least once.  If it hasn’t, it might be the right time to climb out from the bomb shelter.  After the news went public yesterday, all sorts of things happened: Apple’s stock price slid by as much as 10% in after hours trading, Dan Lyons aired out his underwear on CNBC,  and the ether-tubes went ablaze with the news.  Considering last week’s letter from Steve Jobs regarding his health, this is a strong turn of events.  Yet while everybody seems to be of the opinion that this will negatively impact Apple, I would like to focus in on this topic and possibly offer a perspective that is, as of yet, unexplored, if not positive.

There is some uncertainty in the air

Firstly, let’s address the issue of the drop in Apple’s stock price.  The approximate 10% slide in the price of Apple’s shares means that certain shareholders, or more precisely, the ones who sold on the news, firmly believe that the lack of Steve Jobs’ presence at the helm will have a negative effect on Apple.  Let me be the one to say that such a mindset is plain-out wrong.  Steve Jobs does not equal Apple.

There is no denying that Steve is the amazing visionary, businessman, and technologist who took a failing, weak, and unexciting Apple of the 90s and turned it into the most successful consumer-electronics company today.  Notice how the previous sentence includes the word businessman in it?  To put the word businessman on a pedestal and then put the words amazing and visionary next to it means something.  It means that Steve had a very strong business acumen and surely knew that the time would come when his days at Apple would come to an end.  To that tune, he undoubtedly has collected and groomed what has become a very inventive, creative, and capable team which would continue the force of success he set in motion at Apple.  As a matter of fact, the greatest technological innovations delivered by Apple were not the results of Jobs himself, but of Apple employees who carried out the vision he set forth.  Do you think that Steve single-handedly designed, engineered, programmed, and marketed all of Apple’s products since his return?  Of course not!  He had help, and that “help” has not only learned his ways of thinking, but also has learned and adopted his vision.  It is this mutual understanding and interaction that between Steve and Apple employees that makes Apple’s products so desirable, so awesome, and so successful today.

In lieu of this, it is absurd that Apple shareholders would sell because of a feeling of uncertainty in Apple.

Visionaree

This does not go to say that all is fine and dandy and definitely does not suggest that Apple could do better without Steve.  But neither does it suggest that Apple will be worse off without him.  The many qualities Steve brought to Apple were his vision, his charisma, his style and class, and his constant quest for perfection.  He will go down in history for these qualities.  Yet the most important of them is vision: the ability to carve out a general as well as a precise perspective, see where the market is going and what people want; see opportunities and capitalize on them.

Therefore, the uncertainty from Apple shareholders and many an Apple fan lies Steve’s vision: will whoever be in charge of Apple in the meantime set the correct vision for the company?  Will this person guide the company in the right direction and make the right decisions at the correct time?  Such questions are exactly what seems to be on the minds of everyone (perhaps unknowingly), especially those who have sold their share in Apple after yesterday’s news.

Will the magic continue?

Here are the set of questions that must be answered for all parties involved:

• Will the magic continue once Steve is no longer at Apple?  meaning..
• Will Apple continue to pump out jaw-dropping products that work as awesome as they look?
• Will they continue to be popular among consumers?

I believe that the asnwer to all of the above questions is a resounding yes! After Steve’s return to Apple in 1996, he began the process of carrying Apple out of the ruins the company was in and into the spotlight.  Not only has he accomplished this, but he has done so with glamour and style.  His vision carried the company forward and his management style accomplished the goals he set forth in his vision.  Now with nearly $25 billion in the bank, Apple is more than “in the clear.”

Mishandling-shmishhandling

There are more than a few topics circling around about Apple completely mishandling the “issue” of Steve’s health.  In fact, some go so far as to state that Apple mishandled the issue intentionally.  This is an interesting topic, the answer to which hinges on one line in yesterday’s letter by Steve:

“during the past week I have learned that my health-related issues are more complex that I originally thought.”

This line must be true.  If it turns out that either Jobs or the Board of Directors at Apple and/or others knew before (January 15th of 2009) that Steve’s “health-related issues” were “more complex than” he “originally thought,” then it subjects all or some of these parties to a fat lawsuit.

Moreover, there has been some talk of Steve and/or Apple completely mishandling the topic of Steve’s succession plan.  In other words, some are of the opinion that such a plan doesn’t exist, and if it does – it not being clear or transparent enough for current shareholders to maintain their positions in Apple and for potential shareholders to invest with confidence in the company.  Some would say that the perfect “exit” was executed by Microsoft and Bill Gates – who made it crystal clear that the reigns of the Redmond-based computer giant would be passed on to Ray Ozzie two years before the final transition occurred.  Therefore, I do see the accusation of the transition not being handled in the best way possible as viable.

Yet an interesting topic is whether Steve actually considers the current situation a sort of public succession plan that everybody is looking for.  Perhaps this is part of a bigger plan to hand over control of Apple to Tim Cook and do so under the coincidental timing of a medical leave.  It sure would be interesting and intriguing, but I hope  it is not.  If it is… then secrecy – something Apple is known for within the industry – has been taken to a new extreme.

What if…

What if, after taking this medical leave of absence until June 2009, Steve were not to come back to Apple at all?  What if his treatment requires him to resign as CEO of Apple?  Well, many are sure to write it off as being the end of the “Apple world.”  On a more pragmatic note, however, such a turn of events would be measured with an answer to two questions:

1. Who will take Steve Jobs’ place in providing Apple with its strategic vision and leadership?
2. Can this person – whoever it is – do this on a level that is equal to or above the level Steve Jobs has done over the years?

If reading these questions make you, dear reader, cringe in fear and run to your mommy, fear not: time will come when these questions will have to be answered… perhaps they won’t be in June of 2009, but a few years down the road, time will come that Mr. Jobs will not be the CEO of Apple.

If Steve carried out his duty as CEO to the company, then he has by now groomed and prepared some fine choices to take his place.  It is simply one of the responsibilities of his position to do just that.  Considering the Apple is, to a certain extent, his “baby,” I believe it is safe to say that it is something he has thought of and already completed with the same level of accuracy and perfection as was Apple’s announcement of the iPhone.

Lastly, I believe that Steve’s leave will serve in good health for Apple (as a company) internally.  It will allow the company an opportunity to find the person who might eventually replace Steve and solidify his or her position within the company as a viable replacement of the great iCEO.  This “activity” will be made possible by the vacancy of the dominant “personality” at the top of the company.  This domineering personality is often publicized as something possessed by Steve, the absence of which will allow new personalities to flourish and explore their ways within the corporation.

Wishing…

In any case, I wish Steve a healthy recovery and wish him the best in getting better: take as long as you need, Steve.  Your health is most important.  More important than making awesome computers and gadgets.  Always remember that.

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Full disclosure: Alex Luft owns a very small amount of shares in Apple, Inc.

As you might have heard, Apple published a letter by Steve Jobs this morning regarding his health.  I am not one to dissect others’ personal matters, especially ones related to health, and it is not what I am setting out to do here.  However, it is important to note that it is Apple’s responsibility (to its shareholders) in disclosing any information that would prevent Mr. Jobs from performing his duties as CEO of Apple.  And as we have already realized (some of us have done so many times over), this is a very sticky issue: where does Apple draw the line between meeting shareholder responsibility and Steve’s personal privacy?  In any case, there is one tid-bit that I think is interesting from the letter.  Hit the read-more link for the rest.The bit from the letter that I would like to shed some light on reads:

“For the first time in a decade, I’m getting to spend the holiday season with my family, rather than intensely preparing for a Macworld keynote.”

This is a very thoughtful decision on Steve’s part, one that I’m sure was a very conscious and considered one.  Moreover, it is a decision that we fully support here at TechNest Report.  To quote our own About page describing Nester, the TechNest Report mascot:

“Nester reminds us that besides obsessing about the tech industry and staring at screens all day long, there are so many other things in this world that we can and should do.  So we need to peel our eyes away from the monitor once in a while and appreciate those “other” things.  (let’s go take a break outside).”

Now about that break… Steve Jobs hasn’t taken one since 1998.  That’s right, he has keynoted MacWorld events every single year for the past ten years, most of those years having more than one major product announcement which required a presentation.  Having said that, it is understandable that after the tenth year, the amazing CEO would take a rest and decide to spend it with his family.  An intricate part of the recent MacWorld San Francisco (MWSF) conferences was the date: a few days or a couple of weeks after New Years’ day.  This would mean that preparation for the show the caliber of MWSF would take up much of the preceding weeks’ time – the time of the winter holidays.

I know that some “analysts” have released their own “takes” on the letter, some of them being negative.  Some of these reporters even go so far as to say that this letter is a temporary cover-up for the real issue of Steve Jobs’ health.  I find these reporters – to put it simply – living in a box, considering the aforementioned letter.

So if there is one thing that this letter from this amazing man, CEO, and entrepreneur is to teach us, it is to take some time off, relax, recuperate, and spend some quality time with the family.  After all, your family are the people (or person) that cares about you the most deep down.  So for those of you for whom the time off brought on by the holidays has not yet ended, do spend this time with your family; if the winter (or summer – if you’re across the globe) holidays have come to pass, put it on your calendar to spend more time with your close ones next year.  Learn to think different… from the company that does so on a daily basis.

PS: If you were wondering what Steve Jobs announced in those ten years of keynoting, The Standard has an excellent compilation, complete with video and memorable quotes.  At last, the letter has finally cleared up so much fear, uncertainty, and doubt around Mr. Jobs, we can all take a deep breath of relief.  Let’s all wish Steve a happy and healthy recovery.  Good luck, Steve.

We really like to hear from readers. Email us with your ideas or leave a comment below.

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