Apple Inc Transparency

Slide 1: 

Apple, Inc: Transparency in Corporate Statements About the CEO

Slide 2: 

2008 2006 Health Concerns …

Slide 3: 

Health Concerns Grow …

Slide 4: 

Apple’s Initial Response “…hormone imbalance…” “…simple and straightforward…” “…continue as Apple’s CEO…”

Slide 5: 

Apple’s Second Response “…health-issues are more complex…” “…to take a medical leave of absence…”

Slide 6: 

Interested Parties Apple Inc. Shareholders & Investing Community Media Competitors (i.e. Dell, Microsoft, etc.) Apple Customers U.S. Government Legal Community

Slide 7: 

Initial Public Response

Slide 8: 

Why & how is Jobs important to Apple? Looking Ahead What are the main post-Jobs issues?

Slide 9: 

The History of Apple

Slide 10: 

The History of Apple Co-founders Steve Jobs and Steve Wozniak in April 1976

Slide 11: 

The History of Apple: Stage I Apple I (1976) Apple II (1980) Macintosh (1984)

Slide 12: 

The History of Apple: Stage II John Sculley Apple CEO (1985 – 1993) Newton OS (1993) Macintosh Portable (1989) Macintosh Performa (1992)

Slide 13: 

The History of Apple: Stage II Michael Spindler Apple CEO (1993 – 1996) (Yahoo! Finance)

Slide 14: 

Gil Amelio Apple CEO (1996 – 1997) The History of Apple: Stage II (Yahoo! Finance)

Slide 15: 

Steve Jobs: 1985 - 1997 1985: Founded by Steve Jobs 1996: Sold to Apple ($429 million) 1986: Bought by Jobs ($10 million) 2006: Sold to Disney ($7.4 billion)

Slide 16: 

Personal Computers iMac (1998) MacBook (2006) The History of Apple: Stage III

Slide 17: 

The History of Apple: Stage III Personal Devices iPods (2001) iPhone (2007)

Slide 18: 

iTunes (2003) Apple TV (2007) The History of Apple: Stage III Multimedia

Slide 19: 

The History of Apple: Stage III (Yahoo! Finance)

Slide 20: 

Steve Jobs Premium? ~$20 Billion How much has Steve Jobs been worth to Apple Stock? Analysts estimate between 10-20%...

Slide 21: 

Sustainable Industry Leader? (Apple Keynote Address 2008)

Slide 22: 

Media/Investor Relations “… Apple has allowed its institutional arrogance, its culture of secretiveness, and possibly its solicitude for and fear of Jobs to lead it down a path of rank corporate irresponsibility…” (Los Angeles Times, January 2009) “… The quality of information we’re getting from Apple is inconsistent at best and misleading at worst.” (CNBC’s Fast Money, January 2009)

Slide 23: 

Legal Ramifications? Apple faces a government review from the SEC of its disclosures about Steve Jobs’s health problems to ensure investors weren’t misled. (Bloomberg, January 2009) “It seems likely that someone will bring legal action claiming that Apple or its directors failure to keep the market fully informed about Jobs‘s health constituted a material misstatement.” (iTWire, January 2009)

Slide 24: 

Initial Market Response

Slide 25: 

Initial Market Response Dec. 9, 2008 - Apple Inc. trading at $100.06 per share Dec. 24, 2008 - Apple loses 15% after Jobs pulls out of his 2009 MacWorld keynote address Jan. 5, 2009 - Apple rebounds to $94.58 after Jobs’s assurance that he will continue as Apple CEO Jan. 20, 2009 - Apple loses almost 20% when Jobs announces his leave of absence ($78.20)

Slide 26: 

Market Comparison

Slide 27: 

Summary of Issues Diminished Company Value Lower Stock Price Concerns of Post-Jobs Success Media & Investor Distrust Lack of Communication Credibility Potential lawsuits & SEC review Potential Financial Impact Potential Negative PR

Slide 28: 

Looking Forward How can Apple communicate to the investing community that it can be successful without Jobs? Does Apple need to have better overall communication with the media and the public? If faced with filed lawsuits, should Apple try to nip it in the bud (i.e. quickly settle out-of-court) to avoid the potentially negative PR? Should Apple try to develop a new Jobs-like front man with somebody like Timothy Cook or Jonathan Ive? If so, how, and does this also include greater disclosure about Steve Jobs’s personal health issues?

Slide 29: 

Apple’s Top Talent Timothy D. Cook Chief Operating Officer (acting CEO) Dramatically increased Apple’s margins by pulling it out of manufacturing Served as Apple CEO for two months in 2004 Jonathan Ives Senior Vice President, Industrial Design Lead designer behind the iMac, iPod, PowerBook, MacBook and iPhone Numerous design awards, also rated the most influential Briton in America

Slide 30: 

Q&A