Steve Jobs resigns, but doesn't leave the building

Iconic Apple leader clinging on to power a little longer.

Apple's co-founder and CEO Steve Jobs has finally resigned, handing over the reins to Tim Cook, formerly COO at the firm. But Jobs has asked to become chairman instead. After a long battle with ill health, he wrote in a letter to the Apple board:

I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple's CEO, I would be the first to let you know. Unfortunately, that day has come.

I hereby resign as CEO of Apple. I would like to serve, if the Board sees fit, as Chairman of the Board, director and Apple employee.

As far as my successor goes, I strongly recommend that we execute our succession plan and name Tim Cook as CEO of Apple.

I believe Apple's brightest and most innovative days are ahead of it. And I look forward to watching and contributing to its success in a new role.

I have made some of the best friends of my life at Apple, and I thank you all for the many years of being able to work alongside you.

Steve

Apple's brand is inextricably linked with Jobs, who was actually ousted by his own board in 1985 only to found another successful firm, NeXT Computer, which Apple then bought - bringing Jobs back into the fold in 1996.

That marked a turning point in Apple's fortunes, as Jobs and recent hire Tim Cook brought efficiency back to Apple's business, and innovation back to its product lines. That innovation was best highlighted by the iMac, and continued with the iPod, iPhone and iPad. The latter three are especially noteworthy, shaking up the music player, smartphone and tablet computer markets immeasurably.

Those innovations, as well as a huge advantage over competitors thanks to its vast component purchasing power and economies of scale, have helped Jobs and the Apple team grow the firm to where it is today: worth around $220bn (£194bn) and profits of $7bn (£6.1bn) in its most recent financial quarter.

Apple without Jobs

So what does Jobs' transition from CEO to chairman really mean for Apple? Precious little in the short to medium term, as it turns out. Not only has Tim Cook shown he can effectively lead Apple during Steve Job's previous bouts of illness, but as Michael Gartenberg, research director at analyst firm Gartner notes, "While this marks the end of an era for Apple, it's important to remember the there's more to Apple than any one person, even Steve Jobs. Continuing as chairman Mr. Jobs will continue to leave his mark on both the company and products even as he transfers the reigns to Mr Cook."

The firm is of course in superb financial health, is the most valuable technology firm in the world, and has the most precious brand of any firm according to brands agency Millward Brown. Its technology roadmap is already clearly established for the next few years at least, with better versions of various iDevices already on their way.

But longer term there is more room for doubt. Not only is Jobs largely credited with Apple's turnaround in the Nineties, but many of the firm's most iconic designs are said to have been heavily influenced not only by designer Jonathan Ive and his team, but by Jobs himself. He is said to be maniacal about ease of use, sending products back to design if they are not immediately intuitive.

Another area where Jobs' experience has clearly paid off is in his building not just of computers and gadgets but related ecosystems. His deftness here was first highlighted by iTunes, which enabled Apple to capture not just a large chunk of the MP3 player market but a large chunk of the music distribution business to boot.

Jobs helped build another ecosystem around the iPhone, making it easy for developers to build applications to populate the Apple App Store, and spawning an entire industry in the process. 72 per cent of Apple smartphone users download at least ten third-party applications, while 73 per cent of BlackBerry users have picked up five apps or less, according to research by media analysts Compete.

The iPad again has an ecosystem of third party application developers, helping to make Apple's tablet potentially far richer than competing offerings. A lack of applications was one of the reasons HP's Touchpad saw such muted demand - HP ditched its 'iPad killer' just 45 days after its launch.

But these ecosystems have not been without their critics. Publishers have been angered that Apple takes 30 per cent of any subscription revenues they earn selling subs through the App Store.

Users have complained that the App Store is not truly 'open', since all applications must be approved by Apple. Apple doesn't allow any pornography in the App Store for instance, but more worryingly Apple has been accused of blocking applications that compete with its own apps. It blocked an iTunes-like application and Google Voice, prompting the Federal Trade Commission to investigate and pressure Apple to change its stance.

It also refuses to allow Adobe's Flash player to run in the browser on its devices like the iPhone and iPad. Apple claims this is because Flash is proprietary (as are many of Apple's products), and is left wanting when it comes to security, performance, reliability and its impact on battery life. Others believe it is simply to maintain its stranglehold on the App Store - Flash can be used to enable all sorts of applications and games that would not require a download from the App Store, robbing Apple of potential control and revenue.

But for all this, it's clear that these ecosystems are one of the reasons that Apple has done so well with Jobs at the helm. Once one has invested in applications from the App Store, many punters will stick with Apple devices if one breaks or is lost or stolen, to avoid having to start over with new apps.

With Jobs now in the chairman role he will still have influence over Apple's direction and those all-important ecosystems, an area where he seems to have a Midas touch. But if, as seems likely, his tenure at Apple is finally coming to an end, Apple's long term future is surely less assured without him. After all, it was only when Jobs returned to Apple in 1996 that its boom years really began.

I've been saying since January that Jobs should leave Apple, not just for some of his less convincing recent business decisions but also in order to bring clarity and consistency to the leadership role. Questions over his health have surely been a distraction for management and staff.

Apple's iconic co-founder has not been without his critics for some of his approaches to competition and customer service. But few would question his utter brilliance at this technology lark, his passion for the industry and of course for Apple. Whichever way you look at it, Apple will feel his loss when Sir Steve finally does leave the building.

Jason Stamper is NS technology correspondent and editor of Computer Business Review.

Jason Stamper is editor of Computer Business Review

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Want to send a positive Brexit message to Europe? Back Arsene Wenger for England manager

Boris Johnson could make a gesture of goodwill. 

It is hard not to feel some sympathy for Sam Allardyce, who coveted the England job for so many years, before losing it after playing just a single match. Yet Allardyce has only himself to blame and the Football Association were right to move quickly to end his tenure.

There are many candidates for the job. The experience of Alan Pardew and the potential of Eddie Howe make them strong contenders. The FA's reported interest in Ralf Rangner sent most of us scurrying to Google to find out who the little known Leipzig manager is. But the standout contender is Arsenal's French boss Arsene Wenger, 

Would England fans accept a foreign manager? The experience of Sven Goran-Eriksson suggests so, especially when the results are good. Nobody complained about having a Swede in charge the night that England won 5-1 in Munich, though Sven's sides never won the glittering prizes, the Swede proving perhaps too rigidly English in his commitment to the 4-4-2 formation.

Fabio Capello's brief stint was less successful. He never seemed happy in the English game, preferring to give interviews in Italian. That perhaps contributed to his abrupt departure, falling out with his FA bosses after he seemed unable to understand why allegations of racial abuse by the England captain had to be taken seriously by the governing body.

Arsene Wenger could not be more different. Almost unknown when he arrived to "Arsene Who?" headlines two decades ago, he became as much part of North London folklore as all-time great Arsenal and Spurs bosses, Herbert Chapman or Bill Nicholson, his own Invicibles once dominating the premier league without losing a game all season. There has been more frustration since the move from Highbury to the Emirates, but Wenger's track record means he ranks among the greatest managers of the last hundred years - and he could surely do a job for England.

Arsene is a European Anglophile. While the media debate whether or not the FA Cup has lost its place in our hearts, Wenger has no doubt that its magic still matters, which may be why his Arsenal sides have kept on winning it so often. Wenger manages a multinational team but England's football traditions have certainly got under his skin. The Arsenal boss has changed his mind about emulating the continental innovation of a winter break. "I would cry if you changed that", he has said, citing his love of Boxing Day football as part of the popular tradition of English football.

Obviously, the FA must make this decision on football grounds. It is an important one to get right. Fifty years of hurt still haven't stopped us dreaming, but losing to Iceland this summer while watching Wales march to the semi-finals certainly tested any lingering optimism. Wenger was as gutted as anybody. "This is my second country. I was absolutely on my knees when we lost to Iceland. I couldn't believe it" he said.

The man to turn things around must clearly be chosen on merit. But I wonder if our new Foreign Secretary Boris Johnson - albeit more of a rugger man himself - might be tempted to quietly  suggest in the corridors of footballing power that the appointment could play an unlikely role in helping to get the mood music in place which would help to secure the best Brexit deal for Britain, and for Europe too.

Johnson does have one serious bit of unfinished business from the referendum campaign: to persuade his new boss Theresa May that the commitments made to European nationals in Britain must be honoured in full.  The government should speed up its response and put that guarantee in place. 

Nor should that commitment to 3m of our neighbours and friends be made grudgingly.

So Boris should also come out and back Arsene for the England job, as a very good symbolic way to show that we will continue to celebrate the Europeans here who contribute so much to our society.

British negotiators will be watching the twists and turns of the battle for the Elysee Palace, to see whether Alain Juppe, Nicolas Sarkozy end up as President. It is a reminder that other countries face domestic pressures over the negotiations to come too. So the political negotiations will be tough - but we should make sure our social and cultural relations with Europe remain warm.

More than half of Britons voted to leave the political structures of the European Union in June. Most voters on both sides of the referendum had little love of the Brussels institutions, or indeed any understanding of what they do.

But how can we ensure that our European neighbours and friends understand and hear that this was no rejection of them - and that so many of the ways that we engage with our fellow Europeans rom family ties to foreign holidays, the European contributions to making our society that bit better - the baguettes and cappuccinos, cultural links and sporting heroes remain as much loved as ever.

We will see that this weekend when nobody in the golf clubs will be asking who voted Remain and who voted Leave as we cheer on our European team - seven Brits playing in the twelve-strong side, alongside their Spanish, Belgian, German, Irish and Swedish team-mates.

And now another important opportunity to get that message across suddenly presents itself.

Wenger for England. What better post-Brexit commitment to a new Entente Cordiale could we possibly make?

Sunder Katwala is director of British Future and former general secretary of the Fabian Society.