Jobs takes medical leave from Apple, health issues 'more complex' than thought

Steve Jobs announced today after market close that he has decided to take a medical leave of absence from Apple, about a week after saying he would stay on as the company’s CEO while attending to his health issues.

In a less optimistic letter (see below) to Apple employees than the one sent on January 5, Jobs said his "health-related issues are more complex than originally thought." Jobs and Apple have yet to define the health issues, vaguely stating last week that a "hormone imbalance" has been "robbing" his body of the proteins it needs to be healthy.

Jobs is leaving Tim Cook (pictured), Apple’s COO, in charge while he is on leave. Cook joined Apple in 1998 as senior VP of operations, and was promoted to executive VP of worldwide sales and operations in 2002. He has a strong computer background, spending 16 years total at Compaq and in IBM’s PC division before joining Apple, and became responsible for Apple’s Mac division in 2004.

Whenever questions on Jobs’ health arise, questions on his successor aren’t far behind. And Cook is looking more and more like Apple’s unofficial backup CEO. This is the second time Jobs has handed him the company reins, the first being when Jobs underwent cancer surgery in the mid 1990s.

Cook is not flashy, nor is he credited for Apple’s cool designs, but he’s the guy this industry can thank for Apple’s continuing, all be they super controlled, supplier relationships.

When Cook walked into Apple 10 years ago, he almost immediately pulled the company out of manufacturing, closing factories and warehouses and establishing relationships with contract manufacturers, according to reports on the exec. Why did he do so? Because, as he has been quoted as saying, inventory is "fundamentally evil" and can weigh on a company’s balance sheet like a lead rock.

And while he doesn’t have his finger on the pulse of consumer wants the way Jobs seems to, he has his finger on the pulse of the electronics supply chain and he knows how to work it to his company’s advantage. He reportedly negotiated deals with major flash makers for low-cost memory before the iPod Nano came out, preordering the memory, betting the tiny iPod would be a big hit, and knowing that such agreements would give Apple some control over the memory chain for years to come (and they have). 

I wouldn’t count on Cook to bring the world its next iPod, but he does have a background, or at least an education, in engineering. Complementing his MBA from Duke University is a Bachelor of Science degree in Industrial Engineering from Auburn University. And Apple has plenty of innovative people to dream up the next device I won’t be able to live without beyond Cook. Perhaps design genius shouldn’t be a "must" for Apple’s next CEO.

What do you think on Job’s decision to take leave and put Cook in charge? And how do you think Cook would do if offically named CEO at a later date? Share your thoughts just below the letter Jobs sent to Apple’s employees:

Team,
I am sure all of you saw my letter last week sharing something very personal with the Apple community. Unfortunately, the curiosity over my personal health continues to be a distraction not only for me and my family, but everyone else at Apple as well. In addition, during the past week I have learned that my health-related issues are more complex than I originally thought.

In order to take myself out of the limelight and focus on my health, and to allow everyone at Apple to focus on delivering extraordinary products, I have decided to take a medical leave of absence until the end of June.

I have asked Tim Cook to be responsible for Apple’s day to day operations, and I know he and the rest of the executive management team will do a great job. As CEO, I plan to remain involved in major strategic decisions while I am out. Our board of directors fully supports this plan.

I look forward to seeing all of you this summer.

Steve