AN FRANCISCO/LOS ANGELES: Apple Inc began a new era on Thursday without Steve Jobs as chief executive, a momentous shift that surprised investors, but barely dented confidence in the near-term outlook for the stock.
In announcing that he could no longer fulfill his duties, Jobs stepped away from his CEO duties and cleared the way for Tim Cook to take over leadership of one of the world's best known and valuable companies.
Cook, 50, must now convince investors that Jobs' vision and spirit have been institutionalized within Apple, a company that revolutionized entertainment and communication with its iPod, iPad and iPhone devices. Jobs, who has been on medical leave since January, will stay on as chairman.
"Investors are coming to the realization that this is a natural transition. It may have already been built into Apple's valuation," said Hendi Susanto, a Gabelli & Co analyst.
Apple's shares were down less than 2 percent in early trading on Thursday, showing more resilience than when the departure was initially announced late Wednesday.
"Over the course of last year, investors have become more comfortable with the idea of life after Jobs," said Bill Kreher, an analyst with Edward Jones. "I think it is encouraging that he will remain with the company as chairman but the real story is that Tim Cook has emerged as a capable successor."
Jobs, who has fought a rare form of pancreatic cancer, is deemed the heart and soul of a company that became the most valuable in the world for a brief period this year.
"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," Jobs wrote in a brief letter announcing his resignation.
While it is unlikely that his departure as CEO will derail Apple's ambitious product-launch roadmap in the near term, there are concerns about whether the company will be as creative without its founder and visionary at the helm.
Jobs' battle with pancreatic cancer, which has stretched over several years, has been of deep concern to Apple fans, investors and the company's board.
Over the past two years, even board members have confided to friends their concern that Jobs, in his quest for privacy, was not being forthcoming with directors about the true condition of his health.
Wall Street also wanted a clearer picture of plans at Apple.
"I think a lack of clarity of its succession plan in the past has been a distraction so we appreciate that this plan represents a smooth and orderly transition," Kreher said.
Jobs, 56, has been on medical leave since Jan. 17, with his duties being filled by Cook, who was chief operating officer.
