By Gabriel Madway and Alexei Oreskovic SAN FRANCISCO (Reuters) - A thin but energetic Steve Jobs made a surprise return to the spotlight on Wednesday, taking the stage to unveil Apple Inc's<AAPL.O> new iPad and drawing a standing ovation.
The chief executive has been out on medical leave since late January and his reappearance, in trademark turtleneck and jeans, bolstered Apple shares and reassured investors and fans worried about his health. Defying speculation in some tabloid reports that he was at death's door, Jobs took swipes at rivals and mocked competing tablet computers. Striding back and forth across the stage at the Yerba Buena Center, Jobs spoke passionately about the iPad 2's main features as his No. 2 and heir apparent Tim Cook looked on.
"We've been working on this product for a while and I just didn't want to miss today," the industry icon told a packed auditorium in San Francisco, holding forth with his characteristic flair and energy. In the run-up to the event, there had been almost as much speculation about whether Jobs would appear as there was about the device itself. Jobs, who has been treated for a rare form of cancer, had been on indefinite medical leave for an undisclosed condition. His return to the spotlight comes at a critical moment. Apple is launching the next generation of its ground-breaking tablet computer just as its main adversaries are releasing their first such devices. The $499 iPad 2 is thinner than the iPhone 4, twice as fast as the last tablet, camera-equipped, and ships March 11 in the United States and then March 25 in 26 more countries. The surprisingly fast roll-out highlights the fierce competition in the tablet market. "Investors know his illness is pretty serious, but it's comforting to know that while he's in his supposed leave of absence, he's still involved," said Capital Advisors Growth Fund co-manager Channing Smith. "The new product looks good and the key is they continue to innovate, which is what we want to watch rather than looking at Steve Jobs." Graphic showing shares vs product launches: http://r.reuters.com/cup38r Graphic outlining Cook's impact at Apple: http://r.reuters.com/vuq28r COOK TAKES A SEAT The iPad 2 goes on sale at both AT&T Inc <T> and Verizon Wireless <VZ>, and at $499 is about $100 cheaper than Motorola Mobility's <MMI.N> Xoom. Motorola Mobility shares slid 4 percent. Avian Securities analyst Matthew Thornton said Motorola investors were disappointed with both the release date, which is earlier than expected, and the pricing of the new iPad. "It's going to ding the Xoom sales," he said. "You're going to have serious competition." Apple sold nearly 15 million iPads in nine months of 2010, two or three times as many as analysts had predicted. The company is expected to sell 30 million or more this year, which would generate close to $20 billion in sales. That is despite a growing cast of competitors like Motorola, Research in Motion <RIM.TO><RIMM.O> and Hewlett-Packard Co <HPQ.N>. Shares of Cupertino, California-based Apple rose 0.7 percent to $351.76 on Nasdaq at mid-afternoon. "It's pretty positive. It's definitely a sign that he's in good enough health," said Vijay Rakesh at Sterne Agee. Tablets are seen as a must-have device for consumers and many businesses over the next few years. Analysts expect the market to surge to more than 50 million units this year, and 200 million units by 2015. As in the smartphone market, Apple's chief rival is expected to be Google Inc's <GOOG.O> Android platform, which is free to license and is being used on a number of tablets. The iPad, along with the iPhone, is expected to fuel Apple's growth over the next several years. The two product lines already make up more than half the company's revenue. The iPad, which Apple has priced aggressively low versus the competition, has pinched the company's margins, a problem Apple seems happy to live with if the tablet can deliver such startling growth. Chief Operating Officer Cook, who has run Apple in Jobs' absence, took a backseat to his chief, who said rivals were just "flummoxed" by the iPad. "Steve Jobs is the most important asset for Apple without a doubt and that's why investors are so curious about whether he will remain and continue to have an impact," said Robert Lutts, chief investment officer at Cabot Money Management. "The stock went up after his appearance but not as much as it normally would if Apple had a fully healthy CEO." (Writing by Edwin Chan; Additional reporting by Bill Rigby in Seattle, Sinead Carew and Liana B. Baker in New York; Editing by Richard Chang)
The chief executive has been out on medical leave since late January and his reappearance, in trademark turtleneck and jeans, bolstered Apple shares and reassured investors and fans worried about his health. Defying speculation in some tabloid reports that he was at death's door, Jobs took swipes at rivals and mocked competing tablet computers. Striding back and forth across the stage at the Yerba Buena Center, Jobs spoke passionately about the iPad 2's main features as his No. 2 and heir apparent Tim Cook looked on.
"We've been working on this product for a while and I just didn't want to miss today," the industry icon told a packed auditorium in San Francisco, holding forth with his characteristic flair and energy. In the run-up to the event, there had been almost as much speculation about whether Jobs would appear as there was about the device itself. Jobs, who has been treated for a rare form of cancer, had been on indefinite medical leave for an undisclosed condition. His return to the spotlight comes at a critical moment. Apple is launching the next generation of its ground-breaking tablet computer just as its main adversaries are releasing their first such devices. The $499 iPad 2 is thinner than the iPhone 4, twice as fast as the last tablet, camera-equipped, and ships March 11 in the United States and then March 25 in 26 more countries. The surprisingly fast roll-out highlights the fierce competition in the tablet market. "Investors know his illness is pretty serious, but it's comforting to know that while he's in his supposed leave of absence, he's still involved," said Capital Advisors Growth Fund co-manager Channing Smith. "The new product looks good and the key is they continue to innovate, which is what we want to watch rather than looking at Steve Jobs." Graphic showing shares vs product launches: http://r.reuters.com/cup38r Graphic outlining Cook's impact at Apple: http://r.reuters.com/vuq28r COOK TAKES A SEAT The iPad 2 goes on sale at both AT&T Inc <T> and Verizon Wireless <VZ>, and at $499 is about $100 cheaper than Motorola Mobility's <MMI.N> Xoom. Motorola Mobility shares slid 4 percent. Avian Securities analyst Matthew Thornton said Motorola investors were disappointed with both the release date, which is earlier than expected, and the pricing of the new iPad. "It's going to ding the Xoom sales," he said. "You're going to have serious competition." Apple sold nearly 15 million iPads in nine months of 2010, two or three times as many as analysts had predicted. The company is expected to sell 30 million or more this year, which would generate close to $20 billion in sales. That is despite a growing cast of competitors like Motorola, Research in Motion <RIM.TO><RIMM.O> and Hewlett-Packard Co <HPQ.N>. Shares of Cupertino, California-based Apple rose 0.7 percent to $351.76 on Nasdaq at mid-afternoon. "It's pretty positive. It's definitely a sign that he's in good enough health," said Vijay Rakesh at Sterne Agee. Tablets are seen as a must-have device for consumers and many businesses over the next few years. Analysts expect the market to surge to more than 50 million units this year, and 200 million units by 2015. As in the smartphone market, Apple's chief rival is expected to be Google Inc's <GOOG.O> Android platform, which is free to license and is being used on a number of tablets. The iPad, along with the iPhone, is expected to fuel Apple's growth over the next several years. The two product lines already make up more than half the company's revenue. The iPad, which Apple has priced aggressively low versus the competition, has pinched the company's margins, a problem Apple seems happy to live with if the tablet can deliver such startling growth. Chief Operating Officer Cook, who has run Apple in Jobs' absence, took a backseat to his chief, who said rivals were just "flummoxed" by the iPad. "Steve Jobs is the most important asset for Apple without a doubt and that's why investors are so curious about whether he will remain and continue to have an impact," said Robert Lutts, chief investment officer at Cabot Money Management. "The stock went up after his appearance but not as much as it normally would if Apple had a fully healthy CEO." (Writing by Edwin Chan; Additional reporting by Bill Rigby in Seattle, Sinead Carew and Liana B. Baker in New York; Editing by Richard Chang)
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