Apple's 'He's-No-Steve-Jobs' Problem

If it had not been used already, "Great Expectations" might make a perfect name for a book about Apple. The company reported earnings of $8.2 billion last quarter on sales of $36 billion. Wall Street's reaction? Shares slid below $600 for the first time in months. The revenue number was below analysts' expectations.

In the same report, Apple forecast sales of around $52 billion for the holiday quarter. That would be the most earned in a single quarter by any electronics company in history, according to MarketWatch. But due to the anticipation of higher costs related to innovative new production details, analysts were disappointed by the revenue projection.

Meanwhile, MarketWatch commentator Therese Poletti reports that many industry watchers are griping about Apple top management. They see the recent ouster of Apple Store head John Browett on the tail of the departure of Scott Forstall, the exec in charge of mobile software, as signs of turmoil in the executive suite. And there is no lack of complaints about Apple's new product releases, from the poor debut of the company's replacement for Google Maps to disappointment over the pricing of the new iPod mini.

Inevitably, fingers point to the top of the pyramid where CEO Tim Cook is in the unenviable position of carrying on the Steve Jobs legacy. Similarly, many have also raised Ron Johnson, original visionary of the Apple Stores concept, to Olympian heights. Did John Browett ever stand a chance of continuing in the tradition of innovation Johnson established? Says Forbes contributor Laura Heller, "It's unclear if there's anyone currently working in the U.S. retail industry up to the task."

Ms. Poletti of MarketWatch also points out that there are perhaps more analysts in favor of the executive shake-up. They compliment Mr. Cook for his ability to make tough personnel decisions and for emphasizing a collaborative atmosphere. Some say that the new administration is bringing more fairness and consistency to company management and product execution relative to the famously temperamental Steve Jobs.

• What's Next for Apple Stores - Forbes
  
• Is Apple starting to unravel without Jobs? - MarkeWatch
  
• Apple's Profit Report Leaves Sour Taste - ABC News