Investors fear Jobs-less Apple

By Gabriel Madway - Analysis

SAN FRANCISCO (Reuters) - A shock revelation that Apple Inc chief and tech icon Steve Jobs will bench himself for six months sent shivers through investors who fear a change at the top will chill a product line-up struggling to come up with the next big thing.

Many expect Apple shares, which plunged 7 percent on Wednesday following the announcement, to be stung by the news. But some analysts say Jobs, though he will be missed in the short term, may not be as irreplaceable as many think.

In addition, the developments foreshadowed Jobs permanent departure soon, analysts say, and bolstered Chief Operating Officer Tim Cook's case as heir apparent.

Anticipation is mounting about the company's plans for 2009. A cheaper version of Apple's wildly popular smartphone -- dubbed the "iPhone nano" -- is widely said to be in the works. In addition, whispers persist that the company is working on some sort of ultra-portable device.

"You can't really dismiss the idea that if he would be gone from the company it would be a great loss, but there are a lot of innovative minds at Apple," said Ted Parrish, portfolio manager at the Henssler Equity Fund in Georgia, which owns Apple stock.

"The company is in a great position, its product cycle is strong and we would buy Apple on weakness associated with this news."

Jobs is universally viewed as the chief creative force behind the company's line of consumer-friendly products, which include Mac computers, the iPod and the iPhone, and is regarded as a master marketer and pitchman. As such, many fear his departure would deprive the company of its most vital and imaginative resource.

Indeed, Jobs return to Apple a decade ago sparked a period of remarkable growth and creativity, which helped keep Apple one step ahead of rivals in the brutally competitive consumer technology sector. Apple's product innovations have often laid the blueprint for its competitors to follow.