Apple Inc. Chief Executive Steve Jobs is taking a second medical leave -- the first was two years ago when he underwent a liver transplant during a six-month hiatus -- and the news sent the company's high-flying stock into a dive in overseas trading.
Jobs, who previously battled pancreatic cancer, has again handed Chief Operating Officer Tim Cook the day-to-day reins at Apple. The news sent Apple shares down 7.6% in trading in Frankfurt. Monday was a holiday in the United States, and the markets were closed there.
Jobs, who co-founded Apple in 1976, said in a memo to staff that he would continue to be Apple's CEO and would take part in major strategic decisions.
"At my request, the board of directors has granted me a medical leave of absence so I can focus on my health," Jobs, 55, wrote. "I love Apple so much and hope to be back as soon as I can."
This is the third time in the last decade that Jobs has reduced his role at Apple because of his health. He also took medical leave in 2004.
Jobs is critical to Apple. He is deeply enmeshed in the company's business, making key product decisions. The chief executive is inextricably linked to the company, credited with reviving its flagging fortunes in 1996 when he returned after a 12-year hiatus. He oversaw hit products such as the iMac and, more recently, the iPod, iPhone and iPad.
The announcement came as a surprise and was bound to rattle investors who attribute Apple's soaring success as a consumer-electronics giant to Jobs. His absence will not be a major concern with such strong momentum and product line in the pipeline for the next few years, but if the absence is prolonged, it could deflate the stock. Apple is set to report quarterly earnings on Tuesday.
Investors also have had confidence in the past in the stewardship of Cook, 50, known as the executive who makes Apple's trains run efficiently and on time. Cook joined Apple in 1998 and stepped in for Jobs during both of his leaves of absence.
Questions about Jobs' health have peppered the company for years, with some analysts and investors criticizing Apple for not making more information available.
An Apple spokesman declined to comment.
[Updated, 8:30 a.m.: Another major concern: the lack of succession planning at Apple, said IDC analyst Al Hilwa.
"Obviously the company is a lot more than Steve Jobs; it's a sizable franchise that can go on without him for a while," Hilwa said. "But the company still very much revolves around Steve Jobs, and we are going to see some fall back from that in the stock market. They will have to show several quarters of execution without him to comfort the market that they can do all right without him. He has been involved in such detailed work in everything at the company, you really wonder how they can get by and make decisions without him."
The Wall Street Journal reported the news earlier.]
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Photo: Apple Chief Executive Steve Jobs on June 7, 2010. Credit: Paul Sakuma / Associated Press
Jobs in June 2010
Steve Jobs, the chief executive officer of Apple Inc., announced Monday in an internal memo that he would be on medical leave for an undetermined period of time. The statement caused a sharp decrease of Apple  in foreign markets, while US markets were closed in honor of .

Monday's email announcement marked the third time in the past decade that Jobs, aged 55, has taken medical leave. He fought  in 2004 and took six months off in early 2009, later revealing he had undergone a liver transplant. Jobs has not yet mentioned what prompted his decision this time around, but said he will still be the company's CEO. He left current chief operating officer  in charge of day-to-day operations, the same move made in Jobs' last two absences.

While no additional comment has been officially made by Apple, ''The New York Times'' reported that someone familiar with the situation said Jobs's health has "ups and downs" due to problems with his , problems frequently experienced by those who have had liver transplants. The insider, who asked to remain anonymous, said that, over the past few weeks, Jobs' health appeared to be deteriorating and that he was becoming thinner. Lewis W. Teperman, a doctor at New York University, said, "It’s very common for transplant patients to have issues that are not life-threatening."

On its website, Apple released the text of Jobs's email, which reads:

Team,


At my request, the board of directors has granted me a medical leave of absence so I can focus on my health. I will continue as CEO and be involved in major strategic decisions for the company.


I have asked Tim Cook to be responsible for all of Apple's day to day operations. I have great confidence that Tim and the rest of the executive management team will do a terrific job executing the exciting plans we have in place for 2011.


I love Apple so much and hope to be back as soon as I can. In the meantime, my family and I would deeply appreciate respect for our privacy.


Steve



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