Steve Jobs' latest medical leave comes at a time when competition to Apple Inc.'s popular iPhone and iPad products is mounting fast.
The Cupertino, Calif.-based consumer electronics giant has set the tone for the mobile computing market. Its iPhone usurped Research In Motion Ltd.'s BlackBerry for leadership in the U.S. smartphone space and triggered a host of copycat devices that employed its touchscreen interface. Similarly, Apple set off the boom in tablet computing, selling more than 7 million iPads in less a year on the market.
But the competition is catching up. Already, handsets running Google Inc.'s Android operating system have become trendy among technophiles and neophytes alike. And though the iPad remains the dominant tablet computer, new devices are on the way from Research In Motion, Samsung Electronics Co., Acer Inc. and Dell Inc.
On Monday, Mr. Jobs, 55, told Apple employees he had been granted a leave "so I can focus on my health." Chief Operating Officer Tim Cook will run the company in Jobs's absence though Jobs would "be involved in major strategic decisions for the company."
Mr. Jobs' absence leaves Apple without its most important visionary as the competition circles the products that have come to symbolize the world's most valuable technology company. Mr. Jobs is credited with stewarding projects like the iPhone and iPad from conception to production. He is viewed as the company's top dealmaker, cutting agreements with content publishers and network operators.
Importantly, Mr. Jobs is the company's pitch man, whipping up excitement among customers for the company's latest gadget. "He has a set of skills motivating people and shepherding certain designs through in new products and in deal-making that's awfully rare," said Kevin Landis, president of SiVest Group. He added that while he sees Jobs as an essential part of Apple's strategy, the chief executive's temporary medical leave isn't going to push him to change his Apple holdings, which constitute nearly 10% of his "Technology Leaders Fund."
Apple did not respond immediately to a request for comment on how Mr. Jobs' absence might affect its competitive position.
Whether the competition can displace Apple is an open question. The company has legions of loyal fans and commands respect from technologists. Its designs regularly win plaudits for their stylish simplicity.
And Apple has weathered Mr. Jobs' health concerns before with Apple Chief Operating Officer Tim Cook filling in for the CEO.
Still, Mr. Cook can't replace Jobs' star power as a pitchman. Last week, the crowd at the launch of the iPhone on Verizon's network was noticeably deflated when Mr. Cook rather than Mr. Jobs showed up.
And competitors are stealing pages from Apple's playbook with success. In recent months, more smartphones running Android have been sold in the U.S. than those running Apple's operating system, according to Nielsen Co. Several tablet computers, including Motorola Mobility Holdings Inc. unveiled its "Xoom" tablet at the Consumer Electronics Show in Las Vegas to a warm reception. And Samsung has shipped more than one million Galaxy Tab slates, an iPad competitor, in its first quarter. "I do think the Jobs' absence is a window for the competitors," said Kim Caughey Forrest, an analyst for the Fort Pitt Capital fund, which sold all its Apple shares a few years ago. "It should be really interesting to see what happens."
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