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June 23, 2009

Strong Hints Jobs is Back Working at Apple

Yesterday morning on Twitter I noted that Steve Jobs was quoted in Apple's press release announcing 1 million sales of the new iPhone 3Gs. I quickly completed a scan of Apple press releases going back to late March and found no other instance of Jobs being quoted.

This morning, AppleInsider.com reported the same and stated that this is the first time Jobs has been quoted in an Apple press release since he began his leave of absence in January. I think this is a very strong signal that Jobs has in fact returned to Apple. The extent of his participation is still up in the air as no one knows how much stamina he has following his recovery from his latest health issues. As widely reported, Jobs apparently had a liver transplant a few months ago.

Also worth noting it that there have been several sitings of Jobs on the Apple corporate campus.

Overall, Jobs leave of absence has diffused the impact of his health on the stock. Tim Cook and Phil Schiller both raised their profiles and were easily accepted by investors. Furthermore, the company performed well in Jobs absence on a fundamentla basis with product introductions and strong quarterly results.

I trimmed Apple a few months ago at $133 as I felt the risk-reward was more balanced following the 60% recovery in the shares. I maintain my 2009 target of $150 plus based on the assumption that reported earnings growth resumes in 2010.

Posted by Steve Birenberg at June 23, 2009 08:06 AM in AAPL