Macworld 2009

Macworld attendees listen to IDG's Paul Kent (standing, left) discuss the future of Macworld.

(Credit: Tom Krazit/CNET News)

A middle-aged man in a faded NeXT T-shirt raised his hand for the microphone. If IDG wanted to save Macworld, he said, it should hold a "schwag-fest," where Macolytes could bond over swapping tchotchke from Macworlds past.

The Mac community had its say Wednesday night, at least for one evening. Whether IDG, the organizer of Macworld, takes up the suggestion is another question.

IDG World Expo vice president and general manager Paul Kent hosted the discussion, which saw several hundred people pack into a room at San Francisco's Moscone Center to discuss the future of the event.

IDG has a few of its own ideas for next year's show. Kent revealed that next year's Exhibit Hall at Macworld will be free for those attending this year's show; a similar pass cost $25 this year. The New York Times' David Pogue has committed to give "The Anti-Keynote," which presumably will be one of Pogue's trademark song-and-dance satirical routines. And 60 companies have pledged their support, including Hewlett-Packard, Microsoft, and Intuit.

But there is no plan right now beyond 2010. Kent confirmed our story that Apple's decision caught IDG totally by surprise, speaking often of the "new business reality" that has been thrust upon the company in a very short period of time.

It sounded like Kent would like Macworld to get younger, capitalizing on the popularity of the Mac with the under-30 set, who were sorely underrepresented during Wednesday's meeting. He suggested future Macworld shows as music or art festivals, showcases for digitally created art.

That suggestion was met with a lukewarm reception by meeting attendees who seemed to want IDG to focus on preserving the existing community. A handful of suggestions included:

• Smaller, more focused meetings held more frequently in multiple locations. New York, Boston, and Texas were mentioned: Kent said IDG was committed to San Francisco for the 2010 show but had no commitments beyond that.

• A return to Macworld as a conference for professional users of Mac technology, such as educators and design professionals. That category used to be the most significant portion of Apple's customer base but has been neglected over the past few years, as the Mac drew more and more consumer attention.

• Developing a way to let exhibitors know that their products were purchased online by someone who saw them at Macworld, giving them a reason to keep coming back.

Despite having to scramble in the aftermath of Apple's decision to leave Macworld, IDG and the Mac community have plenty to time to consider what lies in store for 2011 and beyond.

And although Apple seems to think it can reach the majority of its customers through its growing network of Apple retail stores, several attendees expressed a desire for the type of interaction that they can't get at those stores: deep, meaningful conversations with fellow technology enthusiasts who share similar passions and knowledge of the Mac. That bodes well for the conference because it would seem that those people are willing to travel and pay some sort of fee for the experience.

One interesting thing: not a single attendee or IDG employee at the town hall meeting mentioned the iPhone, even though several attendees checked their e-mail throughout the hour-long discussion on iPhones. Macworld offered a session on the iPhone during this week's conference, but if that segment of Apple's business continues to grow there's an awful lot of territory there to explore that has only been done at local levels, such as the iPhone Dev Camp.

Click here for more Macworld Expo coverage from CNET News.

IDG will have some big shoes to fill without Apple at Macworld: will people still want to come?

(Credit: Tom Krazit/CNET News)

Macworld Expo will go on in 2010 without Apple's participation, but what will it look like? And will anybody show up?

We might get an idea Wednesday evening, when IDG World Expo plans to hold a town-hall style meeting open to Macworld attendees to solicit ideas for the future of the show. Apple stunned IDG in December with its decision to pull out of the show completely. It also pulled CEO Steve Jobs from his usual starring role and had Phil Schiller deliver what was widely considered one of Apple's most lackluster Macworld keynote speeches in years.

A handful of conference goers interviewed following Tuesday's final keynote address from Apple cautiously endorsed the idea of an Apple-less Macworld, but said a lot would depend on how the show itself is constructed.

Northern California resident Peter Speros, a cable technician in San Bruno, figured he would definitely stop by next year's show, since it's basically in his back yard. Speros has attended several Macworld Expos to get tips and information regarding his photography hobby, not so much for the Apple experience itself. Still, "it will be a shame not having Apple," he said.

Macworld has always been about more than Apple to a certain degree: it's a gathering place for the famously tight Mac community to swap stories, ideas, and have fun, said Sterett Prevost, leader of the Tucson, Arizona, Mac users group. "I go to Macworld Expo for the Mac community, rather than Apple," he said.

But if Apple isn't there to bankroll Macworld--the company is estimated to spend $25 million on the show and its booth is easily four times the size of any other--will there still be a place for the community to go? Lili Hampel, who came all the way to San Francisco from Melbourne, Australia, for Macworld 2009, isn't so sure.

"It's different without Apple; it would be a big difference," she said. Her partner, Les Posen, gives technical presentations on Apple's Keynote software during Macworld, and their attendance at future events would depend at least in part on whether the instructional sessions that are a big part of Macworld would continue.

Still, "we come here to meet people," Hampel said.

That means if IDG can find a way to keep Macworld profitable without Apple's contributions, there might be a way to keep a small core group of Mac loyalists coming to San Francisco each January for Macworld. Macworld 2011 will probably have to be in something much smaller than the cavernous Moscone Center, which might bring the community closer together but would likely doom the show's chances of remaining a must-see destination on the technology media calendar.

Photos: Inside Macworld 2009

Click here for more Macworld Expo coverage from CNET News.

We're posting live updates from Macworld 2009 at San Francisco's Moscone Center, where Apple's senior vice president of worldwide product marketing, Phil Schiller, is delivering the keynote speech.

Phil Schiller takes the stage to deliver the keynote speech at Macworld in San Francisco.

(Credit: James Martin/CNET Networks)

8:55 a.m. PST: We're live inside the Moscone Center for Macworld 2009, having braved the elbows of the friendly media hordes and the rather aggressive ushers. The room is fairly full, but the line outside this morning seemed a little smaller than usual, unless IDG did a better job of herding the masses in early. The pre-keynote music is skewing more current than usual before a Jobs keynote, with Death Cab for Cutie and the like, which maybe gives us an idea of what Phil Schiller uses to warm up.

9:03 a.m.: We just got the cell phone warning message, which probably gives us a five-minute window or so. They turned up the volume for Coldplay's "Life in Technicolor," and I'm assuming we're getting close.

9:04 a.m.: The lights dim as the song ends, and Apple's Phil Schiller takes the stage to start Macworld 2009. He appears to be rocking an all-denim ensemble. It's a little hard to tell from here. "I'm so personally excited to be the one delivering Macworld 2009 to you. I'd like to thank everybody for showing up," which gets a chuckle.

9:06 a.m.: Phil's first topic is the general state of Apple, talking about some of the new Apple stores that the company has opened overseas, such as Beijing and Sydney. He's gushing about some of the new store designs. "I can't imagine any other company delivering something like that." Every week, 3.4 million customers visit an Apple store around the world. "That's 100 Macworlds each and every week," a clear pointer to Apple's decision to make this its last Macworld.

9:07 a.m.: Phil's going to start with the Mac, and he seems to be hinting that's all we're going to talk about today. Last year was the best year for the Mac in Apple's history, he said, growing faster than the industry based on what Phil calls Apple's best product line ever. Phil has three new things he's going to cover.

If you're interested in live updates from tomorrow's Macworld keynote, we've got you covered.

We'll report live from San Francisco's Moscone Center as Apple Senior Vice President of Worldwide Marketing Phil Schiller gives the show's keynote address. That should kick off at 9 a.m. PST. You can get to the live blog here (link will be live as soon as the blog is live). Bowing to popular demand, we'll post those in order as they come in, rather than the reverse chronological order we've used on past live blogs.

Tuesday's Macworld should still be an interesting event even without CEO Steve Jobs making his usual address to the Macworld crowd. A new MacBook Pro, new Mac Minis, and a thorough discussion of the upcoming release of Mac OS X Snow Leopard are expected.

Later in the day we'll have tons of photos, lots of video, and the initial reactions of CNET Reviews staff--before they jet off to the desert for CES--to whatever new products Apple has on tap. So stick around all day; it's not like anybody's getting much work done the first week back from the holiday break anyway, right?

Steve Jobs will not appear at Macworld as he recuperates from what he's calling a hormone imbalance.

(Credit: James Martin/CNET)

Update 9:23 a.m. PST: This story was revised to clarify that Apple did not make any explicit connection between Steve Jobs' health and the decision for him not to give the Macworld keynote address.

Apple CEO Steve Jobs is lying low rather than giving his traditional Macworld keynote speech Tuesday, with health issues apparently a partial factor in the decision even as he and the company avoid an explicit statement to that effect.

In letter to employees, Jobs wrote this Monday:

For the first time in a decade, I'm getting to spend the holiday season with my family, rather than intensely preparing for a Macworld keynote.

He goes on to explain that, amid sometimes intense speculation about the state of his health, his doctors have identified "a hormone imbalance that has been 'robbing' me of the proteins my body needs to be healthy." He adds:

The remedy for this nutritional problem is relatively simple and straightforward, and I've already begun treatment. But, just like I didn't lose this much weight and body mass in a week or a month, my doctors expect it will take me until late this Spring to regain it.

Throughout 2008 Apple was plagued with rumors about Jobs' health, but steadfastly refused to acknowledge that anything was behind concerns over what many believed was substantial weight loss suffered by the iconic Apple founder. Apple stunned onlookers in December with the news that Jobs would be skipping his much-anticipated Macworld keynote, but said the reason was that Apple had decided not to invest in a Macworld keynote because it would be the company's last year at the show.

It's possible to read between the lines and see Jobs' health as more of a factor in the Macworld decision than Apple is letting on. But the company on Monday would say only that Jobs "deserves our complete and unwavering support during his recuperation," with no mention of Macworld in its 90-word statement.

Jobs will continue as CEO while he is regaining weight in what he called a "simple and straightforward" remedy, which is expected to last until late spring, he said in the letter. "I have given more than my all to Apple for the past 11 years now. I will be the first one to step up and tell our Board of Directors if I can no longer continue to fulfill my duties as Apple's CEO."

The startling possibility that Apple and Jobs knew several weeks ago that health concerns had become his number one priority calls into question the company's handling of Jobs' absence from Macworld. There are no hard-and-fast guidelines that dictate how companies are supposed to handle health concerns, the way strict guidelines dictate the handling of material financial information.

But it's clear to anyone with a pulse in the tech industry that a health-related reason for a Jobs-less keynote would be a huge blow to Apple's stock. Apple representatives refused to answer questions about Jobs' health when the news first surfaced in December, insisting that the only reason Jobs would be absent from the keynote was because the company was done with Macworld.

There was a lot more to the story. We'll be following up on the implications of this news all day.

Updated 6:43am PT: Apple's stock has rallied on the news, once again validating my career decision to stay away from stock-picking. In the first 15 minutes of trading, the stock is up around 4 percent, which is perhaps an indication that since Jobs' health situation is not as dire as some reports had suggested last week, investors are confident he'll continue as CEO.

See also:
• Steve Jobs discloses 'hormone imbalance'
• Now Apple's credibility really is in the balance
• Apple's last Macworld beginning of new era

Click here for more Macworld Expo coverage from CNET News.

The health of Apple CEO Steve Jobs has been a topic of concern for some months now. On Monday, with the company's Macworld show getting under way, Apple and Jobs issued statements on Jobs' health. We'll be following this breaking story throughout the day.

In October, Steve Jobs briefly addressed his state of health onstage at an Apple event.

(Credit: James Martin/CNET News)

CUPERTINO, Calif. -- It is widely recognized both inside and outside of Apple that Steve Jobs is one of the most talented and effective CEOs in the world.

As we have said before, if there ever comes a day when Steve wants to retire or for other reasons cannot continue to fulfill his duties as Apple's CEO, you will know it.

Apple is very lucky to have Steve as its leader and CEO, and he deserves our complete and unwavering support during his recuperation. He most certainly has that from Apple and its Board.

Here is a separate letter from Steve Jobs:

Dear Apple Community,

For the first time in a decade, I'm getting to spend the holiday season with my family, rather than intensely preparing for a Macworld keynote.

Unfortunately, my decision to have Phil deliver the Macworld keynote set off another flurry of rumors about my health, with some even publishing stories of me on my deathbed.

I've decided to share something very personal with the Apple community so that we can all relax and enjoy the show tomorrow.

"I will continue as Apple's CEO during my recovery."

--Steve Jobs

As many of you know, I have been losing weight throughout 2008. The reason has been a mystery to me and my doctors. A few weeks ago, I decided that getting to the root cause of this and reversing it needed to become my #1 priority.

Fortunately, after further testing, my doctors think they have found the cause -- a hormone imbalance that has been "robbing" me of the proteins my body needs to be healthy. Sophisticated blood tests have confirmed this diagnosis.

The remedy for this nutritional problem is relatively simple and straightforward, and I've already begun treatment. But, just like I didn't lose this much weight and body mass in a week or a month, my doctors expect it will take me until late this Spring to regain it. I will continue as Apple's CEO during my recovery.

I have given more than my all to Apple for the past 11 years now. I will be the first one to step up and tell our Board of Directors if I can no longer continue to fulfill my duties as Apple's CEO. I hope the Apple community will support me in my recovery and know that I will always put what is best for Apple first.

So now I've said more than I wanted to say, and all that I am going to say, about this.

Steve

See also:
• On eve of Macworld, Jobs talks health
• Now Apple's credibility really is in the balance
• Apple's last Macworld beginning of new era

Click here for more Macworld Expo coverage from CNET News.

Apple CEO Steve Jobs' absence from Macworld 2009 could be a prelude to a new communications strategy.

(Credit: Corinne Schulze/CNET Networks)

Even though CEO Steve Jobs will not be playing his customary role, the last Macworld Expo with Apple's participation will still be interesting--for perhaps that exact reason.

Apple's decision to pull Jobs from Tuesday's Macworld keynote speech--and its announcement that 2009 would be its last year at the show--deflated much of the usual pre-Macworld speculation regarding the company's 2009 product plans. The show must go on, however; and Senior Vice President of Marketing Phil Schiller will likely have a few new products to show off, such as an iPhone Nano, a revamped 17-inch MacBook Pro, and a new operating system called Snow Leopard.

But Macworld 2009 will probably not be remembered for the products introduced there, unless Apple has quite the ace up its sleeve. Instead, Tuesday's 90-minute presentation will be scrutinized for signs that Apple is preparing to change an external communications strategy in which its founder has been its primary spokesman since his return to the company in 1997.

Officially, Apple said its decision to have Jobs skip the Macworld keynote address--perhaps the most widely followed annual presentation by any tech industry CEO--was linked to its decision to bail on Macworld entirely following this week's event. It's unclear what will happen to the conference following Apple's departure. The show's presenter, IDG World Expo, says the 2010 event is on. But it also plans to hold a "town meeting" during this week's show, where it will solicit ideas for the future. (Editors' note: See also Monday morning's news, "On eve of Macworld, Jobs talks health.")

It's hard to imagine a fate for Macworld any different than what happened to the East Coast show after Apple cut its ties, however. Since his return to the company, Jobs has always been Apple's primary voice, and whether it was held in Boston, New York, or San Francisco, the star attraction at Macworld.

Even though he's not giving the keynote, Jobs will still attract that sort of attention Tuesday, even if all he does is settle into a front-row seat to watch the presentation. Apple has not said whether or not Jobs will make an appearance during the keynote, but such an appearance could go a long way toward deflecting the latest round of rumors surrounding his health.

After all, the man is a legend. Arguably one of the most influential businesspeople of the last 30 years, Jobs personifies much of what people like to see in Apple, and much of the brand promise of the Mac: a brilliant iconoclast who takes no prisoners yet cares deeply about elegance.

There are signs, however, that Apple is entering a new era. It seems pretty clear that Apple chafed at the idea of having to introduce some of its best new products a few weeks after the close of the holiday selling season. Most consumer electronics companies like to make their big product introductions toward the end of the year, rather than the beginning, but the timing of Macworld forced Apple into a different schedule.

Also, while it's not unusual for Jobs to share the spotlight during his keynotes, Apple put together its deepest ensemble cast in recent memory for October's MacBook event. Jobs rolled out the company's latest notebooks accompanied by COO Tim Cook, Senior Vice President for Industrial Design Jonny Ive, and a video featuring executives off the radar of most Apple watchers, such as Vice President of Product Design Dan Riccio.

If anything, that event proved that few Apple executives--to be fair, few executives anywhere--have the stage presence and presentation skills that Jobs enjoys. So why would Apple change that role now, when the company is at the top of its game?

For one thing, there's a downside to Apple's strategy of putting its founder front-and-center before the public. Rumors regarding his health and appearance have played havoc with Apple's stock throughout 2008 and as recently as last week. Much of that speculation was unwarranted earlier in the year, but given that even up until mid-December Apple had led IDG to believe Jobs would be taking his usual place in Moscone Center, Apple practically invited this round of rumors about Jobs' health by announcing the decision as suddenly as it did.

Macworld has long been The Steve Jobs Show, but is he really the only person who can shepherd product development breakthroughs like the iPhone?

(Credit: Casimir Fornalski/CNET Networks)

But even if Jobs is merely sick of Macworld, rather than actually sick, Apple will live longer than he will.

To be clear, just because Jobs isn't giving the Macworld keynote does not necessarily mean that Apple is ready to lower his profile. The company hosts several of its own events every year, such as the June Worldwide Developers Conference and September music event, and may be planning for business-as-usual Stevenotes at those events later this year. Apple never seems to break up amicably with its partners, and Jobs' vanishing act from Macworld 2009 could just be a parting shot in an often-contentious relationship between Apple and IDG World Expo.

Still, at some point Apple will run into problems if Jobs is forever seen as the only person capable of running the company. Apple today is a much different company than the struggling corporation Jobs took over in 1997. It has 32,000 employees, three hit products that generate profits, and the world's largest music store.

Apple has sold the concept of Jobs as the single-most important factor in Apple's success so well that many outsiders don't understand that other brilliant, driven people at Apple come up with cool ideas from time to time. Steve Jobs is certainly more hands-on than the average tech executive when it comes to product design and execution, but he's not the only person capable of running Apple. As the saying goes, the graveyards are full of indispensable men.

Some day, Steve Jobs will decide he's ready for the next chapter of his life and Apple will need to have a replacement ready. Many have criticized Apple over the past year for seeming to lack a succession plan, but not discussing such a plan publicly and not discussing such a plan internally are two very different things.

Tuesday could be the first step in that plan. Phil Schiller is probably not going to be the man who leads Apple once Jobs moves on, but he might be the ideal person to guest-host Macworld as a parade of Apple executives hone their presentation skills and introduce themselves to the general public.

For all the accolades deservedly paid to Jobs' leadership and salesmanship skills, there is someone else out there who is capable of keeping Apple on track. Jobs has always struck me as a man with meticulous plans for the future, and it might soon be time for a little light to be shed on Apple 4.0.

Click here for more Macworld Expo coverage from CNET News.

After some 25 years, Apple has decided that it can do without the Macworld Expo.

Apple announced that CEO Steve Jobs had given his last keynote address at Macworld in San Francisco and that January's Macworld would mark its last year participating at the show. Apple said Phil Schiller, the company's senior vice president of worldwide marketing, will deliver the keynote, usually handled by Jobs.

An Apple representative declined to comment on Jobs' health, a prominent topic of discussion this year. Jobs' keynote addresses at Macworld have become almost legendary events, launch pads for some of the company's most important products and strategies. His absence from what many in the Apple community consider their Super Bowl has once again revive rumors that Jobs is ill.

Steve Jobs in January 2008 giving what we know now was his final Macworld keynote.

(Credit: Corinne Schulze/CNET Networks)

The decision reveals an Apple that has decided it no longer needs to make an appearance at the event that has come to define the company in recent years. In doing so, it's also preparing for a future when its iconic founder no longer dominates the stage the way he currently does while confirming a shift in its strategic thinking when it comes to reaching customers.

But industry events like Macworld Expo have been losing their luster inside Apple for some time. This is not a company that spends much time hanging out with its peers in the personal computing and mobile phone industries. And quite simply, the nature of technology marketing has changed a great deal as tech has evolved from something reserved for professionals to something that almost everyone uses on a day to day basis.

The announcement "completely blindsided" IDG, according to a source familiar with the negotiations, coming just weeks before the event was scheduled to take place. IDG World Expo, a division of tech publishing giant IDG, had no reason not to expect Jobs would make his customary appearance at Macworld. Then came the word from Cupertino, Calif.

What is not clear is when Apple decided Jobs would skip the keynote. The source indicated that Apple had strung IDG along for weeks, implying that it was business-as-usual concerning Jobs' pending appearance up until the moment that it wasn't. One big question is how this will go down with the Mac faithful who have flocked to this annual event through good times and bad. To be sure, there will be official Apple events in the future, like the Worldwide Developers Conference. But most fans--the civilians--likely won't be able to gain access to such events, which are usually reserved for press, analysts, VIPs, and developers.

So, as one colleague put it, Macworld has long been the public carnival for Mac fans, and Apple's decision to get out after the 2009 version doesn't bode well for Macworld's future or for the future of a single, mass event for the hardcore Mac community.

Chips are down
Apple provided the rare bit of light for the generally bleak chip market when it took a small stake in a British chip designer, revealing how the company plans to power the graphics in future iPhones and iPod Touches. Apple acquired a 3.6 percent stake in Imagination, which will cost Apple 3.2 million pounds, or about $5 million. Imagination designs chip cores for a variety of applications, but its most prominent designs are its PowerVR cores for graphics in mobile phones.

However, semiconductor sales may set a record for consecutive yearly declines. Market research firm Gartner predicted that in 2009, the chip industry will see back-to-back yearly declines for the first time in its history, with global chip revenue expected to decline 16.3 percent, to $219.2 billion.

Sales in the fourth quarter of 2008 will post a historic decline, too, sinking to a record quarter-over-quarter decline of 24.4 percent, surpassing the 20 percent decline record set in the second quarter of 2001, the firm forecasts. Gartner's preliminary 2008 market share results, released last week, showed 2008 revenue reaching $261.9 billion, a 4.4 percent decline from 2007.

And as chip equipment goes, so goes the electronics industry and the rest of high tech. Netherlands-based chip equipment maker ASML announced that it was cutting 10 percent of its workforce amid an "unprecedented" downturn.

"Never before have we witnessed such a sharp and sudden fall-off in lithography system demand," said Eric Meurice, chief executive officer of ASML, in a statement. He attributed this to "an unprecedented mix of falling end-demand for semiconductors, weak memory prices and restricted access to capital for our customers."

Those customers include Toshiba, Taiwan Semiconductor Manufacturing Company, Samsung, and Intel, which supply the electronic guts to customers like Sony, Nokia, Compal Electronics, and Hewlett-Packard.

Patches and privacy
Microsoft released a critical security patch to plug vulnerabilities in Internet Explorer, a move that comes amid malicious attackers taking advantage of the flaws. The patch is designed to prevent attackers from downloading malware onto users' computers if they visit a malicious Web site, or a legitimate Web site that has been infected.

This zero-day exploit has been in circulation since the first week of December and potentially could have infected a wide swath of users. The vulnerabilities are found in not only IE 7, Microsoft's latest browser, but also Internet Explorer 5.01, Internet Explorer 6, and Internet Explorer 6 Service Pack 1.

Mozilla released updates to its popular Firefox browser, its Thunderbird e-mail client, and its SeaMonkey application suite, aiming to address highly critical security flaws that could expose users' sensitive information. Users are advised to update to version 3.0.5 of Firefox, which was released Tuesday. They are also advised to update to version 2.0.0.19 of Thunderbird and version 1.1.14 of SeaMonkey.

Mozilla also notes that another set of critical vulnerabilities in all three could redirect users from a legitimate site to a malicious one, where users' private data could be stolen. And a third set of critical flaws noted in all three could lead to the launching of arbitrary JavaScript within a different Web site.

Yahoo said it will make its user logs anonymous within 90 days as it ups the ante on data retention policies. The Web pioneer also said it would also make user data on page views, page clicks, ad views, and ad clicks anonymous as well as its user logs. The only exceptions would be for "fraud, security, and legal obligations."

Clearly, Yahoo, Google, and others are racing to the bottom on data retention policies. In particular, Google and Yahoo have been playing a game of privacy leapfrog.

Also of note
Engineers in Microsoft's Live Labs have released the company's first application for Apple's iPhone--even before making it available on Microsoft's own mobile platform...Delta Air Lines began offering Wi-Fi service to its passengers on some East Coast flights...Toy maker Hasbro withdrew its copyright and trademark lawsuit filed against the creators of the ad-supported online application Scrabulous.

Over the years, I've become inured to the rah-rah pumpathon that is CNBC. With the notable exception of the delightful curmudgeon Mark Haynes, the channel's anchors and correspondents dutifully perform their function as glorified cheerleaders for Wall Street.

But now CNBC's Silicon Valley bureau chief, Jim Goldman, can add to his impressive credentials the title of media apologist for both Apple and Steve Jobs

(Credit: CNET News)

In a postearlier Wednesday, Goldman came out swinging against unnamed market "manipulators" responsible for punishing Apple stock, especially in the aftermath of Apple's abrupt announcement that Steve Jobs would not keynote January's Macworld. Taking his lead from MacDailyNews, which lamented that "there's only so much Apple shareholders can take," Goldman wants the Securities and Exchange Commission to impose an "uptick" rule ,which prevents you from just shorting with abandon and supposedly would slow down future bear raids against Apple.

"MacDailyNews cites a great comment from John McCain last September: 'The regulators were asleep, my friends, they were not working for you. (The SEC has allowed abusive short-selling to turn) our markets into a casino.' Great point. And consider that if Bernie Madoff clients can be killed by massive market manipulation, how can the little guy expect to compete on a level playing field?"

Bernie Madoff?

Goldman depicts MacDaily News as being "Apple-centric." That's understatement. The Fox News of Appledom is more like it. That MacDaily News would push for SEC intervention on Apple's behalf should surprise no one. But before descending on Chris Cox's office, let's consider how we arrived at this juncture.

More than any other CEO, Steve Jobs has become synonymous with his company. Is there a more accomplished executive in the contemporary business world? At the very least, Jobs deserves a place among the Top Three with Sam Walton and Warren Buffett.

I won't speculate on his health but Jobs is a pancreatic cancer survivor. Let's not pretend. So when Apple drops its PR bombshell less than a month before Macworld, you have to wonder what's behind that decision. Maybe he's burned out or maybe he's in the middle of writing the Great American Novel. Who knows? Apple has since imposed its famous cone of silence.

But with Apple shares getting shellacked on Wednesday as the rumors flew, Goldman was downright incensed how "any momentum Apple enjoys is quickly, electronically dashed by those betting against the company."

"The web lights up with concerns about Steve Jobs' health; whether he's dying; or will be incapacitated; or will be resigning or retiring. And shares get destroyed, no matter how fundamentally solid Apple might be...The fact is, posting "gaunt," or "frail," or "Steve Jobs is ill" is the financial equivalent of yelling fire in a crowded movie house. And if that kind of thing is going to be tolerated, government should step in and either investigate the manipulators, or bring back the Uptick Rule."

To be sure, Apple's stock has been the target of unsavory shorts from time to time, but you want to talk about market manipulation? Ask Goldman's colleague Jim (Booyah) Cramer. The guy's apparently an expert.

Fact is that Apple brought on this mess. After the June developers' conference, questions got raised about Jobs' appearance. The company said his health was a private matter. Some argued that the demands of corporate governance or greater transparency should require Apple to be more forthcoming. But that was the final word from corporate.

So now what to think about Jobs' mysterious withdrawal from Macworld?

This is not the way a company as PR savvy as Apple usually rolls out the news. We don't know whether Jobs is feeling punk or whether he was dumped in a power struggle. That makes it a rumor monger's field. No surprise there. In blaming dark forces for spreading rumor and innuendo for financial gain, Goldman misses the bigger point. Apple could have avoided all of this by opening up. Instead, its communications with the outside world continue to assume the contours of a raised middle finger.