After unveiling the iPad 2 tablet, the Mac OS X Lion operating system, the iCloud, the MacBook Air laptops, Apple Inc. made its biggest announcement this year on Wednesday, and its not the highly anticipated iPhone 5: Steve Jobs is resigning as chief executive.

"I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple's CEO, I would be the first to let you know. Unfortunately, that day has come," Jobs, 56, said in his letter to the board of directors and Apple community.

"I hereby resign as CEO of Apple. I would like to serve, if the board sees fit, as chairman of the board, director and Apple employee."

Apple stock slumped as much as 7 percent in extended trading after Jobs' announcement.

Tagged as the man that "has changed business forever" by Inc. magazine in 1981, when Apple gained ground with its personal computers, Jobs has been on medical leave since January this year but did not announce his exit as CEO until Wednesday.
Jobs, who co-founded Apple in 1976, was ousted by the board in 1985. In September 1997, the Cupertino, Calif.-based company was 90 days away from bankruptcy and had incurred almost $2 billion in losses in only two years. The stock was trading at $5.48.

Since retaking the reigns of Apple in 1997, Jobs, according to Bloomberg News, revolutionized the computer, mobile phone and digital music industries. His aesthetic and eye for detail, and focus on sleek, easy-to-use products helped Apple distinguished itself from competition and made products like the iPad, iPhone and iPod as functional fashion statements. Under Jobs' leadership, Apple has become the world's second most valuable company after Exxon Mobil Corp. Its shares are now worth $376 apiece.

"Steve's extraordinary vision and leadership saved Apple and guided it to its position as the world's most innovative andvaluable technology company," Art Levinson, chairman of Genentech, said in a statement on behalf of Apple's board. "Steve has made countless contributions to Apple's success, and he has attracted and inspired Apple's immensely creative employees and world class executive team."

Market Leader

Under Jobs' reign, Apple has become the world's no. 1 seller of smartphones (sold 20.3 million iPhones in the quarter ended June 25), the world's top seller of media tablets (9.25 million iPads sold in the quarter, for a market share of more than 75 percent), and number three largest seller of desktops and laptops in the U.S. (1.9 million units sold, for a 10.7 percent market share).

The company posted record revenue of $28.57 billion and record net profit of $7.31 billion, or $7.79 per diluted share, for the third quarter ended June 25. These results compare to revenue of $15.70 billion and net quarterly profit of $3.25 billion, or $3.51 per diluted share, in the year-ago quarter.

Apple has no debt outstanding. Its assets exceed liabilities by $69.3 billion as of June 25, with $76.2 billion in cash and marketable securities. At one point last month, Apple had more money in the bank than the federal government.

Apple has already announced that it will release iOS 5 (the operating system for the iPhone and the iPad) and iCloud music synching service this fall. Apple has not provided a release date for the third generation iPad and fifth model of the iPhone.

iPhone 5

After Apple Inc.'s Steve Jobs didn't unveil the iPhone 5 at a developers' conference in June, the release date of the new smartphone has been subject to speculations and rumors.

The latest reports -- which Apple did not confirm -- say that Apple will be releasing the iPhone 5 and a lower priced version of the iPhone 4 in September or October.

Reuters, citing people with knowledge of the matter, reported this week that Asian suppliers have begun manufacturing an iPhone 4 with a smaller 8 gigabyte flash drive. The existing iPhone 4 was first launched in June 2010 with 16 GB and 32 GB versions. The 8 GB iPhone 4 is expected to be priced at $200.

Reuters, citing a source, added that Apple is targeting an end-September launch for the next-generation iPhone 5. The new iPhone, which some call the iPhone 4S because of its largely identical appearance to the existing iPhone 4, will have a bigger touch screen, better antenna and an 8-megapixel camera.

The iPhone 5 is expected to debut together with the iOS5, the latest upgrade to Apple's operating system for its iPad and iPhone. Aside from an upgraded camera, the iPhone 5 is expected to sport a dual core A5 processor, the processor for the iPad 2. Other exciting new features for the iPhone 5 are the voice based navigation system and panorama photography capabilities.
Even without the iPhone 5, Apple has had a record year (it temporarily surpassed Exxon Mobil as the world's most valuable company).

Cook Takes Over

Aside from upcoming products of Apple, there are questions whether the new CEO will have the unique insights, charisma vigor or even luck that Steve Jobs had.

Jobs told the board that he "strongly recommends" that the board execute its succession plan and name Tim Cook as CEO of Apple. Jobs will take the role of chairman.

Cook faces a big challenge in stepping into Jobs's shoes because he must prove that Apple can succeed without Jobs, according to The Wall Street Journal. Jobs has been tagged as one of the greatest CEOs of this generation, after reviving the Macintosh computer business and developing market leading innovative products like the iPod, iPhone and iPad.
Cook joined Apple in 1998 and, as operating chief, his oversight included sales, manufacturing and distribution. "The board has complete confidence that Tim is the right person to be our next CEO," Levinson said in a statement. "Tim's 13 years of service to Apple have been marked by outstanding performance, and he has demonstrated remarkable talent and sound judgment in everything he does."

"I believe Apple's brightest and most innovative days are ahead of it. And I look forward to watching and contributing to its success in a new role," Jobs said.

"I have made some of the best friends of my life at Apple, and I thank you all for the many years of being able to work alongside you."
Jobs has been the public face of Apple and for the past decade has touted Apple's new products at media events. This year, despite his health issues, he appeared in March to launch the iPad 2, and in June, to showcase the iCloud. It would be very monumental if Jobs showcases his uncanny ability to capture imaginations one last time -- when Apple unveils the iPhone 5.

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