Bad Economy Isn’t Taking Bite Out of Apple, But SEC Might

 

Apple just released it’s first quarter financial results and posted record revenue of $10.17 billion and record net profit of $1.61 billion, or $1.78 a share.  Analysts had predicted that Apple would earn just $1.29 a share.  In addition, Apple even excceeded it’s per-share revenues of 1^st Qtr 2008 of $1.76. 

 

 It seems that almost everything was up.  Mac sales increased 9% to 2.524 million units, iPods up 3% to 22.7 million units, and iPhones up 88% to 4.36 million.

 

One thing that was not up was a concern over Steve Jobs health and the way the company was disclosing information to the public.  Much like people who buy and sell Berkshire Hathaway stock pay close attention to Warren Buffett’s health, the same is true for a corporate icon like Steve Jobs.  Rarely in American business will you find a person and a company more closely tied together than Steve Jobs is to Apple.  Recently the stock price went up when they said he would still be going to work.  Then it went down when they said he was taking a medical leave.  In the language of stocks, that’s a beta of 1.0.  The SEC is apparently investigating.

 

 In a world that’s driven by HIPPA one might think that such disclosures of health are not a matter of public concern.  But the SEC and investors require transparancy where matters materially impacting a publicly traded business are concern.  And few things are more material than the health of Steve Jobs to a company like Apple.  I seriously doubt this will lead to any fines or penalties.  But perhaps it is a soft warning to other companies that a communications strategy around the health of their CEO should at least be considered.