Jobs talks about health off the record, but questions remain

By Ed Oswald, BetaNews

July 28, 2008, 6:30 PM

Apple CEO Steve Jobs called a reporter at the New York Times to explain his health situation, but his insistence on only talking off the record has done little to assuage the fears of investors.

To many, Steve Jobs is the driving force behind Apple, and his presence across all areas of the company is undeniable. But Jobs' recent health scares, including a previous bout with cancer, have caused many on Wall Street to question the company's insistence on staying secretive.

Last week was no exception. During last Monday's earnings call, Apple CFO Peter Oppenheimer stated the now oft-repeated phrase, "Steve's health is a private matter," after a question about why Jobs looked so thin during last month's WWDC conference. Apple's stock opened Tuesday down 10 percent from its previous day's closing price, and remains 20 points down since the iPhone 3G launch.

While some question whether the drop was related to Oppenheimer's comment, most analysts and investors say it contributed to general uneasiness about the Cupertino company.

Worries over Jobs' health continued to dog Apple the entire week. Stories in the media -- including here on BetaNews -- began to ponder life after Steve.

Jobs' effort to clear the air with the New York Times didn't help. While his conversation was of length from the reporting Joseph Nocera did about the call, none of it could be republished.

Some could find what Nocera did say troubling. According to the reporter, Jobs was sick with much more than a "common bug" as Apple's spokespeople asserted to the media. Nocera also wrote that nothing Jobs said contradicted the paper's earlier reporting on his health issues.

CNBC's Jim Goldman questioned Jobs' move. "What was Steve thinking? I don't pretend to understand the pressures he's under, both physically and professionally, but calling New York Times columnist Joe Nocera with an 'off the record' health update was a big mistake, completely unnecessary, and serves only to fan the flames," he argued.

Some analysts argue that if Jobs really is very sick, the board would have to disclose it. Last week, Piper Jaffray told investors Apple would be obligated to report any illness that would prevent Jobs from performing his duties as CEO because of his deep involvement in the day-to-day business of the company.