Steve Jobs’s resignation as chief executive of US technology titan Apple is not a surprise to investors. Apple will continue its onward march, and there is certainly no ‘Jobs premium’ built into Apple’s valuation, says Henderson.

Editor's note: Like many other technology users, staff at this publication were saddened at the death of Steve Jobs, one of the great business visionaries of the age. The article below was published in late August, shortly after Jobs announced his resignation.

Steve Jobs’s resignation as chief executive of US technology titan Apple is not a surprise to investors despite the inevitable jolt his departure represents, says Henderson, the UK fund house.

Jobs announced his resignation earlier this week.

Apple – recently ranked as the biggest firm in the US by market valuation – had been braced for such a move as Jobs, 56, had taken a seven-month leave of absence. There has been speculation about the state of his health since he underwent cancer treatment in 2004.

The iPads and iPhones made by Apple have become iconic brands, driving use of mobile technology to such an extent that wealth managers, such as Citi Private Bank, now put their “Apps” on such platforms.

The Cupertino, California-headquartered firm said that Jobs will be succeeded by Tim Cook, a former IBM director temporarily holding the CEO position. He has worked with Jobs in various roles since 1998.

“Last night’s announcement that Steve Jobs, iconic CEO of Apple, is to resign should come as no surprise,” said Ian Warmerdam and Stuart O'Gorman, directors, technology equities, at Henderson.

“The Henderson Technology team have long been advocates of Apple having bought into Apple way back when the iPod was a mere twinkle in Jobs’ eye and shares were changing hands for $10. Apple represents approximately 10 per cent of the Henderson Global Technology fund,” the men said.

“There’s no doubt the influence of Jobs has been hugely important in making Apple the company it is today. However, we believe Apple will continue its onward march not least because the market has been well aware of Jobs' health issues and there is certainly no ‘Jobs premium’ built into Apple’s valuation. Let’s not forget he will continue to play an important guiding role as chairman,” they continued.

Apple is priced on a forward price-to-earnings ratio of 11 times earnings, which the Henderson managers said was a small premium to the market.

“If you give some value to their huge cash pile on the balance sheet then it looks even more attractive, trading at a PE of 8.5x 2012 ex cash. This is cheaper than the market, cheaper than the technology sector for a company that is exceptionally well positioned and grew revenues over 80 per cent (year over year) last quarter,” they said.  

The firm has around 18 per cent of the total smart phone market, and a single-figure share in the PC market, although the Henderson managers said market share in both should grow.

“This company does not wait to see what the market wants – it creates what the market did not know it wanted but when it has it, it wants more. It will continue so to do. In appointing the hugely respected Tim Cook as successor the company should avoid power struggles, often the outcome of CEO changes. Tim Cook has worked with Jobs since 1998 – less than a year after Jobs returned to what was then an Apple in peril, and has stood in as CEO on two occasions (in 2004 and 2009) during periods of Jobs’ extended leave. Cook knows the business inside out and has been the guiding hand alongside Jobs as Apple blossomed,” they added.