

Apple chief operating officer Timothy Cook, left, with Apple's top marketing executive, Philip Schiller. Bloomberg News


Apple co-founder Mr. Jobs, who is considered the company's creative leader, is also involved in the development of future projects, they say. People privy to the company's strategy say Apple is working on new iPhone models and a portable device that is smaller than its current laptop computers but bigger than the iPhone or iPod Touch.

Mr. Jobs, who was treated in 2004 for a rare form of pancreatic cancer, took a medical leave in early January, saying he would return in June and would remain involved in "major strategic decisions while I am out." But he has made no public appearances or statements since then, and it has been unclear just how involved he continued to be. Apple has been mum about how Mr. Jobs's absence is affecting daily operations.

Mr. Jobs didn't respond to requests for comment. Apple spokesman Steve Dowling said: "Steve continues to look forward to returning to Apple at the end of June."

Apple's fortunes appear to be linked in shareholders' minds with the health of Mr. Jobs, and Apple stock has suffered since last summer on speculations about his condition. At the same time, Apple has strenuously argued that its management bench is deep, and that while Mr. Jobs is integral to the company and its fortunes, Apple isn't wholly dependent on him.

Scarce Information

Information on the health of Mr. Jobs, 54 years old, has long been scarce and contradictory. He has said his cancer treatment five years ago was successful while maintaining that his health is "a private matter." But concerns among investors mounted, and the share price wobbled, after Mr. Jobs appeared in public looking noticeably thinner. The day after Apple announced in December that Mr. Jobs would not speak at the Macworld trade show, where he had been the keynote speaker since 1997, Apple shares fell as much as 8%.

Steve Jobs

In early January, Mr. Jobs said he had a hormone imbalance that was "relatively simple and straightforward" to treat and that he would continue as Apple's CEO. About a week later, he announced that the issue was more complex than he had thought, and said in a letter to employees that he would take a leave. He provided few details of his illness, raising concerns that his cancer may have returned.

In an interview last month, Philip Schiller, Apple's head marketing executive, declined to comment on how the company was faring without Mr. Jobs. "We're just trying to do what we do every day," he said.

People familiar with Apple's operations say they still expect to see Mr. Jobs return in June. Some of these people also say members of Apple's board of directors are monitoring the situation directly, communicating regularly with Mr. Jobs's physicians.

People inside the company, business partners and others who are familiar with the situation say life at the Cupertino, Calif., company remains much the same as it did before.

Those at other corporations who deal with the company also say their interactions with Apple haven't changed. Mr. Cook, who had already been handling most of Apple's day-to-day operations, has kept tight control over the company, say business partners and those inside Apple.

Apple CEO Steve Jobs speaks during a "town hall" style event at Apple Headquarters on Oct. 14, 2008, in Cupertino, Calif. Getty Images

Concerns among employees have also eased as its stock price has bounced back, rising 40% since the end of last year, compared with an increase of about 5% in the Nasdaq Composite Index over the same period. Shares of Apple closed at $119.57 on Thursday, up from $85.33 in January when Mr. Jobs announced his leave.

Apple's business has proven relatively resilient to the recession so far. Analysts on average expect the company to have increased its revenues by 5.9% to nearly $8 billion in its fiscal second quarter ended Mar. 31, according to a survey by Thomson Reuters, helped by the launch of new desktop computer models and a smaller iPod shuffle music player. The company will report its quarterly earnings on April 22.

In spite of Mr. Jobs's plan to return, some employees, business partners and investors are considering what Apple would look like if he doesn't. People familiar with Apple's operations have said Mr. Cook and the other veteran executives understand Mr. Jobs's thinking and have a product road map for the next several years. But these same people worry about the period beyond.

Little Turnover

Job recruiters say they aren't seeing significant employee turnover at Apple. But executives at several Silicon Valley companies say they are getting more interest than before from Apple managers, particularly those in the mid-to-upper levels. Most recently, Greg Dudey, one of the lead engineers for Apple TV software, left the company to work for Dell Inc. Mr. Jobs's health is not necessarily the driver of such job moves, according to these people.

Shaw Wu, an industry analyst at Kaufman Bros., says investors are prepared for the possibility that Mr. Jobs could play a reduced role. "Most investors have factored in a management transition," he said. "What people are expecting is that Steve Jobs would retain a chairman role, and Tim Cook would formalize his role."

—Joann S. Lublin and Justin Scheck contributed to this article.

Write to Yukari Iwatani Kane at