Who Needs Steve Jobs?

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As it turns out, Apple Inc's (AAPL) world won't end if Steve Jobs is sidelined by health complications.

Shares of the iPod maker soared on January 22nd after the firm reported earnings of $1.61 billion, or $1.78 a share, for the quarter ended December 27, 2008. Earnings climbed compared to last year, when Apple reported $1.58 billion in profits, or $1.76 a share.

Results were boosted last quarter by the sale of almost 23 million iPods. Apple's results easily beat Wall Street's expectations, forecasting earnings around $1.39 a share. Apple reported solid gross margins (34.7% of revenue), a positive signal in the face of relatively downbeat expectations.

Going forward, Apple expects to earn $0.90 to $1.00 a share in its second quarter on revenues of $7.6 billion to $8 billion. Despite lower year-over-year guidance, analysts were positive on Apple's forecasts considering the state of the economy.

Mirroring the macro trend, desktop PC sales were relatively poor while notebook sales offered a measure of resistance to declining consumer spending.

Causes for concern remain. Apple projects declining gross margins due to lower component prices in the second half. More importantly, pressures from the global economy continue to weigh on the tech sector, evidenced by profit warnings from Microsoft, Nokia, and Sony on Thursday.

Specific to Apple, investors have been tip-toeing around the tech bellwether because of uncertainty at the helm. After all the fretting over Steve Jobs' health, Chief Operating Officer Tim Cook appears to be steering the ship on course. Jobs announced last week that he will be taking an indefinite medical leave of absence.

Questions regarding Jobs managed to spark an SEC investigation in relation to disclosures of the CEO's health status. On January 5th, Apple revealed that Jobs has a "hormonal disorder".

Jobs founded Apple in Cupertino, California in 1976 along with Steve Wozniak and Ronald Wayne. The Apple Lisa, built by Jobs and his band of "silicon valley pirates", was the first personal computer with a graphical user interface marketed to the public. Intraday on Thursday, AAPL shares traded at $87.66.

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