Steve Jobs drops out of Macworld, Apple to drop after January*

Breaking with a long tradition, Apple today said Steve Jobs would not present the keynote at January's Macworld Conference & Expo, the venue where the Cupertino, Calif., company has historically chosen to unveil new products for more than a decade.

Instead, Philip Schiller, Apple's senior vice president of worldwide product marketing, will deliver the opening address at Macworld on Jan. 6 in San Francisco. Next month's Macworld will also be Apple's last, the company said in a statement. Here's an excerpt:

Apple is reaching more people in more ways than ever before, so like many companies, trade shows have become a very minor part of how Apple reaches its customers. The increasing popularity of Apple's Retail Stores, which more than 3.5 million people visit every week, and the Apple.com website enable Apple to directly reach more than a hundred million customers around the world in innovative new ways.

Apple's shares dropped more than 4% to $91 in after-hours trading following the announcement.

The news triggered fresh rumors about Jobs' health; he was diagnosed with pancreatic cancer in 2003. It also sparked concern over the fate of Macworld, a show that attracted about 50,000 attendees this year in January. Jobs used that show to debut the MacBook Air, touted to be the thinnest laptop computer at the time.

* Updated at 3:15: "Their pulling out of Macworld is not a surprise," said Tim Bajarin, principal analyst at Creative Strategies in Campbell, Calif. "They’ve been talking about it for two years. Trade shows do not deliver the same return on investment that they did in the past. And Apple is finding that their stores are much better at driving sales than a once-a-year shot at Macworld."

Bajarin said the move put Macworld in a precarious position. "It’s going to make it much more difficult for Macworld to thrive without Apple as the anchor exhibitor," he said.

-- Alex Pham

Photo: Steve Jobs unveiled the MacBook Air at Macworld in January 2008. Credit: Robert Durell / Los Angeles Times

Comments

[Weisswriter]

It will be very unfortunate if Macworld Expo goes under as a result of Apple's decision. I understand that Apple is increasingly reaching people via its stores, website, etc. but there is still something special about Expo, and being able to see everything (including many non-Apple-brand things) in one place, at one time. As a marketing person, I think this is a marketing mistake for Apple.

[Robert Laughing]

Any idea how OUTRAGEOUSLY EXPENSIVE this 'production' in Moscone Center, is? You can't plug an electrical cord, nor change a light bulb without getting a union man to EVENTUALLY 'get around to it!' ALL these trade shows are giant rip-offs. Hotels, parking, meals, taxis.... one hellova lot of grief! With the economy sinking lower and lower, millions losing their jobs, others having hours scaled back...who NEEDS MacWorld, outside of Moscone Center's unions? Jobs, whose health, IS an issue, still needs to promote the 'Next Generation.' Jobs SHOULD BE 'moving on' and, helping get the Next Generation get up and running. He can have fun with Apple and Disney/Pixar...lots still to do,,,let the man get on with it.

[Russell]

Glad I got my tickets already THE LAST MACWORLD SF! - I have gone for years - I think seeing all that stuff, celebrities walking around, all the people and their cool products is great hype. What a loss. The stores are ok (recently got two Macbooks) but to actually see, touch multiple hardware gadgets in the flesh is important and the stores just can't have that diversity.

[Todd]

Steve Jobs should put a stake in the ground, literally, and raise a giant tent pavilion at Burning Man next year, giving the Mac faithful a new mecca to look forward to. Low cost, DIY, just bring lots of energy water. Brilliant solution.

[npb]

Trade shows--from MacWorld to CES to Auto Shows--have been unmasked for the losing proposition they are and, given financial concerns as well as more efficient/effective marketing platforms will be dying a rather rapid death in the coming couple of years

[Figgins]

Trade shows are effective means of getting exposure and making new sales contacts for NON-RETAIL manufacturers. Since Apple is now a retailer, and their stores are becoming _the_ destination on shopping trips to the mall, it makes sense to drop the trade show as a marketing tool.

Once the novelty of the Apple Store wears off, and Apple has to compete for retail traffic with the likes of Abercrombie & Fitch, Apple will realize they just traded one bite of the marketing apple for another. Always increasing store front rentals, finished goods stock rotations, and teenage sales people will soon show Apple the correct path: Apple Stores should be independent and able to sell more than just Apple products. Apple will still get the attention, off-load the retail headache, and be even more profitable.