TURMOIL AT APPLE : Sentiment May Have Obscured Markkula’s Path

Armas C. “Mike” Markkula Jr., 54, is the only one of Apple Computer Inc.’s three co-founders to have held on during the Cupertino, Calif., computer company’s two-decade roller coaster ride.

But with the appointment of Gilbert F. Amelio as Apple Chairman and Chief Executive, Markkula steps down from chairman to vice chairman and will assume a much less important role at Apple.

Apple, the company Markkula bankrolled in 1976 with money the former semiconductor marketing manager made selling his Intel Corp. stock, faces an uncertain future. And analysts say he bears at least some of the blame.

Many say Markkula allowed sentiment to get in the way of good business. He stuck with Apple Chief Executive Michael Spindler, a man he had grown close to, long after it had become painfully apparent that Spindler had lost control of the company.

Markkula’s loyalty to Spindler was unusual, given that he had fired two Apple chief executives and co-founder Steve Jobs. Those close to the two say they bonded over their shared passion for technology and their love for Apple.

For the last year, however, Markkula appeared to allow Spindler to flounder. When Spindler began blaming subordinates for Apple’s woes, Markkula accepted his explanations as many popular executives were pushed out the door.

Even at the recent shareholders meeting, with investors calling for Spindler’s head, Markkula declared support for the beleaguered Apple chief, who was finally ousted Friday.

And while Markkula has entertained offers to buy the company, friends say he has done so halfheartedly.

“He really has mixed feelings about seeing Apple sold,” said one.

When IBM last year offered a reported $40 a share for Apple, Markkula wavered. Now the company is in far worse shape, and Apple’s latest suitor, Sun Microsystems, offered considerably less.

The reclusive Markkula shuns the parties and conferences where computer industry executives like to talk shop. As a result, some say, he seems to have lost touch with the industry he helped to pioneer.

“Mike doesn’t know who’s important, who’s doing the deals,” said a former Apple executive.

Increasingly, Markkula has focused his attention on interests as varied as flying (he owns an aviation company), skiing (he funded a firm that designs state-of-the-art skis) and establishing the Center for Applied Ethics at the University of Santa Clara.

Markkula’s diminished standing was finally demanded by Amelio, who joined Apple’s board a year ago. Sources say he told directors he would not take the chief executive’s title unless he was also made chairman.