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It’s hard to believe but the first quarter of 2011 is now a memory and we’re well into spring. The tone for the year in high technology was set in early January: fast, bold, aggressive action and sweeping management changes.

In the first four months of the year high tech vendors moved quickly and decisively to seize opportunities in established sectors (smart phones, virtualization, back-up and disaster recovery) and emerging markets (cloud computing, tablet devices and unified storage management). As 2011 unfolds, it’s apparent that high technology vendors are willing to shift strategies and shed executives in order to stay one step ahead of or keep pace with competitors. The competition is cutthroat and unrelenting. No vendor, no matter how dominant its market share, how pristine its balance sheet or how deep its order backlog and book to bill ratio dares relax or rest on its laurels for even a nanosecond.

Recaps of some of the year’s highlights thus far are very revealing.

January lived up to its reputation for sweeping out the old and ushering in the new. The first four weeks of the year were hell on top executives. Advanced Micro Devices (AMD), Apple, Google, Hewlett-Packard and Microsoft all had shake-ups in their management ranks, albeit for very different reasons.

Apple delivered the first jolt early in the month. In a well orchestrated announcement (on the Martin Luther King holiday, a slow news day, and just in advance of its second quarter earnings release) the company said founder and chief executive Steve Jobs, the architect of Apple’s renaissance, would take a leave of absence for an undisclosed period of time to focus on his health. Tim Cook, Apple’s chief operating officer will serve as the interim CEO and he is most likely to inherit the top spot if Jobs doesn’t return.

News of Jobs’ departure was not entirely unexpected. He’s battled serious health problems for the past several years which necessitated a prior medical leave. Industry watchers greeted the news with gloom and dire prognostications. The fears were assuaged somewhat when Jobs made two high profile appearances. He was among a select group of Silicon Valley luminaries who dined with President Barack Obama in mid-February. More importantly though Jobs was on hand to launch the iPad 2 at Apple’s March 2nd press conference. This was an encouraging sign for Wall Street and industry watchers. They constantly wonder: can Apple continue to maintain its incredible momentum and success absent Jobs’ leadership, creative genius and vision with “just” an ops guy (Tim Cook), no matter how smart and accomplished? The answer for the first fourth months of 2011 is a resounding “Yes.”

The fears concerning Jobs are not wholly unreasonable. However, based on Apple’s continuing strong performance across all market sectors in which it participates, it would take freight train to blunt the Cupertino firm’s momentum. Apple’s iPhone powered by the iOS mobile operating system is one of the top three smart phone platforms along with devices powered by Google’s Android and Research In Motion’s BlackBerry. On the tablet front, Apple is the preeminent vendor with a dominant 65%+ market share. This won’t change anytime soon. Despite some early problems with light leakage on its displays, demand for the iPad 2 is robust – outpacing even its predecessor, the original iPad. The first shipment of iPad 2s sold out within the first 24 hours of its availability on March 11 at all of the 220 Apple stores in the U.S. Over a month later, the current order backlog for online sales stands at one to two weeks.

At press time, Apple’s stock was hovering at about $347 – which is on the high end of its 52-week range of $199.25 – 364.90. Apple’s sales for its last fiscal year, ended Sept. 30 2010, were $65.2 billion a little more than half of the $126 billion in annual revenues that HP recorded in its most recent fiscal year and approximately two-thirds of IBM’s revenues of $99.9 billion in FY 2010, while. A recent survey of financial and industry analysts conducted by Thomson Reuters forecasts that Apple’s fiscal 2011 revenues could rise by over 30% to $99.94 billion and reach $117.77 billion in fiscal 2012 for a very impressive two-year compound annual growth rate of 34.4%.

Location, Location, Location

Apple’s sales are on fire because their products are cool.

This is a big reason why Apple’s reputation hasn’t suffered much from the so-called “Locationgate” flap that cropped up in the last two weeks. The core issue is that unbeknownst to users Apple’s iOS was recording and storing all the details of all the places they visited via their iPhones and iPads. Apple was mum for a couple of weeks and then finally on April 27 the company issued a statement clarifying the situation.

First, Apple acknowledged that this was a bug and would be rectified. Next Apple said that the devices were not tracking the users’ movements but rather “maintaining a database of Wi-Fi hotspots and cell towers around your current location that is then used by your iPhone to rapidly and accurately calculate its location when requested.” The data is then downloaded by the user’s iPhone or iPad. The bug occurs because the iPhone continues to maintain the cache of data even after the iOS Location Services are switched off. Apple will rectify the matter by deleting the cache when Location Services is switched off.

To drive home the point even further, Steve Jobs did telephone interviews with several reporters. The better late than never explanation has satisfied most users although some in the blogsphere and forums say that Apple is doing little more than engaging in spin control because it got caught. Should Apple have said something sooner? In a perfect world, yes. Apple’s products are not perfect. They do experience problems. ITIC’s latest 2010 Apple Consumer and Enterprise Survey, which polled nearly 800 users last November/December found that Apple has an excellent track record with respect to addressing and fixing technical issues and performance problems. Eight-out-of 10 or 82% of respondents said they “never”, “rarely” or only “occasionally” encounter difficulties with Apple products/devices. Only a 7% minority indicated they experience weekly or daily issues. But whether you believe Apple’s statement is a ploy or a sincere public mea culpa, Apple is fixing the problem and that’s what counts.

For future reference though, Apple and all high tech vendors would do well to respond to these issues as they occur and not wait days or weeks.

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