Personality Clash Led To Apple Cfo’s Exit Company Cites ‘Differences In Opinion’ For Graziano’s Departure

Infighting at Apple Computer Inc. has become Silicon Valley’s longest-running soap opera. And the latest victim is Apple’s top financial man.

Analysts said the imminent departure of Apple Chief Financial Officer Joseph Graziano would make it tougher for Chief Executive Michael Spindler to restore investor confidence in a company that has been having trouble delivering products and has lost market share as a result.

Apple’s stock, which has slid more than 25 percent since mid-July, fell again last month after the company warned that profits for the quarter ended in September would fall below analysts’ forecasts.

“This is clearly bad news for Apple,” said David Wu, an industry analyst at Chicago Corp. “Hopefully, Spindler will be on a tight leash now - either get things done or leave.”

Graziano’s departure was announced Wednesday following Apple’s regular, two-day board meeting in Austin, Texas. Apple said Graziano would leave by year’s end due to “differences in opinion” with Spindler.

News reports said the departing CFO quit after the board rejected his advice that Apple be sold because it cannot survive independently.

Apple executives were not available for comment. Spokeswoman Pam Miracle refused to explain what differences lay at the core of the dispute.

“I can tell you the company is not for sale,” she said.

Other observers said Spindler and Graziano may have clashed over a recent change in strategy.

Michael Murphy of the California Technology Stock Letter said Spindler recently abandoned an attempt to confront PC makers in a head-on battle for market share.

Graziano had played a key role in that effort, which got under way two years ago.

Over the summer, however, Spindler redirected Apple to emphasize sales in multimedia, education and home markets where it is already strong and could command a slight price premium. Murphy said Graziano may have balked at the shift.

A source close to Apple said the rift between Graziano and Spindler may have had as much to do with personality as policy.

“It appears there were real management and personality clashes as well,” the source said. “The bottom line was, stylistically, Graziano decided he just couldn’t work with Spindler anymore.”