Microsoft may suck -- and they will continue to suck just as they have always sucked, now that Bill has stepped down. But their profit margins will stay healthy for some time. Apple is not going to be able to say the same.
So to say that Apple will fail if something happens to Jobs is really unfair to the thousands of capable folks who bring products to market. And their product line, at present is wide and deep. The best laptop bar none. The best music players without a peer. The best software in many aspects -- simple to use and quite sufficient for the vast majority of personal, small business, and some corporate. And by far the best phone with internet and music capabilities... by far.
Microsoft sucks not just because of Bill Gates and his personality but because they don't have the nimble decision making and execution required in this fast paced and demanding environment. They should get smaller rather than bigger and recognize the future and what it requires. It's a whole new world and it is right now being shaped by Apple.
Of course Apple will take a hit when Steve steps down, whether because he is ill, or because he retires, or whatever. He is the personal embodiment of much of Apple's luster. It does not require a crystal ball to see that.
Nevertheless, he's not an idiot, and Apple's board is not composed of idiots.
I have no worries about them having a plan already in place, with some number of contingencies. Apple will suffer briefly for whatever takes Steve out, but they will bounce back fairly quickly. He's not irreplaceable.
Look for someone helping him at the next big show. They'll bring about this change in stages.
He didn't "step down", he was thrown under the bus.
The people who tried to replace him had no vision.
I have hope that this time he has a succession plan.
For several years, Apple has been compensating for declining hardware margins with new software products. That has been a successful strategy, and they still have the best margins among hardware manufacturers. Apple does a much better job than Microsoft of controlling costs without sacrificing quality. Jobs has built a strong culture in the corporation that will survive him for decades, and their product roadmap looks great, with or without Jobs.
It all depends on who replaces him, last time the transition was not done well and the people left with stewardship of apple did a terrible job because they were not forward looking.