Steve Jobs' Health Upstages iPod Event

Apple (AAPL) shares traded lower Monday, a day before its highly anticipated "Let's Rock" media event, as concern over the health of CEO Steve Jobs took center stage.

At the event, scheduled for 1 p.m. EDT on Tuesday, Apple is widely expected to unveil a redesigned iPod nano, a new iPod touch and a software update for its popular iTunes computer program. In the last few years, Apple has used the September media events to update its wildly popular iPod players.

"We expect the company to release a redesigned iPod touch and a new iPod nano along with price cuts and capacity changes for the [iPod] shuffle and classic," writes Piper Jaffray analyst Gene Munster in a research note. "In other words, this event will likely be focused on Apple's music products, which is widely expected by the Street."

But unlike the last three Septembers, when Apple's stock rallied in the days before the big event, shares have fallen 8% over the last week. For Wall Street, Steve Jobs' appearance has been key to where the stock trades.

"Shares of [Apple] have traded down...due in part to revised expectations surrounding the event," Munster wrote. "We believe the event will be a net positive for the stock due to reassurance regarding Steve Jobs' health."

Steve Jobs' Health Is Your Business

Jobs has previously battled pancreatic cancer, but his frail appearance during the launch of the iPhone 3G in early June ignited speculation that he is continuing to battle the disease, sending Apple shares tumbling more than 7% during the week. Many Apple shareholders hope Jobs will be the keynote speaker during tomorrow's event, assuaging fears.