Apple’s Board of Directors have announced that the iPhone and iPad maker’s co-founder and CEO Steve Jobs, has resigned as chief executive officer. The Board has named Tim Cook as the Cupertino-based company’s new CEO.

Cook (previously Apple’s chief operating officer) also stood in for Jobs during his period of medical leave earlier this year. Jobs has been elected chairman of the Board, whilst Cook will now also join the Board with immediate effect.

“I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple’s CEO, I would be the first to let you know. Unfortunately, that day has come,” Jobs stated in his letter to the Apple Board of Directors and the Apple community.

“I hereby resign as CEO of Apple. I would like to serve, if the Board sees fit, as Chairman of the Board, director and Apple employee...I believe Apple’s brightest and most innovative days are ahead of it. And I look forward to watching and contributing to its success in a new role.”

Jobs submitted his resignation to the Board yesterday and strongly recommended Cook as his successor. As COO, Cook was previously responsible for all of the company’s worldwide sales and operations, including end-to-end management of Apple’s supply chain, sales activities as well as service and support in all markets and countries.

He also headed Apple’s Macintosh division and played a key role in the continued development of strategic reseller and supplier relationships, ensuring flexibility in response to an increasingly demanding marketplace.

“Steve’s extraordinary vision and leadership saved Apple and guided it to its position as the world’s most innovative and valuable technology company,” said Art Levinson, chairman of Genentech, on behalf of Apple's Board.

“Steve has made countless contributions to Apple’s success, and he has attracted and inspired Apple’s immensely creative employees and world class executive team. In his new role as Chairman of the Board, Steve will continue to serve Apple with his unique insights, creativity and inspiration.”

“The Board has complete confidence that Tim is the right person to be our next CEO,” added Levinson. “Tim’s 13 years of service to Apple have been marked by outstanding performance, and he has demonstrated remarkable talent and sound judgment in everything he does.”

According to Business Day Apple’s shares fell decreased by up to 7% during after-hours trading, in the wake of Jobs’ resignation. Earlier this month Trip Hawkins, who founded Electronic Arts (EA), the world’s largest independent video game publisher, stated that Apple is headed towards a decline. "Everything revolves so much around Steve, and no matter how good his lieutenants are, they’re not Steve," Hawkins said.