Did Steve Jobs Actually Intend For Apple to Live Forever?

Steve leaves behind a company that only he could have built, and his spirit will forever be the foundation of Apple.
– Apple Inc statement upon news of the death of Steve Jobs

What if more than Steve Jobs’ spirit lives forever? What if Apple lives forever? Is this even possible?

I say yes.

As the blogosphere pronounces ‘Apple is Doomed’ at every turn, I can’t help but thinking that we have it wrong. Apple will have its ups and downs, no doubt. It’s just that the more I follow Apple, the more I study Steve Jobs, the more I suspect that while he could not live forever Jobs absolutely believed his creation, Apple, could. Literally.

These are my clues:

Apple University

As the LA Times noted shortly after his death, “Apple University” was a serious focus of the seriously focused Jobs. Think what you will of him personally, but Jobs believed in the rightness of his vision. Apple University was created to inculcate his innumerable qualities in those who would come to run Apple years and decades into the future.

To survive its late founder, Apple and Steve Jobs planned a training program in which company executives will be taught to think like him, in ‘a forum to impart that DNA to future generations.’ Key to this effort is Joel Podolny, former Yale Business School dean.

According to a former Apple executive, speaking anonymously: “No other company has a university charged with probing so deeply into the roots of what makes the company so successful.” Training at Apple University reportedly focuses on what enables a company to create sustained innovation.

If there is one key to serious longevity, it is that: sustained innovation.

Apple Endowment

Jobs was audacious. To enable Apple to live forever, he needed money. Lots of money. Apple has that. Forget about stock buybacks, or Wall Street howls for dividends. Ignore the idea that Jobs and Apple are hoarding cash for acquisitions – keeping their “powder dry” as it were. The nearly hundred fifty billion Apple has amassed has a higher purpose: an Apple endowment.

I believe that Jobs, had he lived longer, would have worked diligently with two groups he no doubt found tiring, Wall Street and Washington, to change the laws so that a substantial portion of Apple’s already substantial cash reserves could be used for an endowment.

Growing up in the area, Jobs no doubt knew of the founding of nearby Stanford University. Via Wikipedia:

With his wife Jane, Stanford founded Leland Stanford Junior University as a memorial for their only child, Leland Stanford, Jr., who died as a teenager of typhoid fever. The Stanfords donated approximately US$40 million (over US$1 billion in 2010 dollars) to develop the university, which held its opening exercises October 1, 1891.

One billion is nice. One hundred billion is better. Harvard’s endowment, for example, the richest of all, is approximately $30 billion. What if Jobs – and he would have made Tim Cook aware of this, I suspect – wanted to have, say, $60 billion of Apple’s money set aside as an endowment?

At $60 billion, if the investment manager of the “Apple Endowment” earned 6.5% a year returns on average, that would deliver approximately $4 billion every year, forever. Apple currently spends about $4 billion a year on R&D. Imagine: Apple research and development funded in perpetuity. Think what the company could achieve ten years from now, a hundred, a thousand. If the future Apple made only enough to pay for its operating expenses, it could still churn out amazing products for your great great great grandchildren.

Business Model Purity

Beyond the money, of course, the more I study Apple the more I admire Jobs’ vision to ensure the durability – the permanence – of Apple. There is a purity to Apple’s business model that is, ironically, so rare in Silicon Valley. Google and Facebook encourage our use of their services, for free, then sell our data to others. Who is the customer? HP, for example, lives off exorbitant printer ink costs. Believe it or not, that is not a sustainable business.

Apple, by contrast, builds great products and prices them accordingly. No tricks, no inducements. Buy them or not. You always know what you are buying, and for how much, and what you are getting for the money. A hundred years from now, for example, I suspect there will be a littany of new business models, some great, some doomed to fail, some beyond our comprehension. Apple’s, however, I am sure will still thrive long after we are all gone.

Saying No

What does HP do anymore? Who are they? What about Cisco? Are they out of the consumer market or back in? Why is there a Google+ and a Google X Phone and a Google Car? There is creation, and then there is creation that moves you forward, sustains you. Jobs was famous for keeping Apple not focused on building great products, but on great products that mattered.

Yes, some of the stuff we never see would no doubt be cool. Yes, some of the top talent — the A players — are more likely to stay at Apple if they have a skunkworks to play in, like Google’s X Labs. Ultimately, however, such activities diminish focus, which alters who you are. No point in living forever if it’s not really you.

Jobs’ words on focus from 1997 still ring true today – and probably will for decades, at least:

People think focus means saying yes to the thing you’ve got to focus on. But that’s not what it means at all. It means saying no to the hundred other good ideas that there are. You have to pick carefully. I’m actually as proud of the things we haven’t done as the things I have done. Innovation is saying no to 1,000 things.

Control

If you follow Apple and/or Steve Jobs, you doubtless know the importance of control: control of core technologies, control of your product development, control of your distribution, control of your brand. So much of Jobs’ control efforts flew directly in the face of accepted wisdom and practice in Silicon Valley: open, sharing, licensing. Jobs would have none of it. He wanted Apple fully in control of its technologies – and its future.

Retail

Apple is (now) lauded for Apple Stores. You may already know they bring in more money per square foot than any other retail chain on the planet. They also ensure that Apple can offer its products directly to customers. Apple, rare in its industry, is not dependent on others for marketing and sales. But I wonder now if there’s an ever greater, longer-lasting benefit to its stores.

Retail is changing, profoundly. Online, mobile, the sharing economy, 3D printing, same-day shipping. With its many stores, Apple are learning, in real-time, not only what their millions of customers think about their latest products, but by being on the front-lines of buying and selling, Apple is learning the future of retail: the integration of real-time, social, online, digital and physical. Not even Amazon possesses this alchemy. Apple Stores should enable Apple to meet the demands of a changing world long into the future.

Here’s To The Crazy Ones

I think of this story from Business Week shortly after Jobs’ passing:

On the day Jobs died, employees numbly walked outside to watch an American flag lowered to half-mast—and then returned to work. Partners who were in town to meet with the company were astonished to learn that appointments would take place as scheduled. “That’s what Steve would have wanted,” an Apple manager explained.

Yes, that’s the way Jobs would have wanted it. He also would want Apple to continue building amazing, magical, revolutionary products in the year 2525. It could happen. It’s crazy, I know, but it’s those crazy ideas that change the world.

Sony’s decline: Have they eaten the poison Apple?

Sony-and-Apple“Those who cannot remember the past are condemned to repeat it.” – George Santayana, 1905

For today’s history lesson, we’re going to look at two of the biggest names in the tech industry that have risen and fallen in complimentary distribution with one another since the 1980’s. As one company climbed to the top, the other plummeted but now the tides have changed.

I’m talking of course about Sony and Apple, two companies with storied histories that bear some key similarities to each other. In the successes and failures of each company, the brilliance and blunders seem to be passed back and forth. In order to move forward towards the future, we must look back at the past; so let’s take it from the top.

The 1980’s were a strange time in America; MTV, big hair, and the Brat Pack are some of the first things that come to mind when I think of that decade. Of course, the 1980’s also ushered in a new era of technology, and Apple and Sony were at the forefront. In the beginning of the 1980’s, Apple came out strong with a record breaking IPO and the Macintosh computer. Things quickly went south for the computer giant, as infighting and a decline in sales ultimately saw Steve Jobs leave the company in 1985; beginning what many would refer to as “the dark years” at Apple. During that same time, Sony had started the 1980’s with dismal profits during a global recession that saw a drop in electronics sales.

One of the things that saved Sony was its creativity and drive to pioneer new technologies. While it lost the “format wars” between VHS and Betamax, it was able to move past and eventually develop technologies such as the Compact Disc and Walkman. Similarly, it branched out beyond consumer electronics and got into the music and movie publishing industries; creating a revenue stream that would allow it to profit several times over from single products. Its latest demise, however, came from the company aggressively expanding into new businesses and technologies with little communication or collaboration between the departments. The question now is “Will they bounce back?”

Apple was able to bounce back from those “dark years” when Steve Jobs came back. Under his leadership, the company was able to re-focus and re-establish its brand. They were able to focus on creating great products from top to bottom, coupled with a user experience that was second to none. If Sony wishes to recover in the same way Apple did, then perhaps they’ll do the same. Sony’s reach is a bit broader than Apple’s so in order to do that, they’ll need to increase the communication and support between departments. They have all the parts they need to return to the top, they just have to deliver what the customers want. Apple delivered things that consumers wanted before they even knew that they wanted them. Sony’s approach as of late has been more stagnant, where they wait for something to come out and find a way to replicate it.

The sting of a few hard blows to a company can send it reeling and certainly bruise some egos. Sony needs to take a whiff of the smelling salts and come out of the corner swinging. Once they return to their roots of innovation, creativity, and quality they’ll be sure to see success once again.

 

Will Apple Survive without Steve Jobs? Apple’s Laughing Straight to the Bank…

Just a few days ago, we quietly watched as the first anniversary of the death of Steve Jobs passed by.  As an Apple insider and alum, I always have an ear to the ground for what’s going on in their world.  The big question of whether Apple would continue its meteoric rise (the greatest turn around in history) seems to be answered.

The past few months, for Apple, have been almost as eventful as the company’s first big success back in the late 70’s – early 80’s. With a landmark legal victory over Samsung for copyright infringement, the company not only gets awarded $1.05 billion in damages (which Samsung is appealing, of course), but they will also exclusive rights over certain design and software ideas on which they own patents.

While some have slammed Apple’s case as being too broad or overzealous, the decision will surely shape the mobile software and hardware markets from this point on. For the consumer it means two things: First, Apple’s patented designs and features will most likely be cross-licensed for quite a pretty penny to competing developers and manufacturers. Second, this means that in order to competitively price their technology, companies will have to become innovative once again, rather than copy an already successful formula. So you’ll either see iPhone and iOS-esque features on high-end electronics, or innovative new designs may become the way of the future. That chapter has yet to be written.

With so much focus and attention on these two battling giants, what better time for Amazon to announce its new reader / tablet offering, the Kindle Fire. Strategically placed in the same realm as the competing iPad, Nexus, and Galaxy tablets, the Kindle Fire looks to open the floodgates of revenue for its content delivery platform. The three-way race between Apple, Amazon, and Google’s media stores appears well separated for now, but the competition is certainly heating up as the markets and technology change so rapidly. And the solid winner in ALL of this is the pro-sumer.

One would think that the competitive innovation to come from the lawsuit against Samsung, along with the introduction of the rival Kindle Fire would be cause for concern at the Apple HQ here in Cupertino, but that couldn’t be farther from the truth.

On September 12th, Apple announced the iPhone 5 in grandiose Apple fashion, after the project had been shrouded in secrecy for almost a year. (An issue I cover at length in my recent bestseller, “The Magic and Moxie of Apple – An Insider’s View”.)  Thinner, lighter, faster, and overall cooler than its predecessor, the iPhone 4s; the iPhone 5 also boasts a number of new features, such as a new charging interface and new operating system (iOS 6).

Consumers are certainly on board for the new and improved iPhone, as evidenced by the 2 million+ pre-orders within the first 24 hours of its announcement. As a result, the cost of Apple’s stock has risen to over $700 for the first time in company history.

So while rival tech giants are out there trying to copy Apple products or create competitive alternatives in hopes of dethroning them, Apple is simply laughing it’s way straight to the bank.

Kelli Richards, President and CEO
The All Access Group

Apple After Steve: One year later

This Friday marks the first anniversary of Steve’s Jobs death. I was going through security at the San Diego Airport when I heard the news and although we all knew the end was coming soon, the finality of it struck me hard. Jobs was a bigger than life figure who was a true tech titan who impacted our world in so many ways.

While he did not invent the personal computer, he was the first to commercialize and consumerize it. He did not invent the graphical user interface. But he was the first to bring it to the masses. He did not invent the MP3 player, yet he made the iPod a household name and to this day, the iPod dominates the market for portable music players. He did not invent the smartphone. But he revolutionized its design and changed the way we think about, use and buy smartphones. He did not invent the tablet, but he was the one to finally make it a mainstream portable computing device. His ability to create one hit after another was amazing and to call him a just a visionary would be an understatement.

Over the last two weeks, I have done many media interviews about Apple after Jobs. Just about every publication in every medium will soon reflect on Jobs’ life and life at Apple after Jobs. And the first question I seem to get is “what kind of job has Tim Cook done since he became CEO?” I usually jokingly ask the reporter if they have seen Apple’s stock lately. When the trading of Apple’s stock was halted at the news of Jobs’ death, it hovered around $378. Today it is close to $700. By that measure alone I would say Tim Cook has been extremely successful at his role as Steve Jobs’ successor.

But the reason that Cook and Apple is so successful after the loss of someone like Steve Jobs, is because Steve Jobs himself spent years mentoring and preparing Tim and team for the day he would no longer be able to lead the company himself. Many people don’t know that while Jobs hoped his liver transplant and medicinal treatments would keep him around for many years, his doctors early on told him that his days could be numbered. Starting in 2005, Jobs began to step up his role as mentor and move a lot of the day-to-day decisions to his top execs.
Thanks to Steve’s long term planning, and the internal education and vision casting that he imparted to this executive team, Apple has not skipped a beat, and in fact, it has grown exponentially since Oct 5, 2011.

Another question I get is “when will Apple be Tim Cook’s company?” since the buck now stops at his doorstop. The truth is it will never be Tim Cook’s company. Apple is cast in Steve Jobs’ likeness and given his proven formula for success, his imprint will always be on Apple. But I do expect a day to come when Apple has more of Tim’s personality and it will reflect his take on how he executes Steve’s vision and Apple’s goals in the future. But Jobs’ influence on Apple will never fade as long as their executive team, who were all trained personally by Jobs, is committed to carrying out Steve’s vision for the company.

I am also asked often about Apple’s future given the fact that the competition is starting to catch up with them. First, keep in mind that Apple’s design cycles are not like their competitors. For example, the iPhone started on the drawing boards in 2004. And believe it or not, that is the same time the iPad was hatched. It turns out that when the tablet concept was first shown to Jobs back then, he asked if they could make it much smaller. The result was the iPhone. Amazingly, the timing was perfect as Jobs’ sixth sense told him that a smartphone would be important at that time and he put what became the iPad on hold until the technology needed for it was ready for primetime.

This suggests that both the iPhone and iPad roadmaps were shown to Steve well before his death and his imprint could be on these devices for at least the next 2-3 years. Apple could also have some other things up their sleeve’s as technologies like flexible displays and augmented reality are still not ready for the market. And don’t count out their ability to innovate around their eco system of hardware, software and services. Then there is Apple TV. While still a “hobby,” Jobs told his biographer, Walter Isaacson, that he and the team had a greater vision for what Apple TV could be and that it would become a very important product for Apple. His actual words were “I have finally cracked it.” Given Apple’s track record of winning products, who would bet against the possibility that Apple could revolutionize the TV someday and change television forever?

This is not to say that I don’t have concerns about Apple’s future and that they could stumble along the way. Competition is heating up and innovation is now coming from all over the world. But history shows that even when they make a mistake, once they correct it they get back on track. Remember antenna-gate? Two years later it is a non-issue. And map-gate will most likely follow a similar path. It will ultimately get better 6-12 months from now, it too will be forgotten. Also, Apple has one of the best tech design teams on the planet, lead by Jony Ive, as well as an executive team that has gelled well since Steve’s death.

But remember, competitive challenges will always be there. Market forces may force Apple to make key decisions that some people might not like. But given Tim Cook’s leadership and an executive team determined to carry out Steve Jobs’ vision for Apple, we can assume that it is in good hands and that will be able to navigate all of the challenging roads ahead.

The Next Big Thing: Apple WWDC

It’s no surprise to see Apple race on, barely missing a beat since Steve’s passing – leading global innovation as it has this new millennium.

In just a few hours the next Apple WWDC (WorldWide Developers Conference) will take place. A stage that has announced true global game changers, like the iPhone and the iPad.

In the end, right now it’s still about the App store.  With 600,000 downloadable games, magazines and productivity tools, Apple is the application leader.  But the others are not far behind. As quoted in Bloomberg earlier today, “The success of Apple’s App Store has helped create an economy for downloading mobile applications that will reach $58 billion in sales in 2014.”

Surely, Apple will continue App dominance – and its track record of suspense and big announcements at WWDC. Will we see the next iPhone? News on OS X Mountain Lion? A new social platform? The next “Big Thing” that none of us have even contemplated yet?  It’s hard not to wonder where Apple goes from here, without Steve Jobs at the helm… but we’ll find out in just a few short hours.

This is a question I ask over and over in my upcoming eBook on Apple, The Magic and Moxie of Apple – An Insider’s View.

“… So where does Apple – a company that started out as two guys making and selling circuit boards out of their garage, which transformed into one of the biggest international technology companies in the world – go from here? Following the loss of Steve Jobs, that question seems challenging to answer. As we know all too well, Apple has seen itself rise and fall from grace before and reinvent itself more than once, and the company is counting on the fact that it’s cemented its place at the top so profoundly that nothing will stop it from continuing to grow. Continually releasing new products (and upgrading the old) may do this, but fundamentally, what direction does it take next? The iPhone, iPad, and iPod have already seen several generations of upgrades. What groundbreaking innovations will propel Apple in the same way that the iPod, iPhone, MacBook Air and iPad did? The answer to that question isn’t what new product will they come out with, but rather who will be dream it up without Steve? … ”

 

Like many of you, I’m eagerly awaiting iOS 6 and Mountain Lion – which brings some of the most popular features found on other Apple products to the Mac, such as GameCenter, notes, etc. A personal favorite is that Mountain Lion will send messages to anyone on an Apple product – so you’ll be able to begin a message on your Mac and pick it back up on your iPhone or iPad later on. We’ll see today what else Apple has in store for us – the world of believers, creators and brand advocates.

And although the race continues without Steve Jobs to lead the pack – only his company to carry on the dream – it will not be easy to watch WWDC without him taking the stage.

Kelli Richards, President and CEO
The All Access Group, LLC
PS: If you’d like to pre-order a copy of my book, The Magic and Moxie of Apple – An Insider’s View,” please go to http://www.allaccessgroup.com/?p=2287.

 

Steve Jobs in Carbonite

Photo of Steve Jobs with iPhonePart of Steve Jobs’s brilliance in life was his mercurial nature, sometimes fortified by duplicitousness. He thought an Apple phone was the stupidest idea on earth until the arrival of the iPhone. He made fun of Intel processors  until Apple abandoned PowerPC for x86. He was a man of firmly held opinions that could change as circumstances required.

Steve Jobs dead, however, is frozen in time. The opinions he expressed in the year or two before his passing last fall are his views forever. And anything Apple does counter to those views is treated in some quarters as a desecration of his memory. And that leads to silly pieces like Gizmodo’s 10 Changes That Must Have Steve Jobs Spinning in His Grave.

The sad truth is that we have no idea what Steve Jobs thinks, or will ever think, about anything. All we know is what he thought of certain things under the circumstances that prevailed at some point in the past.

For example, in October,  2010, Jobs said: “The reason we [won’t] make a 7-inch tablet isn’t because we don’t want to hit that price point, it’s because we think the screen is too small to express the software.” But improvements in screen technology have made it possible to do a 7″ iPad with the same 1024×768 resolution of the original iPad and the iPad 2 and a pixel density similar to the third-generation iPad. So if Apple does a 7″ iPad, will that be a repudiation of Jobs or a recognition that something important has changed?

One of Gizmodo’s 10 violations of the spirit of Jobs is that supply executives are now attending meetings once the exclusive province of engineers and designers. Maybe that reflects Tim Cook’s preferences as a supply chain guru. But it might also reflect the fact the Apple is nearly 60% bigger than it was when Jobs stepped away from active management a year or so ago and that it now a vast enterprise that necessarily has to be run in a considerably more bureaucratic way. This, by the way, is why I think Cook is actually the right CEO at the right time; some of use remember a  much smaller pre-Cook Apple that constantly struggled with supply chain and channel management issues.

Of course, it’s possible that Jesus Diz’s Gizmodo post was just Gawker link bait. In which case, I apologize for linking to it.

 

Dear Industry: We Owe Steve Jobs a Standing Ovation

Last night we learned of the passing of Steve Jobs, one of the most visionary and innovative leaders this industry has ever and perhaps will ever see. Because of all that Steve Jobs has meant to this industry we thought it appropriate to have our second installment in the Dear Industry series take a quick look at how much this industry owes to this master innovator.

It would be hard to imagine what this industry would have looked like had Steve Jobs and Steve Wozniak never dreamed up their vision for personal computing.

Steve was the only tech executive who had an eye for design and understood technology then married them together to create some of the most iconic products we have today.

Steve Jobs understood that innovation isn’t always about pure invention. Whether or not he invented a particular technology or took what existed and made it better, more useful and more valuable, he was constantly innovating.

He was the ultimate super user or super consumer. He had an un-matched discerning sense of what people wanted with technology before they knew they wanted it. I call this the forward thinking experience and Steve Jobs was an expert at it.

With his vision and leadership Apple never reacted to the trends they always set them.

He was the chief visionary, not just of Apple but of the entire technology industry. His products have challenged and inspired others to be better. He put massive pressure on any and all competitors and challenged them to raise the bar.

He helped create this industry and as a result created value with nearly everything he touched. His innovations made new industries, companies, jobs and more possible.

A great many people employed in the technology industry owe their careers to Steve Jobs.

If we had a technology hall of fame he would be a first ballot inductee and he would of course receive a well deserved standing ovation from the entire technology industry.

Image Credit: Jonathan Mak

My Thoughts on the Passing of Steve Jobs

I have been asked by many in the media for my thoughts on Steve Jobs. I felt that I needed to write them out so that I could be succinct at this time. Please feel free to use them as quotes directly from me.

Steve Jobs will always be remembered as a pioneer and tech icon. While he will always be known for the great products he created, perhaps his greatest contribution was the creation of a new Apple that is one of the most valued companies on the planet.

Many tech executives would be thrilled if they had one major hit in their lives. Steve gave us the Apple II, The Mac, the iPod, the iPhone, the iPad and Pixar.

In a sense, Steve Jobs was part Thomas Edison, Walt Disney and P.T. Barnum. A modern technology visionary, focused in delivering products that are useful and provide entertainment and a masterful showman who really knew how to keep people on the edge of their seats wanting more.

His impact on the world of technology and American business can not be underestimated. His simple vision of creating products that he would want – ones that were elegant and easy to use, is what drove him and Apple to spectular success.

Under his leadership, Apple has become one the most recognized brands in the world. He created products that people line up for around the world.

Over 30 years of covering Steve Jobs as an analyst, I saw him at his highs and lows. But even in his lows he never took his eye off of the vision of creating products that were stylish and simple to use.

When he came back to Apple in 1997, I met with him on his second day on the job. At the time, Apple was $1 billion in the red and in serious trouble. So I asked him how he planned to save Apple. He said he would go back and meet the need of their core customers and then he said something that at the time puzzled me. He said he would pay close attention to industrial design when creating products. Not long after that he gave us the candy colored Macs that broke the mold of what a PC should look like. And as they say, the rest is history. From that point on, all of Apple’s products have bore the imprint of his eye for style and ease of use.

I am confident that Apple can move forward under Tim Cook and his executive team and that Apple will continue to be one of the most important technology companies in the world. Tim and his team fully understand Steve’s vision for Apple and will carry it forward and continue his legacy of creating products that will be elegantly designed, easy to use and that people will want as part of their digital lifestyles.

He was one of a kind and I doubt I will ever see anyone like him in my lifetime again.

Our thoughts and prayers go out to his family and close friends. So many of us in this industry owe much of our careers to Steve Jobs. He will truly be missed.

An Apology

I messed up. I owe you an explanation.

Well, not really. I was on a delightful trip to Colonial Williamsburg with my 92-year-old father and hero, Ken Lewis, and took a couple of weeks off from blogging and tweeting. I apologize for not staying in touch.

You see, apologies seem to be trending. One of the emails in my neglected inbox was from Reed Hastings, the CEO of Netflix, which angered customers recently with a blockbuster price increase and a confusing bifurcation of its DVD and streaming movie service.

Hastings began the email with an apology: “I messed up. I owe you an explanation.” He continued:

It is clear from the feedback over the past two months that many members felt we lacked respect and humility in the way we announced the separation of DVD and streaming and the price changes. That was certainly not our intent, and I offer my sincere apology. Let me explain what we are doing.

Did this appease angry customers or impress Wall Street investors? No. A million customers quit the service, and Netflix’s stock price is less than half what it was earlier this year. “Netflix seems to be making a snuff film starring itself,” a Dow Jones Newswire columnist just tweeted.

The Mob Smells Blood

Then, the other day, the New York Times columnist David Brooks apologized for “being a sap.” Specifically, he apologized to his conservative readers for his previous admiration of President Obama’s centrist, willing-to-compromise, pragmatic approach toward Congress. Obama’s sin: Proposing a $4.4 trillion deficit reduction plan that did not completely cave in to the Republicans. Brooks wrote:

It has gone back… to politics as usual… I was hoping the president would give a cynical nation something unconventional, but, as you know, I’m a sap.

Did this appease angry conservatives bitter about Brooks’s earlier tolerance for Obama? No. The flogosphere erupted in a fury of anger, from both left and right.

In an email to The Atlantic, Brooks mused on the value of apologies:

One thing I’ve noticed is that columns in which you admit error generate more hostility than any other kind. I did a series on what I should have known about the Iraq war and the response from the left was more vicious than at any other time, and I was making a few concessions to them.

Either they smell weakness and exploit it, or they feel more self-righteous than ever. In any case, the lesson is that from a public relations perspective, politicians are probably right in never admitting error in public.

Does this hold true as well for business executives? Should you apologize to customers or employees or investors for upscrewing something big? Is the best policy never to apologize at all?

The obvious advice is to avoid upscrewing in the first place. But upscrews happen. The key is to apologize strategically.

Do you hear HP’s Board of Directors apologizing for allowing a once revered Silicon Valley company to spiral into chaos and irrelevance? Or for even considering Meg Whitman as the next CEO? No.

[I started to list companies that ought to be apologizing for something, but that would consume far too much space. I apologize.]

Remember in April when Sony’s sloppy security allowed hackers to steal credit card information from 10 million Sony PlayStation Network customers? Sony had to shut down PSN for 10 days, knocking 77 million customers offline.

Kaz Hirai, Sony’s No. 2 executive, held a press event to apologize. These screengrabs say it all:

 

And remember when Apple cut the price of the new iPhone by $200 just two months after introducing it? Steve Jobs, not otherwise known for contrition, issued a public letter of apology, explaining why customers were ungrateful wretches but offering them $100 credit toward buying more Apple products.

Which reminds me of the delightful Joy of Tech cartoon from 2007:

Anyway, I apologize that this post has gone on so long without a conclusion. I promise to do better next time.

P.S. Hey, Reed, how about an apology for naming it “Qwikster”?

7″ Media Tablets Like Kindle Fire…”Dead On Arrival”?

UPDATED with Amazon Kindle “Fire” references.

A few weeks ago, TechCrunch reported that Amazon’s 7″ Kindle tablet was “very real” and would ship for the 2011 holidays.  (UPDATED: Now rumored to be called “Kindle Fire“.  ) Almost a year before that, Wired’s Brian Chen reported that on an earnings call, Jobs said, “the current crop of 7-inch tablets are going to be DOA — dead on arrival.” So the stage is set for an interesting war of beliefs and concepts this holiday shopping season.  In one corner, the world’s most trafficked internet retail stores and Kindle inventor, Amazon, and in the other, Apple, the most valuable company on the planet and inventor of the iPad.  Will the Amazon Kindle Fire tablet be treated in the marketplace with very little respect or will it shock everyone like the original Kindle?  It really comes down to the basics of the consumer value proposition.

Many Variables at Play

With a considered technology purchase, consumers actually do a bit of research before they buy.  It can be as simple as asking a geek friend for advice, doing a Google search for reviews, or as complex as side-by-side feature analysis, but in the end, it’s still research.  Consumers looking at buying a 7″ or 10″ tablet will look at variables like perceived price, value, content, brand, size, display, and weight.  More meaningful, though, is how they apply those variables to what they believe they want to do with their tablet and the location they will do it.

For the sake of this analysis, I will use the iPad 2 as representative of the 10″ tablet and the combination of a Nook Color and the rumored Amazon Kindle “Fire” tablet as the 7” designate.  I will also assume that each tablet has access to the same books, magazines, movies, videos, music and games.  The only “iffy” one may be games given the iPad’s tremendous lead today.

IMAGE_1000003527

Potential Advantages with a 7″ $249 Tablet (Amazon Kindle “Fire” Tablet)

  • 20-30% lighter and even smaller means easier to carry and hold for almost every usage model.  Anecdotally, I have heard that women prefer the 7″ tablet because they are easier to carry.
  • Half the $499 price of the cheapest iPad 2. Not only is the tablet less expensive, but I will guess that every accessory will be less expensive, too.
  • Free subscription to Amazon Prime, which means free access to Amazon Instant Video Service.  Again, this is rumor, not confirmed.
  • Most of the same books, magazines, videos, movies, web content as the 10″, $499 tablet.
  • Simpler, as in fewer choices for apps and content providers, yet plays the same content. There is one button only.
  • Standard micro USB power and data cable.  These are everywhere in the house, your cars, and at the local convenience store.  You can also charge from your PC, unlike an iPad 2.
  • More durable, given plastic and rubber design.  I don’t care when someone drops my Nook on the carpet.  I shriek when someone drops my iPad 2.

Potential Advantages with a 10″ $499 (iPad 2)

  • Twice the viewable image area of everything you see, like pictures, videos, books, newspapers, and web pages.
  • Battery life, although tough to predict.  Apple claims up to 10 hours for web, video, and music while Barnes & Noble claims 8 hours for reading.
  • Use more complex applications and basic activities are more responsive, given dual core processor and better graphics subsystem.  Think better looking games, richer video and photos, and more complex web pages.
  • Watch videos and listen to music from the tablet to an HDTV, PC, Mac or other AirPlay compliant device.  Maybe the Kindle will have some sort of DLNA capabilities, but from what I’ve seen on Android tablets today, it won’t hold a candle to the iPad AirPlay.
  • Take pictures and home movies.  While I scoffed at this at first with the iPad 2’s low res camera, I find myself taking pictures and videos with it.  It’s just so convenient to take it and show it to someone immediately.  Maybe I will stop doing this when iCloud immediately uploads my pictures and videos, but we will see.

Conclusion

As you can see, there are potential benefits in a less expensive, smaller and lighter 7” media tablet like the Kindle “Fire” as there are in a fuller-featured, twice as expensive, 10” media tablet. I believe that if the Amazon Fire tablet ships this as rumored above and with Amazon Video on Demand, it will sell extremely well. That is, given competition stays still, which it rarely does. So does this mean Steve Jobs was wrong? No, because when he made that statement a year ago, 7” tablets were priced right on top of the iPad 2 with a lot less content and a much degraded experience. A lot has changed since then and a lot will change in the future. And I am sure of that.

Think Different

My favorite Apple marketing campaign by far was their “think different” campaign. I felt like that campaign profoundly spoke to me and I am a sucker for great marketing.

That slogan, I always believed, summed up Apple eloquently. Apple used the slogan powerfully by simply placing the phrase next to luminaries, visionaries and any other type of person who dared to think different. It was an amazing campaign.

Steve Jobs did not just create a culture of thinking differently; he also surrounded himself with people who also thought different, who saw the world with a different lens. The result is a passionate group of employees who believe they are working on some of the greatest products on the planet; that is why they make some of the greatest products on the planet.

Products created at Apple have the fingerprints of every single person who worked long hours to bring those products into reality. This is why, toward the end of many Steve Jobs speeches, he asked the audience to acknowledge the hard work of everyone who had a hand in Apple’s new creation. And it underscores that Apple is not just Steve Jobs. It is all of them devoted to Jobs’ vision of thinking different and working together to execute on that vision.

From what we have seen Steve Jobs do throughout his career it would be fair to assume that he has been playing on an entirely different level. He is the epitome of thinking different.

Regardless of whether Steve Jobs is at the helm of Apple as CEO or just its Chairman, I am in no way concerned about the future of Apple.

Steve Jobs hasn’t been deeply involved in Pixar for some time now and yet Pixar still is the leader in their feild.

He has done amazing things in and for this industry that employs many of us. I feel honored to have been in the industry, attending industry changing events, and some small part all of it. I look forward to being able to tell future generations that I saw Steve Jobs in action.

The right culture + the right people + the right vision + thinking different = Apple.

Apple After Steve

Everybody has heard the news by now: Steve Jobs resigned because he “could no longer meet my duties and expectations as Apple’s CEO.”

In his letter of resignation to the Apple Board of Directors and the Apple Community, Jobs wrote: “I strongly recommend that we execute our succession plan and name Tim Cook as CEO of Apple.

My first immediate reaction is sorrow that he’s stepping down. I presume that his decision is health related, and wish him and his family well.

My second reaction, to paraphrase Monty Python, is that he ain’t dead yet. His brief and eloquent resignation letter says he plans to hang around a while.

Will Steve Jobs die? Of course. Silly question, as he would be the first to say. (Actually, “stupid f&*$#$g question” is more likely how he’d say it.)

In his graduation speech to Stanford’s Class of 2005, Jobs said: “No one wants to die. Even people who want to go to heaven don’t want to die to get there. And yet death is the destination we all share. No one has ever escaped it. And that is as it should be, because Death is very likely the single best invention of Life. It is Life’s change agent. It clears out the old to make way for the new.”

I suspect he might see stepping down as CEO in the same Schumpeterian way. He and Steve Wozniak started Apple in a garage and it’s now the most valuable company on the whole f&*$#$g planet. Apple sets the agenda for the global technology industry. Jobs himself is by consensus the most important business executive alive today. Earlier this year he effectively decreed that the Personal Computer era was over, and last week the world’s No. 1 PC company, Hewlett-Packard, effectively said, “You’re right again, Steve. We’re toast. You kicked our butt. We give up.”

It would be hard to conceive of a better time to say “Mission Accomplished” and hand the keys to the next generation.

I haven’t checked the after-hours ticker but I assume AAPL is getting cored. That’s silly, too, for anyone with a view that goes beyond a day or two.

There’s always lots of new stuff in the pipeline at Apple, stuff that takes months and years to develop, and Tim Cook already has been running things on a day-to-day basis for some time. Will Cook be as good a CEO as Jobs has been? No one knows. Can he be even better? Again, no one knows.

Could he be worse? Hey, it’s not like Tim Cook is the second coming of Gil Amelio. I remember sitting in the front row at a Macworld conference in the mid-1990s, as a Jobs-less Apple appeared to be in a death spiral, as then-CEO Amelio gave a rambling keynote address while absent-mindedly beginning to undress himself on stage. Apple PR folks were apoplectic. It’s hard to imagine Tim Cook melting down in a similar way.

One thing we do know is that Jobs’s DNA already inculcates the culture at Apple. That may change a few years out, but … that’s a few years out. The fact that Jobs is no longer CEO of Apple is not suddenly going to make HP or Microsoft or Dell any smarter. The fact that Tim Cook is now running things is not suddenly going to invigorate any of Apple’s competitors to execute their strategies any better.

Another thing we know is that Apple is probably going to introduce a fifth-generation iPhone that will run on all carriers, including new carriers in China, the world’s largest untapped market for smartphones. That fact that Steve Jobs is no longer at the helm will not cause millions of Chinese, or Americans for that matter, to slap their foreheads with an epiphany that Android, Windows Mobile, and WebOS are suddenly better choices for mobile platforms.

Notice also the not-so-subtle jab at the media in Jobs’s letter of resignation: “I strongly recommend that we execute our succession plan.” There is in fact a succession plan at Apple and the Board just approved it.

I suspect that Tim Cook didn’t open his first conversation with the Board of Directors by saying, “Okay, boys, now that I’m running the show we’re going to reinvent this company from top to bottom. I’ve been itching to go completely open and dump this whole ‘Apple ecosystem’ strategy.”

At the same time, I can’t think of any company that is as closely identified with its CEO as Apple was under Steve Jobs. Apple without Steve Jobs (or, to be accurate, Apple with Steve Jobs in the Sinatra-esque role of Chairman of the Board) will not be perceived as the same company with Jobs on the sideline. Jobs is a genius. The genius is (sort of) gone. Therefore, some of Apple’s genius is gone, too, until proven otherwise.

In that commencement address at Stanford six years ago, a healthier-looking Jobs gave a speech that was very much like the Apple products for which he is known: Elegantly crafted, attentive to detail, rich in content, but no unnecessary words or buttons. He was talking to a fresh crop of Stanford graduates, but his message almost certainly applies to Tim Cook, Phil Schiller and all the other top Apple executives who are now at the helm.

“Don’t be trapped by dogma,” Jobs said, “which is living with the results of other people’s thinking. Don’t let the noise of others’ opinions drown out your own inner voice. And most important, have the courage to follow your heart and intuition. They somehow already know what you truly want to become. Everything else is secondary.”

Jobs also said this: “I have looked in the mirror every morning and asked myself: ‘If today were the last day of my life, would I want to do what I am about to do today?’ And whenever the answer has been ‘No’ for too many days in a row, I know I need to change something.”

So, Steve woke up one morning recently and decided he needed to change something besides the world. Namaste, dude.

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A version of this post appears in Fiscal Times.

Contemplating the Future of Apple Without Steve Jobs as CEO

Today’s news that Steve Jobs would step down as CEO came as a surprise to many. But I believe Jobs had been preparing for this day for at least 5 years. Apple watchers over that time began to see signs of Job’s putting more and more responsibility into the hands of his executive staff as he often had to step away for health reasons. And during that time Tim Cook, Phil Schiller, Peter Oppenheimer, and the rest of Steve’s executive team understood that they needed to be more in tune with understanding Steve’s vision, directions and ultimate thinking on the long term future of Apple.

While we may tend to be concerned about Steve Jobs the person, I am not concerned about Apple the company. Steve Jobs has in place a very deep bench of executives who really do know Steve’s long-term vision and Jobs’ 10-year roadmap for this very important company. And they are more committed then ever to carry it forward and to extend his legacy well into the future.

What people don’t realize is that Apple does not work like most companies that operate on a quarter-to-quarter basis or planning cycle. Instead, the products they have in the works now are designed through 2013 and the current roadmap extends well through 2015. In this time period, nothing will change for Apple. In fact, I expect Apple to continue to grow even more during this period.

Let’s also remember that while Jobs will not be CEO, he still is Chairman and as long as he can, he will be influencing their current and future product designs and roadmaps. My sources say that while his health wavers at times, he plans to be an active Chairman and to be deeply involved with major decisions and future directions.

But there are two other key reasons that I believe Apple can carry on even with Jobs in a more diminished day-to-day role. It is because Apple is no longer a device company alone. They are now driven by a vision that includes hardware, software and services. And more importantly, the devices they create are just elegant screens that give people access to their software and services. Although their main screens today are the Mac, iPod, iPhone and iPad, they have a lot of room to innovate around the TV, in-car navigation systems and who knows what other screens they may want to design that front ends their software and services. And more importantly, their software, apps and services are a solid foundation that they can continue to build on.

The other thing that makes me certain that Apple will continue to be a force is something Jobs said to me in one our discussions many years ago. I asked him what drove him. He told me that technology could be complicated to use. He felt his mission was to make technology easy to use so that everyone could reap the benefits of technology. He then said that making technology simple to use was hard work, but that this was at the heart of his vision for Apple.

If Apple’s current executive team has caught this vision, especially the one about making technology easy to use so that everyone can benefit from it, then Apple will be just fine. And given their rich integration of hardware, software and services, they still have a lot of room to create great product that people will want to use.

But Job’s Legacy will always be that of a pioneer who sits at the intersection of liberal arts and design and forever changed the way people think about technology. Most executives would be thrilled if they have one hit in their careers. Jobs has had the Apple II, the Mac, the iPod, the iPhone, the iPad, iTunes and Pixar. These technologies and more to come from his vision delivered through his team will keep Apple in the forefront of our connected world and a major player for a long time.

Apple – Building a Brand, Leaving a Legacy

There’s this thing in life that most of us have experienced. It’s a sort of metaphysical passing of one’s self. Those moments when you pass a place you know and can almost see your younger self (or maybe your older self), standing right there in a different time. For me, Cupertino has always held those doorways and windows. Like most of the kids who grew up in Cupertino, I used to make extra money picking apricots in the orchards.

Obviously, fruit has remained a big theme for Cupertino. Of course, I’m speaking tongue in cheek – as most of the world knows, Steve Jobs built Apple’s headquarters here (it’s his hometown too; one of many things we share in common). So, once lush with orchards and wineries, Cupertino is now one of the geek capitals of the world. I say that with pride and humor, because I am definitely one of them, standing on the thin line between artistry and technology. In fact, I worked at Apple for many years, and I’m proud to say that I launched the focus on music and led strategic Music and Entertainment initiatives during my 10 years there.

So I am one of the truly lucky ones, with strong roots both in the Cupertino of old – and the Cupertino of now. The roots of now, the Apple tree, are firmly incontrovertibly implanted in Steve Jobs. As stock prices have shown, Jobs is absolutely the trunk of Apple and inseparable from where investors put the worth of the company.

And here’s the real crux of what I want to say in this piece: Seeing Steve Jobs battle through the fight of his life to restore Apple to greatness – a graceful, courageous and obviously successful battle – doesn’t hold a candle to seeing him fight for his life now. But what he’s creating, despite (or because of) that illness is mind blowing. Naysayers can address the iCloud any way they want, but what we all know is that it’s pretty damned likely to be successful. Apple is ending the war on clouds and lockers and legitimizing what the consumer wants, whether the music industry agrees or not.

It is the new digital age, and like it or not we’re not going to stop access. We’re not even going to control access. Steve Jobs has literally put all his apples into one basket in agreement. Why does it matter? It matters because, like Bob Lefsetz said recently, Apple is EASY. The huge base of consumers out there trust that if they get an iPad or iPod or iTunes … whatever, it will work. Apple has not only galvanized a brand, but it has built a huge, vocal community of brand advocates. No amount of advertising money could have busted the iPad out of the gate the way the users themselves did.

The second part of a brand is always fulfilling the promise you set forth (this is straight from branding queen Libby Gill’s rulebook). And, quite simply, Apple delivers on their promise day in and day out. They listen to their constituency and they build a better mousetrap, make better stuff, and address issues like the cloud – maybe a little later than the creative disruptors, but without a doubt, they’re putting their weight (and their money) where their mouth is.

Which brings me to the issue of legacy: Apple is a big deal – not just to the world, that’s obvious – but here, in Cupertino (my hometown). Legacy is a lot like a brand, in its truest form, it delivers on a promise made. The new Steve Jobs’ Cupertino Apple Campus Mothership is absolutely part of that promise. One day after the WWDC conference, Jobs put forth his new campus proposal to the Cupertino City Counsel, ripe with more than apples. Steve Jobs has designated acres and acres of his campus for apricot orchards – honoring the tradition of the Valley; that’s roots. And it’s deeper than I can convey.

I could go on and on about Apple’s commitment to its future and to the ever growing employee base (I was part of that once, and I retain a strong, golden thread to those people and the work they do), but the commitment from Steve Jobs is bigger than even that. I think I should come clean here and say that obviously I admire Steve Jobs. I don’t agree with him all the time, obviously – or with Apple for that matter. But I’ve seen him renovate more than a company or a product line. I’ve seen him refresh the people around him. I’ve watched him galvanize thousands of employees to get laser focused on success and build something meaningful. I’ve witnessed the grace, elegance, and simplicity with which the products have sparked a revolutionary embrace among consumers. I’ve watched his address at Stanford’s graduation a dozen times and brought that message into my own life – which brings me back to that metaphysical doorway I mentioned earlier. To that glimpse of one’s self coming and going.

You see, we’re all creating a legacy all the time. We are ALL in the process of going, like it or not.
A brand, well that’s for now. But a legacy… what we build that will outlast us, that’s huge. There are 3,700 trees in what will be the new Apple campus as of today. According to initial specs, Apple hopes to have 6,000 trees when the mothership is built. In fact, Steve Jobs hired experts from Stanford to consult on indigenous trees to make this come to “fruition” (sorry, I couldn’t resist). To me, no matter what my life has become – working with industry leaders and entrepreneurs, innovators and influencers, celebrities and musicians, I often look through one of those doorways and see myself picking fuzzy apricots from the tress here in Cupertino. I remember where I come from and, like Steve Jobs, that my legacy has to be bigger than my brand.

And just my humble opinion, whatever those trees are, whatever fruit they bear, in my book they’re all Apple trees.