Time had nominated Tim Cook, Apple’s CEO as a candidate for the Person of the Year. Will Cook be able to make Apple come out with another revolutionary product, revealing to us what Steve Jobs saw in Cook. In any case, here is how Cook was recruited by Jobs to Apple.
Almost immediately after he arrived at Compaq, Cook began to get calls from Apple’s headhunters. Jobs was back from exile — he was pushed out from Apple in 1985, then rehired 12 years later — and he wanted to bring in somebody new to run operations. At that point Apple was generally considered to be in a death spiral — that year alone, it lost a billion dollars — and Cook had no interest whatsoever in moving. But Jobs was a legend in the industry, so Cook sat down with him one Saturday morning in Palo Alto. “I was curious to meet him,” Cook says. “We started to talk, and, I swear, five minutes into the conversation I’m thinking, I want to do this. And it was a very bizarre thing, because I literally would have placed the odds on that near zero, probably at zero.”
Cook was interested in Jobs’ strategy, which he describes using a favorite Cook expression, doubling down: “It was the polar opposite of everyone else’s. He was doubling down on consumer when everybody else was going into enterprise. And I thought it was genius. Compaq was doing so poorly in consumer, didn’t have a clue how to do consumer. IBM had left. Everybody was kind of concluding that consumer business is a loser, and here Steve is betting the company on it.”
HP once was the icon of good management. But for the past 10 years it has gone through several CEOs and the middle of a turnaround has to write off $9 billion dollars because it acquisition of Autonomy turned out to be a fiasco. HP alleges that Autonomy mis-represented its financial worth. The founder of Autonomy claims that HP destroyed Autonomy within one year.
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But here is also a voice that articulates that if you are buying a company to secure your future, many deals will go wrong but some may go right and prevent you from becoming irrelevant.
Acquisitions is like doing R&D with a high failure rate.
Tim Cook take his first major step of reshaping the top executive ranks at Apple. It appears that a battle was brewing within Apple for some time about key design philosophies. Scott Forstall, who apparently has been branded as not being a team players, stumbled of the debacle with the Apple maps.
Microsoft is rumored to imitate Apple’s strategy of making both software and hardware.
Microsoft (MSFT) is currently in the midst of a major transition unlike anything the company has dealt with in the past. According to our own sources and multiple subsequent reports, Microsoft is working on its own smartphone. While this would mark the first time Microsoft has launched a self-branded smartphone (we’re not counting the KIN), the implications for the company are much greater than just a phone. Noted industry insider Eldar Murtazin has written a lengthy piece on the company’s upcoming Windows Phone plans, but has also explored some of the reasons why Microsoft is being forced to make its own tablets and smartphones, and most likely its own laptops and desktops as well in the near future.
Source: Yahoo News
HP has been falling behind Apple and Google and the race to be the leading Silicon Valley company. Now Meg Whitman is trying to turn this former star company around. The NYT reports.
So now Ms. Whitman is focusing her energy on H.P., the company founded by the tech legends William Hewlett and David Packard. Bill and Dave, as they are referred to at the company, spawned Silicon Valley. Last year, H.P. posted revenue of $127 billion. It employs 320,000 people directly, and easily that many again through a network of manufacturers and computer resellers across 170 countries.
TWENTYyears ago, people like Steve Ballmer at Microsoft, Larry Ellison at Oracle, and John Chambers at Cisco Systems heard Kenneth Olsen, then the leader of Digital Equipment Corporation, deride the PC as unsuited for business. Within a few years, DEC had been gobbled up by Compaq Computer. Everyone knows viscerally how fast change can overtake a legacy business — and how hard it is to change.
There’s little glory in managing decline, particularly in an industry in love with what’s next. Apple’s tablets are taking share from PC makers like H.P., but only after Apple had a near-death corporate experience that ended with the return of Steve Jobs. He created a new reality for Apple with its retail stores, something that H.P. can’t copy to sell PCs. I.B.M. also transitioned successfully after billions in losses and years of cuts. Most others ended like DEC.
Yesterday the Apple CEO apologized for Apple’s crummy maps application in iOS 6. The WSJ reports on the financial reason why Apple wanted to dump Google maps.
Maps are a big piece of the Apple-Google rivalry. Opus Research has estimated that mobile ads associated with maps or locations account for about 25% of the roughly $2.5 billion spent on ads in mobile devices in 2012. Google has had mapping software since 2005, and a Google Maps app was pre-installed on the first iPhone starting in 2007. Apple only began building its maps software in 2009 under Mr. Jobs, with an eye toward making its version the default mapping app on the iPhone and, later, the iPad. Apple acquired several companies to construct its mapping technology, as well as using information from third parties, such as navigation system maker Tom Tom NV, before it was ready to boot Google Maps.
This is the story of how Apple reinvented the phone. The general outlines of this tale have been told before, most thoroughly in Isaacson’s biography. But the Samsung case—which ended last month with a resounding victory for Apple—revealed a trove of details about the invention, the sort of details that Apple is ordinarily loath to make public. We got pictures of dozens of prototypes of the iPhone and iPad. We got internal email that explained how executives and designers solved key problems in the iPhone’s design. We got testimony from Apple’s top brass explaining why the iPhone was a gamble.
Put it all together and you get remarkable story about a device that, under the normal rules of business, should not have been invented. Given the popularity of the iPod and its centrality to Apple’s bottom line, Apple should have been the last company on the planet to try to build something whose explicit purpose was to kill music players. Yet Apple’s inner circle knew that one day, a phone maker would solve the interface problem, creating a universal device that could make calls, play music and videos, and do everything else, too—a device that would eat the iPod’s lunch. Apple’s only chance at staving off that future was to invent the iPod killer itself. More than this simple business calculation, though, Apple’s brass saw the phone as an opportunity for real innovation. “We wanted to build a phone for ourselves,” Scott Forstall, who heads the team that built the phone’s operating system, said at the trial. “We wanted to build a phone that we loved.”
Ina Fried of the WSJ’s All Things Digital is following the Apple-Samsung Trial and is providing an analysis of all the information the typically secretive Apple is forced to reveal.
At the bottom of the article are links to her other commentaries on the trial.
Tim Cook was interviewed about a range of topics at DX, including Steve Jobs.
Here is a summary on the remarks on Steve Jobs leadership style.
6:33 pm: Walt: How is Apple different with you as the CEO?
“I learned a lot from Steve. It was absolutely the saddest day of my life when he passed away.”
“At some point late last year, I sort of — somebody kind of shook me and said, ‘It’s time to get on.’” That sadness was replaced by his intense determination to continue the journey.
6:34 pm: What did I learn from him? Focus.
“You can only do so many things great, and you should cast aside everything else.”
Cook says that not accepting things good or very good, but only the best, “that’s embedded in Apple.”
“I’m not going to witness or permit the change of that.”
“He also taught me the joy is in the journey, and that was a revelation for me.”
Cook also made a reference to the fact that Jobs stressed the importance of owning the key underlying technologies.
As for moving on, Cook says: “I love museums, but I don’t want to live in one.”
6:37 pm: Cook says he is committed to preserving the culture of Apple.
“It is not that easy to duplicate, either,” Cook says.
“If they could, everybody would be like this,” Cook says. “You can’t get a consultant report” and change to be like Apple.
Getting 85% percent right in strategy implementation is not sufficient when it comes to airplane product. The previous example of the A320 which crashed on early test flights shows that it is crucial that plane crash is due to human error. NY Times reports:
Until a crash inquiry is done, analysts said, Sukhoi will have difficulty marketing the Superjet. “It would be entirely understandable for any potential customer to hold off until it’s determined whether the cause was human error or mechanical failure,” said Sash Tusa of Echelon Research and Advisory in London.
While it is rare for such a young aircraft to crash, it is not unprecedented — an Airbus 320 crashed during a demonstration flight in 1988, killing three people and injuring 50. Investigators determined that the cause had been pilot error and found no evidence of a malfunction. The A320 went on to be one of the world’s best-selling aircraft models.
If analysts identify human error as the cause of the plane’s crash, most of the existing 240 Superjet orders will stay on the books, Mr. Tusa said, but “if it turns out there is some kind of major design flaw with the aircraft, those orders aren’t worth the paper they are written on.”
Apple did not join the settlement of the lawsuit. This is a major win for Amazon. It will be fascinating to watch how the suit will unfold.