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TIMES BUSINESS | KING OF THE iWAY Without Its Master of Design, Apple Will Face A Far Greater Trial In Achieving Continued Success
THE TIMES OF INDIA, BANGALORE FRIDAY, AUGUST 26, 2011
Apple of our ‘i’
Steve Jobs, 56
G A Buddhist and raised by adoptive parents G Belongs to the league of famous college drop-outs that include Bill Gates (Microsoft), Larry Ellison (Oracle), Michael Dell (Dell) and Richard Branson (Virgin group) G Jobs, whose personal wealth is about $9 billion, in early years survived on money he got from selling coke bottles and weekly free meals at Hare Krishna temple in Oregon G Jobs traveled to India in search of spiritual enlightenment and took to Buddhism, shaved his head and wore Indian cloths G Worked with HP in Palo Alto in California where he met Steve Wozniak, with whom he founded Apple G Publishing house Simon & Schuster is set to publish the authorized biography of Jobs in November that will include his resignation
teven P Jobs, one of the most successful chief executives in corporate history, once said he never thought of himself as a manager, but as a leader. And his notion of leadership revolved around choosing the best people possible, encouraging them and creating an environment in which they could do great work. But the Apple team, analysts say will face a far greater trial in , achieving continued success without Jobs in charge. Jobs, who said on Wednesday that he was stepping down as Apple’s chief executive, said in an interview shortly after he returned to the company in 1997 that his leadership style had changed over the years, as he matured. In his early years at Apple, before he was forced out in 1985, Jobs was notoriously hands-on, meddling with details and berating colleagues. But later, first at Pixar, the computer-animation studio he co-founded, and in his second stint at Apple, he relied more on others, listening more and trusting members of his design and business teams. In recent years, Jobs’s role at Apple has been more the corporate equivalent of “an unusually gifted and brilliant orchestra conductor,” said Michael Hawley, a
Apple scrip down
pple slipped 2% to $368.67 on Nasdaq in early trading on Thursday, a day after Steve Jobs announced that he has put in his papers amid a battle with cancer. The stock, however, erased some of the losses by mid-day trading.
professional pianist and computer scientist who worked for Jobs and has known him for years. “Steve has done a great job of recruiting a broad and deep talent base.” At Pixar, with a solid leadership team in place, the studio never missed a beat, and it continued to generate one critically acclaimed and commercially successful hit after another, including Finding Nemo and Wall-E,” long after Jobs had gone back to Apple. It is by no means certain, analysts say that things will go that , smoothly for Apple. Jobs, they note, was far more in the background at Pixar, where creative decisions were guided by John Lasseter. Pixar was sold to Disney for $7.4 billion in 2006. At Apple, Jobs’s influence is far more direct. He makes final decisions on product design, if not in detail. No immediate changes, analysts say, will likely be discernible. “The good news for Apple is that the product road map in this
industry is pretty much in place two and three years out,” said David B Yoffie, a professor at the Harvard Business School. “So 80% to 90% of what would happen in that time would be the same, even without Steve.” “The real challenge for Apple,” Yoffie continued, “will be what happens beyond that road map. Apple is going to need a new leader with a new way of recreating and managing the business in the future.” Jobs’s hand-picked successor, Timothy Cook, who has been the company’s chief operating officer, has guided the company impressively during Jobs’s medical leaves. But his greatest skill is as an operations expert rather than a product-design team leader— Jobs’s particular talent. At Apple, Jobs has been the ultimate arbiter on products. For example, three iPhone prototypes were completed over the course of a year. The first two failed to meet Jobs’s exacting standards. The third prototype got his nod, and the iPhone shipped in June 2007. His design decisions, Jobs explained, were shaped by his understanding of both technology and popular culture. His own study and intuition, not focus groups, were his guide. When a reporter asked what market research went into the iPad, Jobs replied: “None. It’s not the consumers’ job to know what they want.” NYT NEWS SERVICE
G In the multiple-Oscar winning Hollywood movie Forest Gump, the lead character by the same name, played by Tom Hanks, refers to Apple as “some sort of fruit company” whose shares Gump ends up owning
Much valued history
G In July 1976, Apple sold its first PC, Apple-1 for $700 that had no casing, power supply, keyboard or monitor. JobsWozniak duo sold 200 units of its and made $20 each. In November 2010, in an auction, an almost unused Apple-1 machine was sold for $213,600.
Idea behind ‘i’
G First used with iMac in 1998, Jobs said at the launch that ‘i’ meant internet, individual, instruct, inform, inspire
To the Apple Board of Directors and the Apple Community: 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. 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. As far as my successor goes, I strongly recommend that we execute our succession plan and name Tim Cook as CEO of Apple. 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. I have made some of the best friends of my life at Apple, and I thank you all for the many years of being able to work alongside you.
Book of Jobs: Steve has a different operating system
ard to understand, difficult to work with and deemed irreplaceable by many Apple fans and investors, Steve Jobs has made a life defying conventions and expectations. And despite years of signs of poor health, his resignation as chief executive of Apple caused a global gasp as the world contemplated the future of an icon and the company he symbolizes. “Steve Jobs is the most successful CEO in the US of the last 25 years,” said Google chairman Eric Schmidt, who used to sit on Apple’s board but stepped down because of overlapping business interests. “He uniquely combined an artist’s touch and an engineer’s vision to build an extraordinary company, one of the greatest American leaders in history,” Schmidt said in a statement. A college dropout, Jobs floated through India in search of spiritual guidance prior to founding Apple—a name he suggested to his friend and cofounder Steve Wozniak after a visit to a commune in Oregon he referred to as an “apple orchard.” With his passion for minimalist design and marketing genius, Jobs changed the course of personal computing during two stints at Apple and transformed the mobile market. The iconic iPod, the iPhone — dubbed the “Jesus phone” for its quasi-religious following—and the iPad are the creation of a man known for his near-obsessive control of the product development process. “Most mere mortals cannot understand a person like Steve Jobs,”
Cook’s vision centre stage after Jobs’s departure
im Cook, the small-town football fanatic turned chief executive of the world’s largest technology company long faced the ques, tion of whether he had the same remarkable vision as his predecessor Steve Jobs. The question became even more important on Wednesday when Jobs resigned from Apple Inc and Cook took his place, with Jobs’ recommendation. Apple’s long-time chief operating officer, Cook was confirmed as CEO by the company’s board, and Jobs was named chairman. Jobs has been on medical leave. Cook now must prove that his technology instincts are as sharp as when he joined Apple in 1998 after leaving the once-mighty Compaq, then the world’s top PC maker. At the time Apple was barely afloat. His gut decision during his first meeting with Jobs not only changed his life but altered the course of technology history . “My most significant discovery so far in my life was the result of one single decision, my decision to join Apple,” Cook told Auburn University students at his alma mater last year. “Working at Apple was never in any plan
that I outlined for myself, but was without a doubt the best decision that I ever made.” Now, as leader of one of the most highly recognizable brands, Cook will be called upon to satisfy investors and consumers who know Apple as a technology pioneer. People who have known and worked with Cook over the past two decades use terms like “brilliant” and “phenomenal” to describe him. He is also called a supply chain genius at a company that values operational efficiency nearly as much as design. Still, after years of relative anonymity as Jobs’s No. 2, Cook is in some ways untested. “Tim has been de facto CEO for some time and the company has been hugely successful,” said Colin Gillis, an analyst at BGC Financial. “The vision and the road
map are intact.” Cook started taking on more responsibility after Jobs was diagnosed with a rare form of pancreatic cancer and had a liver transplant. Jobs is on his third medical leave. Despite his ill health and ongoing speculation about if and when Jobs would leave Apple, he turned up time and again at milestone company events to the delight and surprise of Wall Street and Main Street. One of the things Cook shares with Jobs is sheer competitiveness. “He’s not in it for the fame or the ego or the money He’s in . it to win,” said Greg Petsch, who was Cook’s boss at Compaq Computer in the late 1990s. How Cook got his job is part of Apple legend. As recounted in the Wall Street Journal, Jobs, then newly returned to Apple to reinvigorate the company had turned , down several applicants in characteristically brusque fashion, including walking out midway through one interview. By Cook’s own account, they took to each other instantly and , Cook made his fateful decision. He was told he would be a fool to leave Compaq for an also-ran on the verge of bankruptcy But his . mind was made up. REUTERS
He uniquely combined an artist’s touch and an engineer’s vision to build an extraordinary company, one of the greatest American leaders in history,
Google chairman Guy Kawasaki, a former Apple employee who considers Jobs “the greatest CEO in the history of man”, said recently “He’s just got . a different operating system.” Charismatic, visionary, ruthless, perfectionist, dictator— these are some of the words that people use to describe the larger-than-life figure of Jobs, who may be the biggest dreamer the technology world has ever known, but also a hard-edged businessman and negotiator through and through. “Steve Jobs is the business genius of our generation,” former eBay Inc chief Meg Whitman said recently “His contributions . to Apple, his contributions to technology, frankly his contributions to America, are unparalleled in the business world. He is amazing.”
Former nemesis Bill Gates, the co-founder of Microsoft, has called Jobs the most inspiring person in the tech industry and President Barack Obama has held him up as the embodiment of the American Dream It’s hard to imagine a bigger success story than Steve Jobs, but rejection, failure and bad fate have been part and parcel of who he is. Jobs was given away at birth, driven out of Apple in the mid-80s and struck with cancer when he finally had regained the top of the mountain. His resignation as CEO on Wednesday comes at the relatively young age of 56. Jobs grew up with an adopted family in Silicon Valley which , was turning from orchards to homes for workers at Lockheed and other defense and technology companies.Electronics friend Bill Fernandez introduced him to boy engineer Wozniak, and the two Steves began a friendship that eventually bred Apple Computer. “Woz is a brilliant engineer, but he is not really an entrepreneur, and that’s where Jobs came in,” remembers Fernandez, who was the first employee at Apple. Wozniak said that his goal was only to design hardware and he had no interest in running Apple. “Steve Jobs’ role was defined — you’ve got to learn to be an executive in every division of the company so you can be the world’s most important person some day . That was his goal,” recently joked Woz, who is still listed as an employee reporting directly to Jobs, even though he has not worked at Apple for years. REUTERS
G In its proxy filing in January 2011, Apple again confirmed that Jobs was paid a dollar for his 2010 efforts and was awarded no new stock. It also confirmed that he has not cashed in any of his roughly 5.5 million shares since 1997. G How did Jobs manage to buy black turtlenecks and other day-to-day necessities? For one, the company reimbursed him for many expenses, according to its filings, including more than $800,000 in 2008, a year when Jobs took a six-month leave of absence when he fell ill
‘Stay hungry, stay foolish’
Jobs is usually point-blank when he replies to queries. On iPad: When a reporter asked what market research went into the iPad, Jobs replied: “None. It’s not the consumers’ job to know what they want.” On his ouster from Apple: “It was awful-tasting medicine, but I guess the patient needed it. Sometimes life’s gonna hit you in the head with a brick. Don’t lose faith,” he told a Stanford graduating class in 2005. ‘Stay hungry, stay foolish’ was his closing comment for the address
Jobs Exit as Apple CEO May Be ‘Lease of Life’ for Sony, Nokia
i We a l t h
April 1, 1976: Steve Jobs (21) and Stephen Wozniak (25) float Apple July 1976: Apple launches ifs first computer at $666.66 Dec 12, 1980: Apple is listed at $22/share Jan 24, 1984: Apple introduces first Macintosh computer
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teve Jobs shook up the electronics world for a decade with the iPod, iPhone and iPad at the expense Sony Corp, Nokia Oyj and HewlettPackard. His exit as Apple’s CEO may pave the way for competitors to regain market share, analysts said. Sony and Nokia were among Apple rivals whose shares advanced during Asian and European trading amid speculation Jobs's withdrawal may increase their ability to compete in products ranging from smartphones to tablet computers. Jobsrescued Apple from the brink of failure and
turned it into the world’s biggest technology company . “It's going to give competitors a bit more of a lease of life to go out and compete harder,” said Richard Windsor, global technology analyst at Nomura International Plc. “It's been thought about, talked about endlessly for the past several years that Tim Cook would probably take over so while you get an initial knee-jerk reaction on the downside, we would probably expect that not to last very long.” Sony climbed 2.1% in Tokyo, while Samsung Electronics, which also counts Apple as its biggest
Dec 20, 1996: Jobs returns to Apple as adviser after the tech major buys his start-up Next
customer, gained 2.4% in Seoul. Nokia advanced as much as 2% in Helsinki. HTC, the Taiwanese maker of phones that run on Google’s Android software, rose 1.4% in Taipei. The resignation of Jobs has opened the door for rival Samsung Electronics at a crucial time in the battle for smartphone supremacy in salesrooms and courtrooms around the world. More than any other firm, Samsung’s fortunes are tied to Apple, both as a competitor and supplier of components. The companies are fierce rivals, with Samsung’s Galaxy range of
July 2, 1999: iBook out as a lowcost laptop line
smartphones and tablet computers running on Google's Android operating system seen as the main competitor to Apple’s game-changing iPhones and iPads. “Even before Steve Jobs’ (resignation), Samsung was getting more and more optimistic that they can actually take on Apple in the smartphone arena,” said Mark Newman, a former director of strategy at Samsung, where he worked for six years. “The game is really now Samsung’s to lose ... They are picking up market share because of the change in dynamics in the smartJan-June 2009: Jobs undergoes liver transplant
phone industry added Newman, ,” now a senior analyst for global memory and consumer electronics at Sanford C Bernstein. The Korean giant has taken big strides and is backing itself to unseat Apple. Samsung this week unveiled four new cheaper smartphones targeting fast-growing emerging markets— again setting it on a collision course with Apple, which sources say is readying a cheaper, 8 gigabyte iPhone. AGENCIES
Jan 17, 2011: Jobs takes medical leave again
Sept 17, 1985: Steve Jobs resigns from Apple after a twoyear-long power struggle with John Sculley
March 1987-93: Macintosh II is introduced, dumping the one-box design; apple expands portfolio
May 6, 1998: Apple unveils iMac; onebox style returns
Oct 23, 2001: Apples unveils iPod
July 31, 2004: Jobs undergoes surgery for pancreatic cancer Jan 9, 2007: Apple launches iPhone
Jan 27, 2010: Jobs unveils iPad I
March 2, 2011: Jobs returns to launch iPad2
August 24, 2011: Jobs steps down as CEO; COO Tim Cook to take over
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