You need to be in the right place at the right time. Being exposed to many ideas, variables, and potential inputs for accidental discoveries is better than living in a risk averse environment. In High School, Jobs took an electronics class which would have been less likely in most other cities in the US or Canada. Steve Jobs was fortunate to be raised in Silicon Valley, and because of that location it is less of a mystery as to why Jobs is who he was. Defense contracts in Silicon Valley during the 1950s shaped the history of the valley, military investment was used to build cameras to fly over the USSR, for example. Military companies were on the cutting edge, and made living in Silicon Valley interesting. In the 1930s, Dave Packard moved into Silicon Valley, and his garage was the core of the creation of Hewlett Packard. In the 1960s, HP had 9,000 employees, and it was where all engineers wanted to work. Jobs was ambitious enough at a young age to phone Dave Packard and ask for some parts. That’s how he got a summer job there. Moore’s Law emerged in Silicon Valley, Intel was able to develop the first micro processor. Financial backing was made easier to acquire where rich New Yorker’s retired to…By having the chip technology that could be cost measured for projections, Jobs and Gates would use this metric to revolutionize the technological world.
Don’t Fear Changes In Industry & Anticipate Competitive Market Disruption: The digital camera industry was destroyed by cellphones, and Steve Jobs knew that in order to stay ahead of the wave, they would have to cover the cellphone market as well. The iPhone was born out of a concern that Nokia et al would eat Apple’s lunch by creating mobile photos that could easily play music, just as Nokia et al had crushed Kodak. Motorola was a stupid company to Jobs because the Rokr was a joke. Jobs realized that the iPod wheel was not going to dial phone numbers. Jobs was working on the iPad with the touch screen system before the birth of the iPhone. The ability to process multiple touch items was Steve Jobs’ ideas. They wanted to transfer the track pad to the computer screen. Ive never made a demonstration with other people because he know Jobs would shoot it down. The tablet development was put on hold, and shifted to the iPhone screen. Jobs split the multi touch track pads and wheel based iPhone plans. The case could not be opened, and Apple made sure that people could not access the iPhone. The iPhone was three products bundled into one: 1) internet interface, 2) mobile phone, and 3) touch controls. The iPhone was a massively successful product even though it was the most expensive phone in the world $500. Ballmer said the iPhone sucked because business people want a keyboard. Apple sold 90 million phones within months.
Skate Where The Puck’s Going, Not Where It’s Been: “Skate where the pucks going, not where it’s been.” – Wayne Gretzky. Jobs believed that it was his goal to understand what the customer wants before they do. The iMac is about inspiring with a beautiful plastic blue, and it was translucent so that you could see into the machine. The casing would help to give all the components. The simplicity of the plastic shell had to be perfected, and they even studied jelly beans to see how it would be attractive. Some people at Apple wanted to conduct a study to see if the cost of the translucent casing would be justified by focus groups, Steve Jobs said no. iMac should sell for $1200, and produce an all in one consumer appliance. iMac did not include the floppy disk drive but it was ahead of its time. iMac was friendly so much so that there was a handle on the top of the iMac to actually pick it up. Jobs almost started crying because the iMac had a tray instead of a slot drive. May 1998 was the iMac launching. In 2001, iMac was changed to have a sunflower type design.
The Internet Is Made For Music: Napster, Limewire, and other music file sharing websites allowed the illegal downloading of music on a massive scale, and a precipitous decline in sales of traditional distribution platforms for music which began dropping by 9% in 1998. The executives at the music companies were desperate to agree on a common standard for copy-right protection. If the music industry could agree to the coding of music across the industry, they might be able to get a head of the Peer-to-Peers. Sony and Universal came up with Press-Play. EMI had their own system alternative, each had a subscription based system where you would rent the music, and the two competing solutions would not license each other’s songs. The interfaces were clunky, and the services were terrible, the record companies did not get how to solve the problem. Warner/Sony wanted to close a deal with Jobs, largely because Warner/Sony did not know what to do. Steve Jobs was opposed to the theft of creative products even though he bootlegged Bob Dylan in the 1970s. If people copied Apple software, there would be no incentive for new music other than from the passion of musicians.
Creative companies never get started, and it’s wrong to steal, and it hurts your own character according to Jobs. iTunes was the alternative to the brain-dead services, iTunes was the legal alternative to P2P where everyone wins: a) users would no longer steal, b) record companies generate revenue, c) artists get paid, and d) Apple disrupts the music industry. Steve Jobs had a tough pitch with record companies because of the pricing model, but he used the fact that Apple was still only 5% of the computer market to convince them that such a deal was not have a major impact oo their bottomline. So if iTunes was destructive, it would not be quite so too damaging. Apple was a closed system, and so these Record companies could use Apple as means of controlling the MP3s.
Record companies got $0.77 of the $0.99. People wanted to own music, not rent, or subscribe to it. The subscription model did not make as much sense. Record companies had made a lot of money by having artists produce two or three good songs with 10 fillers, the iTunes store would allow users to select only the songs they liked, further upsetting Record companies. Steve Jobs’ response was that piracy had already deconstructed the album. He closed deals across the music industry which was astounding. Jobs bridged the gap between technology and art.
Rivalry Of The Ants & Breaking With Disney: Woody Allen’s Antz film was not a huge success but it was used to challenge the Disney production A Bug’s Life. Katzenberg (Dreamworks) wanted to copy Pixar’s Ant movie, and so Hollywood had two Ant movies being made in the same year. Katzenberg have a falling out with Disney in the mid-90s after being responsible for productions like Little Mermaid and Aladdin. Later Finding Nemo was the most popular DVD and sold $0.867 billion, and Pixar made $521 million with the showdown from Disney. Pixar was producing the films, and Disney was the distribution channel.
Steve Jobs Said that Google’s ‘Don’t Be Evil Mantra’ Is *Bullshit*: Android’s touch screen features was clearly stolen from the iPhone. They had a grid app list much like the iPhone. The swipe to open, pinch to expand, these were all Apple ideas that Google was implementing. Google was engaged in grand theft as far as Steve Jobs was concerned. Jobs went to Google, and shouted at everyone there. Jobs wanted Android to stop stealing their ideas. The open source code approach was valuable because Google was able to sell their platform to multiple mobile phone providers where Apple had more control. Nonetheless the Apple App market is much larger than the Google one to this day.
Get Yourself Into The Cloud & A Castle: Apple’s MobileMe was a failure because it did not sync data. It was expensive but iCloud was the future. This was not a new idea. In 1997, Steve Jobs explained that at NeXT he had all of his data on the server. The idea is that you won’t have to back up your computer by downloading into the iCloud. All you stuff is on the server, Jobs was talking about this idea as early as 1997. The concept that everything would work simply has been applied to cloud computing. Microsoft said that CloudPower would allow individuals to access their content wherever they are but this opens up the door to licensing agreements etc. In a final twists, the Apple Campus is under construction and will be completed in 2015. It is similar to Google HQ. Copied?
Renegades weren’t such a problem to Steve Jobs. In fact, he respected those who stood up to him if they knew what they were talking about on the Macintosh team. Often if they disagreed with Jobs, they realized that they could ignore Jobs’ commandments, and in so doing effectively spare Jobs the embarrassment of making a mistake or a bad judgement. One such incident involved the disk drive called Twiggy which was defective in the Lisa. The alternative would be a 3½ disk drive which was designed by Sony. The dirty Tokyo disk drive factory in Sony did not impress Jobs and he wanted to go with Alps disk drive which had made a clone of the Sony product. So Jobs decided to do a deal with Alps (a competing manufacturer), but Bob Belleville (behind Jobs’ back) decided to hire Sony in secret without Jobs’s approval.
Belleville hired Komoto who was tasked with building a disk drive for the MacIntosh from 1982-83, but Belleville did not want Jobs to know about this backup plan for the disk drive collaboration taking place at Alps, the Japanese company. Whenever Jobs came through the Macintosh office, Komoto was quickly escorted into a closet, or under a desk where he would have to hide for a few minutes at a time. In May 1983, the Alps team in Japan failed to deliver their disk drive, and asked for an additional 18 more months to work out the problems. It was a disaster as Mark Markkula grilled Jobs about what he was going to do about the lack of a disk drive with the MacIntosh launch potentially being pushed back to 1985? Bob Belleville saved Jobs by interjecting that Bob had a disk drive ready thanks to his secret work without Jobs’ approval. Jobs appreciated this renegade behaviour, and swallowed his pride. So we can infer that winning is more important than being right in management.
A Clean Factory Is Insanely Great But The Product Has To Sell: Freemont, California was the location of Apples new automated factory overlooking the Ford manufacturing facility. Apple was more profitable in its early years of existence relative to Ford. Apple was indeed a miraculous company. Jobs spent time going over the machines in the new factory in 1984, at one point, he demanded that the Apple team repaint the machines for aesthetics. This repainting actually screwed up their machines, however, and corrections proved costly. The Apple factory had white walls, and beautiful machines. Jobs believed the factory was a way to establish a passion for Apple amongst employees. Jobs was influenced by the Japanese manufacturing which had a sense of team and discipline. Debby Coleman, a Stanford MBA, was the operations manager. By the end of 1984, the Macintosh’s performance in sales was very low. They had an expensive factory but a failed product.
This is a fascinating film from RadioCanada.ca regarding Apple.
Converge Old Devices Into 1 New Device: Is there room for something in the middle of the iPhone and PC, Jobs asked in 2010? The iPad allows people to bring technologies together. The iPad was not sold as well as the iPhone. The name iPad was ridiculed as a women’s hygiene product. Gates still believed that it’s a nice reader but didn’t like the iPad. Further divergence in views suggests that Gates believed in a stylus while Jobs said we already have 10 stylus’. There were 800 emails in Steve Jobs’ inbox. The iPad had the limitation that it was for consumers but does not facilitate creation. The iPad arguably mutes the user turning you back into a passive observer. The question about iPad was whether it should be closed. Google’s Android was an open platform that could be used openly. The iPad was the clearest test of the closed-system model versus the open-system model. In the end, iPad was the most successful consumer product launch in history with 1 million sold in the first month. Jobs was in the process of changing the print industry, he closed deals like he did with the music industry. Apple would take a 30% take of the subscriptions sold, and Apple would have all of their purchase information which they would use later on. The problem was the publishing industry did not want the subscription base to be controlled by Apple since Apple would then change the prices. Steve Jobs believed that the paper textbook was going to be a industry ripe for digital destruction, and created digital versions of the products. The Chinese employees are paid $2.00 per day. It takes 5 days, and 3500 hands to produce 1 iPad in Foxconn China.