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Scott Forstall and Maps, Siri issues
The recent criticism about Apple's iOS 6 Maps app has prompted some analysts and pundits to lay the blame on Scott Forstall, Apple's Senior Vice President of iOS Software. A recent post by Philip Elmer-DeWitt of Apple 2.0 points out that both Maps and Siri, two recent projects that fall under the leadership of Forstall, have been a disappointment. DeWitt isn't alone in pointing out Apple's latest shortcomings. In his recent Monday Note, Jean-Louis Gassée, says the backlash against Apple after the release of iOS Maps is self-inflicted. Rather than point out both the strength and weaknesses of Maps, Apple chose to promote the product as the "most beautiful, powerful mapping service ever." Gassée notes that the demonstration of the Maps app earlier this year at WWDC showcased a product that was seemingly flawless in its execution. Customers, who were expecting an improved or at least equal experience with iOS 6 Maps, were disappointed when they noticed limitations and errors that were not mentioned by Apple. Apple wasn't wrong to pursue a new mapping solution, Gassée argues, but it did make things harder by "failing to modulate its self-praise."
Apple changes Maps copy, no longer "most powerful"
Apple toned down the description for its new Maps app and no longer claims that the app is "the most beautiful, powerful mapping service ever." As noted by CNET, Apple's website now says that Maps features "a beautiful vector-based interface that scales and zooms with ease." This revision follows an apology letter from Apple CEO Tim Cook, who said Apple fell short on its commitment to "make world-class products that deliver the best experience possible to our customers." He added that the company "will keep working non-stop until Maps lives up to the same incredibly high standard." The apology and website changes are in response to criticism of the Maps app in iOS 6, which replaced the Google-based Maps in iOS 5. The latest version of Maps includes turn-by-turn directions, but lacks the robust POI information and street level details found in the Google version of Maps.
Apple's recent apologies
Apple CEO Tim Cook's apologetic letter to iOS 6 customers is the third large-scale apology the company has issued in so many months. Now the web is wondering: is this evidence of a more "human" Apple, or a company with a problem? On July 13, Apple posted a letter from then senior vice president of hardware engineering Bob Mansfield (currently "senior vice president") regarding the EPEAT rating system. Earlier that month, the company had removed its products from the EPEAT system and announced that it would not be submitting future hardware for evaluation. Concerned city and government accounts announced their intention to avoid Macs without EPEAT certification. Apple issued one statement confirming its position before pulling a total reversal, just a week after the initial announcement. Mansfield's letter read, in part: "We've recently heard from many loyal Apple customers who were disappointed to learn that we had removed our products from the EPEAT rating system. I recognize that this was a mistake. Starting today, all eligible Apple products are back on EPEAT." Meanwhile, Apple's retail chief, John Browett, told the company's retail employees that the company "messed up" when it implemented new staffing formulas that resulted in shift cuts and general disarray among workers. While not a public apology, Browett's message represented Apple implementing another rapid, 180-degree policy change. Today, Tim Cook is apologizing to all iOS 6 customers for the current state of its Maps app. For many, the apology was warranted. Users in the UK especially are having a hard time with Maps. It's very unusual for Apple to release a public product that's subpar for so many. What happened? Aside from the obvious Herculean task of creating a global mapping application from scratch, that is. Liz Larson, writing for Fast Company, asks: "How should companies evaluate which functions are better outsourced and which should be maintained in-house? These often mission-critical decisions -- when made out of haste or hubris -- can be enough to put brand reputation and loyalty at stake." She goes on to say that Apple's strength is in creating an elegant, aesthetically pleasing experience, not cartography: "The inner workings of digital cartography don't directly fall under either of these camps. Based on the public's consensus of the revamped maps, that much is clear." Rene Ritche at iMore has another take on what happened. Or, what continues to happen inside Apple: "This isn't a case of measuring a response to an unforeseeable situation twice and cutting it loose to the press and public once. This is a case of risk assessment and mitigation gone wrong, and of brand currency expended. Apple doesn't only have to fix maps, they have to fix the process that resulted in Tim Cook having to write this letter." While it's unusual for Apple of all companies to be so publicly apologetic, it's satisfying to feel that complaints are acknowledged and generating action within the company. Thanks, Apple. Now, fix this thing.
iPhone revenue greater than all of Microsoft's
The next iPhone is expected to launch next week and CNN Money decided it was a good time to run a list of superlatives related to the financial impact of Apple's smartphone. To start out with, Apple's iPhone business unit could be a Fortune 50 company on its own. That business unit is already bigger than all of Microsoft in terms of revenue. From June 2011 until June 2012, the iPhone generated $74.3 billion in revenue for Apple. By comparison, all of Microsoft's business units together generated $73 billion in revenue. CNN Money notes that if you take all of the revenue that Apple generates from the iPad, various iPod models, iTunes, the Mac and the 30 percent take of all apps sold, it still doesn't add up to the revenue stream from the iPhone. A year-by-year comparison of the impact of the iPhone to Apple's bottom line shows that in 2008 -- one year after the first iPhone was launched -- the device accounted for 9 percent of Apple's total revenue; now that figure is 53 percent. Of course, there's always the question of what "worth" means, as Forbes pointed out a few weeks ago. In this case, we're talking about sales, and that's a pretty fluid thing. Nokia's Lumia 920 could be a huge hit, for example, and the iPhone is no longer the "number one" smartphone according to one survey. Way back in Februrary Ed Bott did a breakdown of how Apple, Google and Microsoft make their money. Of course the iPhone was a major component of Apple's business, versus Microsoft's more distributed revenue streams, and Google's lopsided revenue stream (advertising). As MG Siegler points out, even if you took away the iPhone from Apple's chart, the remainder is still bigger than Microsoft's total business. That's significant. Apple is always good at showing off the numbers at its events, so we can count on even more amazing financial statistics next week.
How Apple's North Carolina data center got built
This week GigaOM took an extensive look at North Carolina and its many data centers. The fourth and final installment in this series focuses on Apple's new data center in Maiden, North Carolina and covers some of the early negotiations between Catawba county officials and the Cupertino company. Interestingly enough, Apple almost walked away from Maiden when the Catawba County Economic Development group tried to get the company to build its data center in a small mill building. You can read more about this background discussion on GigaOM's website and catch all four articles in the series here.
Apple responds to EPEAT move
Apple responded to the controversy surrounding its request to remove its products from the EPEAT green electronics registry. In a statement provided to The Loop, Apple representative Kristin Huguet confirmed the Cupertino company's commitment to the highest environmental standards and pointed out that "Apple products are superior in other important environmental areas not measured by EPEAT." You can read the full statement and Jim Dalrymple's analysis on The Loop's website.
Apple removes EPEAT green certification, could lose government customers
Apple has done an increasingly good job of creating environmentally-friendly products, but the company did something the other day that probably has both environmentalists and some customers scratching their heads. The company has removed the EPEAT green electronics certification from its products, and won't be submitting products to the global registry for rating in the future. Reporter Joel Schectman at the Wall Street Journal says that Apple asked to have all 39 EPEAT certified devices pulled from the registry. EPEAT's CEO, Robert Frisbee, told Schectman that "They (Apple) said their design direction was no longer consistent with the EPEAT requirements." This is visible in the new MacBook Pro with Retina display, which uses parts that are glued into the case for space considerations. This makes the device almost impossible to fully disassemble for recycling. Some government agencies and school districts make recycling of electronics a criteria for purchasing, although it's not known what effect the EPEAT pullback could have on sales of the devices. Sarah O'Brien, director of outreach for EPEAT, said that corporations such as Ford and Kaiser Permanente require CIOs for purchase EPEAT certified sources, and the U.S. government requires 95% of all electronics purchased carry EPEAT certification.
Apple's employee hardware discount program officially begins
Apple employees can now take part in a new Employee Purchase Plan which started on Wednesday, says a report by MacNN. The discount offers employees $500 off select Mac computers and $250 off iPads. It does not include the low-price Mac mini or the Retina MacBook Pro. The discount also is separate from the employee's current 25 percent discount. Employees who have passed the 90-day probationary period can take advantage of the offer, and they can use their discount once every three years. Besides this extra discount, Apple also gave retail employees a well-deserved pay raise that could be as high as 25 percent, depending on the store and employee performance.
Rating Tim Cook's performance as Steve Jobs's replacement
All eyes have been on Tim Cook since he took over as CEO of Apple. Most early reports have been favorable, including this latest one from Don Reisinger who is writing for eWeek. Reisinger presents ten reasons why Tim Cook is considered a topnotch CEO. Contributing greatly to his success is the way Cook inherited Apple. He stepped immediately into the CEO position and took over the company seamlessly. There was no downtime or uncertainty when Jobs stepped down. Cook was ready and rearing to take over. Now that Cook is in the driver's seat, he's been adept at handling controversy in China, while still keeping investors happy with outstanding financial performance and dividends. Employees are also pleased with their leader and have given him a 97 out of 100 rating on Glassdoor.com. Besides these points above, Reisinger presents several more reasons why Tim Cook is an excellent CEO. You can read the remaining points on eWeek's website.
Apple's VP of Europe steps down after 12 years
French newspaper Le Figaro is reporting that Pascal Cagni is stepping down from his position as Apple's vice president of Europe. Cagni was hired by Steve Jobs in 2000 and has served as Apple's European VP for 12 years. He was responsible for Apple's explosive growth in the EMEA region, which saw revenue grow from US$1 billion to $19 billion per year under his leadership. This resignation hasn't been confirmed by Apple or Cagni and, as pointed out by The Next Web, Cagni's LinkedIn account has not been updated. Given the newness of this change, this radio silence is expected. [Via The Next Web]
Apple, Foxconn to share cost of factory improvement
Foxconn chief Terry Gou said that his company and Apple will share the costs of improving labor conditions at the Chinese factory that assembles many of Apple's products. Gou did not reveal the amount to be spent or how it would be divided between Apple and Foxconn. Last February, Foxconn agreed to raise wages for some of its factory workers. In March, the company began recruiting for positions created to oversee safety and lifestyle issues at its facilities. Gou did not say if the cost of these initiatives would be shared with Apple.
Apple VP of iOS Scott Forstall cashes in $38.7 million of Apple shares
Tim Cook's salary came up in the news last month when he was awarded a million shares of Apple stock, and cashed out a few, in addition to his many other forms of compensation. And here's another Apple manager who's taking advantage of Apple's soaring stock price when he can. Vice President of iOS Scott Forstall reportedly cashed out over 64,000 Apple shares last week, earning US$38.7 million from the sale. Forstall picked up those shares in 2008. He got 120,000 shares back then as part of a bonus, and as those just vested (minus about half for taxes), he went ahead and cashed them out. But this doesn't leave Forstall without an investment in the company. He's still got 250,000 shares set to vest at different times in the next few years, in addition to 2,988 shares currently held, and that's in addition to an annual salary of $700,000. What did Forstall do to earn all this money? Oh, just run the iOS division, which picked up $29 billion for Apple in just the last quarter. Just that.
Travis County Commission OK's Apple's Austin, Texas expansion plans
As expected, the Travis County (TX) Commission has approved an economic development package for Apple to spur the development of jobs in Austin. The package was approved last night by a 4-to-1 vote, and is expected to bring new jobs to Austin in return for US$5.4 to $6.4 million in tax rebates. In return, Apple will make an expected $282.5 million investment in Austin. The company has also received an $8.6 million economic development grant from the city of Austin, as well as a similar $21 million grant from the Texas Enterprise Fund. The incentives were key to Apple basing its Americas Operation Center in Austin, which is expected to add about 3,600 new jobs to the existing 3,100 who currently work at the Northwest Austin campus. Apple state and local governmental affairs manager Jason Lundgaard, who attended the Commissioners Court meeting last night, said that the company plans to work with the county to hire economically challenged individuals.
John Browett added to Apple's executive profiles web page
John Browett took over for Ron Johnson as Apple's chief of retail sales last year and, now, after 13 months on the job, the former Dixon's CEO has a profile on Apple's executive webpage. According to his bio, Browett "oversees Apple's retail strategy and the continued expansion of Apple retail stores around the world." You can read Browett's full bio on Apple's website.
Apple's plans for Texas construction delayed due to disagreement with county
Apple's plans to bring 3,600 jobs to Austin, Texas are being delayed due to a disagreement between the company and the Travis County Commissioners Court over the terms of an economic incentive package. Apple is hoping to establish an Americas Operations Center in Austin, which would run most of the company's business operations for North and South America. Key to the deal to invest $304 million in the center is a package which would provide the company with almost $36 million in incentives over the next 10 to 15 years. The sticking point in the negotiations is with the Travis County Commissioners Court, which would provide anywhere from $5.4 to $6.4 million of the incentive. Opponents of the deal raised their objections at a Tuesday meeting of the Court, with Bill Aleshire (an attorney and former Travis County judge) and Ed Wendler (an Austin developer) picking through the details of the contract between the county and Apple. Aleshire said "I'm not sorry that Apple is frustrated ... That's a sorry contract." He felt that Apple "had it rigged so they could not comply with the contract yet end up with county staff basically renegotiating the terms that they would have to comply with." There's hope that the negotiations will end in a positive vote for Apple's expansion plans next Tuesday, May 1, 2012. If not, there are plenty of other cities in the U.S. that would be more than happy to welcome Apple with open arms.
Time magazine explores Apple's success
TIME Business has a short, but poignant article from Sam Gustin about Apple and its business strategy. Unlike similar articles that focused on Steve Jobs and his leadership style, this article looks at Apple as a whole. Gustin says that Apple has a winning combination of innovation, execution and opportunity that combined to propel the company to its lofty financial position. He points out that this is only the beginning and Apple will continue its dominance it if can out-think, out-innovate and out-execute its competitors. You can read the details at TIME's website.
Apple makes a tax deal for Prineville, Oregon data center land
We've heard before that Apple plans to build a data center on land it previously purchased in Oregon, but now the Associated Press reports on part of the cost. The company has reportedly agreed to pay US$150,000 per year to local governments, and has signed off on at least 35 jobs. Those jobs will be paid at a rate that's at least 150% of the average wage in the Oregon county. Finally, according to the AP, Apple will have to invest at least $250 million into the data center building itself. In return for all of that, Apple will be exempt on property tax payments for the next 15 years. Whether that will be worth it or not depends on exactly how much they build there, but odds are Apple's accountants aren't that worried. The company already paid $5.6 million for the land earlier this year, and it's setting up plans to both build up the infrastructure of the local power company to keep the data center running, as well as a green energy site there on the spot. Oregon is apparently a popular place for data centers like this. Google, Amazon, and Facebook all have similar sites in the surrounding area. [via MacRumors]
Apple to create 500 jobs in Cork, Ireland
Apple announced today that it will expand its headquarters in Cork, Ireland. "Apple has been in Cork for over 30 years and we are thrilled to be expanding our presence there," an Apple spokesman told the Irish Times. "Our plans will add over 500 new jobs to support our growing business across Europe." The Cupertino Company is meeting with local officials, the IDA Ireland and the Minister for Jobs Richard Burton who says this expansion "is a huge boost for the country." Apple's current plant in Cork was opened in 1980 and was the first non-US headquarters for the company. The Holyhill location now employs 2,800 people who work in backend, supply chain and distribution operations for Europe.
Greenpeace: Apple falling short of sourcing clean power
Environmental reports can be all over the place these days -- at times, it seems like these reports tend to be more about politics than the environment. But while Apple has always said it's leading the charge on being environmentally friendly, Greenpeace apparently isn't so sure. The group has called out Apple in a recent report for not using environmentally friendly sources to power Apple's North Carolina data center. Google, Yahoo, and Facebook all got good marks from Greenpeace's report, because their buildings are in areas that use "clean" power like wind and solar power. But Apple's center uses mostly coal and nuclear electricity, which Greenpeace looks negatively on. Apple does deserve some credit. It leads the industry in using green power, even if this specific plant, according to this report, isn't doing what Greenpeace wants. Apple also got bad marks for transparency. The company says it uses clean power, but apparently it doesn't always share the specific evidence that Greenpeace wants. At any rate, there's probably fair points on both sides here. Apple does a lot to use "green" energy in all of its work, and of course, as Greenpeace suggests, there's always more that can be done. The North Carolina data center, as you know if you've ever used iCloud or Siri, is nice to have. But it would be even nicer if it was run on power that did not as negatively affect the environment.
Apple, Chinese environmental group will audit factory for pollution concerns
ComputerWorld notes that Apple and a Chinese environmental group plan to jointly audit one of its factories in China. The audit, which is just a pilot project for the time being, will be completed by the end of April. It will be done at one of the factories that manufacture printed circuit boards for the company. The goal of the audit is to identify and pollution concerns. The joint audit will be done by Apple and The Institute of Public and Environmental Affairs (IPE), a Beijing environmental group. The IPE told ComputerWorld that Apple held talks with the organization last year after it criticized the company's suppliers and their effects on the environment. Apple has come under pressure in recent years to help make its suppliers' factories as environmentally friendly as possible. The company recently overhauled the Environmental section of its website and began publishing environment reports for the sake of transparency.
