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Tim Cook comes out: "I'm proud to be gay"
In a Bloomberg BusinessWeek essay published this morning, Apple CEO Tim Cook affirmed that he is gay, something that had long been spoken of within the tech community (and sometimes accidentally in the mainstream media). In his own words: While I have never denied my sexuality, I haven't publicly acknowledged it either, until now. So let me be clear: I'm proud to be gay, and I consider being gay among the greatest gifts God has given me. Being gay has given me a deeper understanding of what it means to be in the minority and provided a window into the challenges that people in other minority groups deal with every day. It's made me more empathetic, which has led to a richer life. It's been tough and uncomfortable at times, but it has given me the confidence to be myself, to follow my own path, and to rise above adversity and bigotry. It's also given me the skin of a rhinoceros, which comes in handy when you're the CEO of Apple. Cook's decision to publicly discuss his sexuality was made despite his desire to maintain a modicum of privacy and keep the focus on Apple's products. In the final analysis, this was overcome by the realization that his story might serve to help others: I don't consider myself an activist, but I realize how much I've benefited from the sacrifice of others. So if hearing that the CEO of Apple is gay can help someone struggling to come to terms with who he or she is, or bring comfort to anyone who feels alone, or inspire people to insist on their equality, then it's worth the trade-off with my own privacy. You can read Cook's entire piece on the Bloomberg BusinessWeek website, where you can also see a video clip of his address in Alabama confronting his ancestral state's record on gay rights. Update: Comments will be closed and deleted if participants cannot find a way to stay on topic and be civil.
Apple's execs are not the best-paid
A report earlier this week from Businessweek claimed Apple has four of the five highest-paid employees among Standard & Poor's 500 companies. The figures cited in this report included both base salary and vested stock packages, which has some people, like Philip Elmer-DeWitt of Apple 2.0, crying foul. DeWitt open his acrid retort to the Businessweek article by asking whether "Bloomberg's brainiacs know the difference between an RSU and a pay check?" DeWitt points out that the compensation packages for Apple's top brass may have increased, but their pay has remained steady. These compensation packages include restricted stock units (RSU) that are not immediately available for the Apple executives and should not be counted as part of their pay. These RSUs are part of a retention package that becomes available after an employee works a set number of years. If the employee leaves before the RSUs have vested, then he or she loses that money. It's a common method used by companies to entice their employees to stay put for a while.
AT&T CEO promises improved service from T-Mobile deal
Businessweek had a chat recently with AT&T CEO Randall Stephenson, and he told them that the pending merger with T-Mobile would have the intended effect of improving service and capacity on the networks for all of AT&T's devices, including, of course, the iPhone. "Virtually on the day you close the deal, getting a 30 percent lift in capacity in New York City: that's a significant improvement in call quality and data throughput," he said. That's a nice big promise to make -- something that will be easy to check up on the day the merger gets closed. Stephenson also speaks to the merger's opposition, saying that the cell phone service providing market is plenty intense. "It is intense before we do this transaction, it will be intense after we do this transaction." Stephenson also suggested that the deal might lower costs for AT&T customers overseas (since potentially, the international arm of T-Mobile would be ready to do deals with the US arm that AT&T will own). He's obviously got some good reasons for the merger, but then again, he stands to make plenty of money if it's approved. If the deal does go through, AT&T has said it expects to finish everything within a year from now. [via 9to5Mac]
Verizon was "never in the running" for original iPhone
Verizon CEO Ian Seidenberg sat down with Charlie Rose of Business Week and confirmed that Verizon was never in the running for the original iPhone. Though Verizon and Apple discussed the iPhone early on, Seidenberg claims that Apple was only interested in choosing one carrier per market and that carrier was AT&T in the US. AT&T was selected first because its network was GSM-based and compatible with other carriers worldwide. This revelation is contrary to the popular belief that Verizon was offered the iPhone first and turned it down. After a few years, Apple began to expand to alternate carriers in Europe, and Verizon positioned itself to be Apple's #2 pick when it was ready to branch out in the US. The carrier installed CDMA towers on Apple's campus and let Apple test out its CDMA technology. Seidenberg says this about Verizon's preparation for Apple, "when they (Apple) were ready to make a decision to add a second carrier, we made sure that they had a favorable impression." Now that Apple and Verizon have come together to offer an iPhone, the next evolution, according to Seidenberg, will be in LTE. The wireless carrier is ahead of AT&T in LTE deployment, and Apple will benefit from Verizon's advanced position. Seidenberg notes that Apple gets "to establish a relationship with us early in their cycles to take advantage of the 4G stuff that's going to come out over the next 12 months." It's not a confirmation, but Seidenberg's comments strongly suggest the next generation iPhone for Verizon will include LTE connectivity. [Via AppleInsider]
Verizon iPhone to launch after CES, says BusinessWeek
It's beginning to look a lot like the week after Christmas, when East Coast denizens dig out from their snow cover, and the incoming emails from vendors exhibiting at the Consumer Electronics Show (which starts January 6 in Las Vegas) form a digital blizzard of their own. One product that everyone would like to see at CES, for better or worse, is the Verizon version of the iPhone -- but it's highly unlikely that it will put in an appearance. Despite the out-there rumor floated earlier this month that the VZW iPhone would debut immediately after Christmas, there's no sign of the device yet. The latest suggestion of a whisper of an actual introduction date, however, comes courtesy of sources to BusinessWeek's Peter Burrows. In an article today addressing the conventional wisdom about winners and losers when a Verizon iPhone hits the market, he passed along a tidbit from a person "familiar with Apple's plans who is not authorized to discuss them publicly." The source told Burrows that "Apple's introduction of an iPhone for use on Verizon's network will come sometime after the Consumer Electronics Show in Las Vegas in early January." The story's lead paragraph says the CW is that the iPhone on Verizon could come by Valentine's Day, but there's no particular sourcing for that date. Of course, "sometime after CES" could technically include any date from January 10 of 2011 up until the start of the following CES in 2012. If you asked me to predict a date, with no inside information... well, let's look at the calendar. CES wraps up on January 9th; Macworld Expo kicks off on the 26th. Put your finger on the Tuesday in between the two and you get January 18. There's a problem with the 18th, though; Apple has already said that it will announce quarterly earnings on that day. Looking at the past year, there were two major product introductions that happened two days after a quarterly earnings report. The most recent was the "Back to the Mac" event on October 20, with the earnings report on 10/18; before that, back in January, the earnings call on the 25th was followed two days later by a magical and revolutionary product launch on the 27th. Attention tech journalists and industry analysts: if you weren't expecting to be in San Francisco on January 20, 2011, maybe you should set up a fare alert and keep an eye on your mailbox, ... you know, just in case. [via MacRumors]
Case Study: Standing at your Mac to save your back
BusinessWeek is worried that Your Office Chair Is Killing You. "Short of sitting on a spike, you can't do much worse than a standard office chair," says Galen Cranz, a professor at the University of California at Berkeley. This article caught my eye because just about a month ago, I bought this standing desk from Amazon.com. I had been in the market for one for a long time but had held off because they are usually ridiculously expensive. At the time, that desk cost me $96 ($86 + $10 shipping, all prices USD); it may have been a pricing error because that same desk today is selling for $277 + $7.50 shipping or you can buy a pack of two for $723 + $73 shipping! (Like I said, it's ridiculous.) Reading up on others around the web using various different desks, it is not unusual to see people spending over $1000 for a "standing desk," especially custom made. You can spend much, much more. I'm not trying to sell you on this particular desk, but to answer the question that everyone seems to ask me when they see it: "How well does it work? Aren't you tired of standing all of the time?" Read on for more...
Apple ranks third in BusinessWeek customer service survey
Apple has nailed down the number three spot on BusinessWeek's fourth annual customer service awards, falling in right behind LL Bean and insurance company USAA, and way above companies like Amazon and Dell. The awards were based on survey results from a few different places, and Apple scored an A+ in both Quality of Staff and Efficiency of Service thanks to its Genius Bars and helpful Specialists inside Apple Stores. Of course we've heard the occasional horror story, but in general, Apple Store employees are beyond helpful, which is probably why BusinessWeek says that 66% of those surveyed would "definitely recommend" Apple products, and 58% said they would "definitely repurchase" the next time they needed something. Apple's influence is also found elsewhere on the list -- USAA, number two on the list, has had a lot of success with its iPhone application, which has also helped the company out on customer service scoring as well. And while Starbucks can't necessarily thank Apple for a big boost in its business (it probably would have done fine anyway), it's not surprising that companies that score high in customer service tend to have the same goals in mind. Congrats to Apple for yet another survey-based award. [Via Macworld's Dan Moren, not "Warren" -- sorry Dan!]
Nintendo tops BusinessWeek's list of 'The World's Best Companies'
We like Nintendo because it frequently makes video games we like to play, on systems we like to play them on. But how do business people -- the folks who don't see companies as entities that provide products or services, so much as numbers that go up and down in their stock portfolios -- feel about Nintendo? According to BusinessWeek's list of "The World's Best Companies," pretty great! Nintendo is ranked first on the list of 40 companies with "a commitment to innovation, diversified portfolios, aggressive expansion, strong leadership, and a clear vision for the future," based on a metric involving growth rate and percentage of business done outside of the company's home region. In second and third place: Google and Apple.
Businessweek puts Apple at top of Most Innovative list
Businessweek has posted a list of what they call the top 50 most innovative companies in 2009, and guess who is sitting right at the top of the list. Sure enough, it's our favorite computer maker -- according to the survey, taken by "senior executives around the world," Apple is number one, and the reason listed by 47% of respondents is the products. Not that surprising, no? From the iPhone to the unibody MacBooks right up to the new Shuffles, Apple's products ooze new concepts and features and ideas. Then again, Microsoft comes in at number four, and Wal-Mart is not far behind at number 10, and I don't know too many non-executives who would call those companies out for being "innovative," necessarily. But then again, both of them are being recognized for their "process," not their actual products. In terms of product, Apple is followed by Nintendo (no arguments there), Blackberry's RIM, and then Nokia. So maybe Businessweek is just asking the wrong people. At any rate, congrats to Apple for topping the list (for the second year in a row), and we can't wait to see what's new in the next year.
BusinessWeek thinks corporate execs can learn from WoW
In the midst of recruiters being told not to send WoW players to job interviews, BusinessWeek wrote an interesting piece about how World of Warcraft promotes innovation. The articles examines how Blizzard had designed a game that could probably be mimicked by any corporation looking to innovate. It's an interesting analysis of the game, with BusinessWeek saying that its players are motivated to achieve and solve tasks. Although some readers counter that the achievement-oriented environment is normal for MMOs, one key insight is how WoW reduces barriers to entry and early advancement. More than most MMOs, World of Warcraft is easy to access -- it's easy to level and there are no harsh penalties for dying (unlike some MMOs where death results in a sharp XP loss, sometimes to the point of losing levels). In fact, some might even say that WoW is a little too casual-friendly. Even then, there's a lot in the game that drives people to perform. The article recommends that corporate leaders take a look at the game and see how it creates a motivational environment. It even goes so far as to laud the gamer disposition, something that players have or develop. It's certainly a refreshing counterpoint to the idea that gamers (or WoW players, in particular) "cannot give 100%" to their jobs. So even though some companies might think that WoW is bad for their employees, BusinessWeek says it just might be good for the bosses.Thanks, Cahu!
Could Apple be eyeballing CES? Probably not
After news of Apple's decision to pull out of Macworld, many tech writers are wondering if Apple isn't considering participation in the Consumer Electronics Show, typically held around the same time as Macworld, in Las Vegas. Most seem to be asking vague questions about what would happen if Apple decided to attend. Even so, most of the pundit crowd seems to be leaning toward it probably won't happen, but it might. Maybe. Someday. Kind of. If it does happen, they'll claim they called it; If it doesn't they're still right. As Apple produces more consumer electronics devices (like the iPhone, iPod, and Apple TV), BusinessWeek's Arik Hesseldahl sees a place for Apple at CES. "Could a new re-imagined Stevenote at CES in Las Vegas starting in 2010, become the de-facto headline event at CES and thus push Microsoft's presence out of the limelight? It certainly could." "It probably won't happen, but it certainly could," he writes. The heat death of the universe probably won't happen tomorrow, too, but it certainly could.
BusinessWeek: AAPL 'ripe for the picking'
BusinessWeek's Gene Marcial is gushing -- gushing -- over Apple stock, suggesting they're not only a good buying opportunity for those who already own some shares, but a good entry point for those who have never owned stock in the company. "The case for Apple is simple: Its stock is cheap based mainly on strong earnings and sales growth, and the outlook for further expansion of sales and profits. And the stock's profile based on such benchmarks as its technical chart pattern and price-earnings ratio affirms Apple's attraction," he writes. Marical quotes Standard & Poor's Thomas Smith, Barclays Capital's Ben Reitzes, and Needham's Charles Wolf -- all who have their own reasons to recommend buying the stock. Of 34 analysts who track the stock, 27 recommend buying and five recommend holding. Only two suggest you sell. As of this writing, Apple was up by over $7 per share at 89.75 during a generally positive session this morning. The Dow Jones Industrial Average was up above 8,311, an increase of 265 points.
First-Gen iPhones rise steadily in price
This Business Week article describes the rising demand for first generation iPhones. "Shelf prices" (using eBay values of virtual shelves) for the 16GB iPhone are currently at about $600, and $500 for 8GB models. In other words, the $250 AT&T refurb specials from March are now worth roughly double what you paid for them. From easy-unlocking to contract-free usage to eco-consumerism, consumers are looking for those original units and paying premium prices to get them. A majority of phones are heading outside the US for resale while growing demand at home keeps resale prices high.
BusinessWeek inside the world of Blizzard
BusinessWeek spent some time examining the indisputable success of our Blizzard overlords. At the very beginning of the article, BusinessWeek credits Blizzard's mastery of gaming to the often-spoken, often-hated "when it's ready." In a quote from Jay Wilson, Blizzard says that if "a product isn't good enough, we cancel it." The BusinessWeek article talks a lot about the overwhelmingly involved culture of Blizzard employees. The developers play their own games, both on the clock and off the clock. Dedicated "strike teams" spend lunch cruising the games' latest builds. Players in beta provide instant feedback, which executives and designers hungrily consume to make the best possible decisions. And if a game isn't deemed "fun enough," it's sent off to black-can land, where it will never see the light of day. According to the article, though, Blizzard still plans on releasing a new expansion every year. This is in addition to Starcraft II and Diablo III. While we can obviously expect these games to show up "when they're ready," it paints a very active, competitive future for the Activision Blizzard group. The article does credit a new milestone for our beloved World of Warcraft. According to BusinessWeek, the subscriber base is now nearly 11 million. With the Recruit-a-Friend benefits, I hope we see this number grow to 12 million by the end of the year.
Oh, to have Apple's cash problems
Not unlike this guy, Apple is going to need avalanche insurance for the mountain of cash that it's sitting on. According to BusinessWeek, Apple has amassed $20.8 billion in cash and short-term investments, adding nearly $1 billion each and every quarter. It's not necessarily odd for a company to have a lot of cash (Microsoft, for example, has $23 billion socked away), but it's beginning to irk the investors. If Apple's stock price continues to rise, everyone's happy. But if it starts to dip, experts say Apple should consider investments like acquisitions (possibly in the music business) or raw materials and components. Matt Asay of Cnet is suggesting something probably unpopular with the Cupertino crowd: tax it. Since Apple's profit margins (as a percentage of sales) are higher than Exxon's, Apple might fall prey to Congress' plan to tax windfall profits, if it becomes law. Apple CFO Peter Oppenheimer said earlier this year that "Our preference is to maintain a strong balance sheet in order to preserve our flexibility." Charles Wolf of Needham & Co. says the company doesn't need more than $5 billion on hand, but he'd be more worried "if this was a sleepy company with no growth." "That's not Apple," Wolf said.
Second Life marketing: still strong
Two years ago, BusinessWeek did a cover story on Second Life and sparked an explosion of interest in marketing in virtual worlds. Many of the early efforts to market in Second Life were little more than unimaginative billboards copying real-world advertising. Despite downbeat reports, more than a dozen advertising agencies are actively developing advertising campaigns within Second Life.BusinessWeek looks back on how successful ad agencies have used the particular strengths of the virtual world to get their messages across. Second Life users are intensely devoted to their world. Advertisers who identify the various sub-communities and narrow their focus can put the power of a dedicated fan community to work for them. Secondly, using online space to mimic real world advertising, such as putting goods in a virtual shopping mall, actively rejects the very things that make advertising in virtual worlds so effective. Lastly, use the brands the virtual worlds brings to the table, such as Playboy encouraging third-party brands to sell virtual versions of their goods on their Playboy Island.Publishing your brochure unchanged in a virtual world won't entice anyone. Put your products on display in a creative, interactive way, let your customers enjoy virtual versions of your products, and know your community, and your virtual world money will be well-spent.[Via Virtual Worlds News]
Nintendo ranks 4th on 'BusinessWeek InfoTech 100'
It's a good time to work at Nintendo, and not just because of the mushroom shaped pastries in the lounge or the regular attempts at Princess Peach cosplay. BusinessWeek has released what it calls the 'InfoTech 100,' essentially a listing of the world's hottest tech companies, and wouldn't you know it The House That Mario Built is sitting on a Goomba right near the top in 4th place behind only Amazon, Apple, and wireless communications firm Research in Motion. According to BusinessWeek, the companies that made the cut had to conform to a number of stringent criteria, not the least of which was achieving an impressive $300 million in revenues. Interestingly, however, Nintendo wasn't he only gaming-minded company to make the list, with Microsoft nabbing the number 23 spot while Activision also made an appearance at number 42. Mamma mia!
Apple #2 on the BusinessWeek Infotech 100
BusinessWeek has ranked Apple #2 on its list of the Infotech 100. This list is designed to rank tech companies on their fundamental economic strength, taking into account "shareholder return, return on equity, total revenues, and revenue growth." Apple was up from 6th place last year and came in behind only Amazon.com. Microsoft is well back at #23; Google is #11, while HP is #30 and Dell did not even make the list. Apple's winning spell just keeps on going.[via electronista]
BusinessWeek examines Mac inroads in big business
This week's BW cover story puts Apple's approach to business users squarely in the spotlight, as Peter Burrows captures both the remarkable surge of employee-driven Mac purchasing for the enterprise (often triggered by staff who are Mac users at home, or as I sometimes refer to them, "iMullets" -- business in the front office, party in the home office) and what he characterizes as the mostly-benign neglect of the corporate market by Apple's sales force and support infrastructure. More and more companies are letting Mac installations out of the creative/graphics and video gulag walled garden, some comparatively large concerns like Juniper Networks are implementing 'open choice' on platforms for employees, and a very few biggies have even declared a new all-Mac era in desktop deployments. Though marketshare gains for the Mac have been driven overwhelmingly by consumer purchasing, at some point that platform choice begins to leak back into the 9-5 window.While Burrows hits it right on the nose with the factors that are accelerating Mac deployment (beyond employee choice and the iPhone + iPod halo effect, the Intel platform, Vista's lackluster prospects and virtualization are key drivers) and on some of the reasons companies might hold back (hiring additional Mac-centric IT resources and a lack of extensive choice in the product line), I think he overstates the degree to which Apple plays it hands-off with enterprise users. Yes, some of the most critical resources for Mac IT are external communities and not Apple-managed, but the sales force and professional consulting arms at Apple have been quietly toiling away for years to improve the standing of Macs at the office. Big-iron vendors like Centrify & Likewise are helping Macs integrate into corporate networks, and even the Microsoft Mac BU is working hard to make Entourage a best-of-breed Exchange client for the Mac.Just the fact of IT conference tracks at WWDC and Macworld Expo for the past couple of years, featuring Apple engineers and product managers alongside their customers, shows that on some level Apple has been grappling with the needs of the enterprise market even if it's not the top priority at One Infinite Loop. With the planned introduction of the iPhone 2.0 firmware -- which tackles nearly every pain point of enterprise customers with a vigor worthy of the Other Steve -- it does seem that some Apple execs have begun to drink the Big Business Kool-Aid.Thanks to Arik + everyone who sent this in
Michael Lopp on how Apple thinks different in design
Over at Business Week, Helen Walters has an interesting summary of a presentation given by Michael Lopp at SXSW on Apple's design process. Lopp is a senior engineering manager at Apple and gives a sneak peek at the process that Apple uses to bring such great products to the market. Particularly interesting to me is the idea of the paired design meetings. Evidently each team has two design meetings each week. At the first meeting they're invited to "go crazy" and be creative in coming up with unusual ideas and approaches, while at the second meeting they have to get down to brass tacks and figure out how to actually implement some of those crazy ideas. It sounds like a great way to foster creativity, but also to make sure that there's enough practicality that things actually get shipped. In any case, it's worth a read if you're intrigued by the Apple design process.[via MacVolPlace]
