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Apple: The iPhone 5c is our 'mid-tier' model
Just in case Apple's pricing scheme didn't make things crystal clear, CEO Tim Cook set record straight during today's earnings call: The iPhone 4s is the company's entry level model. The 5c, which was rumored to be tailored for emerging markets and more price-sensitive consumers, is officially Apple's mid-tier model. In response to a question about iPhone pricing strategy, Cook was adamant that the 5c was never intended as an entry-level model. The 4s, he said, is the entry-level model, and is a "fantastic product," with access to the entire iOS ecosystem.
Apple Q4 2013 earnings call liveblog scheduled for 5 PM today
Apple announces its Q4 2013 earnings for the period of July 1 to September 30 today at 5 PM ET, and TUAW will be presenting a liveblog with analysis and commentary at the same time. Join us as we talk about the good -- or bad -- news, skewer some analysts as they ask CEO Tim Cook and CFO Peter Oppenheimer stupid questions, and otherwise try to make dry financial news fun. As usual, you can listen in on the exciting financial and accounting banter as Apple provides a streaming webcast of the event. We usually have "the numbers" about 30 minutes before the call, so be sure to visit TUAW to take a look at sales and earnings prior to the liveblog.
Tim Cook joins board of China's Tsinghua University School of Economics and Management
As if it weren't already abundantly clear how important China is to Apple (and, actually, most of the world in the 21st century) Tim Cook has joined the Advisory Board of Tsinghua University's School of Economics and Management (SEM) in Beijing, one of the country's most prestigious universities. The SEM says the Advisory Board meets annually to "offer advice on the development of Tsinghua SEM." While it's clear Cook isn't on the board to pitch an iPad in Education system to the university, his membership there could help give Apple a leg up in the country as he'll serve alongside other prominent Tsinghua SEM board members including a number of high-ranking Chinese politicians. Besides Cook, there are many other Western business leaders on Tsinghua SEM's advisory board including the chairman and CEO of General Motors, the chairman and CEO of Goldman Sachs, the president and CEO of Wal-Mart, the former president of Yale University and many more.
Al Gore praises Tim Cook as 'a fantastic CEO'
Tim Cook already has plenty of fans, but just in case you were wondering, we can add former US Vice President Al Gore to the list as well. Speaking with Bloomberg, the almost-43rd-President of the United States called Apple's head honcho "a fantastic CEO." This should come as little surprise, given that Gore is indeed seated on Apple's board of directors, but it's a nice pat on the back in the midst of the utterly absurd "the sky is falling on Apple" mania. "Can you imagine trying to follow Steve Jobs?" Gore continued. "Well, Tim's done it, and he's done it in his own unique way. Next week, there's yet another announcement from Apple. I invite people to tune in for that. They're really hitting on all cylinders." Gore, of course, was referring to the October 22 event in which it is expected that Apple will reveal the next devices in the iPad line... and maybe even something you aren't expecting.
Daily Update for October 15, 2013
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get all the top Apple stories of the day in three to five minutes for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the inline player (requires Flash) or the non-Flash link below. To subscribe to the podcast for daily listening through iTunes, click here. No Flash? Click here to listen. Subscribe via RSS
In email to employees, Tim Cook calls Angela Ahrendts "wicked smart"
After a search that took nearly a year, Apple announced today that Burberry CEO Angela Ahrendts will be joining Apple this spring, where she will take on the role of senior VP of Retail and Online Stores. Earlier today, Tim Cook sent out a company-wide email announcing the hire and praising Ahrendts as being the "best person in the world for this role." 9to5Mac was able to get its hands on the email, which reads: Team, I am thrilled to announce that Angela Ahrendts will be joining Apple as a senior vice president and member of our executive team, reporting directly to me. Angela is currently the CEO of Burberry. She will lead both our retail and online teams. I have wanted one person to lead both of these teams for some time because I believe it will better serve our customers, but I had never met anyone whom I felt confident could lead both until I met Angela. We met for the first time last January, and I knew in that meeting that I wanted her to join Apple. We've gotten to know each other over the past several months and I've left each conversation even more impressed. She shares our values and our focus on innovation. She places the same strong emphasis as we do on the customer experience. She cares deeply about people and embraces our view that our most important resource and our soul is our people. She believes in enriching the lives of others and she is wicked smart. Angela has shown herself to be an extraordinary leader throughout her career and has a proven track record. She led Burberry through a period of phenomenal growth with a focus on brand, culture, core values and the power of positive energy. Angela will need to focus over the coming months on transitioning her current role at Burberry and will then join Apple in the spring. I am sure as all of you meet her, you will see why I am so excited that she is joining our executive team. I'd like to add a special thanks to all of our retail leaders. Your strength, talent and leadership afforded me the luxury of taking the time to perform an exhaustive search to find the best person in the world for this role. Tim Also a fan of the hire is Ron Johnson, Apple's first retail executive, who is largely responsible for transforming Apple retail into the commercial success it is today. On Apple's new hire, Ron Johnson tells @BloombergTV in statement she's a "terrific choice," will be "exceptionally well received" - Jon Erlichman (@JonErlichman) October 15, 2013
Daily Update for October 11, 2013
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get all the top Apple stories of the day in three to five minutes for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the inline player (requires Flash) or the non-Flash link below. To subscribe to the podcast for daily listening through iTunes, click here. No Flash? Click here to listen. Subscribe via RSS
Former Apple CEO John Sculley: Tim Cook doing a terrific job
Former Apple CEO John Sculley recently told CNBC Asia that he thinks Tim Cook is doing a fine job. "I think Cook is doing a terrific job. He's not trying to be Steve Jobs; only one person could be Steve Jobs and that was Steve," he said. Sculley was the CEO of Apple from 1983-1993 and Jobs' initial successor, once Jobs was ousted from the company. Many believe that Sculley fired Jobs in 1983, which he denies. "I was never the person who fired Jobs, that was a myth," he said. Today, Sculley has praise for Cook and Apple's current lineup of products: "Steve could make the big creative leaps. What Tim is doing is continuing the Apple philosophy of no compromise and quality of their products and great styling. I think people are giving Apple a bum rap on what is still a great company with great products," he said.
Tim Cook emails Apple employees about anniversary of Jobs' death
Tomorrow, October 5, will be the second anniversary of Steve Jobs' passing. To mark the event, Apple CEO Tim Cook sent a heartfelt email to the company's employees. It reads, in part: "I think of him often and find enormous strength in memories of his friendship, vision and leadership. He left behind a company that only he could have built and his spirit will forever be the foundation of Apple." The company held a private ceremony to remember the late co-founder two weeks after his passing. In reading Cook's email, it's clear that Steve's memory is still very much alive in Cupertino. 9to5 has published Tim Cook's entire message if you'd like to read it.
Daily Update for September 30, 2013
It's the TUAW Daily Update, your source for Apple news in a convenient audio format. You'll get all the top Apple stories of the day in three to five minutes for a quick review of what's happening in the Apple world. You can listen to today's Apple stories by clicking the inline player (requires Flash) or the non-Flash link below. To subscribe to the podcast for daily listening through iTunes, click here. No Flash? Click here to listen. Subscribe via RSS
Tim Cook thanks Apple employees, gives them Thanksgiving week off
Apple CEO Tim Cook knows that the company wouldn't be in the enviable financial state it's in right now if it wasn't for the hard work and dedication of its employees. Cook today sent a company-wide email to employees thanking them for that work and letting them know that they'll get some extra paid time off during the Thanksgiving holidays. Apple is shutting down on November 25, 26 and 27 so that employees can have the entire week off. While retail and AppleCare employees will still be working those days during the all-important buildup to Black Friday, they'll get that extra paid time off at a later date along with employees at international locations. Cook's full email to employees can be read in its entirety below. Show full PR text Team- It's been an exciting summer. For the first time, we've launched two new iPhone product lines. iOS 7 was created from a deep collaboration between our design and engineering teams, bringing to our customers a stunning new user interface and amazing new features. We unveiled OS X Mavericks and the most powerful Mac ever. The App Store celebrated a new milestone - 50 billion downloads. And we continued to express our love for music with iTunes Radio and the iTunes Festival. I had the opportunity to visit a few of our stores during the iPhone launch. There is no better place to see and feel why Apple is special. The best products on Earth. Energy. Enthusiasm. The best customers in the world. Passionate team members focused on enriching people's lives. Innovative products that serve humanity's deepest values and highest aspirations. And I am proud to tell you that Apple is also a force for good in our world beyond our products. Whether it's improving working conditions or the environment, standing up for human rights, helping eliminate AIDS, or reinventing education, Apple is making a substantial contribution to society. None of this would have been possible without you. Our most important resource is not our money, our intellectual property, or any capital asset. Our most important resource - our soul - is our people. I realize many of you worked tirelessly to bring us this far. I know it required great personal sacrifice. In recognition of your incredible efforts and achievements, I'm happy to announce that we're extending the Thanksgiving holiday this year. We will shut down with pay on November 25, 26, and 27 so our teams can have the whole week off. Retail, AppleCare and a few other teams will need to work that week so we can continue to serve our customers, but will receive the same number of days off at an alternate time. Please check with your manager for details. Our international teams will schedule the vacation days at a time that is best suited for their specific country. I hope you find the extra time restful and relaxing. You deserve it. Details will be available on AppleWeb soon. I am exceedingly proud of all of you. I am in awe of what you've accomplished and couldn't be more excited about the future. Enjoy the time away!
Tim Cook joins Twitter; tweets about visiting Apple retail store on iPhone launch day
No, this is not an April Fools' Day post. Tim Cook, Apple CEO and legendary operations guru, has joined Twitter. His twitter handle is @Tim_Cook. [Update: the account is now verified.] While it was initially unclear if the account was one of many parody accounts that have been set up using Cook's name, Apple executive Phil Schiller re-tweeted a post from Cook, effectively vouching for the authenticity of the account. Cook's first (and so far, only) tweet reads: Visited Retail Stores in Palo Alto today. Seeing so many happy customers reminds us of why we do what we do. - Tim Cook (@tim_cook) September 20, 2013 Cook's Twitter description reads: "CEO Apple, Fan of Auburn football and Duke basketball. Cupertino." You can tell Cook values greatness because he's not following Auburn basketball or Duke football. He knows how to pick his spots. When I first took a look at Cook's Twitter account, he had less than 8,000 followers. Fifteen minutes later, that number is up to 26,000. It's a good bet that he'll hit 100,000 and beyond in no time. Cook's foray into the world of Twitter is noteworthy, if only for the fact that Apple has historically shied away from all forms of social media. Indeed, Schiller is the only big-time Apple employee with a semblance of a Twitter presence. Eddy Cue has been on Twitter since 2007 and he's put out 35 tweets altogether. As it stands now, Cook is following only 11 folks (up from nine just a few minutes ago). He cannot be stopped! Cook is currently following Eddy Cue, Phil Schiller, Anderson Cooper, Thomas Friedman, Laurene Jobs, Kerry Kennedy, the RFK Center, Kings Of Leon, Duke Basketball and The Auburn Plainsman. I wonder how long it'll be before Carl Icahn starts tweeting at Tim Cook about stock buybacks. As a final point, it's nice to see Cook join the Twitter ranks. I just hope he's a bit more active than Schiller and Cue. Can you imagine the buzz if Cook joined Google+ instead? Now that would have been a decent April Fool's.
Tim Cook, Phil Schiller, Katie Cotton and Eddy Cue visit Apple Stores for iPhone launch
It's a big day for Apple as the iPhone 5c and iPhone 5s finally hit stores after months of buzz. People lined up early, stores were packed and fans were excited. But just because the phone has launched doesn't mean Apple's executives are glued to their desks. Accordingly, CEO Tim Cook and vice presidents Eddy Cue, Katie Cotton and Phil Schiller decided to hit the pavement along with their customers. Cook was spotted at the Downtown Palo Alto Apple store by an ABC News reporter, talking to people waiting in line for the new phones. #TimCook at Palo Alto store. He even took a picture with a customer with (what else?).. an iPhone. pic.twitter.com/mFav5en8HD - Matt Keller (@MattKellerABC7) September 20, 2013 Meanwhile Schiller and Cue made their way to the Stanford store to greet fans, before being joined by Cook and Cotton. So Phil Schiller and Eddy Cue are here at the Stanford store pic.twitter.com/NI1qmMhQLl - Salim Hafid (@sqreone) September 20, 2013 Tim Cook and Katie Cotton have arrived at Stanford pic.twitter.com/woGqTIvFRN - Salim Hafid (@sqreone) September 20, 2013 Former CEO Steve Jobs would occasionally visit an Apple Store on an important launch day. It's nice to see that tradition continue in his absence.
Tim Cook, Jony Ive and Craig Federighi chat with Bloomberg Businessweek
On the eve of the iPhone 5c and 5s launch, Apple executives Tim Cook, Craig Federighi and Jony Ive sat down for an all-encompassing interview with Bloomberg Businessweek. It's not often that Apple execs sit down for in-depth interviews, but when it happens, it is usually chock-full of interesting information. The Businessweek interview is no different. One of the many persistent criticisms regarding Apple's iPhone strategy is that the company needs a cheap handset to appeal to more cost-conscious consumers. Cook, however, explained that Apple's business model isn't predicated on churning out low-value devices at cheap price points. To Cook, the mobile industry doesn't race to the bottom, it splits. One part does indeed go cheap, with commoditized products that compete on little more than price. "There's always a large junk part of the market," he says. "We're not in the junk business." The upper end of the industry justifies its higher prices with greater value. "There's a segment of the market that really wants a product that does a lot for them, and I want to compete like crazy for those customers," he says. "I'm not going to lose sleep over that other market, because it's just not who we are. Fortunately, both of these markets are so big, and there's so many people that care and want a great experience from their phone or their tablet, that Apple can have a really good business." Later on in the interview, Cook drives the point home, noting that Apple never preoccupied itself with the idea that it had to develop a low-cost phone. "Our primary objective," Cook explained, "is to sell a great phone and provide a great experience, and we figured out a way to do it at a lower cost." The article also touches on the close collaboration between Ive -- Apple's design guru -- and Federighi -- Apple's senior VP of software engineering. Indeed, one of the predominant mantras heralded by Cook following the ouster of Scott Forstall was that Apple needed to "encourage even more collaboration" between the company's various teams. With desks that are reportedly just a one-minute walk from one another, Ive and Federighi have worked closely together for quite some time. What makes that collaboration work is the two men's shared focus on usability and simplicity. Sit down with top executives from, say, Samsung's mobile division, and you'll probably hear a great deal about how much the company listens to the market and can move to address global needs with astonishing alacrity. Ive and Federighi will spend 10 minutes talking about how hard they worked to perfect iOS 7's blurred-background effect. "I think, very often, you can't call out by attribute or name areas of value," says Ive regarding what people look for when using a product. "But I do think that we sense when somebody has cared. And one thing that is incontrovertible is how much we've cared." With respect to Apple's chief competitor in the smartphone space -- Android -- Cook appears to be unfazed by Android's ever-increasing market share. For Cook, the true metrics that matter are customer satisfaction and actual device usage. Does a unit of market share matter if it's not being used?" Cook asks. "For us, it matters that people use our products. We really want to enrich people's lives, and you can't enrich somebody's life if the product is in the drawer." There's a whole lot more to digest in the full article and it's well worth checking out. From Cook's view on Apple's share price to his views on Android fragmentation, the Businessweek interview provides a rare glimpse into the minds who help churn out some of the world's most popular products. You can check out the story in its entirety over here.
On Apple, the new iPhones and points made and missed
As you might expect, overnight some smart folks wrote some smart posts about the smart things going on in Cupertino (our wrap up of the event can be found here). Yesterday I went on local TV to talk about the 5c and 5s, and as I drove away I realized that I hadn't had time to chat about CoreMotion, new camera modes and a half dozen other things Apple announced yesterday. To a casual observer, iPhones are improving in an iterative fashion. If you look a bit deeper and consider Apple's business, its purpose and its plans -- well, things are much more exciting than most people realize. Apple keeps integrating hardware and software in key ways that leave competitors behind. It's OK if most people don't "get it." But I do take exception when otherwise smart people begin grousing about how "Apple hasn't done anything new since Steve Jobs died" because that is both false and misleading. First of all, neither invention nor innovation began with Steve Jobs and it didn't die with him. Apple's core reason for existing is to make the best products it can. Everything I saw yesterday was an affirmation of this. Cost Speculation was the "c" stood for "cheap", but the iPhone 5c is not a cheap phone. As Ben Thompson points out, it's actually a bit pricey, especially compared to some Android models. Ben goes on to explain that Apple will sell a bunch of these, and the 4S is now the "cheap" iPhone. Beyond that, he makes an excellent point about the underlying message from yesterday's dog-and-pony show: Apple is still cool. The "c" stands for colors, and Apple has another cool product that comes in colors called the iPod -- a device that became revolutionary when coupled with the iTunes Music Store. As Wall Street, jaded tech writers and the like keep worrying about whether Apple has lost its mojo, Tim Cook made it abundantly clear that Apple isn't giving up ground in the cool department by kicking off the event with the iTunes Music Festival wrap-up and ending the event with several songs from Elvis Costello. How is having music in your DNA not cool, again? This is why people stand in line for the iPhone. Samsung can poke fun all it wants, but it's the sort of eat-your-heart-out parody that makes me feel badly for them, like the kid who wants to be cool and tries to make himself cool by making fun of other people. Beyond "cool" (whatever it means), what about features? Tim Cook explicitly said Apple doesn't cram features into a phone; the alternative approach would harken back to the boxed software days when applications like Microsoft Money and Intuit's Quicken would battle with bullet-point feature sets in an effort to woo customers. I'd like to think we're beyond this, but the market still rewards the "L@@K NEW!" mentality of feature-hungry bargain-basement consumers -- aka the "lowest common denominator." Is it any wonder Android's market share is larger than iPhone? Of course not, just as the streets are not teeming with BMWs or Mercedes. The point is, if you want a great experience, you buy Apple. If you just want features, choose your poison. And what about that experience? Simplicity Small touches mean everything when a human uses something. Apple excels at the small touches that add up to make something special. The 5s has an amazing camera, a way to track motion without nuking the battery, a new-to-Apple security technology, and an insanely powerful processor. What that means to, say, my parents, is that they don't have to worry about washed out or miscolored pictures when using the flash. My mom can probably skip that Fitbit upgrade she was pondering. The passcode-entry aggravation that might have her avoiding any on-device security can be simplified and superseded with a single finger's touch. And while they won't be gaming soon, the fluidity and speed of the OS and apps will be a noticeable improvement (they are using a 4S currently). Federico Viticci wrote a lengthy piece on these small touches, and how Apple is able to integrate hardware and software in such a way that the device has a seamless operation you just don't get with most Android devices. Consider, as he does, the Touch ID technology. Apple integrated this to make the experience for customers a better one than they had before. As Viticci points out, when you add iBeacons microlocation awareness into the mix, things get really interesting and even more seamless. With those two building blocks, you can verify who you are and your device can interact with objects in real space. This tech has a while to go before customers experience it, but when they do I predict there will be very little head-scratching and confusion and more embracing of the "Internet of things" -- all of which is designed to make our lives better, simpler. I'm sure some tech writers will look at Touch ID as a gimmick (or worse, uncritically repeat absurdities about "Apple is sending your fingerprints to the NSA!" -- assuming Touch ID works through the same local tech as device passcodes, security maven Rich Mogull explains that Apple's passcodes and print data are hashed in a way that prevents their extraction). Worse, they will see it as a useless feature added on in desperation. Fact is, for the average consumer who tires of constantly typing in passwords, it will be a welcome relief. And for the millions of iPhone users who don't have a passcode at all, it will be a major security upgrade. If you were holding out for NFC, you're not getting it. NFC is hardly "simple" and support isn't going to be forthcoming. While I'm sure Apple has toyed with it, the company has made the decision that it doesn't line up with its core values (yet) and so it wasn't in the new iPhones. Until that tech becomes easier to use or more prevalent, I wouldn't expect to see it in Apple's gear. Right and Wrong-Thinking The bottom line here, and one people miss all the time, is that Apple designs products for people. Not pundits or analysts or even day traders. As Tron "fights for the users," so does Apple. You may feel that Apple deliberately creates "lock-in" to the iOS/Mac/iTunes ecosystem as a business strategy, but frankly, my Ogg Vorbis loving friends out there (you know who you are), every smart consumer electronics business is rapidly trying to do the same thing. Windows is not Mac is not Chrome OS is not Kindle, etc. You opt into an ecosystem and largely, through convenience or inertia if not through conscious choice, that's where you stay. I know the world my kids grow up in will be less interoperable when it comes to media, but more interoperable when it comes to services -- and I think I'm OK with that. When pundits try to push a point about "feature sets," however, they are missing the entire point. Witness this post by Doc Searls called "Apple Rot" wherein he tries to make the "Apple is doomed!" argument that has played out for many years (not coincidentally, immediately after Steve Jobs died, but certainly frequently brought up long before then). Notice how Doc's bullet points are remarkably like the feature bullets on the back of a box of Quicken from 1999? Doc is worried that Apple is merely updating things incrementally, and despite not using the worn-out term "breakthrough product" (whatever that means), that's exactly what he feels is missing. Apple isn't innovating. Apple is just iterating. Well, yes. But do we worry Mercedes will disappear because the company has yet to introduce a flying car? What's the last category-redefining washing machine you couldn't wait to try? And yet people still buy them -- the mind boggles. Doc is falling into the feature trap. I'm not sure if he missed Tim Cook's note on features, but the point of Apple is to make great products. If that means the iPhone just needs some spiffing up, because adding 30 more things (20 of which aren't ready for prime time) would be a waste to consumers, then so be it. My parents don't care about NFC. They don't want to wave their hands over their phone like an idiot to go to another photo. They sure as heck don't need a "phablet" device that covers half their face. Apple isn't about cramming features into phones -- nor is it about creating a nonsensical new product simply because it is new. iWatch? Give me a break. It's not time yet. The Delta Where Apple ends and Android (and others) begin has to do with the will of the creators. I honestly get the feeling certain features in Android devices are just trial balloons. And while Windows Phone seems compelling (I would personally be willing to try one for a while), stuff like a 41MP camera in a phone is mere gimmickry. Apple does things because the creators in the company and the management of the company want to do them, and ultimately because the guiding principle behind Apple is to make the experience for the consumer, on balance, better. That doesn't mean catering to every single need of every single human on Earth, although surely that is what Wall Street and pundits have come to expect. The delta in the jaded expectations of writers and the joy of consumers is vast. I have witnessed people jumping from feature phone to iPhone or cheap Android to iDevice and see the delight in their lives as a result. They don't wax poetic about the A5 processor, they don't rave about the Retina screen, they just know "it's so much easier to do X with this iPhone." Look, I suffered through a lot of interfaces in my life. Remember DOS? Remember GEOS? Remember Windows Me? Never mind all the software we consumers are forced to suffer through today in the form of lazy website designs and poorly-planned enterprise applications. We do suffer them because we have to. Apple is aware that people do not have to suffer through a phone's interface. They have choices. Typically the limiting factor for consumers all over the world is money. On this, Apple is unwilling to compromise, and that's why it remains the King of Consumer Experiences. Steve Jobs cooked that into the DNA of the company, and Tim Cook -- a leader in his own right -- continues to carry that banner. And by the way, Apple will be making three iPhones in 10 colors, so how's that for choice? Say what you want about Cook's leadership, cite all the market share analysis you like, but unless you're pointing to a product with a more integrated, easier-to-use experience than what Apple offers, you are pointing in the wrong direction. In my humble opinion, Apple is going in the right direction.
Tim Cook sends email to Apple employees detailing new iPhones, iOS 7
Tim Cook has sent an email to Apple employees noting the release of the new iPhone 5C, iPhone 5s and iOS 7. In addition to touting the new products, Cook addresses the collaboration among employees at Apple that makes all their products and services possible. He also addresses why the company was not able to live stream the September iPhone event to employees. Finally, Cook makes clear that the free versions of iWork and iLife for iOS will only be available to customers who buy a new device. Customers who have older devices will still need to purchase the apps from the App Store. Below is the email in full (courtesy of 9to5Mac): Team: Today is an important day for Apple. Many of you and your coworkers have been hard at work developing the new iPhone 5s and iPhone 5c, which are the result of incredible collaboration between hardware and software which only Apple can deliver. In the weeks and months to come, especially as we approach the holidays, our Retail teams will help millions of customers experience these amazing products for the first time. We are also thrilled to be launching iOS 7 next Wednesday. In addition to the stunning new user interface you saw previewed at WWDC, iOS 7 has been engineered with deep integration with both iPhone 5s and 5c including advanced 64-bit technologies in iPhone 5s. iOS 7 will ship with iTunes Radio, our free Internet radio service, and we are making our mobile iLife and iWork apps available as free downloads for anyone who buys a new iOS device so they can do amazing things with their photos, videos, documents, spreadsheets and presentations. We made these announcements in Town Hall here in Cupertino this morning. It is a small venue which limits our ability to show the keynote live across campus and to other locations as we like to do. The event is now available to stream on apple.com, so I hope you will take time to watch it. We've also posted a Q&A with Greg Joswiak on AppleWeb about the new products and the work behind them. I hope you are as excited about the new iPhone lineup as I am. Our teams do an incredible job taking complex, cutting-edge technology and making it simple for our customers. That's something everyone at Apple can be proud of.
Carl Icahn meeting with Tim Cook to discuss AAPL share buyback
Activist investor Carl Icahn made news a few weeks back when he announced, via a tweet, that he had bought a large position in Apple, which is now reported to be about US$1.5 billion worth of Apple stock. Immediately, Apple's stock shot up and has been up ever since. But as an activist investor, Icahn never just buys stock hoping it will go up. He buys stock (and a lot of it) hoping to use his shares and knowledge to influence the direction of a company. Along those lines, Icahn has now tweeted that he has set up a dinner with Tim Cook in September: Spoke to Tim. Planning dinner in September. Tim believes in buyback and is doing one. What will be discussed is magnitude. - Carl Icahn (@Carl_C_Icahn) August 22, 2013 The "magnitude" he is referring to is about the scale of Apple's share buyback program, which Icahn wants to see accelerated. Currently, Apple is in the process of buying back $60 billion worth of its shares, but if it would buy back more, the value of one share of AAPL could go up significantly. Icahn has stated several times that he believes shares of AAPL are very undervalued.
Reuters profiles Tim Cook
On August 24, 2011, Tim Cook assumed the CEO role at Apple. Now, about two years later, Reuters has an interesting profile up detailing Cook's management style and the ways in which Apple has changed and stayed the same under his command. Described as a hardworking and "even-keeled" executive, people close to Cook tell Reuters that the Apple CEO can actually be quite funny and charming in smaller group settings. Indeed, while Cook's public persona may easily be described as stoic and serious, he has shown a lot more of his personality and wit in recent one-on-one interviews. One thing that has never been in dispute is that Cook, who Jobs once described as a "cool customer," has a completely different management style than Jobs. Reuters reports: In the day to day at Apple, Cook has established a methodical, no-nonsense style, one that's as different as could be from that of his predecessor. Jobs' bi-monthly iPhone software meeting, in which he would go through every planned feature of the company's flagship product, is gone. "That's not Tim's style at all," said one person familiar with those meetings. "He delegates." Still, he has a tough side. In meetings, Cook is so calm as to be nearly unreadable, sitting silently with hands clasped in front of himself. Any change in the constant rocking of his chair is one sign subordinates look for: when he simply listens, they're heartened if there is no change in the pace of his rocking. "He could skewer you with a sentence," the person said. "He would say something along the lines of 'I don't think that's good enough' and that would be the end of it and you would just want to crawl into a hole and die." While Cook may not be prone to unleash swear-word-laden tirades, he -- like Jobs -- has no problem demanding perfection and acting decisively when those standards aren't met. For instance, recall that Cook was quick to let go of Scott Forstall in the wake of the controversy surrounding the release of Apple's homegrown Maps app. Rumor has it that the final straw was when Forstall refused to add his name in an apology letter Cook penned to Apple's customers. In any event, one thing that you have to give Cook credit for is that he's not blindly following in the footsteps of Jobs. With Cook running the show, Apple has been more transparent about its supply chain and environmental practices. Furthermore, Apple, under Cook, also began issuing quarterly dividend payments, something Jobs was seemingly reluctant to do. The full Reuters profile on Cook doesn't add anything shocking to Apple's current narrative, but provides some interesting insights into the mindset and management style of the typically private and low-key Cook. It's well worth checking out.
Fox News: Apple board wants Tim Cook to innovate faster?
Has the "What have you done for me lately?" mentality seeped into Apple's board room? According to a report from Fox Business News correspondent Charlie Gasparino, Apple's board of directors are concerned about Apple's pace of innovation. Citing "reliable sources," Gasparino reported yesterday that the board is worried that Apple hasn't had a major product announcement in quite some time. What we are able to confirm is that the board is worried about what is in the pipeline. Do they have the right stuff in the pipeline? Do they have innovative stuff in the pipeline? Do they have stuff to keep the momentum going? While time will of course tell if Apple, under the helm of Tim Cook, can continue its impressive track record of innovation, it's important to remember that innovation isn't simply something you can turn on and off. Often times, a truly innovative product can only come along when a number of external factors align, paving the way for a product that can have a fundamental and far-reaching impact on the marketplace. I mean, do people want Apple to just show off everything they have brewing in their R&D labs to prove that the innovative spirit is alive and well within the company? Do people want Apple to be more like Google and announce a beta product like Google Glass which, while encompassing cool technology, doesn't seem like it's going to really change the way the masses use and interact with technology? As it stands now, Google Glass is nothing more than a niche product for the wealthy tech crowd. It's also extremely important to remember that Apple has never been a company to release innovative products every nine months like clockwork. That's not how Apple operates and, more importantly, that's just not the way innovation works. Looking back at some of Apple's most iconic product launches is instructive. The iMac was introduced in 1997. The iPod was introduced in 2002. The iPhone was launched in 2007. Note that there are solid five-year gaps between some of Apple's major product releases. The iPad was released in 2010, the iPad mini in 2012, and already folks are getting restless. One thing's for sure: Apple isn't resting on its laurels, and one has to wonder why a company with a track record like Apple isn't given the benefit of the doubt more often. In any event, Tim Cook has said that Apple is hard at work on "amazing new hardware, software and services we can't wait to introduce this fall and throughout 2014." Something tells me if that if we're just a bit more patient, Apple will continue to deliver like it always has.
