Apple is Crushing It

Say what you will about Apple’s product and their company culture.  They can be closed (vs. Google’s “open”) and the company can be arrogant, but you have to admire how successful they are right now.  Their domination of the consumer electronics industry is just staggering.  Never before in my life have i seen a company firing on all cylinders like this.  It truly something to witness.

Let me give you some facts from their latest earning’s call this week.

  • The first astonishing statistic, is that Apple’s revenue grew 71% in the past year.  Large companies like Apple’s just don’t grow 70% year over year.  Apple is now on a revenue run-rate of more than $100 billion a year.  Just as amazing, it is expecting to grow another 60%+ in the first quarter of this year.

All their products are crushing it.

Continue reading “Apple is Crushing It”

A Genius Ad

When you click on the Movies app on your iPhone, you get this popup advertisement:

The only way to get past it without being taken to the Living Social site is to click “I Hate Cupcakes”

Sure, it’s cheating and misleading, but I’m guessing the click-through rates for this one is off the charts.  Who doesn’t loves cupcakes?

Steve Jobs: Designer First, CEO Second

I recently read a great interview by John Scully where he talks about Steve Jobs.  Scully was CEO of Apple for almost a decade.  It’s just a great read.  For anyone in the tech business, this is a story about our times about a man who more than anyone else has invented products that impact our lives.

Here are some good quotes:

The time that I first met Jobs, which was over 25 years ago, he was putting together the same first principles that I call the Steve Jobs methodology of how to build great products.

Steve from the moment I met him always loved beautiful products, especially hardware. He came to my house and he was fascinated because I had special hinges and locks designed for doors. I had studied as an industrial designer and the thing that connected Steve and me was industrial design. It wasn’t computing.

On Steve jobs being a minimalist:

What makes Steve’s methodology different from everyone else’s is that he always believed the most important decisions you make are not the things you do – but the things that you decide not to do. He’s a minimalist.

I remember going into Steve’s house and he had almost no furniture in it. He just had a picture of Einstein, whom he admired greatly, and he had a Tiffany lamp and a chair and a bed. He just didn’t believe in having lots of things around but he was incredibly careful in what he selected. The same thing was true with Apple. Here’s someone who starts with the user experience, who believes that industrial design shouldn’t be compared to what other people were doing with technology products but it should be compared to people were doing with jewelry… Go back to my lock example, and hinges and a door with beautiful brass, finely machined, mechanical devices. And I think that reflects everything that I have ever seen that Steve has touched.

Look at his apartment back then:

Steve on org structures:

The other thing about Steve was that he did not respect large organizations. He felt that they were bureaucratic and ineffective. He would basically call them “bozos.” That was his term for organizations that he didn’t respect.

The Mac team they were all in one building and they eventually got to one hundred people. Steve had a rule that there could never be more than one hundred people on the Mac team. So if you wanted to add someone you had to take someone out. And the thinking was a typical Steve Jobs observation: “I can’t remember more than a hundred first names so I only want to be around people that I know personally. So if it gets bigger than a hundred people, it will force us to go to a different organization structure where I can’t work that way. The way I like to work is where I touch everything.”

At his core, Steve is a designer:

The thing that separated Steve Jobs from other people like Bill Gates — Bill was brilliant too — but Bill was never interested in great taste. He was always interested in being able to dominate a market. He would put out whatever he had to put out there to own that space. Steve would never do that. Steve believed in perfection. Steve was willing to take extraordinary chances in trying new product areas but it was always from the vantage point of being a designer. So when I think about different kinds of CEOs — CEOs who are great leaders, CEOs who are great turnaround artists, great deal negotiators, great people motivators — but the great skill that Steve has is he’s a great designer. Everything at Apple can be best understood through the lens of designing.

More stories:

An anecdotal story, a friend of mine was at meetings at Apple and Microsoft on the same day and this was in the last year, so this was recently. He went into the Apple meeting (he’s a vendor for Apple) and when he went into the meeting at Apple as soon as the designers walked in the room, everyone stopped talking because the designers are the most respected people in the organization. Everyone knows the designers speak for Steve because they have direct reporting to him. It is only at Apple where design reports directly to the CEO.

Later in the day he was at Microsoft. When he went into the Microsoft meeting, everybody was talking and then the meeting starts and no designers ever walk into the room. All the technical people are sitting there trying to add their ideas of what ought to be in the design. That’s a recipe for disaster.

Microsoft hires some of the smartest people in the world. They are known for their incredibly challenging test they put people through to get hired. It’s not an issue of people being smart and talented. It’s that design at Apple is at the highest level of the organization, led by Steve personally. Design at other companies is not there. It is buried down in the bureaucracy somewhere

On being chosen as CEO over Jobs:

Looking back, it was a big mistake that I was ever hired as CEO. I was not the first choice that Steve wanted to be the CEO. He was the first choice, but the board wasn’t prepared to make him CEO when he was 25, 26 years old.

They exhausted all of the obvious high-tech candidates to be CEO… Ultimately, David Rockefeller, who was a shareholder in Apple, said let’s try a different industry and let’s go to the top head hunter in the United States who isn’t in high tech: Gerry Roche.

They went and recruited me. I came in not knowing anything about computers. The idea was that Steve and I were going to work as partners. He would be the technical person and I would be the marketing person.

The reason why I said it was a mistake to have hired me as CEO was Steve always wanted to be CEO. It would have been much more honest if the board had said, “Let’s figure out a way for him to be CEO. You could focus on the stuff that you bring and he focuses on the stuff he brings.”

Remember, he was the chairman of the board, the largest shareholder and he ran the Macintosh division, so he was above me and below me. It was a little bit of a façade and my guess is that we never would have had the breakup if the board had done a better job of thinking through not just how do we get a CEO to come and join the company that Steve will approve of, but how do we make sure that we create a situation where this thing is going to be successful over time?

My sense is that when Steve left (in 1986, after the board rejected his bid to replace Sculley as CEO) I still didn’t know very much about computers.

My decision was first to fix the company, but I didn’t know how to fix companies and to get it back to be successful again.

All the stuff we did then were all his ideas. I understood his methodology. We never changed it. So we didn’t license the products. We focused on industrial design. We actually built up our own in-house design organization, which they have to this day. We developed the PowerBook… We developed QuickTime. All these things were built around Steve’s philosophy… It was all about sales and marketing and the evolution of the products.

All the design ideas were clearly Steve’s. The one who should really be given credit for all that stuff while I was there is really Steve.

And there’s more.  As i said, it’s just a great read.

Fitbit App, Where Are You?

I love the Fitbit service.  I’ve been using it now for 8 months.It’s a great little service that allows you to track your activity.  The UI is also quite slick so entering in your weight and food is a snap.  As with most things, i’ve found that the more I track it, the more I tend to improve in that area.   So, the more i see how my activity rates are, the more active i become.

I have one main problem with the Fitbit. I don’t like carrying the bit.  Sure it synchs easily but it’d be so much better if it was tied into a device that i’m carrying with me already such as my iPhone.   Two huge advantages: my iPhone is always in my pocket and I have never mistakenly thrown it into the laundry.  The fitbit device is so small. I know of a several people who have destroyed it by putting it in the wash.

So, fitbit, when can we expect the iPhone app?  Even if it requires a hardware case to be around the phone, that’s fine with me.  Just bring it on.   Thanks

Gearbox is Rolling

The future is already here, it’s just unevenly distributed.   – William Gibson

I did see the future this summer – just in bits and pieces.  Let me explain….

As many of you know, i had an amazing experience at Techstars this summer. Not only did we evolve our company Kapost in a new and better direction, but we got to meet and interact with some incredible mentors and entrepreneurs.

There’s a company i worked right next to this summer called Gearbox.  This is two guys who are hard core robotics nerds – and i mean that in the best way.  They have the only desk i’ve ever seen at a startup that has soldering irons and wrenches.

When they first arrived to Techstars, it was clear that they didn’t really know the best direction to take their company.  They weren’t alone, lots of us had unclear paths.  But they had a passion for robots, gaming and mobile devices and were looking for how best to apply this. As the months passed, they decided on a direction that was well aligned with this passion – which resulted in the Orbbott or the “Gearbox Ball.”

What is it? This is a robotic ball that is controlled by your iPhone or Android device.  Not only is controlled but there are apps on your phone that you can use with the ball.  Apps like Sumo (where you play against another ball) or Golf or, my favorite, “follow me” app. This is an application where you put the phone in your pocket and the Ball just follows you around the room.  It speeds up when you’re far away and backs up if you approach it.  I don’t know why, but i love this idea.  It’s the best version of a robotic dog or cat i’ve heard of.

You can see a video below of them demo’ing their ball.  It’s a great idea. They’ve invented a whole category of toys called “Smart Toys” and i think i’ve just seen the future.  Thankfully, i was lucky enough to see it emerge from the very beginning.

Microsoft vs. Apple

There’s been lots of talk about how Apple’s market cap is about to equal Microsoft’s.  People love to discuss this because of the battle the two companies have fought over the past 3 decades.  Microsoft famously beat out Apple for PC dominance in the 80’s and 90’s by being open while Apple remained stubbornly closed.  Today, many people look at the Android/iPhone battle in the same light: one company with a superior product (Apple) and another that may be less polished but open to be used on other people’s hardware (Google’s Android)

I’ve heard quite often over the past year how Apple is crazy to go down the same path again.  However, i read a good summary today by Mark Sigal on O’Reilly’s blog about why this isn’t the case.  His five main points are:

  1. Retail Distribution: During the PC Wars, everything came down to distribution and presence on limited retail shelf space. To be successful, you had to be on the shelves of retailers like ComputerLand, CompUSA, Circuit City, Office Depot and MicroAge. Given the wide variety of hardware OEMs making Wintel-based PCs, both shelf-space for Macs and the technical know-how to sell them were severely limited, making a differentiation story like Apple’s a hard sell. Today, Apple Stores drive a superior environment for consumers to experience hardware hands-on and get educated about the full breadth of Apple products. An aside, this is a consumer touch point that Google absolutely lacks.
  2. Pricing overhang: A primary reason for Apple’s crushing defeat by Microsoft was Apple’s misguided notion that it could charge grossly higher dollars for Mac products than Windows-based PC offerings. Contrast this with the present, where Apple is consistent in their assertion and awareness that it cannot and will not leave pricing overhang (i.e. a sufficient pricing gap between its products and the competition). This avoids the past dynamic where consumers saw picking Apple products as an either/or decision, in terms of price vs premier experience. iPod, iPhone, iPod Touch and iPad all have followed this course.
  3. Developer ecosystem: It is a truism that in platform plays he who wins the hearts and minds of developers, wins the war. In the PC era, Apple forgot this, bungling badly by launching and abandoning technology initiatives, co-opting and competing with their developers and routinely missed promised milestones. By contrast, Microsoft provided clear delineation points for developers, integrated core technologies across all products, and made sure developer tools readily supported these core initiatives. No less, Microsoft excelled at ensuring that the ecosystem made money. Lesson learned, Apple is moving on to the 4.0 stage of its mobile platform, has consistently hit promised milestones, has done yeomen’s work on evangelizing key technologies within the platform (and third-party developer creations – “There’s an app for that”), and developed multiple ways for developers to monetize their products. No less, they have offered 100 percent distribution to 85 million iPhones, iPod Touches and iPads, and one-click monetization via same. Nested in every one of these devices is a giant vending machine that is bottomless and never closes. By contrast, Google has taught consumers to expect free, the Android Market is hobbled by poor discovery and clunky, inconsistent monetization workflows. Most damning, despite touted high-volume third-party applications, there are (seemingly) no breakout third-party developer successes, despite Android being around two-thirds as long as the iPhone platform.
  4. Consumer technology adoption: During the PC era, large enterprises essentially dictated the industry winners by virtue of standardizing on a given vendor or type of solution. This created a winner-takes-all dynamic, inasmuch as consumers would ultimately buy the same solutions that had been blessed by large enterprises. By virtue of its conservative nature (remember the motto, “No ever got fired for buying IBM”?), staid Microsoft always felt like a safer choice than crazy Apple. And besides, accounting could solicit bids from multiple hardware vendors, which they liked. By contrast, today’s breakthrough adoption begins in the consumer realm and filters back to enterprises, not the other way around.
  5. Microsoft-like resilience: I remember too well the Microsoft mantra “Embrace-Extend-Extinguish,” which basically meant that any segment worth owning Microsoft would ultimately dominate by the 3.0 version of its competing product.  They were ruthless in squeezing the lifeblood out of competitors through any means necessary. But, give Microsoft full props for manifesting an unyielding resilience to keep working its product offering and market assault until victory was at hand. Considering Apple’s rise from the ashes to re-create a very profitable Mac business — the dominance it has created with iPod and iTunes; the powerhouse iPhone and iPhone platform and the ambitious, and already well-regarded iPad — does anyone wonder about Apple’s resilience? By contrast, Google remains almost completely dependent upon search and advertising, despite launching so many new product offerings and seriously pursuing M&A over the past several years. Arguably, Google’s famously loosely coupled structure leads to a lot of seeds being planted, but so too, it seems to a less than laser-like focus on seeing those seeds to cultivation and full harvest. It begs the question, “Can a tiger change its stripes?”

I carry around both an iPhone and a Droid so I’m witness the battle every day when i pull both out and decide which to make a call or text on.   They are both good phones.  The Android phones get refreshed every month when a new manufacturer comes out with the latest, whereas i have to wait a year for each new iPhone.  That said, the iPhone is better and because of points 1-5 above, i suspect Apple will clean house for at least a few more years.

Cool Green Stuff

As Kermit used to say, “it’s not easy being green,” which is why i thought these items were pretty cool…

First there’s a new Puma phone that was announced this week at MWC (the largest mobile conference in the world) and instead of trying to compete with iPhone/Android and trying to do everything it’s just a cool phone, with some cool “fun” features (pedometer, compass, audio player with turntable) and a solar panel on the back so you don’t run out of juice.  Pretty sweet.

Second, there is some more solar powered stuff:

These are lamps on a highway that are wind powered. As far as practical renewable energy concepts go, these wind-powered highway lights are pretty elegant.  I don’t see why we don’t get these on EVERY highway.

Finally, there’s just some bike new from LA:

Los Angeles is known for its freeways, and those guys are impossible to ride a bike on. That’s where a proposal from a cycling activism organization called the L.A Bike Working Group comes in. The group recently proposed a “Backbone Bikeway Network”–a system of bikeways that is comparable to a freeway for cyclists.  I don’t see this happening any time soon, but it would be really great if it did

Reflections from CES

I spent a few days at CES and while i didn’t get to walk the floor as much as i had hoped, i did get around enough to figure out what the themes were this year. Here are my thoughts:

Televisions. The TV’s were amazing. In the years past, it had all been about getting bigger and bigger and bigger. This year was different. This year the TV’s got better in different ways. Sure they got bigger. There’s a pic below of a 152″ plasma. It was ridiculous. But the also got thinner, they got 3D, they got wireless – both the video cable and the power cable, and they got Skype. I was a little disappointed that there wasn’t more web on the TV but i guess that time hasn’t come yet.

eReaders. This show was all about the eReader. Last year there were thousands of Netbooks. Now the netbooks are all gone and the eReader has replaced them. The Skiff was the nicest although one of them has the ability to switch from an eReader to an LCD screen with a push of the button. I attribute this all to Android. There’s another reader that’s a full powered Android device with broswing, email and other stuff.

There were also a ton of iPhone accessories there – speakers, cases, grips, remotes, you name it. All in all it was a great show in my opinion – one of the best in years. Anyone else get a different impression?

My Moments of 2009

2009 was a fun year.  I traveled to 42 cities, 4 countries and logged over 100k miles.  I also found time to stay at home and do stuff.  Looking back on the year, some things really stand out.  For instance:

  • Up’s tear-jerking silent vignette. With each new film, Pixar finds some way to top itself. The marvelous innovation inUp was the wordless sequence near the beginning, set to Michael Giacchino’s wistful score, depicting Carl and Ellie’s entire life together — including the sad fact that they can’t have children. Who else would dare to try that? And who but Pixar could pull it off so gracefully?
  • I Like This Song.  I started a little experiment in May of placing a good song i like every day to the blog ilikethissong.com.  At first it was easy because there were so many songs i was bursting to share.  But as the year wore on, i got more selective and paid more attention to what i was putting up.  The real treat, however, has been the followers of ILTS who have sent me new music and tunes.
  • The Android OS. I went to the largest mobile phone conference in the world last February and saw thousands of phones that were running Windows Mobile OS that was vastly inferior to the iPhone. I came away from there thinking that the iPhone was going to crush everyone for the next 10 years.  Luckily Google’s OS has grown up and is the real deal.  This is the year when the race for the future of mobile actually started
  • Brett Favre.  Say what you want about him, but for me he has transformed the Vikings from a team that drove me crazy to watch to a team to be proud of every week.  He was inspiring and regardless of how early we go out in the playoffs (i’m thinking first round) i’ll always remember this season because of him.
  • Zach Galifinakis and The Hangover.  Zach G. had slipeed under my radar until The Hangover which was this summer’s must-see movie.  I thought he made the film and i was even more delighted to see that his webepisodes of Between Two Ferns prove him a true comedic talent
  • Death of Old Media.  Magazines crumbled.  Newspapers folded.  Online usage soared.  People who were in the print business ran scared.  Some tried to adjust their print properties.  Others just wove a white flag.  It become evident this year that online is where the users are and if you’re not moving your media business there, you’re either going to downsize or disappear.  This was of personal interest to me as i spent lots of 2009 looking at the advertising piece of this at Buzz and looking at the opportunities this new world creates with Tobes.
  • In-N-Out burger.  I ate so much In-N-Out in 2009 that this could very well be the year of the Double-Double.  Thanks to JT, Pedro and JStreet for coming with me time after time after time.
  • eReaders / Kindle.  The Kindle came on strong this year and The Nook is looking like a solid competitor.  While neither may be long solutions with their closed formats, they have gained serious attention and sales.  I also read my first books on electronically this year and i can easily picture a future when books are primarily sold without paper.
  • Obama.  He came out of nowhere.  We were about to elect someone into the Presidency (Hilary) which would have had two families (Clinton’s and Bush’s) control the office for over 24 years.  THis was not the America i was down with and i was just about to write off the political system for good when Obama came along.  Sure, you can complain about different things he’s done in office thus far but he’s engaged me and he’s made me pay attention. I respect his reasoning.  That word, “hope,” is a strange one and it was a big part of 2009 for me due to him.
  • Avatar, Star Trek and Sci-Fi. This year was an incredible year for sci-fi. I thought Star Trek was awesome, the little indie flick District 9 was refreshing and extremely well done, and of course James Cameron’s epic, Avatar – the film that needed new technology just to complete it – rocked the end of the year. These films showed that sci-fi is alive and kicking and isn’t some little repetitive genre reserved for geeks and nerds.
  • A Personal Stream of Information From Friends.  Before 2009, my RSS feed dominated my web browsing experience.  Twitter and Facebook worked their tail off in ’09 to change the web landscape.  Their impact has been incredible.  The personal stream of information is how many people are now receiving their news and media.  What this means is that the web (and possibly life) won’t ever be the same.  I can’t wait to see where it leads
  • D Wood.  Last and most importantly it’s D. Say what you will about LA but it brought me to Diane and more than anything it will be a year remembered as the year i met her.  That one little meeting has changed everything.

Happy 2009 everyone. It’s been a fantastic year and I wish you all the best in 2010.

Droid vs. iPhone Grudge Match

Rdroid-vs-iphoneaduchel recently did a post that inspired me to speak up as I’ve been carrying around both an iPhone and a Droid for the past few weeks (since Droid’s launch) and comparing the two.  I’ve set the Droid as my main phone so i’m forced to use it more and get used to it. My main findings are:

– In general the iPhone kicks its ass in usability.  Typing on the droid sucks so much that i find myself not wanting to send texts.  This is especially true in the car. I can text and drive fine with the iPhone but the Droid will cause a crash.

– Having your phone be an iPod is a huge benefit.  This is such a major differentiator for me as i listen to a ton of music and listen to podcast every day while driving.  The media players on the droid are a joke.

– Google Voice is awesome and i really wish it was on the iPhone.  Being able to sync calls and text messages with the web is really useful.  There are other GV competitors but they don’t compare for me

– The voice reception and quality on the Droid is heads and shoulders above ATT.  I can actually get calls at work and inside my home.   I’ve never been an ATT hater but the Droid is making me a Verizon lover.

In general, i think the Droid is pretty great and definitely a competitor to the iPhone but the slickness/enjoyment of the interface and iTunes will keep me on it – at least for the near future.