On Apple Secrecy

Apple is notorious for its secrecy and perhaps paranoia; however consider the industry's history, Apple's behavior may not be so far fetched.

1. Apple product line is so streamline that every single product has make-or-break status.  The role of each product has a ripple effect on the Apple ecosystem of accessory makers, app developers, and content generators.

2. Apple has indicated that leaks regarding products in development cut into revenue from current product models as consumers hold off on purchases in anticipation of next generation products.

3. Online blogs and journalists secure leaks from informants.  Who makes more reliable informants than employees and suppliers?  Accordingly Apple's hatches are batten down on its very own employees.  They are often kept in the dark on future developments or their roles can be so compartmentalized that they remain blind to the elephant in the room.  Apple also has a practice of popup skunkworks inside the company as sections are cordoned off for certain eyes-only development.

4. Early previews and partnerships with other tech companies have a history of transforming into rival products.  Apple has (and Steve Jobs had) regarded such actions as back stabs from partners.
  a. Microsoft's Bill Gates was given an early preview of the Macintosh, Mac OS and mouse leading to the rival GUI in the form of Windows OS.  (Yes, Steve Jobs in turn had a previewed the mouse and GUI technology from Xerox PARC, though Apple was already developing a GUI according to L.A. Times.)
  b. Google's former CEO and current chairman, Eric Schmidt, sat on Apple's board or directors while Google was developing their own mobile operating system and phone/tablet ecosystem in the form of Android/Android phones/Chrome.
  c. More recently, Samsung as a major supplier of parts (chips and screens) for Apple's smartphones and tablets did not deny copying Apple's designs but argued that Apple's designs were so intuitive that designing products and OS similar to the iPhone/iPad/iOS were essentially unavoidable.  Samsung's chief designer for mobile products has previously noted on video his admiration of Apple products and his hopes of matching the iconic level of design.

Steve Jobs

An orphan, dreamer, dropout, Steve Jobs became an icon in business, innovation, marketing, design, music, art, education.  He was opinionated, driven, emulated, visionary, and inspiring as a futurist.  He lived and spoke as if every moment of each day mattered and every decision informed by uncompromising quality (and aesthetic).  His intensity and attention to detail resembled Howard Hughes' days of brilliance also burning bright and ending too soon.  Disney's Iger put it well in noting: "...it feels like he was just getting started."  His commencements speech at Stanford best showed an understanding and familiarity in his struggles.  With Pixar and Apple, Steve Jobs built company cultures of pursuing greatness, never less, and always moving forward.  Consumers remain in continual anticipation of the next wonder.  And for the tech industry, Jobs seemed to have exclusive access to the "crystal ball" to when and which new ecosystems were to spawn.  Forgoing market research groups, Steve was uniquely attuned to the human experience.  He looked past the digital and worked in ideas, emotions, and meaning to somehow distort reality and captivate.  Ultimately he was so effective in connecting and leading because he loved and was a true believer in what he did.

Apple Hardware

Apple seems to be getting in on serious hardware assets with the acquisition of chip designer P.A. Semi in the spring, Segway's CTO Doug Field in the summer, and now IBM executive Mark Papermaster (said to be privy to knowledge of IBM's Power microprocessor architecture). What is Apple building?

Addendum
IBM has filed a lawsuit to block Papermaster's move to Apple under a noncompetitive agreement.

New iMac. More svelte than ever.

iPhone Strategy
iPhones hit stores at 6 p.m., 1 week from now (June 29). Details about the plan are still vague but news estimates have it at $60/month phone service + $20/month unlimited data = $80/mo. or $960/year. The phone itself will cost ~$600 (8GB model) and there doesn't seem to be any AT&T subsidy to buffer the cost. I want one, but practically I can't afford it.

Just like iPods, part of the initial draw would build on the fact that only a select few--the affluent and trendy have it. If you follow the music player market, as it grew, the white headphones became more widespread, a turn off to some early adopters (no longer elite), but the larger draw shifted to a stage of belonging, being in, an elevated expectation of norm. How else could you answer, "What's on your iPod?" (not that I could answer that)? The iPhone's price point has it's role in maintaining cool. A strategy which Apple will not exercise is making the phone first available only for the Mac, as they did with the iPod.

People believe the iPhone has greater function and customization than a Treo, Blackberry Curve, Blackjack, etc. Sure it has a full operating system (Leopard) and full web browser (Safari); yet the OS's potential may choke at outset. Security restrictions have not opened the phone to third party developers ("Where's the iPhone developer kit?"). The only means of expanding function are via webwares and working at Apple; perhaps that's enough. The interface is great intuitive eye candy but these do not replace the office. In the least, the iPhone would benefit from having document & spreadsheet software. The current absence of these imply that Apple is targeting trend setters and consumers not business-types and industry. Expectations are overblown. Gear lust - it's real and it's hungry.

Update: iPhone Guide video on Apple's website. It looks beautiful and its surface is optical glass. "Nothing compares to holding one in your own hand."
Features: phone, email, SMS text messaging, browser... plus Notes, Stocks, Google Maps, Weather, the ability to read .doc and .pdf, YouTube. Integration is well done, something that 3rd party developers will likely be unable to access.

No games shown. It would be cool if programs were written to take advantage of the proximity sensor (used to detects if the phone is close to your face), accelerometer/gyroscope (detects if phone is in landscape or portrait mode), the touch screen, and microphone. It could be the sleek alternative to Nintendo DS.

Safari to PC
Apple has released a public beta of the latest version of Safari AND it's available for Windows XP or Vista. It claims the current title of fastest major browser--faster than Firefox 2 or Opera 9.

Microsoft Surface
Microsoft Surface look promising and will threaten Google and Apple. SciFi is definitely a source of inspiration -- Minority Report, that is. The multi-touch surface will be the interface for Apple iPhone (as you know) and the newly announced Microsoft Surface (a 30 inch monitor). It looks as though the spider web of Microsoft has come together in a product integration akin to Apple, but even tighter. The Surface looks like one of Apple's older monitors (before they went silver) and the music interface is shamelessly copied from iTunes. Have they out-Appled Apple?


Let me list some of the ways of integration and clever promotional tie-ins:

• Microsoft mobile operating system on mobile devices (take that Palm)
  
• Microsoft Live Search, Virtual Earth Maps (take that Google)
  
• Microsoft Zune (take that Apple)
• T Mobile deal (take that Cingular...ummm AT&T)
• Increased multiplayer interactivity (take that Nintendo...maybe?)

A YouTube search of FTIR or Reactable shows that the interface technology has been in development for quite a while not just by Apple or Microsoft, but only now is it becoming more comercialized. However it doesn't seem Mircosoft uses FTIR but instead uses near-infrared cameras.

Apple unveils online its new Mac Pro featuring a stunning set of eight-core processors consisting of two quad-core Intel Clovertown Xeon processors with speeds up to 3.0 GHz (Is the quad-core Clovertown name a reference to a shamrock?). Talk about high end. Tempting.

Why not throw in 3 terabytes of hard drive space, 16 gigabytes of RAM, two 30 inch cinema displays?

(images from Apple.com)

Apple & Cisco have come to an agreement to both use the name iPhone, drop legal actions, work on interoperability (in future projects or with the iPhones?), plus some undisclosed agreements.

Personally it does not bode kindly for Apple's image. From unveiling, Apple appears to have muscled for a name knowingly owned by another. But Cisco wanted interoperability from the outset, so perhaps both parties got what they wanted. Apple could have avoided this by using their famous innovation to generate another name.

Similarly there is the hubub about Martha Stewart using Katonah trademark in her furniture line. Katonah says "No Thank You Martha," for fear of diluting the value of that name. I think Stewart has a better case since Katonah does not have trademark ownership and is already used by a variety businesses. On the flip side I don't know if she could protect the name from use by others.

Update on Apple iPhone- it uses quad-band GSM on Cingular network, has Bluetooth, and Wi-Fi 802.11 b/g.

iPhone
The rumors were right. Apple confirms the existence of the iPhone at Macworld San Francisco. It is a smartphone: plays music & movies, displays photos; runs OS X - e-mailing, web browsing. It has a 2 MP camera. It has a patented touch screen that supposedly ignores unintended touch. I want to try this thing out.

Speculation gives way to more questions. Is the interface just as elegant? How much will it cost? When does it ship? It has headphone jack but does it have Bluetooth? Does it actually use cubic zirconium & ceramic materials? Who is the service carrier...Cingular (like the Motorola ROKR)? Will it self-compete with iPods sales as some predict? Will it survive the slew of phones competing out there?
Was timing strategy good for the unveiling, given the simultaneous CES conference going on in Las Vegas and all the hype leading up to this conference? Given the alternative of holding off there would have been a lot of disappointment. For Apple's sake it may overshadow the Apple TV, now released.

This new touchscreen makes me wonder if this is the future of iPods: retirement of the clickwheel?