Tim Cook

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Apple has managed Steve Jobs’ legacy so well that people no longer mention the company has failed to deliver the next killer product after the iPod, iPhone and iPad. Unless, of course, you count the Apple Watch, and if you do, you’re alone. The ridiculous sum earned from the middle of the Jobs 2.0 trio of inventions has overwhelmed all talk of the company losing its edge. For now, at least. 

Tim Cook et. al. realize that won’t always be the case, so like the rich company it is, Apple is pouring money into major categories which seem poised to play a major role in commerce this century: transportation and AI. Those, of course, are also two sectors that are going to coalesce. 

Excerpts follow from reports on Apple’s growing interest in autos and machine learning.

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From Chris Mims’ WSJ piece, “What to Expect When You’re Expecting an Apple Car“:

Technology is set to radically transform everything from who owns automobiles to how they work, and much of this change is driven by the very mobile devices that are Apple’s bread and butter. If Apple is serious about maintaining its gargantuan size, it needs to participate in this change, even if it’s just at the level of experimenting with how it can integrate its software and hardware into the transportation system of the future. Even if, as Apple has often said about its ventures into television, cars start out as just a “hobby.”

Take self-driving cars. There’s plenty of evidence, from hiring and patents to an open records request by U.K. newspaper the Guardian, that Apple is at least thinking about building them.

Estimates for when self-driving technology will be ready for widespread adoption range from the wildly optimistic—five years, according to the head of self-driving technology at Google Inc.—to decades after, perhaps even somewhere beyond 2040.

That’s an eternity in technology years.•

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From Julia Love’s Reuters piece about Apple collecting AI talent:

Apple has ramped up its hiring of artificial intelligence experts, recruiting from PhD programs, posting dozens of job listings and greatly increasing the size of its AI staff, a review of hiring sites suggests and numerous sources confirm.

The goal is to challenge Google in an area the Internet search giant has long dominated: smartphone features that give users what they want before they ask.

As part of its push, the company is currently trying to hire at least 86 more employees with expertise in the branch of artificial intelligence known as machine learning, according to a recent analysis of Apple job postings. The company has also stepped up its courtship of machine-learning PhD’s, joining Google, Amazon, Facebook and others in a fierce contest, leading academics say. …

While Apple helped pioneer mobile intelligence–it’s Siri introduced the concept of a digital assistant to consumers in 2011–the company has since lost ground to Google and Microsoft, whose digital assistants have become more adept at learning about users and helping them with their daily routines.

As users increasingly demand phones that understand them and tailor services accordingly, Apple cannot afford to let the gap persist, experts say. The iPhone generated almost two-thirds of Apple’s revenue in the most recent quarter, so even a small advantage for Android poses a threat.

“What seemed like science fiction only four years ago has become an expectation,” said venture capitalist Gary Morgenthaler, who was one of the original investors in Siri before it was acquired by Apple in 2010.•

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The capacity for watch-computer hybrids has grown exponentially in the 20 years since the product fail of the Timex Data Link, though I still don’t have any interest in the iWatch or whatever Apple will brand its forthcoming wrist-worn device. Of course, my opinion means nothing. I think everyone knows that Beats by Dre isn’t the best headphones on the market, but that’s mattered little. Apple products and Beats (now an Apple product) are being purchased from the U.S. to China for reasons in addition to function. Regardless of the motivations, I’m pretty confident Angela Ahrendts will make new watch the most handsome mass-marketed wearable yet. From Rupert Neate of Guardian, a question about the item Tim Cook hopes will expand the Apple juggernaut beyond the iPhone:

Can it afford for the Apple Watch to fail?

It has been five years since Apple launched its latest truly new product – the iPad – in 2010. To live up to its name for innovation, and diversify revenues away from reliance on the iPhone, Apple needs the Apple Watch to be an unqualified success.

Cook announced that the watch would go on sale in April, giving the company a boost in its third quarter when it will not benefit from Christmas or the Chinese new year, which will have helped the previous two quarters. “We’re making great progress in the development of it,” he said.

Apple describes the new product – often referred to as the iWatch, although it has not been officially named – as the “most personal device ever” and it is thought it will be able to monitor its wearer’s health as well as connect to an iPhone to provide several other functions. Cook said app developers had already impressed him with “some incredible innovation”.

Carolina Milanesi at Kantar Worldpanel ComTech says the watch will help Apple extend its sales into a much wider market. “They have been very smart in pushing it as jewellery and design rather than how technologically smart it is,” she says. “They are concentrating more on impressing the design and fashion world than the tech bloggers.

“I think this will be a much more irrational buy than with an iPad. With an iPadyou wanted an iPad: this is going to be more of a fashion statement.”

She said the launch would benefit from the fashion and marketing skills of Angela Ahrendts, the former Burberry boss Apple hired last year on a $73m pay package as its head of retail.

Apple poached a string of big names from fashion and design to join its watch team, including Patrick Pruniaux, former vice-president of sales at Tag Heuer and former Yves Saint Laurent boss Paul Deneve, who is now Apple’s “vice president of special projects.”•

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Apple CEO Tim Cook is clearly a bright and talented guy, but until the company delivers a product post-Jobs that wows and not just new iterations of the same old things, he’ll be judged with suspicion. And even though he seems to be more progressive than his late boss in terms of charitable giving and environmentalism, he’s apparently just as scary when in business mode. From Haunted Empire: The Job After Steve Jobs, Yukari Iwatani Kane’s new book which has been excerpted in the Wall Street Journal:

“Meetings with Cook could be terrifying. He exuded a Zenlike calm and didn’t waste words. ‘Talk about your numbers. Put your spreadsheet up,’ he’d say as he nursed a Mountain Dew. (Some staffers wondered why he wasn’t bouncing off the walls from the caffeine.) When Cook turned the spotlight on someone, he hammered them with questions until he was satisfied. ‘Why is that?’ ‘What do you mean?’ ‘I don’t understand. Why are you not making it clear?’ He was known to ask the same exact question 10 times in a row.

Cook also knew the power of silence. He could do more with a pause than Jobs ever could with an epithet. When someone was unable to answer a question, Cook would sit without a word while people stared at the table and shifted in their seats. The silence would be so intense and uncomfortable that everyone in the room wanted to back away. Unperturbed, Cook didn’t move a finger as he focused his eyes on his squirming target. Sometimes he would take an energy bar from his pocket while he waited for an answer, and the hush would be broken only by the crackling of the wrapper.

Even in Apple’s unrelenting culture, Cook’s meetings stood out as harsh. On one occasion, a manager from another group who was sitting in was shocked to hear Cook tell an underling, ‘That number is wrong. Get out of here.’

Cook’s quarterly reviews were especially torturous because Cook would grind through the minutiae as he categorized what worked and what didn’t, using yellow Post-its. His managers crossed their fingers in the hopes of emerging unscathed. ‘We’re safe as long as we’re not at the back of the pack,’ they would say to each other.

Cook demonstrated the same level of austerity and discipline in his life as he did in his work. He woke up at 4:30 or 5 a.m. and hit the gym several times a week. He ate protein bars throughout the day and had simple meals like chicken and rice for lunch.

His stamina was inhuman. He could fly to Asia, spend three days there, fly back, land at 7 a.m. at the airport and be in the office by 8:30, interrogating someone about some numbers.

Cook was also relentlessly frugal. For many years, he lived in a rental unit in a dingy ranch-style building with no air conditioning.”

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The defense of Big Tech’s dubious tax dodge over the past week by Apple CEO Tim Cook and Google’s Eric Schmidt has been a maddening exercise in intellectual dishonesty. The premise of these two (and much of the tech world) is this: If you want us to pay our fair share than change your system so that we can’t exploit the loopholes. You know, don’t blame us for pursuing our self-interests; make it impossible for us to do so. Of course, what’s left unsaid is that Apple and Google and other behemoths have endless boatloads of cash to hire lobbyists who’ll make sure that any attempt at leveling the tax plane is as difficult as can be. That’s how the loopholes initially came into being.

The opening of “Future Shlock,” Evgeny Morozov’s powerful big-tech takedown in the New Republic, which draws parallels between the 19th-century advent of the sewing machine and today’s so-called world-flattening gadgets:

“The sewing machine was the smartphone of the nineteenth century. Just skim through the promotional materials of the leading sewing-machine manufacturers of that distant era and you will notice the many similarities with our own lofty, dizzy discourse. The catalog from Willcox & Gibbs, the Apple of its day, in 1864, includes glowing testimonials from a number of reverends thrilled by the civilizing powers of the new machine. One calls it a ‘Christian institution’; another celebrates its usefulness in his missionary efforts in Syria; a third, after praising it as an ‘honest machine,’ expresses his hope that ;every man and woman who owns one will take pattern from it, in principle and duty.’ The brochure from Singer in 1880—modestly titled ‘Genius Rewarded: or, the Story of the Sewing Machine’—takes such rhetoric even further, presenting the sewing machine as the ultimate platform for spreading American culture. The machine’s appeal is universal and its impact is revolutionary. Even its marketing is pure poetry:

On every sea are floating the Singer Machines; along every road pressed by the foot of civilized man this tireless ally of the world’s great sisterhood is going upon its errand of helpfulness. Its cheering tune is understood no less by the sturdy German matron than by the slender Japanese maiden; it sings as intelligibly to the flaxen-haired Russian peasant girl as to the dark-eyed Mexican Señorita. It needs no interpreter, whether it sings amidst the snows of Canada or upon the pampas of Paraguay; the Hindoo mother and the Chicago maiden are to-night making the self-same stitch; the untiring feet of Ireland’s fair-skinned Nora are driving the same treadle with the tiny understandings of China’s tawny daughter; and thus American machines, American brains, and American money are bringing the women of the whole world into one universal kinship and sisterhood.

‘American Machines, American Brains, and American Money’ would make a fine subtitle for The New Digital Age, the breathless new book by Eric Schmidt, Google’s executive chairman, and Jared Cohen, the director of Google Ideas, an institutional oddity known as a think/do-tank. Schmidt and Cohen are full of the same aspirations—globalism, humanitarianism, cosmopolitanism—that informed the Singer brochure. Alas, they are not as keen on poetry. The book’s language is a weird mixture of the deadpan optimism of Soviet propaganda (‘More Innovation, More Opportunity’ is the subtitle of a typical sub-chapter) and the faux cosmopolitanism of The Economist (are you familiar with shanzhaisakoku, or gacaca?).

There is a thesis of sorts in Schmidt and Cohen’s book. It is that, while the ‘end of history’ is still imminent, we need first to get fully interconnected, preferably with smartphones. ‘The best thing anyone can do to improve the quality of life around the world is to drive connectivity and technological opportunity.’ Digitization is like a nicer, friendlier version of privatization: as the authors remind us, ‘when given the access, the people will do the rest.’ ‘The rest,’ presumably, means becoming secular, Westernized, and democratically minded. And, of course, more entrepreneurial: learning how to disrupt, to innovate, to strategize. (If you ever wondered what the gospel of modernization theory sounds like translated into Siliconese, this book is for you.) Connectivity, it seems, can cure all of modernity’s problems. Fearing neither globalization nor digitization, Schmidt and Cohen enthuse over the coming days when you ‘might retain a lawyer from one continent and use a Realtor from another.’ Those worried about lost jobs and lower wages are simply in denial about ‘true’ progress and innovation. ‘Globalization’s critics will decry this erosion of local monopolies,’ they write, ‘but it should be embraced, because this is how our societies will move forward and continue to innovate.’ Free trade has finally found two eloquent defenders.

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“What is the opposite of a Genius Bar?”:

 

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