Apple: iPod 3G Designed By: Johnathan Ive (2003)
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Apple: iPod 3G Designed By: Johnathan Ive (2003)
Jonathan Ive explains Apple's design process. The Verge Article
The Future of Apple is Strangely Reminiscent of it's Past: Takeaways from Johnathan Ive Interview
If not for John Arlidge’s talented writing style and gifted ability to capture even the intricate details of his interviews, we may have never gotten such a captivating look inside the man who continues to revolutionize technology.
It’s impossible not to feel the deep-rooted passion and fascination for creation in Jonathan Ive’s words as he speaks for the first time about his 20 years designing at Apple.
Carl Icahn Is Smart But He Is Missing The Mark On Apple Stock Buyback Demands
Famed investor Carl Icahn today announced that he bought an additional $500 million in Apple stock and also sent an open letter to the company. In the letter he calls for Apple to repurchase it's stock, nay, demands it to repurchase it's stock simply because A) It is undervalued and B) They have too much cash on hand. Well, this CEO feels he is missing the mark simply because, as smart as he is, he actually doesn't understand Apple, it's products or customers.
(photo from Carl Ichan's Twitter account)
In his open letter to Apple, Ichan goes on and on about how undervalued the stock is and that it should take this moment to buyback stock, give investors a strong return and, in-turn, raise their stock value. In a normal company, and world for that matter, this demand makes great fiscal sense and Icahn has proven this time and time again. However, this isn't a normal company. Apple has, is and will defy any common knowledge of business and returns. Since Steve Jobs returned to the company, having "just enough dry powder to get by" stopped being a business principle. Yes, Apple has more cash that the Almighty Himself but for a reason, The Future! This is a concept Icahn doesn't want to appreciate. In order for Apple to compete with their best-in-class products they will need every dime they have. The company still remembers the early years when liquidity ran out and all hope seemed lost and refuses to go back. For that, I say, "Bravo!" It is a smart position to be in. Like any family who has been running on the brink of financial disaster and finally comes out, they do everything they can to not return. Even if that means hoarding more than is probably rational. However, the tech industry isn't rational! It is ever-changing and if you can't stay ahead of the curve, you die or are relegated to "keeping up."
"Keeping up" for Apple ended in 1996 when Jobs returned to guide the company in his fanatical, yet, brilliant way. It began a new era of producing the best possible products in the market, not the least expensive. By providing it's customers with new products to discover and improve their life, even when they didn't realize they needed it, Apple became the benchmark of how today's newest breed of entrepreneurs are conducting business. That is, produce the best product possible (beautiful/perfect on the inside and out) and customers will gladly pay. Why will they pay? Simple, today's world is not one of great customer loyalty unless you get it right for the customer the first, second, third... millionth time. Jobs understood this and today Tim Cook and Johnathan Ive live and breath this. Today's customer doesn't have time for sorta perfect, they demand damn near perfection! If a company can't come out of the gate with a consumer product that hits 95% of realized or unrealized needs the customer may have then return purchases diminish at an astonishingly high rate. Take, for example, Google's own OS KitKat. It's adoption rate is 1.1% while iOS 7 is at 78%. KitKat was released one month after iOS 7 and 54.5% of Android users are still using the previous THREE versions of OS and not upgrading. It is the 78% adoption rate that makes Apple such a strong company and why, now that I've chased that rabbit, they hold their cash. They know that in order to consistently one-up themselves the cost variables will increase dramatically. Just because they are number one today in quality and customer satisfaction doesn't guarantee it tomorrow. They will spend that cash perfecting what we as consumers don't realize we need yet - that is - until they release it. Don't get me wrong here. I'm not Ichan-bashing. I thoroughly respect his insight and talents and have followed him throughout my career with great respect but someone has to say, "Carl, for once you don't know what you're talking about."
(photo from Tim Cook's Twitter account)
So, let's say Apple bends to his bullying (which they shouldn't) and buys back their stock. Yes, current stock holders will be very pleased with the return and Ichan will make a fortune. However, the stock will then skyrocket and become unattainable for those who want to share in the success of Apple. Well, this is fair. They should have bought it sooner but then you will begin to see a road of Apple not having the investment it needs to continue it's perfection of our lives simply because they don't have cash on hand to do it. They could, at that point, sell stock to raise funds but then the stock would plummet forcing even more investors out driving the stock even lower. This would only return Apple to a pre '96 fiscal era and Tim Cook and the board are too smart for that to happen. They have proven they are willing to postpone today's gratification for tomorrow's security and that is the legacy Steve Jobs truly left Apple. Strength of moral and fiscal fiber rock solid enough to provide it's customers and shareholders with the best of both worlds. Benchmark products with benchmark results. Nobody said they would happen today but, if I've learned anything from watching Apple, when the stock does catch up with it's innovation and performance I, for one, will kick myself for not having bought stock in '96.
So, unfortunately, Carl Ichan's demand would actually cripple Apple in years to come and destroy investor value instead of return it.
Gary Hardin
CEO
bounceit!, inc.
P.S. Mr. Ichan pointed out in his letter that the iPad was launched in 2012 when, in fact, it was 2010.
unique Leica Digital Rangefinder Camera designed by Jony Ive and Marc Newson
"I think there is a profound and enduring beauty in simplicity, in clarity, in efficiency. True simplicity is derived from so much more than just the absence of clutter and ornamentation, it’s about bringing order to complexity."
Jonathan Ive
iPhone 5 by Apple