Steve Jobs

Former Apple Retail Chief Ron Johnson is out at JCPenney after his radical retail redesign failed to ignite sales in the same manner in which Apple Stores had grown accustomed. Ron Johnson left Apple in 2011 for the JCP job after a decade at Apple.  He helped design the original Apple Store concept after being lured away from Target by Apple CEO Steve Jobs. He pioneered concepts like the Genius Bar which was unheard of at the time but still a growing trend in the industry.

We know more than a few folks who would like to see him back at Apple which meanwhile has found him difficult to replace. One such attempt was the hiring and subsequent firing of John Browett, a former Dixon’s UK CEO.

Johnson continued to live in the Bay area during his stint at JCP commuting to Plano Texas via Jet so…

BREAKING: Ron Johnson out as J.C. Penney CEO – source • $JCP QUOTE: http://t.co/aP20vqeZqF

— CNBC (@CNBC) April 8, 2013

JC Penny CEO inventory apparently out of stock.

— M.G. Siegler (@mgsiegler) April 8, 2013

I'd rather see a guy fail like Ron Johnson did any day compared with all the corporate drones who just play it safe all day long.

— Adam Lashinsky (@adamlashinsky) April 8, 2013

J. C. Penney appoints Myron E. (Mike) Ullman, III as CEO succeeding Ron Johnson #breaking

— Reuters Business (@ReutersBiz) April 8, 2013

We’ve reached out to JCP and Apple for comment and will update as appropriate. Press release follows:

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We already knew there would be delays for Apple’s 2.8-million square foot Campus 2 following reports in November. Apple originally planned to move around 12,000 employees into the currently under construction spaceship-like campus by 2015, but in November warned completion of construction would likely be delayed until mid-2016. Today we get some more insider info on the project in a report from Bloomberg Businessweek, claiming the project is now over budget and possibly delayed even further:

In a story titled “Apple’s Campus 2 shapes up as an investor relations nightmare,” citing sources close to the project, Bloomberg claimed Apple’s grandiose plans for the building have resulted in the budget nearly doubling to $5 billion:

Since 2011, the budget for Apple’s Campus 2 has ballooned from less than $3 billion to nearly $5 billion, according to five people close to the project who were not authorized to speak on the record. If their consensus estimate is accurate, Apple’s expansion would eclipse the $3.9 billion being spent on the new World Trade Center complex in New York, and the new office space would run more than $1,500 per square foot—three times the cost of many top-of-the-line downtown corporate towers.

Apple has yet to actually break ground on the site, but Bloomberg’s sources said Apple has plans to start demolition of 26 buildings that are currently on the land.  According to the report, the delays are due to extra time spent attempting to cut around $1 billion from the budget. Apple has also yet to complete deals with contractors:
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http://www.youtube.com/watch?feature=player_embedded&v=ZNtTfFDena4

Chief Executive Tim Cook’s third big hire after the short-lived Mark Papermaster (during Steve Jobs’ second leave) and unpopular John Browett is former Adobe CTO and Flash advocate Kevin Lynch, who will report to the SVP of Technologies Bob Mansfield. It would seem Lynch is pretty set up because Mansfield is set to retire next year and Lynch carries the same VP of Technologies title.

The hire seems to be a very interesting choice, however.

Lynch is a long-time Adobe veteran who came over when the company purchased Macromedia in 2005, largely for its Flash technology. Interestingly, Apple SVP Phil Schiller was the Vice President of Product Marketing at Macromedia, Inc. from December 1995 to March 1997. Lynch served as President of Macromedia Products and then as General Manager of Web Publishing from February 1996 to June 2000. The two likely spent some time together, although it was admittedly a decade and a half ago. Still, the relationship seems to be cordial.

Excellent #WWDC today — including collaboration by Adobe and Apple on Photoshop for Retina. Thanks for the nice call out @pschiller

— Kevin Lynch (@kevinlynch) June 11, 2012

However, Lynch’s recent dealings with Apple haven’t been so friendly…

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Bloomberg reported that U.S. Magistrate Judge Paul S. Grewal has ordered Apple to reveal exactly how it’s complying with previous orders to hand over evidence in a lawsuit that accused the company of collecting users’ location data. It will also have to submit documents related to its process for reviewing apps. Earlier this week, Apple’s lawyer, Ashlie Beringer, told the court that the decision to not provide emails from Steve Jobs in an order from November was a “mistake.”

“Luckily for the plaintiffs, Apple has provided more than enough evidence itself to suggest to the court that it has not fully complied with the court’s order,” Grewal wrote in the March 6 order. “In light of Apple’s performance in this case, the court cannot rely on its representations that this time it really has or will produce all responsive documents.”

According to the report, Grewal said in his order today that “it was ‘unacceptable’ that Apple waited more than three months to verify whether it complied with his November order to turn over documents.”

Apple has said previously that it has guarded some documents in the case to protect customers from harm if the documents were “inadvertently released to the public or fell into the wrong hands.”

Beringer said she and her team of lawyers reviewed more than 8,000 e-mails over the previous weekend and determined that they should turn over messages involving Apple’s late co-founder Jobs, Phil Schiller, its marketing chief, and Scott Forstall, the former head of mobile software, among others.

The result is Apple will now have to give a “detailed account” by March 8 of how it went about gathering documents it was ordered to submit to the plaintiffs:
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Apple’s stock share price has risen today, after being down this morning, due to a rumor of an imminent stock split announcement. SeekingAlpha points to a tweet from The Street’s Doug Kass that seems to be the original source of the rumor. Apple’s next shareholder meeting will be held tomorrow, and this is where the announcement is rumored to take place.

We’d caution that this is just a rumor (if reliable, why didn’t he post it on the Street.com?)at this point and Kass’s past hits include things such as:

“I am also hearing that Google CEO Eric Schmidt has already begun low-level discussions with several Apple board members regarding his role as a possible temporary replacement to Steve Jobs should the options-backdating issues intensify at legal levels.”

Also Kass has a big personal interest in AAPL’s share price:
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In the video above, Bloomberg West speaks with 72andSunny’s partner and creative director Jason Norcross about the thinking behind some of Samsung’s latest campaigns. 

If there is one person qualified to discuss the state of Apple’s current marketing efforts, it’s Ken Segall. Working alongside Steve Jobs’ creative team for more than a decade, Segall, the man who put the “i” in iMac, served as creative director at ad agency TBWA\Chiat\Day. He created some of Apple’s most iconic ads such as the legendary Think Different campaign. Segall took some time on his Observatory blog today to share his thoughts on how “momentum has been lost” for Apple’s marketing department at the hands of none other than the company’s biggest rival, Samsung:

While you can still argue that Macs and i-devices have a ton of appeal, you can’t argue that Apple is still untouchable when it comes to advertising…The fact is, it is being touched — often and effectively — by none other than Samsung…Samsung has made remarkable inroads in a very short time, for two big reasons.

According to Segall, the two big reasons Samsung’s advertising has eclipsed Apple’s is due to Sammy’s massive advertising budget and willingness to “bash away at Apple, delivering ads that are well produced, well written and seem to be striking a nerve.” Specifically, Segall pointed to Samsung’s decision to run creative new ads at the Super Bowl and Oscars: 
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Ashton Kutcher called the starring role scary and seemed to have an appropriate amount of reverence for the subject matter. However, reviewers seemed to have mixed feelings at best about the movie.

TNW’s Matthew Panzarino liked the movie and called it entertaining but inaccurate:

But, overall, jOBS works. The lead actors are likable and appear to have put serious effort into getting the spirit of the characters right. The film looks (mostly) good aside from some of what could likely be ascribed to budgetary constraints. And though the director is a tad indulgent here and there, it doesn’t take away from the overall feeling of ‘decent’ that I came away with.

This isn’t going to be the canonical Steve Jobs biography movie. Honestly, Jobs was such a complex individual that I can’t see one ever being made. But, as an impressionist portrait of a specific period in his life, it’s successful. Don’t go into it looking for complete verisimilitude or whip-crack dialog and you should like it just fine.

CNET’s Casey Newton, who was allowed to review this movie, didn’t like it:

My primary disappointment was in how shallow the film felt, given the extensive historical record. In the early days Jobs’ co-workers had to wrestle with a man who smelled bad, who cried often, who yelled constantly, who missed deadlines, who overspent his budget by millions. He did it in service of products we love and use daily, and yet his obsessions took a toll on those around him. It also inspired others to do the best work of their lives, pushing themselves further than they ever imagined they can go. There is great drama to be found in all that, but it is not to be found in the saccharine “jOBS.”

USA Today relayed some weirdness before the shooting:

Kutcher says that he started a fruit-only diet to prepare to play the Apple co-founder for the biopic Jobs, which premiered Friday night at the Sundance Film Festival.

The diet, which the film claims Jobs adhered to, ended up sending Kutcher to the hospital with pancreas problems.

“First of all, the fruitarian diet can lead to like severe issues,” Kutcher said after the film’s screening. “I went to the hospital like two days before we started shooting the movie. I was like doubled over in pain.

“My pancreas levels were completely out of whack,” Kutcher added. “It was really terrifying … considering everything.[Jobs died as the result of Pancreatic Cancer]”

More review snippets follow:

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Apple CEO Tim Cook has been ordered by U.S. District Judge Lucy Koh in San Jose to give a deposition related to an ongoing private lawsuit that claims Apple, Google, and others entered “no-poach” agreements, as reported by Bloomberg. Cook isn’t the only executive named in yesterday’s order. Google Chairman Eric Schmidt will also be deposed on Feb. 20, as well as Intel Chief Executive Officer Paul Otellini later this month.

Koh told lawyers yesterday that Apple founder Steve Jobs was copied on e-mails at issue in the case, and that she found it “hard to believe” that Cook, as Apple’s chief operating officer at the time in question, wouldn’t have been consulted about such agreements.

The judge said she was disappointed that senior executives at the companies involved hadn’t been deposed before yesterday’s hearing over whether she should certify the case as a group lawsuit. The class would include different categories of employees whose incomes, their lawyers argue, were artificially reduced because of the collusion. Koh didn’t rule on class certification.
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