Steve Jobs

Aaron Sorkin’s mixed reviewed Steve Jobs movie already won a Golden Globe Award for Best Screenplay and was nominated for even more. Now the film is showing up on the 2016 Oscar nominees list with the Steve Jobs biopic up for two Oscars at the upcoming 88th Academy Awards.

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Phil Schiller said in 2013 that “education is in Apple’s DNA,” and it’s no exaggeration. The company’s commitment to the education sector was there from the very beginning. Steve Jobs told the Smithsonian that he wanted to donate a computer to every school in the U.S. as long ago as 1979.

I thought if there was just one computer in every school, some of the kids would find it. It will change their life. We saw the rate at which this was happening and the rate at which the school bureaucracies were deciding to buy a computer for the school and it was real slow. We realized that a whole generation of kids was going to go through the school before they even got their first computer so we thought the kids can’t wait. We wanted to donate a computer to every school in America.

The company couldn’t afford it in those days, but Steve lobbied Congress to introduce a bill that would have created sufficient tax breaks to make it possible. That attempt failed, but Apple did succeed in brokering a tax deal in California that saw the company donate an Apple IIe to every school in California. Apple led the PC market in education for a time, and even created education-specific Mac models.

More recently, Apple appeared set to bring its educational success into the iPad era in 2013 when it announced a $30M deal (that would eventually have been worth a quarter of a billion dollars) to equip every student in the LA Unified School District with an iPad. If that program had succeeded, it would have created a template for rolling out similar ones across the whole of the USA. Instead, it failed catastrophically, and it now appears that Chromebooks are winning where iPads have failed …

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The movie Steve Jobs last night won two of the four Golden Globes awards for which it was nominated. Aaron Sorkin picked up the award for Best Screenplay, and Kate Winslet won Best Performance by an Actress in a Supporting Role. However, Michael Fassbender lost out to Leonardo DiCaprio in Best Performance by an Actor. Daniel Pemberton, who wrote the score for the movie, was also beaten by Ennio Morricone for The Hateful Eight.

Fassbender being beaten to the best actor award by DiCaprio had a certain degree of irony: DiCaprio had previously been offered and turned down the title role in Steve Jobs.

Despite claiming to be lost for words, Sorkin managed a wry acknowledgement of the fact that the movie bombed at the box office …

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The view that Apple lost its innovative edge with the sad loss of Steve Jobs has been one of the oft-repeated criticisms of the company in recent years. But this idea is based on an entirely mythological view of Apple as a company that was constantly launching ground-breaking new product categories.

The reality is a little more mundane. The Macintosh, a truly revolutionary computer, was launched in 1984. We had to wait 17 years for the next groundbreaking product: the iPod in 2001. We had to wait six years after that for the next major product category: the iPhone in 2007. And a further three years for the iPad in 2010. (If you wanted to push things a little, you could argue that the MacBook Air was also so revolutionary that it deserves to be included; if so, we’re up to five new product categories in 26 years.)

Note, too, that none of the product categories were invented by Apple. Xerox, of course, invented the graphical user interface for personal computers. There were MP3 players before the iPod; touchscreen smartphones before the iPhone; tablets before the iPad. What Apple did in each case was what the company does best: take something clunky and used only by techies, and turn it into a slick product that will appeal to the masses.

So no, Apple never has churned out revolutionary new products on an annual basis. If we’re going to assess its performance today, it has to be against a realistic background. Zac recently reminded us of Apple’s product timeline for 2015. Looking at this in the context of a company whose true history is occasionally taking a new product category and doing it better than anyone else – and in between times merely refining its existing product ranges – how did Apple do this year … ?

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Apple, which was accused by the Italian government of failing to declare more than $1.3B of income when paying corporation tax in the country, has now agreed to pay the full €318M ($347M) claimed by the Italian tax office. The company has 16 Apple Stores in Italy.

Apple was accused of funnelling profits from Italian sales through its Irish subsidiary in order to benefit from the lower tax rate the company had agreed there. (Those tax arrangements are the subject of a separate EU investigation.)

La Repubblica (via The Local) reports Apple Italia was listed as a “consultant” for Apple Ireland, enabling the company to book profits through Ireland, paying just 2.5% tax under the terms of an agreement said to have first been reached with Steve Jobs back in the 1980s …

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This may not be widely known, but it’s an interesting piece of history that’s now confirmed: Steve Jobs personally tried to recruit Kevin Lynch to Apple after the big Flash debate in 2010. Lynch, of course, was Adobe’s chief technology officer at the time and had just went head-to-head with Apple CEO Steve Jobs over Flash and iOS.

Apple later hired Lynch away from Adobe in 2013, giving him the title VP of Technology and a project that would later become the Apple Watch, a hire that was widely seen as a bizarre move. Tim Cook’s Apple hired the guy that Steve Jobs basically destroyed…

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Steve Jobs famously said that people don’t know what they want until they see it. To which I’d add that sometimes we don’t know what we want until we’ve used it for a while.

I’m old enough to have been around when the first Macintosh was launched. In that case, I knew I wanted one the moment I saw it. This was how computers were supposed to work. The total cost of the Macintosh plus second floppy drive plus ImageWriter printer was a frightening amount at the time, but I didn’t care – I had to have one.

The iPad was a different story. I originally bought one intending it to be nothing more than the movie equivalent of the Kindle, yet within a very short time it became my primary mobile computing device.

The Apple Watch was different again. As someone who started out as a total smartwatch skeptic and has now been fully assimilated, I thought it might be interesting to briefly look back on that journey and also think a little about what the future might hold for the device …

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Aaron Sorkin’s Steve Jobs biopic ultimately may not have performed so hot in theaters with reports saying the film likely lost money, but Michael Fassbender who portrayed the title character in the movie is being recognized for his performance. Earlier today the Golden Globe Award nominees were announced with Kate Winslet, Michael Fassbender, and Aaron Sorkin among the list of nominees credited for their roles in the Steve Jobs movie.

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Tony Fadell, often called the “father of the iPod” and now CEO of Alphabet’s Nest, is on Bloomberg TV today to discuss his time at Apple, the future of mobility and his current effort in the connected home industry. During the interview, Fadell revealed that back in 2008, he had discussions with then Apple CEO Steve Jobs about what an ‘Apple car’ would look like and how the company could approach such a project…
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For all I know, Apple may own my house. Like every other person on the planet, when faced with pages and pages of terms & conditions, I just click Accept and get on with my day.
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Despite a strong weekend opening, the Sorkin/Boyle movie Steve Jobs appears to have bombed in its nationwide rollout, grossing just $7.3M against earlier estimates of $19M. That gives it a total take so far of around $10M, which Variety says leaves it unlikely to turn a profit.

The picture cost $30 million to make and at least as much to market. That means that “Steve Jobs” needs to do at least $120 million in order to break even. Given that the film is dialogue-driven and lacks a major star, its foreign prospects seem bleak.

The piece notes that the earlier success of Sorkin’s The Social Network may have created false hopes … 
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Writing in his column in The Verge, Walt Mossberg – who says he spent “scores of hours” in conversation with Steve Jobs across 14 years – says that the man depicted in the Sorkin/Boyle movie is not the Steve Jobs he knew.

Steve Jobs wasn’t perfect. He was difficult. He was unnecessarily rude and brusque at times. He lied. But he also mellowed and grew as a person, and that mellowing coincided with the best part of his career. Mr. Sorkin opts to hide all of that from his audience. The best of the real Steve Jobs begins to unfold just as Steve Jobs ends.

A lengthy piece in Hollywood Reporter earlier this month – leaning heavily on emails leaked from the Sony hack – provides a lot of insight into what was going on behind the scenes in the run up to the making of the movie. This included the fact that Amy Pascal, co-chairman of Sony Pictures, knew from the start that the project was going to be challenging … 
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In 1995, two years before his return to the company, Steve Jobs gave a characteristically blunt answer when asked why Apple found itself struggling in the early to mid 1990s. The issue, he said, was that Apple had gotten greedy.

What ruined Apple wasn’t growth … They got very greedy. Instead of following the original trajectory of the original vision, which was to make the thing an appliance and get this out there to as many people as possible, they went for profits. They made outlandish profits for about four years… What that cost them was their future. What they should have been doing is making rational profits and going for market share.

Much has changed since then, of course. Apple has a substantial market share in both the personal computer and mobile markets, demonstrating that the two goals – growth and profitability – are not mutually exclusive. This is not an ‘Apple is doomed’ piece, nor anything like it. But I do wonder whether the company is once more putting short-term profits ahead of long-term brand loyalty … ? 
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