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One More Thing: Apple’s New Multi-touch Mighty Mouse

Dave — Fri, 19 Dec 2008 13:03:26 +0000

Let’s face it, the Mighty Mouse is flawed. Luckily, Apple has filed for numerous patents directly hinting at a multi-touch Mighty Mouse, which could prove to bring us an unexpected treat sometime in the near future.

The Mighty Mouse made its public debut on August 2, 2005 becoming Apple’s first multi-button mouse ever. Its wireless counterpart was released the following year and aside from a minor aesthetic change in 2007, the device has remained practically untouched since its inception. While indeed, the Mighty Mouse brought a well received touch-sensitive top shell, a 360 degree clickable scroll ball, and pressure sensitive side “squeeze” buttons, Apple’s current touch technology and manufacturing methods leave the little old Mighty Mouse in the dust. Time for a change? Perhaps the design below can offer up what may be in store.

The Mighty Mouse is currently made of white plastic, a material that is becoming rare amongst Apple products (iPhone 3G aside). We have seen the white plastic iMac morph into an aluminum gem, and more recently have witnessed the older MacBooks lose their plastic case in favor of an aluminum unibody design. Simple logic would agree that a shift from the current white plastic shell to an aluminum casing would not be out of the question. Anyone who owns or has used a Mighty Mouse for any extended period of time is not only familiar with the gunk that accumulates along the edges but have probably had a problem with dirt building on the scroll ball rendering it useless until thoroughly cleaned. What would would be more amazing than gripping an aluminum Mighty Mouse that utilizes touch action scrolling?

Apple’s touch technology has grown leaps and bounds since the debut of the Mighty Mouse. A 2007 patent application details an “arbitrary shaped grippable member” (don’t get any filthy ideas here) that incorporates positioning and multitouch detection to determine a users action. In essence, it would act as one seamless area from which a user could scroll and pan by dragging a finger over the device’s surface. The mouse would also have the ability to process various movements and gestures assigned to different functions on the computer. “For example, gestures can be created to detect and effect a user command to resize a window, scroll a display, rotate an object, zoom in or out of a displayed view, delete or insert text or other objects, etc.” The patent goes on to detail that “gestures can also be used to invoke and manipulate virtual control interfaces, such as volume knobs, switches, sliders, handles, knobs, doors, and other widgets that may be created to facilitate human interaction with the computing system.”

As the design indicates, an updated aluminum Mighty Mouse could boast sleeker dimensions that are better contoured to the hand. A lower profile body would make touch usability more versatile for complex gestures while still retaining enough height to fit the necessary batteries to power it. Outfitted with a glass front end surface to capture finger movements, this could be the end all be all Mighty Mouse of the future.

Apple’s Future Looks Just As Exciting Without Macworld

Aviv — Thu, 18 Dec 2008 10:46:25 +0000

Since news first broke that Apple would be pulling out of Macworld, headlines have been dominated by the lack of Steve Jobs’ keynote. Speculation about his health remains as potent as ever, with some analysts nearly demanding a public appearance by the CEO.

At the core of the entire situation lie some fundamental truths that make Apple’s future look just as bright, if not brighter without the Macworld Expo.

Every year as the event in January draws near, rumors and speculation about Apple’s upcoming product launch ramps up. Usually a slew of leaked images and unconfirmed, anonymous tips hit the internet in the weeks leading up to the event. Often times they’re fake, but in some cases they are completely legit. This of course has extremely adverse reactions on Apple’s bottom line. By pulling out of the Macworld Expo, Apple is attempting to solve some long standing problems that have affected the company’s ability to properly perform.

News, information and rumors that hit the web will be more credible, more substantial and will most likely be well sourced instead of random attempts at “making headlines,” which is what we often see now. This will also play into the way Wall Street reflects Apple’s position (hopefully). Apple rumors can regularly take on a life of their own and enter mainstream media. When they don’t come true, people get disappointed and everyone suffers, shareholders and investors primarily.

While a big majority of Apple’s competitors are closing their doors, filing for bankruptcy and laying off thousands of employees, Apple has managed to avoid such recoils all together. Pulling out of the annual Macworld expo, which was adversely affecting far too much of their business seems like a smooth, natural and properly executed business move. Apple would never let itself get to the point of no return, the point where layoffs or bankruptcy is their only option. Even with a debt free pile of money hovering around $25 billion, Apple needs to stay nimble and allow itself room to flex and bend at will.

The notion that Jobs is retiring tomorrow, or in the coming weeks has been blown extremely out of proportion. Apple pulling out of the Macworld Expo has been clumped together with the entire demise of the company which is completely unfounded.

Where Do We Go From Here

Tying itself down to a set annual date where the industry expects blockbuster release after blockbuster release is not a smart, efficient strategy as we move forward in this current economy. Instead, turning the tables on relentless, persistent media, rumors and speculation allows Apple to create a devoted environment with which they are in control. Even though they won’t be able to control what rumors get leaked, they will be able to control when a leaked product or service gets released, and how seemingly credible a particular rumor seems.

The days of Apple’s share being so volatile may be numbered. Back in mid 2007, a false rumor about the iPhone being delayed sent Apple’s stock plummeting while the industry watched $4 billion get shaved off Apple’s market cap. Of course, the iPhone was announced at Macworld, which put the entire product release schedule centered around a firm, unchangeable date. By pulling out of the expo, Apple is potentially creating an environment in which things like this can (hopefully) never happen again. This should immediately instill some reassurance among investors and shareholders.

It is during these tough times that analysts and pundits try and make names for themselves, build up reputations and establish devoted followers that will listen to their advice in times of uncertainty. However the bleak reality is that most of them will end up wrong with their analysis. Wall Street has never properly aligned itself with Apple’s position in the marketplace. The speculation with which most of these experts base their careers on, may soon be narrowed down to a window of well sourced writers and credible publications. In a way, Apple is embracing new media and telling Wall Street that it’s sick of the roller coaster.

It’s without a doubt that Steve Jobs’ annual keynote speech at Macworld had a certain magic to it. The evangelical visionary that helped shape the computer industry as we know it, would get up on stage and release incredible products in front of thousands of devoted fans. But when that same magic adversely affects the company’s core principles and initiatives, it is no longer a positive thing. Apple’s ability to zoom out of the current chaos and focus on the future is what makes it such a well run company. The moves being made may currently be hard to understand, and overwhelming to say the least. But if we as an industry have put so much trust in Jobs’ ability to innovate new products, we should at least have the same trust in his ability to run the company.

CrunchBase Should Rollout An iPhone App Section (CrunchApps.com)

Aviv — Fri, 12 Dec 2008 02:57:31 +0000

In response to the ongoing, back-and-forth dilemmas between iPhone App developers and Apple, Crunchbase.com is perfectly setup to rollout a bridge that could play an integral role in in the current App Store/iPhone App setup.

As the website itself states, “CrunchBase is the free database of technology companies, people, and investors that anyone can edit.” The website proves extremely handy for many publications everyday as they rely on CrunchBase to quickly find information about companies, individuals and certain services they can’t find elsewhere. A quick search for nearly any digital startup, web service, or tech related product returns a few different companies, often times individuals associated with those companies, their products, and funding partners (if any). This is all important information that ultimately helps organize and categorize our industry.

Michael Arrington, Founder and Co-Editor of TechCrunch, is entirely setup to deliver a much needed service to Apple, the Apple community, iPhone developers, and the industry in general. Not only would this new addition to CrunchBase be aiding in the organization of the iPhone development platform, it would of course launch CrunchBase into a daily “go-to” for many iPhone developers around the world. They would constantly be checking back to see what is happening in the iPhone development community, which applications are being launched, the number of times they’ve been downloaded, and all of the pertinent information that CrunchBase currently serves up for the digital world.

Unlike most “free” databases that are open to the public, Arrington’s CrunchBase is highly visible and in the spotlight. New companies, individuals and services are being added every day. And above all else, TechCrunch is an authoritative, credible publication.

The Proposed Solution

In a nuthsell: Rollout an entirely new section relying on the same technical framework as CrunchBase, only focus it entirely on Apple’s iPhone and iPod touch development platform. A spinoff section, on either a subdomian like http://app.crunchbase.com, or an entirely different domain like www.crunchapps.com. I registered crunchapps.com and I’d happily transfer it over to Arrington. The benefits for both CrunchBase and CrunchApps, and the Apple community in general could be immense.

For CrunchApps: Beat Apple to their own game. Show them that they’re not needed all the time. They’ve done their job in developing the iPhone, providing the industry with tools to create wonderful applications, and maintaining the integrity of the iPhone’s performance. When it comes to the development community, and managing the App Store, Apple clearly doesn’t care. In all fairness, their efforts with reorganizing and categorizing the app store have been futile.

What the iPhone development community needs is a “go-to” resource for credible information. As we’ve been able to tell, it’s currently a mess. While this space may seem niche, there’s no denying the iPhone’s rank as the top handset, with the best platform in the world. For this reason alone, Arrington should feel compelled to help drive the community, if not influence its potential.

CrunchApps could allow the same embeddable widgets for iPhone development teams, iPhone app specific companies, and of course the applications themselves. Bloggers both large and small in reach could rely on CrunchApps for quick reference when it comes to comparing apps and researching information.

For the Apple Community: Besides the immediate benefits of having all of that information in one place, sharing, collaborating and managing the integrity of the development platform can be done hands on, by the community itself.

Without a doubt, every iPhone app developer wants as much visibility as possible. There’s absolutely no
reason to believe that iPhone developers won’t submit or claim their products on CrunchApps. The public wiki formula has been proven successful with CrunchBase, and on the largest scale with Wikipedia. This would ultimately be a scaled down version of both. Just as on CrunchBase’s homepage, there would be a constantly updated feed showcasing the latest submissions, recent edits, funding information, download count information, ratings. If there’s no way to integrate into the App Store’s statistics information and get the actual App Store ratings, then start from scratch. Within the first few days CrunchApps would be populated with mountains of information.

The iPhone development platform in its current stage is extremely fragile. As we’ve seen since its launch, every rejection, every questionable approval, and every time there’s a lack of communication, it gets scrutinized by the community, and by the developers themselves.

Apple is usually good about listening to its customer base, and in some occasions they will adopt what the masses are asking for. In this case however, little has been done by Apple to help alleviate serious concerns being shared in the dev community. With CrunchApps, Michael Arrington could utilize his existing setup, replicate the minimal infrastructure needed, and deploy an organized, well managed and well maintained staple in the industry.

The Cultural and Economic Significance of Macs at Walmart

Aviv — Mon, 08 Dec 2008 21:48:49 +0000

It has been confirmed that Apple’s iPhone will be sold at Walmart before the end of this year. While most may see this as a natural step in the iPhone’s evolution, the cultural and economic significance this has on both companies is astounding.

Acceptance

Culturally speaking, Apple’s products have always been marketed as “high-end” products. Which is what most analysts will tell you is confining the company to a sliver of market share in the computer industry. In the portable media player category, Apple dominates the space. No other competitors can even come close to Apple’s market share. This has happened because Apple has made the iPods so attractively priced, and so readily available that anybody, at anytime can buy one. With the iPhone, Apple will eventually bring the same strategy forward, this is inevitable. But what this may lead to has perhaps not been focused on for more than a moment amidst all of the ongoing headlines.

Macs at Walmart? This would be a huge move for Apple. As CNBC’s Jim Goldman points out, both companies have an incredibly head-strong “my-way-or-the-highway” attitude towards business partnerships. Could Apple be loosening up its controlling ways? Not unlikely. The bleak reality sits within product availability and pricing these days. The economy is not in a good place and even moderately high priced products are looked at as too expensive.

By placing its Mac computers at Walmart, Apple could be making them available to an entire section of consumers that have never before been exposed. Not lower-level consumers per say, but consumers that are more interested in saving money. More interested in squeezing everything they can out of their hard earned dollar. And there is nothing wrong with that mentality. The idea that Apple’s products are only for those that can afford them should be tossed aside. Apple is a computer company, OS X is a direct competitor to Windows, and increasing market share should continuously be a high priority for them.

Consumer Reaction

The initial hesitance that Apple may see from its devoted customers and brand devotees should be taken with a grain of salt by the industry. No matter what analysts say about Apple’s brand devotion, consumers use Apple products because of how they function, not the social implication that comes along with the shiny Apple logo. Marketing and branding will always play a big role in Apple’s success. But convincing PC users who have had preconceived notions about the Mac for years, to give it a try, is fundamentally based on how Apple’s products work.

The economic reaction to Apple’s products by this new segment of exposed consumers should be welcoming. Apple’s products are not outrageously overpriced when compared to similar spec’d machines from PC rivals such as HP, Dell and Sony. Apple offers an entry level Macbook, which is a more than capable machine, at the sweet spot of $999. Walmart shoppers who have never before known they had a choice will realize that a PC with Windows is not their only option.

The sheer volume of Walmart’s distribution channel is very impressive. With upwards of 4,000 locations in the United States, Apple’s products could get a whole new wave of exposure. For example, a consumer with access only to Walmart, may never know that Apple has a competing product at the same price-point. By Apple placing its Macs at Walmart, this could be avoided. Potential customers could get hands-on with Apple’s products and test them out first hand.

Apple currently sell its iPods at Walmart, along with a slew of accessories both from Apple, as well as third party manufacturers. Additionally, it has been confirmed that Walmart will be carrying the iPhone by the end of 2008. This places Apple’s most sensitive, powerful and important sector of business, the iPhone, at the heart of America’s shopping masses. If Apple ever plans on entering the big leagues in terms of computer market share, placing some of its Mac products at Walmarts would be a giant step in the right direction.

We here at MacBlogz welcome the idea of Macs being sold at Walmart, or any other credible retailer for that matter. The bigger the Macintosh user base, the more ubiquitous Apple’s technologies will get, thus elevating the company’s initiatives to the forefront of the PC industry.

The Importance Of Backing Up and the Increasing Virus Threat

Michael Rosenthal — Thu, 04 Dec 2008 01:25:17 +0000

Do Mac users need to lose sleep over the malware that plagues our PC using friends? Do we need to load up on antivirus and antispyware and antirootkit software? Probably not. There is a better solution: bootable clones.

The more knowledgeable PC users know that the greatest vulvernability to malware assault resides in user habits, opening email attachments and clicking at inappropriate sites. The best PC antimalware publishers often have trouble keeping up with the lastest that the evildoers have produced. There are several new viruses released into the wild daily. Their number is approaching 200K. None of them has any effect on the Apple platform.

Symptoms of a Virus Infection

When the day arrives that Mac users experience abnormal computer behavior resulting from malware, such as alarming notices or impaired function of applications, they will notice that their antiimalware and firewall have been disabled. Some of the most recent malware disables the abillity of the user to uninstall the new arrival. In short, the most sophisticated malware disables all known defenses, before it gets down to business. Then the hard drive usually becomes very sluggish or unusable. It is often possible to offload data before reformatting and reinstalling the operating system; followed by installing applications, settings, passwords and data. Much is usually lost along the way, along with hours or days of time.

Viruses versus Spyware versus Rootkits

For a long time it has been possible to think of viruses as malware that could place irritating little notices on your computer or permanently disable it. Spyware has a more commercial intent. It inveigles its way onto your hard drive and recruits your computer into an army of robots (“bots”) that can be called upon to forward spam. It is often downloaded with Kazaa, Limewire or other freeware that enabled questionable activity. The most common symptom of spyware presence is pronounced slowing of all computer activity. Today, the distinction between the two is blurred. Some spyware can be as malignant as a virus.

Rootkits are a relatively new class of malware that get themselves installed so deeply into the system that they are not detectable by normal antimalware tools. They enable remote control of a machine for evil intent.

The Elegant Solution: Bootable Clones

Enterprise IT pros, photographers and videographers who live by their digital product have long known of the importance of backup; usually making multiple copies. These are generally data or file backups. Ted Landau, developer of MacFixIt and a member of the first generation of Mac columnists, has famously said that you have not backed up until you have done it twice. He relates how in a couple of clicks he erased his hard drive and, in a momentary lapse, his only backup drive, as well.

The rationale behind data backup was orginally being prepared for the failure of your computer’s drive. Leopard’s Time Machine does an admirable job of backup, but neither of these methods is a complete solution to a corrupted drive. Bootable clones are.

A clone is a bit-for-bit copy. When you have cloned your computer’s hard drive to an external drive you have an alternative to boot from, generally using using the Start Up Preference Panel or Target Mode, if connected by Firewire. (Pre-Intel Macs can can only boot through a Firewire connection. Intel Macs can boot from an external drive connected with USB 2 or Firewire.)

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Unaired Apple Commercials: The Definitive List

Aviv — Mon, 01 Dec 2008 04:10:12 +0000

Apple has had tremendous success over the years with their ad campaigns. Through clever marketing they have been able to shape and morph their image into an elite, premium brand. While searching for those perfect takes, some of Apple’s commercials didn’t quite make the cut.

Below is a list of some the best unaired Apple commercials available today.

Vista Nightmares

In this commercial, PC guy bangs himself against the wall as he tries to find solutions to his upgrade woes.

114,000 Viruses

In this one, PC guy tries to hide himself from viruses and spyware, while comparing the internet to a dirty public bathroom.

Unaired iChat Commercial

Apple’s marketing angle was to try and get you to, “Express yourself through iChat.”

Unaired Mail Commercial

Boy that interface is smooth and snappy. Look how fast he’s able to compose and read email messages!

Unaired Sherlock3 Commercial

Sherlock was Apple’s “finder” before we had the finder and spotlight. This commercial was targeted at helping people find themselves with “Sherlock 3″ – (Read about Sherlock at Wikipedia).

Developers Quit

PC guy explains that he has a personal message from Steve Jobs telling all developers to “quit” and rest their big brains.

And the grandaddy of them all…

This was never intended to be a commercial that would air on tv. It was unveiled to the crowd at WWDC 2007.

There’s this one as well, but it was too awful to include.

All I Want For The Holidays Are App Store Development Guidelines

Aviv — Wed, 19 Nov 2008 03:04:05 +0000

Apple’s App Store has changed the way mobile developers can reach their audience. By setting up a fast, secure environment for developers and game publishers to distribute their games and applications, Apple is attempting to bridge a major gap between the industry. However, some setbacks remain and the environment still needs some attention.

One of Apple’s major attractions with the App Store is the fact that developers can distribute their games and applications fast and in a secure environment. Once a particular game or app is approved and pushed through to the App Store, millions of people instantly have access to the title, and with the right buzz online, it can generate literally millions of downloads.

While Apple’s App Store has been subject to extremely harsh criticism, primarily focused around harsh rejections and an overall lack of communication. It’s important to remember how big of a push Apple has made with the App Store. Not only was the iPhone earth shattering in terms of user experience and making mobile data accessible, but Apple’s long-term goals in turning the device into a development platform have been more than realized. The speed in which a game or application can be downloaded and distributed through the app store is enough to send any aspiring developer into a cerebral tailspin about what iPhone users potentially need.

However, since the launch of the App Store, countless stories about very useful applications being rejected have sent shivers down most developer’s spines. Without a clear set of development guidelines, developers are taking an enormous gamble in cultivating a game or application on the iPhone platform. While it may seem reasonable for larger more established companies to devote time, money and general resources to hoping their applications get approved. Many smaller teams, producing extremely useful applications are not as lucky. A quote from a colleague of mine who develops for the iPhone explains it well:

“Without development guidelines, there is no way to know for certain if an application or game you are spending your time on, will get approved by Apple. In which case, you can organically appeal the decision and hope the community picks up your story, in which case word gets around to Apple that people are angered and they reverse the decision. Or perhaps they will realize that they made a mistake in rejecting your application/game and reverse the decision. Either way, Apple’s communication thus far has not been comforting to say the least.”

Dropping the iPhone NDA was a step in the right direction. Actually, releasing the iPhone SDK was the first step towards a brighter future, however, the community needed to basically beg Apple to do both. Couldn’t Apple release a well documented set of guidelines, that developers could follow while developing their games and applications? I think this could be done with relative ease, and the impact would be substantial. Not only would would developers be given a clear set of rules to follow, but real-world, long-term companies could be founded. Companies that are interested in establishing roots in the industry, developing platforms of their own and contributing in ways we can’t imagine. These things can’t happen to their fullest potential until Apple opens up and comes clean with what is really driving app store rejections and approvals. No more guessing, hoping and praying that a response will be given, the iPhone development community deserves more. And the potential behind the technology is enough to transform the mobile market as we know it today.

Some setbacks remain, and until Apple releases a clear set of development guidelines, the App Store will still be considered an “application boutique.” Developers and game publishers will continue to devote energy and resources to developing great titles that may never see the light of day. But remember, the iPhone SDK wasn’t so easy to reason out of Cupertino. So what do you think Apple, maybe some official App Store development guidelines for the holidays?

Warren Buffett & Steve Jobs: 10 Similarities

Casey — Tue, 11 Nov 2008 22:07:21 +0000

They are the best at what they do, here are 10 qualities they share.

Live non glamorous lifestyles

Warren Buffett, worth $63 billion, lives in a $700,000 house and has been there for 50 years. His license plate reads “THRIFTY”. Have you ever seen the website of Buffett’s Berkshire Hathaway, 7th largest corporation in the world? It epitomizes Buffet’s frugality. Disheveled hair and wild eyebrows compliment his awkward fitting suits and favorite old sweaters.

Steve shuns the Silicon Valley social scene and, even largest single shareholder of Disney, never walks the red carpet to Hollywood events. He bought a mansion in Woodville, CA in 1984 – living in it largely unfurnished for the next 10 years. A black mock turtle neck, worn Levi 501s and New Balance kicks are Steve’s every occasion wear.

Liberal

Buffett endorsed Barrack Obama for president. Warren, and his late wife, Susan, long supported pro-choice causes. Speaking at an event last year for Hillary Clinton, he blasted the tax code for having his secretary paying a higher percentage tax than him (his income is mostly through capital gains). The billionaire is also vocal against passing on “dynastic wealth” and testified before congress defending the estate tax. Buffett’s beliefs are cored in what he calls the Ovarian Lottery:

“I have been very lucky. I was born in the United States in 1930 and won the lottery the day I was born. I had terrific parents, a good education, and I was wired in a way that paid off disproportionately in this particular society. If I had been born long ago or in some other country, my particular writing would not have paid off the way it has. But in a market system, where capital-allocation wiring is important, it pays off like no other place.”

Interestingly, Warren’s father, Howard Buffett, was a 4 term congressman with strict Libertarian/Conservative Ron Paul like views on foreign and monetary policy. In respect to Howard, Warren didn’t change his registration to Democrat until after his father passed away.

Having experimented with drugs, studied eastern religions, and influenced by Bob Dylan – Steve and Apple are icons of the anti-establishment. Steve’s political donations make it more clear.

Steve brought Al Gore onto Apple’s board of directors and praised his Nobel winning work on global warming. Apple’s computers lead the industry in recyclable material, minimizing packaging and eliminating lead and other toxins. Apple came out publicly against an anti gay rights ballot measure in California.

Dive deeper than the competition

Buffett dedicates hours every day reading the news and thousands of financial reports – he’s a vacuum cleaner of information. Buffet made a deal with the local paper boy to have the next day’s Wall Street Journal delivered to his house at midnight, before everyone else reads it that morning.

When developing new products, Steve has his designers and engineers come up with dozens of different designs. Rapid prototyping machines, tool makers, CNC machinists, printed circuit board machines, and more work around the clock to make full scale working prototype models. They even have the same manufacturing equipment in Cupertino as they use China to design for manufacture. These prototypes are evaluated by Jobs and company, and revisions made until they are perfect. This iterative process is also performed for software. The work Apple puts into getting their products right is unprecedented in the industry and a testament to the investment Apple puts into R&D.

Showmen

They call it Woodstock for Capitalists. Berkshire Hathaway’s annual shareholder meeting attracts thousands of people from around the world. Buffet plays the Ukulele on stage, then spends hours happily answering questions from shareholders. Timid when younger, Buffet took in Dale Carnegie’s Public speaking class after finishing college and proudly keeps the certificate of completion hanging in his office to show visitors. No other public company has meetings so large and attended.

Apple events are Steve’s chance to introduce new products to the world. He performs onstage to a packed auditorium of media and millions more tuned in online. No other company introduces new products with as much attention and fanfare (or gets as much free advertising).

See the future

They call him the “Oracle of Omaha”, Buffett’ average annual compounded return for the past 30 years: 21%. $1 invested then would be $515 today. He buys only companies and stocks he understands completely and scours financial reports to find them under-priced. He has famously has never invested in technology stocks, even when Bob Noyce, one of Buffett’s fellow members on the Grinnell College board, offered him the chance to invest in a startup called Intel in 1968.

In 2003, Buffett argued in his annual shareholder letter that the unregulated derivatives markets were “financial weapons of mass destruction” and most journalists thought he was overreacting. While hedge funds were buying mortgage backed securities with up to 100x leverage along with credit default swaps to seemingly eliminate risk, Buffet saw the writing on the wall. Fast forward to 2008 – Credit crisis, bank failures, huge deleveraging, and massive government intervention. According to his new biography, Snowball, Buffett is taking advantage – trading mispriced bonds, selling default swaps (insurance against firms going bankrupt) on under-priced securities, and buying distressed mortgages at fire sale prices. He also invested in Goldman Sachs and GE – getting a slam dunk deal of preferred stock with a 10% annual dividend and options to buy more within 5 years at today’s price.

Steve Jobs knows what people will want and makes them great products. Apple doesn’t have focus groups judging products or does design by committee… they keep it close to the vest and it all runs through Jobs.

Built companies from scratch

Buffett started building his war chest in grade school, delivering newspaper. His prized possession as a youth was a wearable coin holder. He wrote his bicycle and watch off his taxes at 13 years old. Bought and leased out a 40 acre farm when he was 16. Returning from his MBA at Columbia after studying under his icon, the famous value investor Ben Graham, Buffet started an investment partnership with 7 friends and family, contributing a total of $105,000 capital for him to invest. After years of 30-60% growth and many more people added to the partnership, he shut it down and poured his money into Berkshire Hathaway, a textile manufacturer which he controlled. Money Berkshire made was reinvested in other underpriced stocks and whole companies and the rest is history.

Secrecy

Buffett never gives out advice on buying certain stocks, nor gives expectations of what the market will do in the near term. When building up positions in stocks, he uses third party proxies and trusted traders to not tip off anyone about his moves. Apple has security on par with the CIA. Work is performed on a need to know basis. Apple, as we know, is the most secretive of them all. Beyond never divulging information about the company’s future plans, they are notoriously tight-lipped when it comes to relatively standard public information.

Small, tight knit management

Omaha’s Kiewit Plaza, the unlikely headquarters of Berkshire Hathaway, houses Buffet and his office of 12 people. All stock and purchasing decisions are made by Buffet and long time partner Charlie Munger. The managers of the companies Berkshire owns are largely autonomous and may only hear from Buffett a few times per year, as long as they are performing well.

Steve has a lean group of ten managers reporting to him: the COO, CFO, general counsel, and vice presidents of marketing, hardware, software, industrial design, retail, applications, and the iPhone.
Microsoft, by comparison, has a broader chain of command with an executive team of sixteen people, and a Corporate staff council of… “made up of employees from the Law and Corporate Affairs, Finance, Human Resources, Corporate Marketing, and Advanced Strategy and Policy groups at Microsoft. Other Executive Officers include the Presidents and Vice Presidents of the various product divisions, leaders of the marketing section, and the CTO, among others.” (wikipedia)

100% Control

All investment decisions at Berkshire Hathaway are made by Buffett. Buffett’s ability to find great managers lets him focus on finding new companies, investments and stocks to allocate capital to. Everything at Apple – hardware and software development, marketing, strategy planning, and top level hiring – goes through Mr. Jobs.

Company 100% dependent on them

It’s the unfortunate corollary to having complete control. What would happen to AAPL or BRK if they lost their Shepherd?

History has seen what happened when Steve was forced out the first time – a spiraling product line up and dwindling profit and market share. Steve secretly had surgery in 2004 to remove pancreatic cancer. Looking gaunt at recent Apple events, uncertainty of Steve’s health attributed to AAPL’s near 40% drop since the summer.

Is Buffet replaceable? His like-minded right hand man, Charlie Munger, is just as old. Last year, Buffett and his board chose three potential people to take over, should he pass away. They also chose to divide his responsibilities between two people – a CEO and a Chief Investment Officer. Buffett said last year “The good news: At 76, I feel terrific and, according to all measurable indicators, am in excellent health, It’s amazing what Cherry Coke and hamburgers will do for a fellow.”

Bonus round: Biggest dissimilarity?

Relationship with Bill Gates.

Buffett and Gates vacation together and play bridge online regularly. Gates surprised his to-be wife by stopping their plane in Omaha to have Buffet take them to Borsheim’s, a jewelry store Berkshire owns, to choose an engagement ring. Gates joined Berkshire’s board of directors in 2002. Buffett pledged 84% of his fortune to the Bill and Melinda Gates Foundation:

“It was clear that Bill Gates had an outstanding mind with the right goals, focusing intensely with passion and heart on improving the lot of mankind around the world without any regard to gender, religion, color, or geography. He was just doing the most good for the most people. So when the time came to make a decision on where the money would go, it was a simple decision.”

Gates has been Steve’s arch-rival for 20 years. Microsoft copied Apple’s user interface… well, you know the rest.

Disclaimer: I own BRK and AAPL, sleep well at night.
Updated to edit a few typos.

How Much Longer Will Steve Jobs Be Apple’s CEO?

Aviv — Tue, 11 Nov 2008 00:01:53 +0000

It’s no surprise that Steve Jobs will one day retire from Apple. But how much longer can we expect Steve at the helm? And when it’s time for Jobs to move on, how much warning will customers, shareholders, and investors get?

The industry has come to know Steve Jobs as the face of Apple, bottom line. The mere thought of Jobs stepping down as CEO is enough to send shivers through the spines of most Apple fans, shareholders and investors alike. Although Jobs has assembled an elite team of executives who are more than capable of running the company after his departure, many still believe Apple simply cannot thrive as it does now, without Steve Jobs in place as CEO.

Corporations such as Apple are required to have a succession plan in place, right as the current CEO first steps through the door. Apple is no different. While we can speculate about the qualified candidates, only a handful of people know for certain who’s in line to take over the role as America’s most important corporate employee.

An article over at Fortune lays out the possibility that Apple’s chief operating officer, Tim Cook, could take over the role. However, Cook seems to think Jobs could be in place well into the next ten years. “Come on, replace Steve? No. He’s irreplaceable,” Cook said recently, according to a person who knows him well. (via Fortune) “That’s something people have to get over. I see Steve there with gray hair in his 70s, long after I’m retired.”

That statement alone may be enough to settle most uneasy investors or shareholders. After all, Jobs greatly looks up to and respects Warren Buffet, who at the age of 78 still seems to be in his prime. Perhaps Jobs has no intention of leaving Apple anytime soon. Currently, he’s only 53 years old, which could essentially lead many to believe (and hope) that he’ll be Apple’s CEO for many years to come. As Fortune points out, only the company’s seven other board members know who is in place as Steve Jobs’ successor.

Scott Forstall is another executive that comes to mind, however most analysts will tell you he’s far too young to run the company. Forstall’s title is Senior Vice President of iPhone Software, which essentially puts him in charge of the biggest, and most rapidly growing and expanding sector of Apple’s business… the iPhone. While age may have something to do with it, Forstall isn’t nearly as involved in the company’s day to day workings as Apple COO Tim Cook. Besides, the board wouldn’t be too thrilled with any lack of experience, no matter how minuscule, at this stage of the game. Jonny Ive seems to be well groomed for the high level Apple executive position. He’s young yet wise, and many believe he has the “charm” and “passion” needed to drive Apple after Jobs is gone. Ive has won several awards and is the backbone behind Apple’s wildly successful industrial design.

Over the past year we’ve seen Scott Forstall deliver a flawless keynote while introducing the iPhone SDK, we’ve seen Senior VP, Phil Schiller, confidently speak at some events, and Tim Cook and Jonny Ive basically ran the show at Apple’s notebook event this past October. As previously noted, Apple is showing the industry (primarily its loyal customers, shareholders and investors), that top-line management is more than capable of keeping the company prosperous, healthy, innovative, and profitable.

But does this mean that Jobs is thinking about leaving any time soon? Perhaps he was planning on 2008 being one of his final years, only to realize that the company hasn’t sufficiently stabilized. Surely the current economic conditions would factor into how Jobs approached his role at Apple. And a CEO as head-strong as Steve Jobs wouldn’t step down while his health is being questioned in droves by “journalists” across the internet and beyond. Instead, we’d expect him to stay on board and at the very least, deliver a few more iterations of the iPhone. But what’s to say he’ll stop there? What else could Jobs possibly want to accomplish before retiring? Perhaps he has no intention of leaving any time soon, or maybe he’ll be gone by the end of 2009. It’s safe to say only Steve, his family, and the closest members of his team know.

Part of me wishes that Steve would remain on board for many years to come. But the unselfish part of me wants him to retire while his company is on top, not suffering with the rest of the country in the depths of a financial disaster. For an inventor and innovator such as Jobs, retiring while Apple is on top of the world, is more than fitting, it is deserved.

Has 2008 Been The Outstanding Year Steve Jobs Promised?

Aviv — Fri, 07 Nov 2008 02:19:53 +0000

Back in January of 2008, Apple CEO Steve Jobs took the stage at Macworld and unveiled new products such as the Macbook Air, Time Capsule, Apple TV movie rentals and some snazzy iPhone and iPod touch software updates. During, and after the keynote (in exclusive interviews) Jobs made it a point to say that “there are 50 weeks left in 2008″ and that it would be a “great year” for Apple.

At the end of the Macworld ‘09 keynote, Jobs enthusiastically rattled off all of the products Apple had released in the first two weeks of 2008. He mentions the Mac Pro, Macbook Air, Apple TV/iPhone/iPod touch updates, and Time Capsule. “All of this in just the first two weeks!” he explained, “…and we’ve got 50 more weeks to go.” As Jobs concluded, the crowd at Macworld erupted, and surely everyone was convinced that Apple would be bringing the goods this year.

Cut to November 2008. While the past 10 months have been sprinkled with Apple goodness here and there, the company has had an extremely rough year. Even Apple, who is known for having tremendous foresight, didn’t have the clairvoyance to see what 2008 had in store for the industry. The truth is, this year has delivered several major blows to both Apple’s bottom line, stock price, and major sectors of their business. While the iPhone grew and greatly surpassed expectations, the road to its global dominance has been shaky and horribly littered with potholes.

Meltdown Ensues

From the disastrous first launch day in July, to the complete Mobile Mess Meltdown, many people hadn’t seen this side of Apple in a few years. Since launching the original iPhone in 2007, Apple has attracted so many new users, so many switchers and new enthusiasts that hadn’t seen Apple suffer in the past. They were so aww-stricken and woo’d by Steve’s magical iPhone potion, they failed to see that at its heart, Apple is a technology company. And no technology company is perfect, no matter how deep the passion lies with its leadership.

When Apple got over eager and decided to launch three too many products on July 11th, the industry couldn’t wait to jump down the company’s throat. Jobs and Apple had been on such a magical whirlwind of success, this was finally everyone else’s chances to say “Ha! We told you so!” — And they did. Every blog and website covering the meltdown that day, and for the following weeks, was overtaken with comments from users who were simply stunned. People couldn’t believe what was happening. Apple’s servers were going down, people couldn’t activate their iPhones, iTunes servers were malfunctioning, Mobile Me wasn’t working. It was a classified meltdown. So much so, that people lost their jobs. On this level, at that scale, that is serious. Eddy Cue was brought into to take over Mobile Me, and for the better half of 2008, the services have been running semi-smoothly.

Yes, Apple eventually cleared everything up after a slew of emails, apologies and some free Mobile Me extensions. But that fateful day in July set the tone for the months to come, and they were not very bright for Cupertino.

Apple Shows Its True Colors

At the beginning of 2008, nobody could have predicted that July, August and September would be devastating for Apple. The weeks after the Mobile Meltdown were very difficult for the company, and as CEO Steve Jobs said, “it was not our [Apple's] finest hour.” The “sting” didn’t fade away by any means until new rumors starting propping up about Apple’s then upcoming iPod lineup overhaul. Speculation grew as rumors regarding multi-colored nanos and GPS in the iPod touch trickled in. By the time we had seen our 6th spy shot of the new iPod nano, and some bare-bones specs courtesy of iLounge, Apple had the boat pointed in the right direction again. People were waiting with baited breath to catch a glimpse of the new iPods. And Apple delivered.

Renting out the Yerba Buena Center for the Arts in San Francisco, Apple made a big deal of the iPod “Let’s Rock” event. Apparently, they had PR representatives calling other media-types specifically telling them to come to the event, saying it would be a big deal. Not to discredit any of Apple’s wonderful PR tactics, but the event was relatively standard. The new products were gorgeous and Apple had done it again with their iPods. But nothing out of the ordinary. Apple has always been good at listening its customers, and these new iPods were a prime example of that. Alongside the new iPods, Apple released four new iPod shuffle colors, and iTunes 8, with Genius Playlists baked in.

At this point in the year, Apple’s dark cloud had seemed to fade away. CEO Steve Jobs had successfully wow’d the media at another event, and Apple was on the right track to have a spectacular holiday line-up.

Unibody, Shmunibody, — Where’s my Firewire?

Roughly 4 weeks after inviting the media to California for the iPod Let’s Rock event, Apple scheduled another event titled “The Spotlight Turns to Notebooks,” which was held on October 14th. Announced only 4 days prior, Apple gave travelers and the media covering the event, only a few days to make travel arrangements. This notebook event was perhaps the most anticipated Apple event, since the first unveiling of the iPhone at Macworld 2007. The premise was that Apple would be overhauling its most essential products… its notebooks. The design and form factor of Apple’s older Macbook and Macbook Pro have become so iconic, so synonymous with the brand. Changing these notebooks wasn’t only a big deal for Apple, it was enormous! The new design methods and manufacturing techniques Apple was introducing required a 15 minute video walk through by Apple’s Senior VP of Industrial Design, Jonathan Ive.

At the notebook event, Apple unveiled a new manufacturing process for the Macbook and Macbook Pro, where they take a single piece of high grade aluminum, and cut out a ‘unibody’ frame for the shell. As Apple put it, this was so revolutionary, nobody in the industry had ever seen anything like it before. Once again, Apple had listened to most of its customers and incorporated major design influences from the Macbook Air into the rest of their notebook line. This is exactly what most people were asking for.

In good old Apple fashion, compromises had to be made. For the internals of the new Macbooks to be positioned correctly and efficiently, all of the ports had to line up one side of the machine, thus giving Apple a hard choice of which ports stay, and which ones go. They got rid of Firewire on the new aluminum Macbook and completely eliminated the option for a matte display. Apple claimed that in their testing, users want the glossy screen most, and CEO Steve Jobs himself explained that people don’t need firewire. Unfortunately, many customers disagreed with Apple and Jobs, and some people have been left outraged and stunned by Apple’s decisions with features and options in the new notebooks. Completely natural.

What’s Next

Apple has officially gone on record saying that no new products will be released for the rest of the year, and speculation has already begun brewing for Macworld ‘09. The bottom line, Apple is not perfect. No company is perfect. All anyone can ever do is give it their best shot and focus on what they think the best work of their lives will be.

For Apple, the three ill fated months towards the end of 2008, are a small price to pay for the devotion and position they have garnered over the last two years. Did Steve Jobs deliver on his promise? Yes. Was Apple perfect? No. But they did their best and will continue to do so. Which is more than we can say for a lot of companies these days.