iTips from the House that Jobs Built
By Leigh Anne Terry
You can call him a visionary. You can call him one of Silicon Valley’s “leading egomaniacs.” No matter on which side people may fall, there is no denying the important contributions that Apples’ Steve Jobs has made to the worlds of technology and media.
The man Fortune acknowledged as the “Most Powerful Businessman of 2007” has been a driving force in the personal computer industry and the digital music revolution. His entrepreneurial style and success has created may devotees in the business world – from CEOs sporting the all-black clothing look to the spectacle-style introduction of new electronic media products. There are many business models that would benefit from a few peeks inside the Jobs’ playbook.
For many of us, it’s difficult to imagine doing our jobs without some type of computer. Of course, that wasn’t always the case. It took individuals like Bill Gates, Paul Allen, Steve Wozniak, and Steve Jobs to transform the room-filling, card-reading early computers to machines that could fit on a desk (or lap) and were accessible to the masses. Despite ideas shared in formative years in Silicon Valley software companies and computer clubs, the path along the PC evolution diverged. While Jobs and Apple began work on an affordable personal computer system, Gates and Microsoft grew to dominate the industry through software — originally operation systems and later other kinds of programs. Businesses, schools, and individuals began buying more computers. For many, the actual computer brand and features became less important than Windows compatibility.
Differentiation – not everyone wants the same “flavor” of computer
In a world where computers could have simply become a commodity, Job’s and the Apple team veered in the other direction, developing a product that appealed to specific segments of the personal computer customer base. America was introduced to the Macintosh computer through the groundbreaking Superbowl commericial “1984,” in which this new computer with a graphical user interface made the product easily accessible to everyone – not just those who could type code. From the beginning, Jobs set out to create a new market, and fill that market demand with Apple products. The trend continues; starting back with their original graphic interface, Macs became THE computer of choice for graphic designers and artists. Working to those strengths, they developed programs that appeal to those qualities – such as the iLife suite that allows users to focus on creating/storing movies, websites, DVDs, and music. Apple has carved out a niche as a preferred product for people who are looking to explore those creative opportunities.
Additionally, ease of use became a differentiator. The first iMacs, released in 1998, were designed to be taken out of the box, plugged in, and be ready to use in less than five minutes. Jobs and Apple have continued to make this ease of use part of each new version released.
Sometimes, it’s what’s on the outside that counts
Let’s be honest: it’s difficult to tell one microchip from another. As for programming code . . . well, for many people it remains as elusive as ancient language. However, the eye can easily discern the difference between a regular PC and iMac or an MP3 player and an iPod. For many consumers, it’s not so much what’s inside the product, it’s the way it’s presented.
Design aesthetic is a crucial part of the Jobs/Apple formula. In fact, some detractors say the sleek design and appearance are the key selling factors for many Apple products, appealing to the technocrati and fashionistas with the shallow sell first . . . and then hooking them with innovative technology and features.
The look and feel of the Apple products practically drive consumer expectation, and Jobs and his crew continue to push the boundaries. As imitators struggled to reach the market with “clickwheel” clones, Apple took the next step by launching the touchpad on the iPhone and the iPod touch. And despite the fact our current iPods and cell phones still work just fine, many of us line up in order to get the new versions . . . just because the new versions look SO DARN COOL.
And now for something completely different
After paving the way for Apple’s success in the early 1980s, Steve Jobs sold off all but one share of the company. With time and money on his hands, he bought Graphics Group, a small department in George Lucas’ computer production department for $5 million in 1986. Jobs invested another $5 million into the little-known company, now known as Pixar, that had done some early computer animation movie special effects. While initially a hardware company offering high-tech, high-end imaging solutions to customers including Disney Studios, the short demonstration animations created to show off the hardware’s potential began to attract more attention and fanfare. After success in short films and commercials, Pixar entered into an agreement with Disney to produce full-length, computer-animated motion pictures.
Toy Story. A Bug’s Life. Toy Story 2. Monster’s Inc. Finding Nemo. The Incredibles. Cars. Ratatouille. 4.3 BILLION DOLLARS in revenue. Twelve Academy Award nominations with five wins. Many in Hollywood consider Pixar to be the closest thing to a sure bet in terms of story, quality, and bankability. Pixar’s success has resulted in many imitators and the transition in animation away from 2-D drawing. As a result, the mantle-holder for hand-drawn animation, Disney Studios, purchased their former production partner for $7.4 billion. This led to Jobs becoming Disney’s single largest individual shareholder, while getting him a spot on their Board of Directors.
Not bad for a side project.
Define “eponymous”
The iPod and iTunes legitimized the digital music revolution. Before their product introduction, digital music was mostly illegal file sharing and MP3 players were clunky devices. With the introduction of the iPod in 2001 and iTunes in 2003, Jobs wound up doing for “digital music” what Apple and the Mac did for “personal computer” in the 1980s and 1990s.
Sometimes pictures do a better job than words: as the chart on the next page shows, the demand for digital music is an avalance started and maintained by Apple. At present, iTunes sales account for 70% of the digital music market, and it’s no suprise that most (if not all) of that digital music is being played on an iPod. Retailers like Amazon, Wal-Mart, and Rhapsody struggle for a portion of the marketplace in which they can compete, and while devices like Microsoft’s Zune fail to find a loyal fanbase. While not the first MP3 player to hit the market, Jobs’ iPod became the standard bearer by which everything else is compared.
To what measure? The word “iPod” is well on it’s way to replacing the term “MP3 player” in the American lexicon, following the path of “Xerox” for “photocopying” and “Google” for “conducting a search on the Internet.” And after all, they don’t call them “MP3-casts.”
The writing on the wall
Steve Jobs knew it was time for a change. After 30 years of being “Apple Computer, Inc.,” the company officially changed its name to “Apple Inc.” in January 2007. This change reflects the Apple’s growing presence in the broader consumer electronics marketplace. Now computers are just one facet, alongside portable media players and mobile phones, in an ever-expanding business plan.
Naysayers gleefully highlight flaws in the iPhone. Detractors call Apple’s stock “over-valued.” Still each year, as Apple’s annual Macworld Conference and Expo draws closer, the whispers begin: “What’s Steve got up his sleeve this year?”
And again, no matter on which side people may fall – everyone pays attention to what Steve Jobs has to say.
