Author: Staff

Jobs steps down for now as CEO; on medical leave through June

apple-logo1I don’t do much breaking news these days, but word is getting out that Apple CEO Steve Jobs is taking a medical leave until the end of June and leaving COO Tim Cook in charge of day to day management of the company.

According to Silicon Valley Insider, Jobs sent an internal email to Apple employees informing them of the decision:

Team,

I am sure all of you saw my letter last week sharing something very personal with the Apple community. Unfortunately, the curiosity over my personal health continues to be a distraction not only for me and my family, but everyone else at Apple as well. In addition, during the past week I have learned that my health-related issues are more complex than I originally thought.

In order to take myself out of the limelight and focus on my health, and to allow everyone at Apple to focus on delivering extraordinary products, I have decided to take a medical leave of absence until the end of June.

I have asked Tim Cook to be responsible for Apple’s day to day operations, and I know he and the rest of the executive management team will do a great job. As CEO, I plan to remain involved in major strategic decisions while I am out. Our board of directors fully supports this plan.

I look forward to seeing all of you this summer.

Steve

Trading on Apple stock was briefly suspended today on the news, and is scheduled to resume in about five minutes (in after-hours trading) as I write this. According to Yahoo, Apple is currently selling at $85.33.

This should be some ride.

(Hat tip to Shawn King for the news.)

Macworld keynote reaction on MacVoices TV

macjuryI joined a great group of Mac pundits for a session of Chuck Joiner’s new MacVoices TV podcast. It’s a 20-minute or so round table discussion about Apple’s last Macworld keynote and Phil Schiller’s performance as a substitute for Apple CEO Steve Jobs. The panel included Bob “Dr. Mac” LeVitus, Mac author and columnist for the Houston Chronicle and The Mac Observer, Terry White of Adobe, Adam Christianson of the MacCast and of course, Host Chuck Joiner.

I like the video format and I think Chuck Joiner’s onto something here. Video’s bound to have a different set of obstacles, especially once the panelists are no longer in the same location, but the production values so far have been pretty good and improving. While podcasts are likely to remain a commuting activity (and therefore audio-only) for me, seeing the panel is a lot more compelling than just hearing them. It will be interesting to see how the format works over Skype, but given Chuck’s track record, I’m optimistic that he’s got another hit on his hands. For the video-resistant, the show is also available in an audio-only version through the MacJury feed.

While I was out…

while_outI’m back from what was a very interesting Macworld, and possibly one of the best. (It was surely one of the most exhausting.) I delivered three sessions this year (well, one session delivered three times), and they seemed to be very well received. The crowds were definitely smaller than I expected — an observation I heard repeatedly at the show. But just from the timing, it seems to me that the decrease in attendance was more a result of the economy than Steve Jobs’ absence.

I also wrote a column for The Mac Observer — an opinion piece on my reflections on the Phil Schiller keynote. I also took part in a MacJury/MacVoicesTV session on the same subject. I haven’t seen this posted anywhere yet, and it’s probably past the point where it’s relevant anymore. I love the idea of doing video, but if it’s going to mean this kind of delay in making it available, it’s probably better to stick with audio. Who knows — maybe I was so awful that host Chuck Joiner decided to scrap it altogether.

Finally, the band I’m in — the Macworld All-Star Band — played our 11th Macworld gig and our sixth Cirque du Mac show hosted by The Mac Observer. The party, originally meant as the successor to the Mac the Knife parties, has taken on a life and mystique of its own. This year, we had caricaturists, a superb light show by Andrew Stone — and even a trapeze artist. Attendance jumped from 500 people jammed into the Red Devil Lounge to 850 in the very stylish Broadway Studios. I think we sounded great and I know we had a blast. It’s an incredible group of very talented people who have become some of my dearest friends in the world: Paul Kent, IDG vice president and the executive in charge of Macworld; Dave Hamilton, president of Backbeat Media and The MacObserver; Christopher Breen, Mac author and senior contributing editor for Macworld magazine; Bob “Dr. Mac” LeVitus, Mac author and columnist at the Houston Chronicle; Duane Straub, former administrator at Lawrence Livermore Labs; and Bryan Chaffin, executive vice president at The Mac Observer.

RandomMaccess appearances at Macworld Expo 2009

mw_logo_4colorI suppose it’s close enough to the show that I should let those interested know where I’ll be this year. From Tuesday through Thursday, I’ll be presenting a Macworld “Supersession” entitled “The Ultimate Mac Starter Class.” If you’re a reader of this site, you’re way overqualified to attend, but please pass the word on to anyone new to the Mac who might benefit from a little “compressed experience.”

On Wednesday night, I’ll be performing in the Macworld All-Star Band at “Cirque du Mac” at an undisclosed location. The party is free, but invitation only. Like the Mac The Knife parties it replaced, “if you have to ask about it, you can’t go.” Unless you see me, that is. I’ll have a limited number of tickets to hand out to people who are especially nice.

On Thursday night, I’ll be stopping by the “Mac Mingle 2009” party, at Jillian’s on 4th St. Host/Mac speaker and author Deb Shadovitz was nice enough to invite me and silly enough to think I was worth including on the list of “Mac Celebs” who are attending. If you see me there, please say hi.

Finally, it’s likely I’ll be participating in some MacJury panel discussions that are slated to take place during the show.

If you’re interested, you can check here for updates and additions.

Macworld All-Star Band interviewed on MacVoices

macvoiceslogoChuck Joiner managed to get the entire band together for an interview as part of his “Road to Macworld” series for the MacVoices podcast. To say it was a blast would be an understatement: this is something we’ve never done before and it was an incredibly fun session. I sure hope that comes across in the recording. We’re also giving away six pairs of tickets to sharp-eared listeners. I suspect they’ll all be gone by the time you read this, but hey — it’s worth a shot.

Thanks to Chuck and the band — Chris Breen, Paul Kent, Dave Hamilton, Bob LeVitus, Duane Straub and Bryan Chaffin — for a great time. It’s a genuine joy to be part of this group.

It’s the end of the world as we know it (and I feel fine)

mayan-calendar

It’s amazing. Even without the benefit of iCal or blogs, the ancient Mayans managed to come within a hair’s breadth of correctly predicting the end of the world.

It came not in December of 2012 as they calculated, but a mere four years and one week earlier. Tuesday, in fact, when Apple announced that Steve Jobs would not deliver the keynote speech at the 2009 Macworld Conference and Expo, and that the conference would be Apple’s last as a participant.

Amidst the great wailing and gnashing of teeth came predictions across the Mac web that the Expo was doomed.

And maybe it is.

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It’s certainly the end of an era, but things like the Internet and a couple hundred retail stores will do that to a tech conference. Whereas Macworld was the biggest megaphone around a decade or so ago, Apple has made a point since it opened its first round of stores that it got “Macworlds worth” of traffic through its retail outlets — first in weeks, then in mere days. The resurgence in popularity of Apple means the company can generate keynote-like attention at will — and on its own schedule. If Apple had waited until next month’s keynote to unveil its new line of laptops, do you know how many of them it would have sold during the Holiday shopping season? That’s right: none.

Apple is not fond of giving up control of anything, but for years, it had to where the calendar was concerned. It had to wait until Expo to introduce new products (or rush them to market before they were ready) and if it didn’t, the company risked the wrath of the press and rumor-mongers who would immediately deride the event as a disappointment.

Even if the move makes sense from a business perspective (and I don’t disagree that it does), the timing couldn’t have been worse if it had been intentional — and there are those who would say it was. I agree with Daring Fireball’s John Gruber that Apple needed to make both announcements at the same time. If they had simply said Jobs wasn’t delivering the keynote with the intention of dropping the other shoe after the show, the reaction would surely be that Jobs’ health was the issue. But would it have killed Jobs to deliver one more keynote — especially at the 25th anniversary of the conference?

I think the answer to that one can be seen in the special attention — or rather lack of it — that Apple paid to the 20th anniversary of the Macintosh. During that keynote, Jobs replayed the famous “1984” Superbowl commerical in which Apple introduced the Mac. But even then, the gesture was not a look back, but a look ahead, in which the sledgehammer-slinging runner was digitally altered so she was wearing an iPod.

Maybe there was some kind of message to IDG in the announcements; maybe it was payback for some past slight, whether perceived or real. But my guess is that Apple simply works on its own schedule, for its own benefit — and if IDG or the other developers that exhibit at the show are impacted, well, that’s life.

So what happens to Macworld now? The easy example to cite is what happened to the summer show, when Apple pulled out of the Expo after IDG decided to move it from New York back to Boston. That event withered quickly then died. Is that the destiny in store for Macworld San Francisco? Certainly not if Paul Kent, the IDG executive in charge of the conference has anything to say about it.

Under Mr. Kent’s leadership, the event has grown dramatically over the past several years, both in size and quality. And while I’m sure he and his team don’t look at this as good news, I’d be very surprised if someone hasn’t already unlocked a secret drawer somewhere they hoped they’d never need to open and pulled out plans that have long been in place for just this situation.

The real shame in this is that in a perfect world, Apple’s absence shouldn’t affect the show very much at all. The conferences are just as valuable, the exhibitors just as compelling. All Apple has ever really offered to Expo attendees is the promise of new product announcements, the possibility of “just one more thing” and a place to display them, if you could work your way through the crowds. If anything, Apple’s absence gives other developers a better chance to grab some attention, if — and this is a very big, make-it-or-break-it if — IDG can convince attendees that a Macworld without Apple is still something worth coming to.

More likely, Macworld will have to morph into something else — probably something smaller, maybe even something mobile. In the long run, that may be a good thing, but it’s going to be an enormous challenge.

The good thing about an end of an era is that it usually means another one is beginning. Like it or not, Apple has ended the era of Macworld as it’s been. Now it’s up to IDG to define what Macworld will become.

[You can also now find this article on The Mac Observer website.]

The most non-Mac related post of the year

I camp.

I love camping and I do it whenever I can — usually between 15-20 nights per year. And while most of the hiking/camping community has been moving to internal frame backpacks, I remain an external guy. They’re easier to pack (and more forgiving when you do it “wrong”), better for hiking on well-established trails and much cheaper. But for all their benefits, they’ve become harder and harder to find. So I was very happy to find one of the best external packs around — the Jansport Carson — available once again after a long absence on Amazon.com.

To celebrate and get the word out, I’m posting the link below. Note that the RandomMaccess affiliate ID is embedded in the link. If you buy it through this link, I’ll get a small kickback, and your price remains unchanged.

Now get out there and do some camping!

Jansport Carson Backpack

‘The company formerly known as a computer maker’

Apple’s latest financial results call was an interesting one on several fronts. Indeed, I think it may be looked upon years from now as a milestone in the company’s history.

Why? Mainly, because it marks a clear point in time where the company stopped being a computer company and started being a consumer device maker. As Steve Jobs pointed out in a recent keynote, Apple is a company that stands on a three-legged stool. Macs — computers — are obviously one leg; iPods are the second; and now, iPhones make up the third leg of that stool. The analogy is an apt one. Apple’s not a computer company that makes iPods and iPhones as a side business: the three-legs more or less equally support the company. As Apple reported, iPhones made up 39% of Apple’s business (using the non-GAAP figures — we’ll get into that in a minute.) That’s an astonishing statistic. In just 15 months, the iPhone has become the biggest single contributor to Apple’s bottom line, with lots of room to grow. iPods account for 31% and Macs themselves make up the smallest portion of revenue at 30%.

A brief word on GAAP
A lot of Apple-watchers are getting a quick lesson in economics over the company’s decision to use GAAP (Generally Accepted Accounting Principles) and book the revenue generated from its iPhones (and Apple TV’s) using a subscription method. That means that rather than booking the entire revenue generated from a sale in the period in which the sale was made, Apple spreads out the value of the sale over 24 months. In its interpretation of the rules, Apple believes that method allows it to provide free software updates over the course of those two years, rather than having to set a value for them. That’s why iPod touch owners have to pay for the updates that iPhone owners get for free. The company doesn’t make more of less money using either method; it just gets counted differently. So, if the revenue generated by iPhone and Apple TV sales did not have to get spread over two years, Apple’s results would be even higher. That’s why the company also reported what its results would be under non-GAAP accounting. As Jobs said in the call, the iPhone story was “too big for Apple management or investors to ignore.”

So, adjusting for non-GAAP reporting, take a look at Apple’s performance in the fourth quarter over the past three years.

Fourth Quarter Revenue (non-GAAP)

  • 2006: $4.84 billion
  • 2007: $6.22 billion
  • 2008: $11.68 billion

The growth is stunning and illustrates a truly transformation period in the company’s history.

Wither the Mac?
I think this is wonderful news for that first leg of the stool, the Macintosh. It gives Apple a lot more breathing room than if it remained primarily a computer company. The diversity brought by the iPod and iPhone is insulating. It means Apple does not have to have a huge hit with every computer product. It means it has the luxury of being innovative, of spending money on R&D (Forget not, either, that the company has no debt and cash on hand of $25 billion — an increase of almost $10 billion since just last year.) And let’s not forget that much of the innovation on the other two legs of the stool begins or is to some extent reliant on what Apple does to the Mac. It’s a symbiotic product mix that I think Apple views in a holistic way, so I don’t see the Mac going away any time soon.

A few other notes
Steve Jobs couldn’t resist delivering the news in person that Apple outsold BlackBerry maker RIM in this quarter, and that by revenue, Apple is now the third-largest mobile phone seller in the world — again, in just 15 months in the market.

Rumor mongers will point to the fact that Jobs was on the call as some sort of sign regarding his health. The truth is that Steve does occasionally take part in these calls — though not often. I think he was there primarily to crow about the success of the iPhone and the fact that the 10 million unit goal for 2008 was reached two months early; and to talk to analysts about the uncertainty of the economy over the next period and its potential impact on Apple.

I’ll be on a MacJury podcast panel later this week to talk more about the conference call and other Apple matters. Visit the MacJury webpage or check back here for a link when the show is posted.

MacJury: Apple’s new laptop announcements

I stayed up past my bedtime last night to be part of a great MacJury panel, which included Jean MacDonald of SmileOnMyMac, podcaster Adam Christianson, blogger Dan Pourhadi, RadTech’s John Grzeskowiak and, of course, host Chuck Joiner. The topic, naturally, was the Apple media event where the company unveiled updates to its laptop line and introduced new cinema displays.

On the podcast, I referred to the event as the “Snow Leopard for hardware announcement.” By that, I mean that the new offerings don’t offer a ton of new features or improvements (the processor bumps are so insignificant they weren’t even mentioned, for instance.) The only true new feature I can think of is the glass the-whole-trackpad-is-a-button trackpad. Even the “unibody” construction is a process enhancement, not a new feature, and like its software counterpart, what’s new under the hood is essentially designed to make what’s there better, not provide new capabilities.

The laptops are also remarkable for what’s not there: no more matte screens, no more Firewire on the new MacBooks (although it remains on the “remaindered” $999 white MacBook) and, as mentioned, no more button on the trackpad. For the first time in a long time, the laptops’ hard drives are easily upgradeable. The RAM is less accessible than in some recent laptops, but for a good reason: Apple’s shipping them with enough to start with (2GB on the new MacBooks, MacBook Air and lower-end MacBook Pro; 4GB on the higher-end models. The $999 MacBook still ships with an insufficient 1 Gig.)

Much has been made of the elimination of Firewire from the new MacBooks. While I may mourn its passing, the writing’s been on the wall for some time now: Firewire is considered a pro-level feature, not for consumers. The push to USB 2.0 has been going on for a while and the marketplace has chosen. My last couple external drives have been USB, in fact, because I knew it would give them a longer useful life. If you’ve got an old Firewire camcorder around, hang on to a Mac with Firewire, or choose a new MacBook Pro if it matters that much to you. Or, use it as the excuse you’ve been looking for to get a camera with USB or removable media. Go on, you know you want to.

Similarly, we fans of matte displays are going to have to just give it up, because the rest of the world (and now Apple too) seem to have decided that it’s a glossy world after all. While purists may howl, and pre-press designers may scramble for matte display shields, the out-of-the-box experience is going to be bright, saturated colors and highly reflective screens. Even the new Cinema LED Displays are going glossy. As of now, though, Power Mac users will not have to worry about the decision — the new displays are clearly and specifically intended for the new laptops only. They use the new DisplayPort connectors and are incompatible with the DVI ports on Apple’s desktop lineup. And while you can get a DisplayPort to DVI (or VGA) adapter for your laptop, you cannot (at least as of this writing) get a DVI to DisplayPort adapter for your desktop machine. You can, however, still buy a non-LED Cinema Display; the entire lineup is still available (and promoted on) Apple’s website.

The MacJury panel touched on a slew of other issues, as well, including the DRM aspects of DisplayPort, the blurring of the distinction between consumer and prosumer branding (Will that be plastic or metal?), and more. It’s a very engaging session from a podcast I’d recommend even if I wasn’t part of it. I’m a big fan of the show’s rotating panelist format and the concentration on one or two specific issues rather than the more generic “news of the week” approach.

You can listen to this episode directly from the MacJury website or subscribe to the podcast in iTunes.

Rumors, leaked photos say new laptops will be evolutionary

For once, the rumor sites seem pretty consistent with their predictions and leaked photos in advance of Apple’s laptop-centric special media event.

According to the photos, the laptops appear to be aluminum, possibly forged from a single piece of metal, which, while not a first in the laptop market, could spell benefits in terms of production efficiencies, heat dissipation, noise reduction and even price. Daringfireball’s John Gruber has added a litany of specifications for the expected new computers, calling for the hardware equivalent of “Snow Leopard-style” changes — built for overall system performance improvements rather than new features. One exception is a new trackpad, that “is bigger and supports additional multi-touch gestures.” But, writes Gruber, the MacBook Pro’s new trackpad is made of glass, and is a physical button as well. “You just press and it clicks,” he writes. “This is not like the current software option where you can enable ‘Tap to Click’ in the trackpad preferences, but instead a glass trackpad that acts as a physical button, with a click you can feel. Sounds odd, but I hear it’s very cool in practice.”

More information is obviously forthcoming at today’s special event. I will be discussing the announcements — including any possible surprises — on the MacJury podcast.