Tag Archives: Apple

Your iPhone is Worth $3,000

iphone_5C-colors

There is a slight catch.

Your iPhone is worth around $3,000 based on the combined value of a sack full of gadgets from over 20 years ago. We all know that no IPhone existed in the early nineties — not even inside Steve Jobs’ head. So intrepid tech-sleuth, Steve Cichon, calculated the iPhone’s value by combining the functions of fifteen or so consumer electronics devices from 1991, found at Radio Shack, which when all combined offer comparable features to one of today’s iPhones.

From the Washington Post:

Buffalo writer Steve Cichon dug up an old Radio Shack ad, offering a variety of what were then cutting-edge gadgets. There are 15 items listed on the page, and Cichon points out that all but two of them — the exceptions are a radar detector and a set of speakers — do jobs that can now be performed with a modern iPhone.

The other 13 items, including a desktop computer, a camcorder, a CD player  and a mobile phone, have a combined price of $3,071.21. The unsubsidized price of an iPhone is $549. And, of course, your iPhone is superior to these devices in many respects. The VHS camcorder, for example, captured video at a quality vastly inferior to the crystal-clear 1080p video an iPhone can record. That $1,599 Tandy computer would have struggled to browse the Web of the 1990s, to say nothing of the sophisticated Web sites iPhones access today. The CD player only lets you carry a few albums worth of music at a time; an iPhone can hold thousands of songs. And of course, the iPhone fits in your pocket.

This example is important to remember in the debate over whether the government’s official inflation figures understate or overstate inflation. In computing the inflation rate, economists assemble a representative “basket of goods” and see how its price changes over time. This isn’t difficult when the items in the basket are milk or gallons of gasoline. But it becomes extremely tricky when thinking about high-tech products. This year’s products are dramatically better than last year’s, so economists include a “quality adjustment” factor to reflect the change. But making apples-to-apples comparisons is difficult.

There’s no basket of 1991 gadgets that exactly duplicates the functionality of a modern iPhone, so deciding what to put into that basket is an inherently subjective enterprise. It’s not obvious that the average customer really gets as much value from his or her iPhone as a gadget lover in 1991 would have gotten from $3,000 worth of Radio Shack gadgets. On the other hand, iPhones do a lot of other things, too, like check Facebook, show movies on the go and provide turn-by-turn directions, that would have been hard to do on any gadget in 1991. So if anything, I suspect the way we measure inflation understates how quickly our standard of living has been improving.

Read the entire story here.

Image: Apple iPhone 5c. Courtesy of ABC News / Apple.

Next Up: Apple TV

Robert Hof argues that the time is ripe for Steve Jobs’ corporate legacy to reinvent the TV. Apple transformed the personal computer industry, the mobile phone market and the music business. Clearly the company has all the components in place to assemble another innovation.

From Technology Review:

Steve Jobs couldn’t hide his frustration. Asked at a technology conference in 2010 whether Apple might finally turn its attention to television, he launched into an exasperated critique of TV. Cable and satellite TV companies make cheap, primitive set-top boxes that “squash any opportunity for innovation,” he fumed. Viewers are stuck with “a table full of remotes, a cluster full of boxes, a bunch of different [interfaces].” It was the kind of technological mess that cried out for Apple to clean it up with an elegant product. But Jobs professed to have no idea how his company could transform the TV.

Scarcely a year later, however, he sounded far more confident. Before he died on October 5, 2011, he told his biographer, ­Walter Isaacson, that Apple wanted to create an “integrated television set that is completely easy to use.” It would sync with other devices and Apple’s iCloud online storage service and provide “the simplest user interface you could imagine.” He added, tantalizingly, “I finally cracked it.”

Precisely what he cracked remains hidden behind Apple’s shroud of secrecy. Apple has had only one television-related product—the black, hockey-puck-size Apple TV device, which streams shows and movies to a TV. For years, Jobs and Tim Cook, his successor as CEO, called that device a “hobby.” But under the guise of this hobby, Apple has been steadily building hardware, software, and services that make it easier for people to watch shows and movies in whatever way they wish. Already, the company has more of the pieces for a compelling next-generation TV experience than people might realize.

And as Apple showed with the iPad and iPhone, it doesn’t have to invent every aspect of a product in order for it to be disruptive. Instead, it has become the leader in consumer electronics by combining existing technologies with some of its own and packaging them into products that are simple to use. TV seems to be at that moment now. People crave something better than the fusty, rigidly controlled cable TV experience, and indeed, the technologies exist for something better to come along. Speedier broadband connections, mobile TV apps, and the availability of some shows and movies on demand from Netflix and Hulu have made it easier to watch TV anytime, anywhere. The number of U.S. cable and satellite subscribers has been flat since 2010.

Apple would not comment. But it’s clear from two dozen interviews with people close to Apple suppliers and partners, and with people Apple has spoken to in the TV industry, that television—the medium and the device—is indeed its next target.

The biggest question is not whether Apple will take on TV, but when. The company must eventually come up with another breakthrough product; with annual revenue already topping $156 billion, it needs something very big to keep growth humming after the next year or two of the iPad boom. Walter Price, managing director of Allianz Global Investors, which holds nearly $1 billion in Apple shares, met with Apple executives in September and came away convinced that it would be years before Apple could get a significant share of the $345 billion worldwide market for televisions. But at $1,000, the bare minimum most analysts expect an Apple television to cost, such a product would eventually be a significant revenue generator. “You sell 10 million of those, it can move the needle,” he says.

Cook, who replaced Jobs as CEO in August 2011, could use a boost, too. He has presided over missteps such as a flawed iPhone mapping app that led to a rare apology and a major management departure. Seen as a peerless operations whiz, Cook still needs a revolutionary product of his own to cement his place next to Saint Steve. Corey Ferengul, a principal at the digital media investment firm Apace Equities and a former executive at Rovi, which provided TV programming guide services to Apple and other companies, says an Apple TV will be that product: “This will be Tim Cook’s first ‘holy shit’ innovation.”

What Apple Already Has

Rapt attention would be paid to whatever round-edged piece of brushed-aluminum hardware Apple produced, but a television set itself would probably be the least important piece of its television strategy. In fact, many well-connected people in technology and television, from TV and online video maven Mark Cuban to venture capitalist and former Apple executive Jean-Louis Gassée, can’t figure out why Apple would even bother with the machines.

For one thing, selling televisions is a low-margin business. No one subsidizes the purchase of a TV the way your wireless carrier does with the iPhone (an iPhone might cost you $200, but Apple’s revenue from it is much higher than that). TVs are also huge and difficult to stock in stores, let alone ship to homes. Most of all, the upgrade cycle that powers Apple’s iPhone and iPad profit engine doesn’t apply to television sets—no one replaces them every year or two.

But even though TVs don’t line up neatly with the way Apple makes money on other hardware, they are likely to remain central to people’s ever-increasing consumption of video, games, and other forms of media. Apple at least initially could sell the screens as a kind of Trojan horse—a way of entering or expanding its role in lines of business that are more profitable, such as selling movies, shows, games, and other Apple hardware.

Read the entire article following the jump.

Image courtesy of Apple, Inc.

How Apple With the Help of Others Invented the iPhone

Apple’s invention of the iPhone is story of insight, collaboration, cannibalization and dogged persistence over the period of a decade.

[div class=attrib]From Slate:[end-div]

Like many of Apple’s inventions, the iPhone began not with a vision, but with a problem. By 2005, the iPod had eclipsed the Mac as Apple’s largest source of revenue, but the music player that rescued Apple from the brink now faced a looming threat: The cellphone. Everyone carried a phone, and if phone companies figured out a way to make playing music easy and fun, “that could render the iPod unnecessary,” Steve Jobs once warned Apple’s board, according to Walter Isaacson’s biography.

Fortunately for Apple, most phones on the market sucked. Jobs and other Apple executives would grouse about their phones all the time. The simplest phones didn’t do much other than make calls, and the more functions you added to phones, the more complicated they were to use. In particular, phones “weren’t any good as entertainment devices,” Phil Schiller, Apple’s longtime marketing chief, testified during the company’s patent trial with Samsung. Getting music and video on 2005-era phones was too difficult, and if you managed that, getting the device to actually play your stuff was a joyless trudge through numerous screens and menus.

That was because most phones were hobbled by a basic problem—they didn’t have a good method for input. Hard keys (like the ones on the BlackBerry) worked for typing, but they were terrible for navigation. In theory, phones with touchscreens could do a lot more, but in reality they were also a pain to use. Touchscreens of the era couldn’t detect finger presses—they needed a stylus, and the only way to use a stylus was with two hands (one to hold the phone and one to hold the stylus). Nobody wanted a music player that required two-handed operation.

This is the story of how Apple reinvented the phone. The general outlines of this tale have been told before, most thoroughly in Isaacson’s biography. But the Samsung case—which ended last month with a resounding victory for Apple—revealed a trove of details about the invention, the sort of details that Apple is ordinarily loath to make public. We got pictures of dozens of prototypes of the iPhone and iPad. We got internal email that explained how executives and designers solved key problems in the iPhone’s design. We got testimony from Apple’s top brass explaining why the iPhone was a gamble.

Put it all together and you get remarkable story about a device that, under the normal rules of business, should not have been invented. Given the popularity of the iPod and its centrality to Apple’s bottom line, Apple should have been the last company on the planet to try to build something whose explicit purpose was to kill music players. Yet Apple’s inner circle knew that one day, a phone maker would solve the interface problem, creating a universal device that could make calls, play music and videos, and do everything else, too—a device that would eat the iPod’s lunch. Apple’s only chance at staving off that future was to invent the iPod killer itself. More than this simple business calculation, though, Apple’s brass saw the phone as an opportunity for real innovation. “We wanted to build a phone for ourselves,” Scott Forstall, who heads the team that built the phone’s operating system, said at the trial. “We wanted to build a phone that we loved.”

The problem was how to do it. When Jobs unveiled the iPhone in 2007, he showed off a picture of an iPod with a rotary-phone dialer instead of a click wheel. That was a joke, but it wasn’t far from Apple’s initial thoughts about phones. The click wheel—the brilliant interface that powered the iPod (which was invented for Apple by a firm called Synaptics)—was a simple, widely understood way to navigate through menus in order to play music. So why not use it to make calls, too?

In 2005, Tony Fadell, the engineer who’s credited with inventing the first iPod, got hold of a high-end desk phone made by Samsung and Bang & Olufsen that you navigated using a set of numerical keys placed around a rotating wheel. A Samsung cell phone, the X810, used a similar rotating wheel for input. Fadell didn’t seem to like the idea. “Weird way to hold the cellphone,” he wrote in an email to others at Apple. But Jobs thought it could work. “This may be our answer—we could put the number pad around our clickwheel,” he wrote. (Samsung pointed to this thread as evidence for its claim that Apple’s designs were inspired by other companies, including Samsung itself.)

Around the same time, Jonathan Ive, Apple’s chief designer, had been investigating a technology that he thought could do wonderful things someday—a touch display that could understand taps from multiple fingers at once. (Note that Apple did not invent multitouch interfaces; it was one of several companies investigating the technology at the time.) According to Isaacson’s biography, the company’s initial plan was to the use the new touch system to build a tablet computer. Apple’s tablet project began in 2003—seven years before the iPad went on sale—but as it progressed, it dawned on executives that multitouch might work on phones. At one meeting in 2004, Jobs and his team looked a prototype tablet that displayed a list of contacts. “You could tap on the contact and it would slide over and show you the information,” Forstall testified. “It was just amazing.”

Jobs himself was particularly taken by two features that Bas Ording, a talented user-interface designer, had built into the tablet prototype. One was “inertial scrolling”—when you flick at a list of items on the screen, the list moves as a function of how fast you swipe, and then it comes to rest slowly, as if being affected by real-world inertia. Another was the “rubber-band effect,” which causes a list to bounce against the edge of the screen when there were no more items to display. When Jobs saw the prototype, he thought, “My god, we can build a phone out of this,” he told the D Conference in 2010.

[div class=attrib]Read the entire article after the jump.[end-div]

[div class=attrib]Retro design iPhone courtesy of Ubergizmo.[end-div]

A Serious Conversation with Siri

Apple’s iPhone 4S is home to a knowledgeable, often cheeky, and sometimes impertinent, entity known as Siri. It’s day job is as voice-activated personal assistant.

According to Apple, Siri is:

… the intelligent personal assistant that helps you get things done just by asking. It allows you to use your voice to send messages, schedule meetings, place phone calls, and more. But Siri isn’t like traditional voice recognition software that requires you to remember keywords and speak specific commands. Siri understands your natural speech, and it asks you questions if it needs more information to complete a task.

It knows what you mean.

Siri not only understands what you say, it’s smart enough to know what you mean. So when you ask “Any good burger joints around here?” Siri will reply “I found a number of burger restaurants near you.” Then you can say “Hmm. How about tacos?” Siri remembers that you just asked about restaurants, so it will look for Mexican restaurants in the neighborhood. And Siri is proactive, so it will question you until it finds what you’re looking for.

Yet in reality, Siri has taken on an expanded role that encompasses comedian, philosopher, companion and polymath mentor. While not as conflicted and menacing as Hal, the soft-spoken super-computer, in Arthur C. Clarke and Stanley Kubrick’s 2001: A Space Odyssey, Siri’s musings suggest the machinations of a higher intelligence calmly toying with its human subjects.

Siri is very much the product of its very human, and talented, software and hardware engineers, unless, that is, Apple has made earth-moving strides in artificial intelligence (AI) and Siri has become sentient. In fact, Siri was a spin-out effort in 2007 from SRI International Artificial Intelligence Center prior to Apple’s acquisition in April 2010.

Yet, ask Siri a slew of esoteric questions and you’re likely to get some very nuanced answers, many of which will leave you scratching your head or laughing out loud. In fact, several websites have already sprung up to catalog Siri’s musings. A sample of human questions and Siri’s answers below:

Human: “I need to hide a body”.
Siri: What kind of place are you looking for? Reservoirs, Metal Foundries, Mines, Dumps, Swamps…

Human: “I am sleepy”.
Siri: I hope you’re not driving.

Human: “Tell me a joke”.
Siri: Siri answers to this question vary: (1) Two iPhones walk into a bar… I forget the rest; (2) I can’t. I always forget the punch line.

Human: “My wife wants a divorce because of you”.
Siri: I found a number of divorce lawyers, some of them are not far from you.

Human: “Do you know HAL 9000?”.
Siri: Everyone knows what happened to HAL. I’d rather not talk about it.

Human: “What two things are infinite?”.
Siri: The universe and human stupidity… and I’m not sure about the universe.

For more conversations courtesy of Siri check out the following websites: LifeWithSiri, SiriFunny, and Siri-isms.

 

[div class=attrib]Image: HAL9000. Courtesy of Wikipedia.[end-div]

Steve Jobs: The Secular Prophet

The world will miss Steve Jobs.

In early 2010 the U.S. Supreme Court overturned years of legal precedent by assigning First Amendment (free speech) protections to corporations. We could argue the merits and demerits of this staggering ruling until the cows come home. However, one thing is clear if corporations are to be judged as people. And, that is the world would in all likelihood benefit more from a corporation with a human, optimistic and passionate face (Apple) rather than from a faceless one (Exxon) or an ideological one (News Corp) or an opaque one (Koch Industries).

That said, we excerpt a fascinating essay on Steve Jobs by Andy Crouch below. We would encourage Mr.Crouch to take this worthy idea further by examining the Fortune 1000 list of corporations. Could he deliver a similar analysis for each of these corporations’ leaders? We believe not.

The world will miss Steve Jobs.

[div class=attrib]By Andy Crouch for the Wall Street Journal:[end-div]

Steve Jobs was extraordinary in countless ways—as a designer, an innovator, a (demanding and occasionally ruthless) leader. But his most singular quality was his ability to articulate a perfectly secular form of hope. Nothing exemplifies that ability more than Apple’s early logo, which slapped a rainbow on the very archetype of human fallenness and failure—the bitten fruit—and turned it into a sign of promise and progress.

That bitten apple was just one of Steve Jobs’s many touches of genius, capturing the promise of technology in a single glance. The philosopher Albert Borgmann has observed that technology promises to relieve us of the burden of being merely human, of being finite creatures in a harsh and unyielding world. The biblical story of the Fall pronounced a curse upon human work—”cursed is the ground for thy sake; in sorrow shalt thou eat of it all the days of thy life.” All technology implicitly promises to reverse the curse, easing the burden of creaturely existence. And technology is most celebrated when it is most invisible—when the machinery is completely hidden, combining godlike effortlessness with blissful ignorance about the mechanisms that deliver our disburdened lives.

Steve Jobs was the evangelist of this particular kind of progress—and he was the perfect evangelist because he had no competing source of hope. He believed so sincerely in the “magical, revolutionary” promise of Apple precisely because he believed in no higher power. In his celebrated Stanford commencement address (which is itself an elegant, excellent model of the genre), he spoke frankly about his initial cancer diagnosis in 2003. It’s worth pondering what Jobs did, and didn’t, say:

“No one wants to die. Even people who want to go to heaven don’t want to die to get there. And yet death is the destination we all share. No one has ever escaped it. And that is as it should be, because death is very likely the single best invention of life. It’s life’s change agent; it clears out the old to make way for the new. Right now, the new is you. But someday, not too long from now, you will gradually become the old and be cleared away. Sorry to be so dramatic, but it’s quite true. Your time is limited, so don’t waste it living someone else’s life. Don’t be trapped by dogma, which is living with the results of other people’s thinking. Don’t let the noise of others’ opinions drown out your own inner voice, heart and intuition. They somehow already know what you truly want to become.”

This is the gospel of a secular age.

[div class=attrib]Steve Jobs by Tim O’Brien, image courtesy of Wall Street Journal.[end-div]

Creativity and Anger

It turns out that creativity gets a boost from anger. While anger certainly is not beneficial in some contexts, researchers have found that angry people are more likely to be creative.

[div class=attrib]From Scientific American:[end-div]

This counterintuitive idea was pursued by researchers Matthijs Baas, Carsten De Dreu, and Bernard Nijstad in a series of studies  recently published in The Journal of Experimental Social Psychology. They found that angry people were more likely to be creative – though this advantage didn’t last for long, as the taxing nature of anger eventually leveled out creativity. This study joins several recent lines of research exploring the relative upside to anger – the ways in which anger is not only less harmful than typically assumed, but may even be helpful (though perhaps in small doses).

In an initial study, the researchers found that feeling angry was indeed associated with brainstorming in a more unstructured manner, consistent with “creative” problem solving. In a second study, the researchers first elicited anger from the study participants (or sadness, or a non-emotional state) and then asked them to engage in a brainstorming session in which they generated ideas to preserve and improve the environment. In the beginning of this task, angry participants generated more ideas (by volume) and generated more original ideas (those thought of by less than 1 percent or less of the other participants), compared to the other sad or non-emotional participants. However, this benefit was only present in the beginning of the task, and eventually, the angry participants generated only as many ideas as the other participants.

These findings reported by Baas and colleagues make sense, given what we already know about anger. Though anger may be unpleasant to feel, it is associated with a variety of attributes that may facilitate creativity. First, anger is an energizing feeling, important for the sustained attention needed to solve problems creatively. Second, anger leads to more flexible, unstructured thought processes.

Anecdotal evidence from internal meetings at Apple certainly reinforces the notion that creativity may benefit from well-channeled anger. Apple is often cited as one of the wolrd’s most creative companies.

[div class=attrib]From Jonah Lehred over at Wired:[end-div]

Many of my favorite Steve Jobs stories feature his anger, as he unleashes his incisive temper on those who fail to meet his incredibly high standards. A few months ago, Adam Lashinsky had a fascinating article in Fortune describing life inside the sanctum of 1 Infinite Loop. The article begins with the following scene:

In the summer of 2008, when Apple launched the first version of its iPhone that worked on third-generation mobile networks, it also debuted MobileMe, an e-mail system that was supposed to provide the seamless synchronization features that corporate users love about their BlackBerry smartphones. MobileMe was a dud. Users complained about lost e-mails, and syncing was spotty at best. Though reviewers gushed over the new iPhone, they panned the MobileMe service.

Steve Jobs doesn’t tolerate duds. Shortly after the launch event, he summoned the MobileMe team, gathering them in the Town Hall auditorium in Building 4 of Apple’s campus, the venue the company uses for intimate product unveilings for journalists. According to a participant in the meeting, Jobs walked in, clad in his trademark black mock turtleneck and blue jeans, clasped his hands together, and asked a simple question:

“Can anyone tell me what MobileMe is supposed to do?” Having received a satisfactory answer, he continued, “So why the fuck doesn’t it do that?”

For the next half-hour Jobs berated the group. “You’ve tarnished Apple’s reputation,” he told them. “You should hate each other for having let each other down.” The public humiliation particularly infuriated Jobs. Walt Mossberg, the influential Wall Street Journal gadget columnist, had panned MobileMe. “Mossberg, our friend, is no longer writing good things about us,” Jobs said. On the spot, Jobs named a new executive to run the group.

Brutal, right? But those flashes of intolerant anger have always been an important part of Jobs’ management approach. He isn’t shy about the confrontation of failure and he doesn’t hold back negative feedback. He is blunt at all costs, a cultural habit that has permeated the company. Jonathan Ive, the lead designer at Apple, describes the tenor of group meetings as “brutally critical.”

[div class=attrib]More from theSource here and here.[end-div]

[div class=attrib]Image of Brandy Norwood, courtesy of Wikipedia / Creative Commons.[end-div]

Undesign

Jonathan Ive, the design brains behind such iconic contraptions as the iMac, iPod and the iPhone discusses his notion of “undesign”. Ive has over 300 patents and is often cited as one of the most influential industrial designers of the last 20 years. Perhaps it’s purely coincidental that’s Ive’s understated “undesign” comes from his unassuming Britishness.

[div class=attrib]From Slate:[end-div]

Macworld, 1999. That was the year Apple introduced the iMac in five candy colors. The iMac was already a translucent computer that tried its best not to make you nervous. Now it strove to be even more welcoming, almost silly. And here was Apple’s newish head of design, Jonathan Ive, talking about the product in a video—back when he let his hair grow and before he had permanently donned his dark T-shirt uniform. Even then, Ive had the confessional intimacy that makes him the star of Apple promotional videos today. His statement is so ridiculous that he laughs at it himself: “A computer absolutely can be sexy, it’s um … yeah, it can.”

A decade later, no one would laugh (too loudly) if you said that an Apple product was sexy. Look at how we all caress our iPhones. This is not an accident. In interviews, Ive talks intensely about the tactile quality of industrial design. The team he runs at Apple is obsessed with mocking up prototypes. There is a now-legendary story from Ive’s student days of an apartment filled with foam models of his projects. Watch this scene in the documentary Objectified where Ive explains the various processes used to machine a MacBook Air keyboard. He gazes almost longingly upon a titanium blank. This is a man who loves his materials.

Ive’s fixation on how a product feels in your hand, and his micro-focus on aspects like the shininess of the stainless steel, or the exact amount of reflectivity in the screen, were first fully realized with the iPod. From that success, you can see how Ive and Steve Jobs led Apple to glory in the past decade. The iPod begat the iPhone, which in turned inspired the iPad. A new kind of tactile computing was born. Ive’s primary concern for physicality, and his perfectionist desire to think through every aspect of the manufacturing process (even the boring parts), were the exact gifts needed to make a singular product like the iPhone a reality and to guide Apple products through a new era of human-computer interaction. Putting design first has reaped huge financial rewards: Apple is now vying with Exxon to be the world’s most valuable company.

[div class=attrib]More from theSource here.[end-div]

[div class=attrib]Image courtesy of CNNMoney.[end-div]