Tim Cook: Apple

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pages: 260 words: 67,823

Always Day One: How the Tech Titans Plan to Stay on Top Forever by Alex Kantrowitz

accounting loophole / creative accounting, Albert Einstein, AltaVista, Amazon Web Services, augmented reality, Automated Insights, autonomous vehicles, Bernie Sanders, Clayton Christensen, cloud computing, collective bargaining, computer vision, Donald Trump, drone strike, Elon Musk, Firefox, Google Chrome, hive mind, income inequality, Infrastructure as a Service, inventory management, iterative process, Jeff Bezos, job automation, Jony Ive, knowledge economy, Lyft, Mark Zuckerberg, Menlo Park, new economy, Peter Thiel, QR code, ride hailing / ride sharing, self-driving car, Silicon Valley, Skype, Snapchat, Steve Ballmer, Steve Jobs, Steve Wozniak, Tim Cook: Apple, uber lyft, wealth creators, zero-sum game

“United Airlines Takes Down Poster That Revealed Apple Is Its Largest Corporate Spender.” 9to5Mac, January 14, 2019. https://9to5mac.com/2019/01/14/united-airlines-apple-biggest-customer/. It was a costly mistake: Schleifer, Theodore. “An Apple Engineer Showed His Daughter the New IPhone X. Now, She Says, He’s Fired.” Recode. Vox, October 29, 2017. https://www.vox.com/2017/10/29/16567244/apple-engineer-fired-iphone-x-daughter-secret-product-launch. a rare letter: Cook, Tim. “Letter from Tim Cook to Apple Investors.” Apple Newsroom, January 2, 2019. https://www.apple.com/newsroom/2019/01/letter-from-tim-cook-to-apple-investors/. revised its financial predictions: Thompson, Ben. “Apple’s Errors.” Stratechery by Ben Thompson, January 7, 2019. https://stratechery.com/2019/apples-errors/?utm_source=Memberful&utm_campaign=131ddd5a64-weekly_article_2019_01_07&utm_medium=email&utm_term=0_d4c7fece27-131ddd5a64-110945413.

an iPhone 5c: Ng, Alfred. “FBI Asked Apple to Unlock iPhone Before Trying All Its Options.” CNET, March 27, 2018. https://www.cnet.com/news/fbi-asked-apple-to-unlock-iphone-before-trying-all-its-options. not just one iPhone: Grossman, Lev. “Apple CEO Tim Cook: Inside His Fight with the FBI.” Time. Time Magazine, March 17, 2016. https://time.com/4262480/tim-cook-apple-fbi-2. the side of privacy: Cook, Tim. “Customer Letter.” Apple. Accessed February 16, 2016. https://www.apple.com/customer-letter. “To me, marketing is about values”: “Best Marketing Strategy Ever! Steve Jobs Think Different / Crazy Ones Speech (with Real Subtitles).” YouTube, April 21, 2013. https://www.youtube.com/watch?v=keCwRdbwNQY. as Oprah put it: Albergotti, Reed. “Apple’s ‘Show Time’ Event Puts the Spotlight on Subscription Services.”

utm_source=Memberful&utm_campaign=131ddd5a64-weekly_article_2019_01_07&utm_medium=email&utm_term=0_d4c7fece27-131ddd5a64-110945413. “I’m happy with my iPhone 8”: Balakrishnan, Anita, and Deirdre Bosa. “Apple Co-Founder Steve Wozniak: iPhone X Is the First iPhone I Won’t Buy on ‘Day One.’” CNBC. CNBC, October 23, 2017. https://www.cnbc.com/2017/10/23/apple-co-founder-steve-wozniak-not-upgrading-to-iphone-x-right-away.html. Cook, in an interview with CNBC: “CNBC Exclusive: CNBC Transcript: Apple CEO Tim Cook Speaks with CNBC’s Jim Cramer Today.” CNBC. CNBC, January 8, 2019. https://www.cnbc.com/2019/01/08/exclusive-cnbc-transcript-apple-ceo-tim-cook-speaks-with-cnbcs-jim-cramer-today.html. Apple had Siri: Gross, Doug. “Apple Introduces Siri, Web Freaks Out.” CNN. Cable News Network, October 4, 2011. https://www.cnn.com/2011/10/04/tech/mobile/siri-iphone-4s-skynet/index.html.


pages: 464 words: 155,696

Becoming Steve Jobs: The Evolution of a Reckless Upstart Into a Visionary Leader by Brent Schlender, Rick Tetzeli

Albert Einstein, Apple II, Apple's 1984 Super Bowl advert, Bill Gates: Altair 8800, Bob Noyce, Byte Shop, Charles Lindbergh, computer age, corporate governance, El Camino Real, Isaac Newton, John Markoff, Jony Ive, Kickstarter, Marc Andreessen, market design, McMansion, Menlo Park, Paul Terrell, popular electronics, QWERTY keyboard, Ronald Reagan, Sand Hill Road, side project, Silicon Valley, Silicon Valley startup, skunkworks, Steve Ballmer, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, Tim Cook: Apple, Wall-E, Watson beat the top human players on Jeopardy!, Whole Earth Catalog

Anderson still keeps two mementos from his retirement in his office at venture capital firm Elevation Partners: a plaque from Steve calling him “The World’s Greatest CFO” and a commissioned caricature portrait signed by all his closest coworkers, including Steve. Jon Rubinstein and Avie Tevanian were the next members of the “Save Apple” team to depart. Ruby and Avie had been a buddy act of sorts, managing the hardware and software sides of Apple’s whole widget. Says Ruby, “There’s as much of the turnaround team’s DNA in Apple as there is of Steve’s, and you can still see it today.” They had been involved in every key decision at Apple since 1997. And before they left they helped pull off a move that they’d been talking about with Steve and with Tim Cook for years—switching the microprocessors that powered every Apple personal computer from the PowerPC chip to one made by Intel. The primary buyers of the PowerPC chip were IBM and Apple. This was a customer base that paled next to Intel’s enormous market for Windows PCs and servers—millions of units a year for the PowerPC versus hundreds and hundreds of millions for Intel.

He just sat there and had been talking to her for a half an hour. He didn’t talk to anybody else.” THE LAST MEMORIAL service occurred at the Apple campus in Cupertino, on October 20. Nearly ten thousand people gathered on the lawn within the ellipse formed by the campus’s main buildings. Every Apple retail outlet around the globe had been closed for the occasion, with the store employees gathered to watch video of the event streamed live to them over Apple’s virtual network. Tim Cook was the first speaker. Coldplay and Norah Jones, whose music had been featured in Apple television advertisements, played short sets for the crowd. But two speakers provided the highlights: Jony Ive and Bill Campbell, the Apple board member who had been a close adviser of Steve for many, many years. “Steve changed,” said Campbell. “Yes, he had been charismatic and passionate and brilliant.

To avoid the litigation that would naturally arise from Apple abrogating the contracts, the company had to pay the clonemakers to disappear quietly. The most successful of these was Power Computing, which had commandeered a 10 percent share of the market for MacOS-compatible computers. Apple paid $110 million in cash and stock to acquire the company and hire some of its engineers. Out went the inventory. Tim Cook became a new member of the team in March 1998 when he was hired away from Compaq—where he had been called “the Attila the Hun of inventory”—to be Apple’s chief of operations. Cook was a wiry bird of a southerner, thin and bookish-looking despite his athleticism—he biked and ran long distances regularly. Cook spoke quietly, with a soft Alabama drawl, but he may have been the toughest executive at Apple. Cook’s work drew no public attention, but it was crucial to trimming the company.


pages: 275 words: 84,418

Dogfight: How Apple and Google Went to War and Started a Revolution by Fred Vogelstein

Apple II, Ben Horowitz, cloud computing, commoditize, disintermediation, don't be evil, Dynabook, Firefox, Google Chrome, Google Glasses, Googley, John Markoff, Jony Ive, Marc Andreessen, Mark Zuckerberg, Peter Thiel, pre–internet, Silicon Valley, Silicon Valley startup, Skype, software patent, spectrum auction, Steve Ballmer, Steve Jobs, Steve Wozniak, Steven Levy, Tim Cook: Apple, web application, zero-sum game

Android’s share of the mobile phone and tablet markets: “Android Captures Record 80 Percent Share of Global Smartphone Shipments in Q2 2013,” Strategy Analytics press release, 8/1/2013; “Small Tablets Drive Big Share Gains for Android,” Canalys press release, 8/1/2013. Apple was also taking heat: Charles Duhigg and Keith Bradsher, “How the US Lost Out on iPhone Work,” New York Times, 1/21/2012; Duhigg and Bradsher, “In China, Human Costs Are Built into an iPad,” New York Times, 1/25/2012; Mark Gurman, “Tim Cook Responds to Claims of Factory Worker Mistreatment: ‘We Care About Every Worker in Our Supply Chain,’” 9to5mac.com, 1/26/2012; “Here’s Apple CEO Tim Cook’s Apology Letter in China” (Digits blog), Wall Street Journal, 4/1/2013. But perhaps the most notable example: Jessica Lessin, “An Apple Exit over Maps,” Wall Street Journal, 10/29/2012; Liz Gannes, “Google Maps for iPhone Had 10 Million Downloads in 48 Hours,” AllThingsD.com, 12/17/2012. Apple’s Tim Cook knows all the challenges: Ina Fried, “Apple’s Tim Cook: The Full D11 Interview,” Tim Cook interviewed by Walt Mossberg and Kara Swisher (video), AllThingsD.com, 5/29/2013, available at www.allthingsd.com/20130529/apples-tim-cook-the-full-d11-interview-video.

Indeed, the best phone ads of 2012 and 2013 came from Samsung, Google’s biggest Android phone maker. After Apple unveiled the iPhone 5, Samsung pounced with a barrage of TV spots that amusingly depicted iPhone users as misguided elitists waiting in line for a phone that was inferior in every way to the Galaxy S III. Apple was also taking heat for the way it was making its phones. The New York Times, in a handful of long articles about the “iEconomy,” presented evidence that Apple was making its iPhones and iPads in Asian sweatshops, forcing CEO Tim Cook to acknowledge Apple could do more to make its contractors provide safer workplaces. A year later he was apologizing to Chinese customers for Apple’s unresponsiveness to customer service and technical support issues. But perhaps the most notable example of Jobs’s absence was the public relations disaster surrounding Apple’s new mapping application.

What wasn’t symbolic were the scores of angry investors left in the wake of Apple’s plunging stock price. For four years Apple shares had been some of the best-performing of all time, rising nearly tenfold from about $80 in 2008. But investors who bought Apple shares in the fall of 2012—believing, as many did, that its stock was headed to $1,000 a share—watched their investment lose 40 percent of its value while the rest of the stock market was up around 15 percent. Jobs never discussed Apple’s stock price with investors. He rarely even met with them. But by early 2013 the shareholders refused to be ignored, forcing CEO Tim Cook to pledge more than $100 billion in dividends and stock buybacks. Indeed, when Page made his remarks, the innovation gap between Apple and Google for dominance of the mobile Internet looked downright stark.


pages: 915 words: 232,883

Steve Jobs by Walter Isaacson

air freight, Albert Einstein, Apple II, Apple's 1984 Super Bowl advert, big-box store, Bob Noyce, Buckminster Fuller, Byte Shop, centre right, Clayton Christensen, cloud computing, commoditize, computer age, computer vision, corporate governance, death of newspapers, don't be evil, Douglas Engelbart, Dynabook, El Camino Real, Electric Kool-Aid Acid Test, fixed income, game design, Golden Gate Park, Hacker Ethic, hiring and firing, Jeff Bezos, Johannes Kepler, John Markoff, Jony Ive, lateral thinking, Mark Zuckerberg, Menlo Park, Mitch Kapor, Mother of all demos, Paul Terrell, profit maximization, publish or perish, Richard Feynman, Robert Metcalfe, Robert X Cringely, Ronald Reagan, Silicon Valley, skunkworks, Steve Ballmer, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, supply-chain management, thinkpad, Tim Cook: Apple, Wall-E, Whole Earth Catalog

DEBORAH “DEBI” COLEMAN. Early Mac team manager who took over Apple manufacturing. TIM COOK. Steady, calm, chief operating officer hired by Jobs in 1998; replaced Jobs as Apple CEO in August 2011. EDDY CUE. Chief of Internet services at Apple, Jobs’s wingman in dealing with content companies. ANDREA “ANDY” CUNNINGHAM. Publicist at Regis McKenna’s firm who handled Apple in the early Macintosh years. MICHAEL EISNER. Hard-driving Disney CEO who made the Pixar deal, then clashed with Jobs. LARRY ELLISON. CEO of Oracle and personal friend of Jobs. TONY FADELL. Punky engineer brought to Apple in 2001 to develop the iPod. SCOTT FORSTALL. Chief of Apple’s mobile device software. ROBERT FRIEDLAND. Reed student, proprietor of an apple farm commune, and spiritual seeker who influenced Jobs, then went on to run a mining company.

Panasonic came out with a CD drive that could rip and burn music, and it was available first for computers that had old-fashioned tray loaders. The effects of this would ripple over the next few years: It would cause Apple to be slow in catering to users who wanted to rip and burn their own music, but that would then force Apple to be imaginative and bold in finding a way to leapfrog over its competitors when Jobs finally realized that he had to get into the music market. CHAPTER TWENTY-EIGHT CEO Still Crazy after All These Years Tim Cook and Jobs, 2007 Tim Cook When Steve Jobs returned to Apple and produced the “Think Different” ads and the iMac in his first year, it confirmed what most people already knew: that he could be creative and a visionary. He had shown that during his first round at Apple. What was less clear was whether he could run a company. He had definitely not shown that during his first round.

The company ended up getting the chips to Apple on time, and its executives made jackets that boasted on the back, “Team FDA.” After three months of working under Jobs, Apple’s head of operations decided he could not bear the pressure, and he quit. For almost a year Jobs ran operations himself, because all the prospects he interviewed “seemed like they were old-wave manufacturing people,” he recalled. He wanted someone who could build just-in-time factories and supply chains, as Michael Dell had done. Then, in 1998, he met Tim Cook, a courtly thirty-seven-year-old procurement and supply chain manager at Compaq Computers, who not only would become his operations manager but would grow into an indispensable backstage partner in running Apple. As Jobs recalled: Tim Cook came out of procurement, which is just the right background for what we needed.


pages: 416 words: 129,308

The One Device: The Secret History of the iPhone by Brian Merchant

Airbnb, animal electricity, Apple II, Apple's 1984 Super Bowl advert, citizen journalism, Claude Shannon: information theory, computer vision, conceptual framework, Douglas Engelbart, Dynabook, Edward Snowden, Elon Musk, Ford paid five dollars a day, Frank Gehry, global supply chain, Google Earth, Google Hangouts, Internet of things, Jacquard loom, John Gruber, John Markoff, Jony Ive, Lyft, M-Pesa, MITM: man-in-the-middle, more computing power than Apollo, Mother of all demos, natural language processing, new economy, New Journalism, Norbert Wiener, offshore financial centre, oil shock, pattern recognition, peak oil, pirate software, profit motive, QWERTY keyboard, ride hailing / ride sharing, rolodex, Silicon Valley, Silicon Valley startup, skunkworks, Skype, Snapchat, special economic zone, speech recognition, stealth mode startup, Stephen Hawking, Steve Ballmer, Steve Jobs, Steve Wozniak, Steven Levy, Tim Cook: Apple, Turing test, uber lyft, Upton Sinclair, Vannevar Bush, zero day

The Register, a UK-based tech pub known for its strident, critical views of the industry, ran a funny story detailing its employees’ efforts to obtain an invite to the iPhone 7 Apple Event. They installed an email tracker to see if Apple’s press folks were in fact reading their entreaties. It turned out they were. (They didn’t get in.) So I decided to do the same. Apple hadn’t responded to my latest futile request for interviews for months. So, I installed an email tracker made by a company called Streak, and I sent a fresh query. By the end of the day, it had been read on three different devices, presumably by three different people. I never heard back. I tried again a week later, with the same result. Nice. Eventually, I decided to cut out the middle man and write directly to Tim Cook. You never know, right? Jobs was famous for randomly responding to notes in his in-box, and Cook had done the same once or twice. I sent Tim Cook an email requesting an interview on August 31, 2016.

When it’s opened, the image pings the server it came from with data that includes the time and location that the email was opened as well as the kind of device used to open it. That was the weird thing. When Tim Cook opened my email, the software showed me what kind of device he’d opened it on: A Windows desktop computer. That couldn’t be right. I emailed Streak to ask how accurate that part of the service was. Their support team told me, “If it has specific device data: Very accurate.” I sent a follow-up email to Cook. Once again, it was opened—on a Windows desktop computer. Was Tim Cook using a PC? Or was whoever was sorting through his emails? Either possibility seemed odd. Apparently, the email I sent to Cook made its way to Apple PR; my Hail Mary had been hailed. I asked the PR rep if Tim Cook had actually opened my email. “Yes,” she said, “he read it and forwarded it on.” Okay, then. A couple weeks later, I sent one more follow-up.

So, while I made Apple officials fully aware of this project from the outset and repeatedly spoke with and met their PR representatives, they declined my many requests to interview executives and employees. Tim Cook never answered my (very thoughtful) emails. To tell this story, I met current and former Apple employees in dank dive bars or spoke with them over encrypted communications, and I had to grant anonymity to some of those I interviewed. Many people from the iPhone team still working at Apple told me they would have loved to participate on the record—they wanted the world to know its incredible story—but declined for fear of violating Apple’s strict policy of secrecy. I’m confident that the dozens of interviews I did with iPhone innovators, the talks I had with journalists and historians who’ve studied it, and the documents I’ve obtained about the device all helped render a full and accurate portrait. That portrait will emerge on two tracks. The first puts you inside Apple to show how the iPhone was imagined, prototyped, and created by a host of unsung innovators—those who pioneered new ways of manipulating and interacting with information.


pages: 363 words: 94,139

Jony Ive: The Genius Behind Apple's Greatest Products by Leander Kahney

Apple II, banking crisis, British Empire, Chuck Templeton: OpenTable:, Computer Numeric Control, Dynabook, global supply chain, interchangeable parts, John Markoff, Jony Ive, Kickstarter, race to the bottom, RFID, side project, Silicon Valley, Steve Ballmer, Steve Jobs, Steve Wozniak, Steven Levy, the built environment, thinkpad, Tim Cook: Apple

Interview with Phil Gray, January 2013. 10. Apple WWDC 2010—iPhone 4 Introduction, 2010, video, http://www.youtube.com/watch?v=z__jxoczNWc. 11. Apple Press info, “Apple Announces Changes to Increase Collaboration Across Hardware, Software & Services,” http://www.apple.com/pr/library/2012/10/29Apple-Announces-Changes-to-Increase-Collaboration-Across-Hardware-Software-Services.html, October 29, 2012. 12. Mark Gurman, “Tim Cook Emails Employees, Thanks Scott Forstall, Says Bob Mansfield to Stay On for Two Years,” http://9to5mac.com/2012/10/29/tim-cook-emails-employees-thanks-scott-forstall-says-bob-mansfield-to-stay-on-for-two-years/, October 29, 2012. 13. Nick Wingfield and Nick Bilton, “Apple Shake-Up Could Lead to Design Shift,” New York Times, http://www.nytimes.com/2012/11/01/technology/apple-shake-up-could-mean-end-to-real-world-images-in-software.html, October 31, 2012. 14.

Larry Elliott, “Better Design Requires Better Product,” http://www.guardian.co.uk/business/2005/nov/21/politics.economicpolicy, November 20, 2005. 22. Ibid. 23. Jonny Evans, “Apple Design Chief Jonathan Ive Collects CBE,”Macworld, http://www.macworld.co.uk/mac/news/?newsid=16510, November 17, 2006. 24. Marcus Fairs, ICON, http://www.iconeye.com/read-previous-issues/icon-004-|-july/august-2003/jonathan-ive-|-icon-004-|-july/august-2003, July /August 2003. 25. Dick Powell, “At the Core of Apple,” Innovate, issue 6, Summer 2009, http://www.innovation.rca.ac.uk/cms/files/Innovate6.pdf 26. Phil Schiller, Apple v. Samsung trial testimony. 27. Isaacson, Steve Jobs, Kindle Edition. 28. Apple Press info, “Tim Cook Named COO of Apple,” http://www.apple.com/pr/library/2005/10/14Tim-Cook-Named-COO-of-Apple.html, October 14, 2005. 29. Interview with Jon Rubinstein, October 2012 30.

Shane Richmond, “Jonathan Ive Interview: Simplicity Isn’t Simple,” Telegraph, http://www.telegraph.co.uk/technology/apple/9283706/Jonathan-Ive-interview-simplicity-isnt-simple.html, May 23, 2012. 15. Apple 2013 Worldwide Developers Conference, keynote video: http://www.youtube.com/watch?v=qzUH9PJA1Ro, June 10, 2013. 16. Interview with Sally Grisedale, February 2013. 17. Interview with Larry Barbera, June 2013. 18. Alex Schleifer, “The Age of the User Interface,” http://saydaily.com/2013/02/design-really-is-everything-now.html, February 15, 2013. 19. Josh Tyrangiel, “Tim Cook’s Freshman Year: The Apple CEO Speaks,” Bloomberg Businessweek, http://www.businessweek.com/articles/2012-12-06/tim-cooks-freshman-year-the-apple-ceo-speaks, December 6, 2012. 20. Isaacson, Steve Jobs, Kindle edition. 21. Ibid. 22.


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Makers and Takers: The Rise of Finance and the Fall of American Business by Rana Foroohar

accounting loophole / creative accounting, activist fund / activist shareholder / activist investor, additive manufacturing, Airbnb, algorithmic trading, Alvin Roth, Asian financial crisis, asset allocation, bank run, Basel III, bonus culture, Bretton Woods, British Empire, business cycle, buy and hold, call centre, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, carried interest, centralized clearinghouse, clean water, collateralized debt obligation, commoditize, computerized trading, corporate governance, corporate raider, corporate social responsibility, credit crunch, Credit Default Swap, credit default swaps / collateralized debt obligations, crony capitalism, crowdsourcing, David Graeber, deskilling, Detroit bankruptcy, diversification, Double Irish / Dutch Sandwich, Emanuel Derman, Eugene Fama: efficient market hypothesis, financial deregulation, financial intermediation, Frederick Winslow Taylor, George Akerlof, gig economy, Goldman Sachs: Vampire Squid, Gordon Gekko, greed is good, High speed trading, Home mortgage interest deduction, housing crisis, Howard Rheingold, Hyman Minsky, income inequality, index fund, information asymmetry, interest rate derivative, interest rate swap, Internet of things, invisible hand, John Markoff, joint-stock company, joint-stock limited liability company, Kenneth Rogoff, Kickstarter, knowledge economy, labor-force participation, London Whale, Long Term Capital Management, manufacturing employment, market design, Martin Wolf, money market fund, moral hazard, mortgage debt, mortgage tax deduction, new economy, non-tariff barriers, offshore financial centre, oil shock, passive investing, Paul Samuelson, pensions crisis, Ponzi scheme, principal–agent problem, quantitative easing, quantitative trading / quantitative finance, race to the bottom, Ralph Nader, Rana Plaza, RAND corporation, random walk, rent control, Robert Shiller, Robert Shiller, Ronald Reagan, Satyajit Das, Second Machine Age, shareholder value, sharing economy, Silicon Valley, Silicon Valley startup, Snapchat, Social Responsibility of Business Is to Increase Its Profits, sovereign wealth fund, Steve Jobs, technology bubble, The Chicago School, the new new thing, The Spirit Level, The Wealth of Nations by Adam Smith, Tim Cook: Apple, Tobin tax, too big to fail, trickle-down economics, Tyler Cowen: Great Stagnation, Vanguard fund, zero-sum game

He does dead-on imitations of everyone from the Kansas oil tycoon who tried to give him the boot in his early days as an options dealer (“Cahhhl, I love yah, but I gotta leave yah—mah cousin’s in this business now”) to the aristocrat whom Icahn helped unload a block of Texaco shares when his cash was tight (“So I say, ‘Sir Robert, I hear you got some problems,’ and he says, ‘Quite correct, quite correct,’ ” Icahn mocks with a perfect lockjaw), to the trophy wife who complains about people on welfare while entertaining at her Hamptons megamansion, to his own mother. But when I once asked him to do Apple CEO Tim Cook, he declined. “Nah, I can’t do Cook. I can only do crazies.”1 Of course, some people say Cook is crazy to listen to Icahn, who has spent the last several years trying to persuade him to give back more and more of Apple’s $200 billion cash hoard to investors in the form of massive share buybacks, instead of investing it back in R&D or product development. This had the effect of pushing up the price of Apple’s stock while conveniently increasing the value of Icahn’s $7 billion in Apple holdings along with those of all the other Apple investors. In April 2015, Icahn’s efforts paid off, bigger than even he could have imagined. Flush with revenues from iPhone sales in China, Apple increased its dividend by 10.6 percent, the largest bump-up for a nonfinancial firm in history, and announced the most massive corporate payout ever: between 2015 and 2017, it would hand back more than $200 billion in the form of dividends and share buybacks to investors like Icahn.

Securities and Exchange Commission, Definitive Proxy Statement, Schedule 14A, Apple Inc., January 9, 2015. 3. Matt Levine, “Apple Bonds and Endless Mortgage Suits,” Bloomberg View, June 5, 2015; Ahmed and Childs, “Apple Is the New PIMCO and Tim Cook Is the New King of Bonds.” 4. Interview with OFR economists and analysts for this book. 5. William Lazonick, Mariana Mazzucato, and Oner Tulum, “Apple’s Changing Business Model: What Should the World’s Richest Company Do with All Those Profits?” Accounting Forum 37, no. 4 (2013): 249–67. 6. Edward N. Wolff, “Household Wealth Trends in the United States, 1962–2013: What Happened Over the Great Recession?” National Bureau of Economic Research, Working Paper No. 20733 (December 2014), 56; Apple, Inc., “Apple Expands Capital Return Program to $200 Billion,” press release, April 27, 2015. 7.

In the spring of 2013, Jobs’s successor as CEO of Apple Inc., Tim Cook, decided the company needed to borrow $17 billion. Yes, borrow. Never mind that Apple was the world’s most valuable corporation, that it had sold more than a billion devices so far, and that it already had $145 billion sitting in the bank, with another $3 billion in profits flowing in every month. So, why borrow? It was not because the company was a little short, obviously, or because it couldn’t put its hands on any of its cash. The reason, rather, was that Apple’s financial masters had determined borrowing was the better, more cost-effective way to obtain the funds. Whatever a loan might normally cost, it would cost Apple far less, thanks to a low-interest bond offering available only to blue-chip companies. Even better, Apple would not actually have to touch its bank accounts, which aren’t held someplace down the street like yours or mine.


pages: 239 words: 69,496

The Wisdom of Finance: Discovering Humanity in the World of Risk and Return by Mihir Desai

activist fund / activist shareholder / activist investor, Albert Einstein, Andrei Shleifer, assortative mating, Benoit Mandelbrot, Brownian motion, capital asset pricing model, carried interest, Charles Lindbergh, collective bargaining, corporate governance, corporate raider, discounted cash flows, diversified portfolio, Eugene Fama: efficient market hypothesis, financial innovation, follow your passion, George Akerlof, Gordon Gekko, greed is good, housing crisis, income inequality, information asymmetry, Isaac Newton, Jony Ive, Kenneth Rogoff, longitudinal study, Louis Bachelier, moral hazard, Myron Scholes, new economy, out of africa, Paul Samuelson, Pierre-Simon Laplace, principal–agent problem, Ralph Waldo Emerson, random walk, risk/return, Robert Shiller, Robert Shiller, Ronald Coase, Silicon Valley, Steve Jobs, Thales and the olive presses, Thales of Miletus, The Market for Lemons, The Nature of the Firm, The Wealth of Nations by Adam Smith, Tim Cook: Apple, transaction costs, zero-sum game

So now, enterprises previously run by owner-managers have separate owners and managers. As just one example of this, the largest individual owner of Apple is CEO Tim Cook, but he owns only 0.02 percent of the company. Even the largest mutual fund owner of Apple owns less than 10 percent of the company. There are millions of investors in Apple who have decided to delegate the job of running Apple to managers—and these investors expect the managers to pursue what is in the best interest of the investors in Apple. For financial economists, this transition to companies with diffuse owners who delegate authority to professional managers is akin to Adam biting the apple in the Garden of Eden—it represents the end of innocence and the beginning of the modern world. Why is this change so profound? Consider the mighty Tootsie Roll, the first individually wrapped penny candy in the United States.

Oh, and those pension funds, which are the principals of those investors, are actually our agents, as savers and retirees. In short, capital markets begin to look like a daisy chain of principal-agent contracts, each with significant problems and conflicts. Let’s return to Apple. In 2013, Tim Cook faced a revolt triggered by the actions of David Einhorn of Greenlight Capital, who wanted Cook to start releasing all the cash that was building up inside of Apple. Cook, and Steve Jobs before him, had resisted calls to release that cash. Einhorn was the principal telling his agent, Tim Cook, to return that cash to shareholders. But Einhorn is himself the agent of state pension funds that have delegated to him the job of generating returns. And those state pension funds have our savings invested in them, and we’ve appointed those pension fund managers to manage our wealth.

And those state pension funds have our savings invested in them, and we’ve appointed those pension fund managers to manage our wealth. It is a series of principal-agent relationships—we (the ultimate principal) save through pensions funds (our agents), which appoint David Einhorn (the agents of the pension funds), who monitors Tim Cook (the agent of David Einhorn), who appoints Jony Ive (Cook’s agent as Apple’s chief design officer), who appoints . . . you get the idea. Once you become attuned to the principal-agent relationship, it’s hard not to see it playing out everywhere in life. In many ways, the biggest debates today on what is wrong with capitalism are actually debates about finance and agency theory. For some, the big problem is that the proponents of agency theory have been too successful: managers now only care about their owners! They should be looking out for workers, customers, and the environment, too.


pages: 397 words: 110,222

Habeas Data: Privacy vs. The Rise of Surveillance Tech by Cyrus Farivar

Apple's 1984 Super Bowl advert, autonomous vehicles, call centre, citizen journalism, cloud computing, computer age, connected car, do-ocracy, Donald Trump, Edward Snowden, en.wikipedia.org, failed state, Ferguson, Missouri, Frank Gehry, Golden Gate Park, John Markoff, license plate recognition, Lyft, national security letter, Occupy movement, optical character recognition, Port of Oakland, RAND corporation, Ronald Reagan, sharing economy, Silicon Valley, Silicon Valley startup, Skype, Steve Jobs, Steven Levy, The Hackers Conference, Tim Cook: Apple, transaction costs, uber lyft, WikiLeaks, Zimmermann PGP

“They were taking this very aggressive position” : Author’s interview with Ted Boutrous, May 2, 2017. When the clock struck midnight: Sebastian Anthony, “Tim Cook Says Apple Will Fight US Gov’t Over Court-Ordered iPhone Backdoor,” Ars Technica, February 17, 2016. Available at: https://arstechnica.com/​gadgets/​2016/​02/​tim-cook-says-apple-will-fight-us-govt-over-court-ordered-iphone-backdoor/. “We have great respect”: Tim Cook, “A Message to our Customers,” February 16, 2016. https://www.apple.com/​customer-letter/. Seventy-two hours later: UNITED STATES V. IN THE MATTER OF THE SEARCH OF AN APPLE IPHONE, GOVERNMENT’S MOTION TO COMPEL, February 19, 2016. https://www.documentcloud.org/​documents/​2715997-Apple-iPhone-Access-MOTION-to-COMPEL.html. The entire text of the law: 28 U.S. Code § 1651. Available at: https://www.law.cornell.edu/​uscode/​text/​28/​1651.

Later that day, Trump: Tim Higgins and Kevin Cirilli, “Trump Urges Boycott of Apple Until It Unlocks Terrorist’s iPhone,” Bloomberg, February 19, 2016. Available at: https://www.bloomberg.com/​news/​articles/​2016-02-19/​trump-calls-for-apple-boycott-until-company-unlocks-terrorist-s-iphone. During the Friday call: Cyrus Farivar, “Apple: We Tried to Help FBI Terror Probe, but Someone Changed iCloud Password,” Ars Technica, February 19, 2016. Available at: https://arstechnica.com/​tech-policy/​2016/​02/​apple-we-tried-to-help-fbi-terror-probe-but-someone-changed-icloud-password/​. Two days later, FBI Director: FBI Director Comments on San Bernardino Matter, February 21, 2016. https://www.fbi.gov/​news/​pressrel/​press-releases/​fbi-director-comments-on-san-bernardino-matter. The following day, February 22: “Email to Apple employees from Apple CEO Tim Cook,” February 22, 2016.

The article focused on: Cyrus Farivar, “Judge Denies Gov’t Request to Search Suspect’s iPhone in Ricin Case,” Ars Technica, March 26, 2014. Available at: https://arstechnica.com/​tech-policy/​2014/​03/​judge-denies-govt-request-to-search-suspects-iphone-in-ricin-case/​. “On devices running iOS”: Cyrus Farivar, “Apple Expands Data Encryption Under iOS 8, Making Handover to Cops Moot,” Ars Technica, September 18, 2014. Available at: https://arstechnica.com/​apple/​2014/​09/​apple-expands-data-encryption-under-ios-8-making-handover-to-cops-moot/​. That same day, in an open letter: “A mess age from Tim Cook about Apple’s commitment to your privacy.” September 18, 2014. Available at: https://web.archive.org/​web/​20141112091320/​https://www.apple.com/​privacy/​ Google followed suit the next day: Craig Timberg, “Newest Androids Will Join iPhones in Offering Default Encryption, Blocking Police,” The Washington Post, September 18, 2014. https://www.washingtonpost.com/​news/​the-switch/​wp/​2014/​09/​18/​newest-androids-will-join-iphones-in-offering-default-encryption-blocking-police/​?


pages: 390 words: 114,538

Digital Wars: Apple, Google, Microsoft and the Battle for the Internet by Charles Arthur

activist fund / activist shareholder / activist investor, AltaVista, Build a better mousetrap, Burning Man, cloud computing, commoditize, credit crunch, crowdsourcing, disintermediation, don't be evil, en.wikipedia.org, Firefox, gravity well, Jeff Bezos, John Gruber, Mark Zuckerberg, Menlo Park, Network effects, PageRank, pre–internet, Robert X Cringely, Silicon Valley, Silicon Valley startup, skunkworks, Skype, slashdot, Snapchat, software patent, speech recognition, stealth mode startup, Steve Ballmer, Steve Jobs, the new new thing, the scientific method, Tim Cook: Apple, turn-by-turn navigation, upwardly mobile

The latter was the case with the town of Mildura, in the Australian Outback, which was shown miles from its correct location; Australian police issued a warning to people not to use Apple’s Maps to find it lest they die of heatstroke in the arid land. (The error was tracked down to a difference in the official Australian gazetteer, which gives place locations, between ‘Mildura’, the town, and ‘Mildura Rural City’, the nominal centre of a 22,000 square kilometre area including the town. Apple had used the latter. It was corrected within days.) A week after the release, and with Apple’s maps a laughing stock, Tim Cook – who had now been in unquestioned charge of Apple for a year – surprised the media with an effusive apology posted on the website. Maps ‘fell short’ and he was ‘extremely sorry for the frustration’ users had experienced. He outlined what Apple had wanted to bring – ‘turn-by-turn directions, voice integration, [3D views] and vector-based maps.

The message – problem in one batch, not many calls, same material, concerned users should buy a case – became the only one that Apple would put out. There was no off-the-record nudge and wink, no backroom briefing. Apple had its message and stuck to it. Later in October, during Apple’s quarterly results, chief operating officer Tim Cook was asked about the scratching issue. He sang from exactly the same hymn sheet: ‘We’ve had very, very few calls from customers,’ he said. ‘We don’t believe it’s a widespread issue. It’s made of the same material as the fourth-generation iPods. For customers who have concerns we suggest they use cases now on the market.’ There it was: batch, not many calls, material, case. Cook noted that, a month after its release, supply of nanos was ‘still far short of demand’. The reaction to the media storm – whether teacup-sized or not – is interesting. Apple wasn’t paralysed by size (a problem that sometimes afflicts Microsoft when trying to respond to questions).

Though he had popped up a few times through the year in public – launching the iPad 2, introducing the next version of iOS, finally in June lobbying Cupertino town council over Apple’s proposed new headquarters – paparazzi photos in August had suggested he was losing muscle mass rapidly to cancer. Yet he would not be hurried; once again he managed the moment perfectly, releasing a statement to the board later that month saying that ‘I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple’s CEO, I would be the first to let you know. Unfortunately, that day has come.’ He ‘strongly recommended’ that the board ‘execute our succession plan and name Tim Cook as CEO of Apple’. That Apple had a succession plan came as a surprise to analysts and shareholders who had repeatedly asked the company to specify what, if any, plans there were if Jobs were to fall under a bus, and been rebuffed.


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Matchmakers: The New Economics of Multisided Platforms by David S. Evans, Richard Schmalensee

Airbnb, Alvin Roth, big-box store, business process, cashless society, Chuck Templeton: OpenTable:, creative destruction, Deng Xiaoping, disruptive innovation, if you build it, they will come, information asymmetry, Internet Archive, invention of movable type, invention of the printing press, invention of the telegraph, invention of the telephone, Jean Tirole, John Markoff, Lyft, M-Pesa, market friction, market microstructure, mobile money, multi-sided market, Network effects, Productivity paradox, profit maximization, purchasing power parity, QR code, ride hailing / ride sharing, sharing economy, Silicon Valley, Snapchat, Steve Jobs, Tim Cook: Apple, transaction costs, two-sided market, Uber for X, uber lyft, ubercab, Victor Gruen, winner-take-all economy

A year after launch, out of 100 users, about 17 had ever tried it and out of those 17 just 5 used it when they could.20 Over the course of the year more people got the new iPhone model so that more people in total had Apple Pay set up on their phones and used it when they could. The number of people who probably had Apple Pay on their phones increased from roughly 2.7 million in November 2014 to 11.7 million in October 2015.21 As a result, the likelihood that an American adult would use Apple Pay at a terminal that accepted Apple Pay increased from 0.7 percent in November 2014 to 1.8 percent in October 2015.22 When it planned Apple Pay, the company had reasons to believe that more retailers would have the slick NFC terminals that Tim Cook showed at the September 2014 announcement. The payment card networks in the United States had told merchants that to reduce fraud, they had to install terminals that took “chip-and-pin” cards in addition to mag-stripe cards.

And so far, the prospect of taking Apple Pay has not resulted in a rapid movement toward making NFC terminals available at the point of sale. Although hard data is not available, the fraction of retail sales that takes place at terminals that can take Apple Pay was probably somewhere around 10 percent in October 2015. Apple Pay accounted for about 1.8 percent of the value of transactions at those terminals that month. It therefore accounted for about .18 percent—18 out of 10,000—of all card-based transactions at retail stores after a year. Apple Pay Diagnosis, One Year In It was apparent in the two back-to-back videos that Tim Cook showed on September 9, 2014, that Apple would face challenges in igniting its new mobile payment service. The first video suggested that there was a significant friction paying with plastic cards at the point of sale. The woman in the video had to dig into her pocketbook to find her card.

Chapter 10 Fizzle or Sizzle Making Smart Bets on New Matchmakers Forty-three minutes into the Apple live event, on September 9, 2014, after introducing the new iPhone 6, Tim Cook announced he was going to talk about an “entirely new category of service” for Apple.1 A thick wallet with cash and cards sticking out appeared on the screen behind him. “Our vision is to replace this.” According to Cook, people in the United States “scramble” for their cards about 200 million times a day, and they “go through what is a fairly antiquated payment process.” A video showed a woman paying for some clothes. She fumbled for her plastic card in her pocketbook, presented it to the clerk, who then asked for identification. The clerk swiped the mag-stripe card through a clunky-looking terminal. Apple’s CEO noted that the widely used mag-stripe card was based on a fifty-year old technology, wasn’t secure, and was easy to lose.2 Cook then unveiled Apple Pay.


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The Acquirer's Multiple: How the Billionaire Contrarians of Deep Value Beat the Market by Tobias E. Carlisle

activist fund / activist shareholder / activist investor, business cycle, cognitive dissonance, corporate governance, corporate raider, Jeff Bezos, Paul Graham, Peter Thiel, Richard Thaler, shareholder value, Tim Cook: Apple

Now he runs $9 billion and is worth $1.5 billion. In early 2013, Einhorn pushed Apple, Inc., then trading at $60, to pay out some of its huge pile of cash. Einhorn said that Apple’s $150 billion in cash was too much for a stock with only $60 billion in fixed assets. Apple could use it to buy “all but 17 companies in the S&P 500.”59 It earned next to no interest. It was better in the hands of shareholders. He said Apple’s stock price was discounted to the value of the cash, about $20 per share. Apple could “unlock significant shareholder value” by cutting the cash on its “bloated balance sheet.”60 Einhorn wasn’t the only activist to complain about Apple’s cash pile. Carl Icahn wrote an open letter to Apple’s chief executive, Tim Cook. Icahn asked for Apple to return cash through a $150 billion buyback. Icahn wrote in the letter:61 When we met, you agreed with us that the shares are undervalued.

Available at https://www.sec.gov/Archives/edgar/data/1040273/000089914000000393/0000899140-00-000393-0003.txt 59 David Einhorn. “iPrefs: Unlocking Value.” Greenlight Capital, 2013. Available at https://www.greenlightcapital.com/905284.pdf. 60 David Einhorn. “iPrefs: Unlocking Value.” Greenlight Capital, 2013. Available at https://www.greenlightcapital.com/905284.pdf. 61 Carl Icahn, Letter to Tim Cook. Available at https://www.cnbc.com/2013/10/24/carl-icahns-letter-to-tim-cook.html 62 Carl C Icahn, Tweet, 11:21 AM, August 14, 2013. Available at https://twitter.com/Carl_C_Icahn/statuses/367350206993399808 63 David Einhorn. “iPrefs: Unlocking Value.” Greenlight Capital, 2013. Available at https://www.greenlightcapital.com/905284.pdf. 64 Carl C Icahn, Tweet, 11:12 AM, 11:13 AM, August 19, 2014. Available athttps://twitter.com/Carl_C_Icahn/status/501794143413493760,https://twitter.com/Carl_C_Icahn/status/501794076942172160,https://twitter.com/Carl_C_Icahn/status/501793872159449089 65 Author, Tweet, 5:07 PM, April 24, 2013.

The PE multiple of the ten-year treasury bond was 33 times (1 ÷ 0.03). The ten-year treasury bond is an alternative investment to Apple. We can invest in the ten-year treasury at 33 times or Apple at 14 times. Apple is less than half the PE multiple of the ten-year treasury. It is the better bet. Apple is even more interesting when we look at it with the Acquirer’s Multiple. It trades on an Acquirer’s Multiple of 7 ($350 billion ÷ $50 billion). Apple can return all of its huge pile of cash to its shareholders because it has strong operating earnings. Einhorn noted that to work out the value this unlocks, we have to guess how much value the market already places on Apple’s cash. If the market gives it no credit and it returns all its cash, then the cash returned is found value. This means the dividend unlocks the whole $150 billion or $20 per share.


pages: 501 words: 114,888

The Future Is Faster Than You Think: How Converging Technologies Are Transforming Business, Industries, and Our Lives by Peter H. Diamandis, Steven Kotler

Ada Lovelace, additive manufacturing, Airbnb, Albert Einstein, Amazon Mechanical Turk, augmented reality, autonomous vehicles, barriers to entry, bitcoin, blockchain, blood diamonds, Burning Man, call centre, cashless society, Charles Lindbergh, Clayton Christensen, clean water, cloud computing, Colonization of Mars, computer vision, creative destruction, crowdsourcing, cryptocurrency, Dean Kamen, delayed gratification, dematerialisation, digital twin, disruptive innovation, Edward Glaeser, Edward Lloyd's coffeehouse, Elon Musk, en.wikipedia.org, epigenetics, Erik Brynjolfsson, Ethereum, ethereum blockchain, experimental economics, food miles, game design, Geoffrey West, Santa Fe Institute, gig economy, Google X / Alphabet X, gravity well, hive mind, housing crisis, Hyperloop, indoor plumbing, industrial robot, informal economy, Intergovernmental Panel on Climate Change (IPCC), Internet of things, invention of the telegraph, Isaac Newton, Jaron Lanier, Jeff Bezos, job automation, Joseph Schumpeter, Kevin Kelly, Kickstarter, late fees, Law of Accelerating Returns, life extension, lifelogging, loss aversion, Lyft, M-Pesa, Mary Lou Jepsen, mass immigration, megacity, meta analysis, meta-analysis, microbiome, mobile money, multiplanetary species, Narrative Science, natural language processing, Network effects, new economy, New Urbanism, Oculus Rift, out of africa, packet switching, peer-to-peer lending, Peter H. Diamandis: Planetary Resources, Peter Thiel, QR code, RAND corporation, Ray Kurzweil, RFID, Richard Feynman, Richard Florida, ride hailing / ride sharing, risk tolerance, Satoshi Nakamoto, Second Machine Age, self-driving car, Silicon Valley, Skype, smart cities, smart contracts, smart grid, Snapchat, sovereign wealth fund, special economic zone, stealth mode startup, stem cell, Stephen Hawking, Steve Jobs, Steven Pinker, Stewart Brand, supercomputer in your pocket, supply-chain management, technoutopianism, Tesla Model S, Tim Cook: Apple, transaction costs, Uber and Lyft, uber lyft, unbanked and underbanked, underbanked, urban planning, Watson beat the top human players on Jeopardy!, We wanted flying cars, instead we got 140 characters, X Prize

by 2027, this single industry will consume nearly 20 percent of the US GDP: Read the full press release from the United States Government’s Centers for Medicare & Medicaid Services here: https://www.cms.gov/newsroom/press-releases/2016-2025-projections-national-health-expenditures-data-released. “it will be about health”: Lizzy Gurdus, “Tim Cook: Apple’s Greatest Contribution Will Be ‘About Health,’ ” CNBC, January 8, 2019. See: https://www.cnbc.com/2019/01/08/tim-cook-teases-new-apple-services-tied-to-health-care.html. Racing Apple are Google, Amazon, Facebook, Samsung, Baidu, Tencent, and others: CB Insights does an excellent job summarizing the big-tech healthcare ecosystem in these two reports: https://www.cbinsights.com/research/top-tech-companies-healthcare-investments-acquisitions/ and https://www.cbinsights.com/research/google-amazon-apple-health-insurance/. DIY Diagnostics Oura ring: See: https://ouraring.com. (Author note: Peter’s VC firm is an investor.) Exo Imaging’s AI-enabled, cheap, handheld ultrasound 3-D imager: Exo recently emerged from stealth with a $35 million raise.

See also: Jon Porter, “Nubia’s New Wearable Puts a 4-Inch Flexible Smartphone on Your Wrist,” Verge, https://www.theverge.com/circuitbreaker/2019/2/25/18240370/nubia-alpha-release-date-price-features-wearable-smartwatch-flexible-display-mwc-2019. AR is projected to create a $90 billion market: “For AR/VR 2.0 to Live, AR/VR 1.0 Must Die,” Digi-Capital, January 15, 2019. See: https://www.digi-capital.com/news/2019/01/for-ar-vr-2-0-to-live-ar-vr-1-0-must-die/. I regard [AR] as a big idea like the smartphone: David Phelan, “Apple CEO Tim Cook: As Brexit Hangs over UK, ‘Times Are Not Really Awful, There’s Some Great Things Happening’,” Independent. See: https://www.independent.co.uk/life-style/gadgets-and-tech/features/apple-tim-cook-boss-brexit-uk-theresa-may-number-10-interview-ustwo-a7574086.html. Nintendo released Pokémon GO: Lauren Munsi, “Pokémon GO Surpasses the 1 Billion Downloads Milestone,” Nintendo Wire, July 31, 2019. See: https://nintendowire.com/news/2019/07/31/pokemon-go-surpasses-the-1-billion-downloads-milestone/.

For most of the last century, the healthcare industry was an uneasy partnership between big pharma, big government, and the full spectrum of doctors, nurses, and trained medical professionals. Now we’re witnessing an invasion. Many of the big technology companies are getting into this game, all intent on making an impact. “If you zoom out into the future,” Apple CEO Tim Cook recently said (in that same interview with the Independent where he talked about the potential of AR), “and ask what was Apple’s greatest contribution to mankind, it will be about health.” Racing Apple are Google, Amazon, Facebook, Samsung, Baidu, Tencent, and others. As we shall see in a moment, all of these companies have three clear advantages over the establishment: They’re already in your home, into artificial intelligence, and experts in collecting and analyzing your data. While it remains an open question whether we want to turn our healthcare over to the big technology companies, what is certain is that these three advantages are fundamental to detecting diseases early enough to make a difference, which is definitely the first step in turning sick care into healthcare.


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The Job: The Future of Work in the Modern Era by Ellen Ruppel Shell

3D printing, affirmative action, Affordable Care Act / Obamacare, Airbnb, airport security, Albert Einstein, Amazon Mechanical Turk, basic income, Baxter: Rethink Robotics, big-box store, blue-collar work, Buckminster Fuller, call centre, Capital in the Twenty-First Century by Thomas Piketty, Clayton Christensen, cloud computing, collective bargaining, computer vision, corporate governance, corporate social responsibility, creative destruction, crowdsourcing, deskilling, disruptive innovation, Donald Trump, Downton Abbey, Elon Musk, Erik Brynjolfsson, factory automation, follow your passion, Frederick Winslow Taylor, future of work, game design, glass ceiling, hiring and firing, immigration reform, income inequality, industrial robot, invisible hand, Jeff Bezos, job automation, job satisfaction, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, Joseph Schumpeter, Kickstarter, knowledge economy, knowledge worker, Kodak vs Instagram, labor-force participation, low skilled workers, Lyft, manufacturing employment, Marc Andreessen, Mark Zuckerberg, means of production, move fast and break things, move fast and break things, new economy, Norbert Wiener, obamacare, offshore financial centre, Paul Samuelson, precariat, Ralph Waldo Emerson, risk tolerance, Robert Gordon, Robert Shiller, Robert Shiller, Rodney Brooks, Ronald Reagan, Second Machine Age, self-driving car, shareholder value, sharing economy, Silicon Valley, Snapchat, Steve Jobs, The Chicago School, Thomas L Friedman, Thorstein Veblen, Tim Cook: Apple, Uber and Lyft, uber lyft, universal basic income, urban renewal, white picket fence, working poor, Y Combinator, young professional, zero-sum game

“Bringing high-volume electronics” Kenneth Kraemer, Greg Linden, and Jason Dedrick, “Capturing Value in Global Networks: Apple’s iPad and iPhone,” Personal Computing Industry Center, University of California, Irvine, and Syracuse University School of Information Studies, July 2011, http://pcic.merage.uci.edu/​papers/​2011/​Value_iPad_iPhone.pdf. jobs for Apple engineers, marketers, and sales staff Apple CEO Tim Cook claims that the company has created “two million” American jobs (https://apple.com/​newsroom/​2018/​01/​apple-accelerates-us-investment-job-creation), but only eighty thousand of the holders of these jobs are actual Apple employees. Almost 1.5 million are members of what he describes as the “developer community” who write the apps he says have “changed the world.” Unfortunately, changing the world doesn’t always bring them much revenue—those lucky enough to peddle their apps on Apple hardware average about $4,000 per app, with a total yearly revenue stream of roughly $21,000.

Given the rapid advances in factory automation, it’s unclear just how many people should be trained up for jobs in mass manufacturing, no matter how “advanced.” In May 2017, Apple CEO Tim Cook announced a $1 billion advanced-manufacturing fund to bolster US manufacturers by offering skills training, such as teaching people to write code to create apps. But the announcement came with a caveat: the cost of this program would be paid with “US money which we have to borrow to get.” Cook was intentionally reminding us that a substantial portion of Apple’s cash holdings is registered overseas and cannot be used in the United States unless repatriated under the US tax code, triggering the collection of income tax. Apple has kept earnings abroad and has borrowed money from its own foreign subsidiaries to pay dividends and make new investments. Because the interest paid on loans is also deductible, Apple ends up reaping a second tax benefit.

For the model to work, it is not even necessary for education to have any intrinsic value if it can convey information about the sender (employee) to the recipient (employer) and if the signal (education) is costly. A. M. Spence, “Job Market Signalling,” Quarterly Journal of Economics 87, no. 3 (1973): 355–74. “he more nearly resembles” Frederick Winslow Taylor, The Principles of Scientific Management (New York: Harper, 1911), 59. “began to stop having as many vocational kinds of skills” Shawn Langlois, “Tim Cook Says This Is the Real Reason Apple Products Are Made in China,” MarketWatch, December 21, 2015, http://www.marke­twatch.com/​story/​tim-cook-apple-doesnt-make-its-products-in-china-because-its-cheaper-2015-12-20. a significant “negative impact” factor on their bottom line “The Boiling Point? The Skills Gap in the United States,” Deloitte and Manufacturing Institute, 2011, http://www.theman­ufacturi­nginsti­tute.org/​~/​media/​A07730B2A7­98437D985­01E798C­2E13AA.ashx.


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Super Pumped: The Battle for Uber by Mike Isaac

"side hustle", activist fund / activist shareholder / activist investor, Airbnb, Albert Einstein, always be closing, Amazon Web Services, Andy Kessler, autonomous vehicles, Ayatollah Khomeini, barriers to entry, Bay Area Rapid Transit, Burning Man, call centre, Chris Urmson, Chuck Templeton: OpenTable:, citizen journalism, Clayton Christensen, cloud computing, corporate governance, creative destruction, don't be evil, Donald Trump, Elon Musk, family office, gig economy, Google Glasses, Google X / Alphabet X, high net worth, Jeff Bezos, John Markoff, Kickstarter, Lyft, Marc Andreessen, Mark Zuckerberg, mass immigration, Menlo Park, Mitch Kapor, money market fund, moral hazard, move fast and break things, move fast and break things, Network effects, new economy, off grid, peer-to-peer, pets.com, Richard Florida, ride hailing / ride sharing, Sand Hill Road, self-driving car, shareholder value, side project, Silicon Valley, Silicon Valley startup, skunkworks, Snapchat, software as a service, software is eating the world, South China Sea, South of Market, San Francisco, sovereign wealth fund, special economic zone, Steve Jobs, TaskRabbit, the payments system, Tim Cook: Apple, Travis Kalanick, Uber and Lyft, Uber for X, uber lyft, ubercab, union organizing, upwardly mobile, Y Combinator

When he started in March 2014, Quentin’s team faced a very specific headache. Two years earlier, Apple released a version of its iOS mobile software that killed outside access to the unique identification number of every iPhone, the so-called IMEI number, or “international mobile equipment identity” number. The update was a hallmark of Tim Cook’s Apple. Unlike its rivals Google, Facebook, and Amazon, Apple’s business didn’t rely on hoovering up personal data from its customers. Facebook and Google were advertising companies, and as such relied on discovering every digital detail of its customers’ lives in order to target them with ads. Uber’s method of identifying fraudsters made use of digital surveillance techniques common to Silicon Valley’s largest companies. That practice ran against some of Apple’s long-espoused principles, specifically an individual’s right to privacy.

Should they address the issue with the public? And what if Apple started snooping around? Uber had recently submitted their newest iOS app build. What were they supposed to tell Apple if they found out Uber was breaking the rules? At first, nothing happened. But a few weeks later they got their answer: the App Store declined Uber’s latest software update. Quentin’s team had been caught. As the man in charge of the App Store, Eddy Cue had seen the best—and worst—of the startup world. Eddy Cue reported directly to Apple CEO Tim Cook, and no one else. He was the guy who saw rising startup stars before nearly anyone else in Silicon Valley, because their apps skyrocketed to the top of his charts. When they did, Eddy Cue made it a point to meet the founders. By 2014, the fifty-year-old senior vice president of Apple’s internet software and services business had known about Travis Kalanick for about a year.

That practice ran against some of Apple’s long-espoused principles, specifically an individual’s right to privacy. Steve Jobs had valued consumer privacy, but his successor, Tim Cook, was a fanatic. He believed Apple’s users should have complete control of their private digital lives. And if an Apple customer decided to wipe their iPhone clean of data, no one else—individuals, family members, companies, law enforcement—should be able to find a trace of that data on the device afterwards. Wiping an iPhone was final; the data was gone. The unanticipated iOS software update was very bad news for Uber. Chinese fraudsters loved to use stolen iPhones to create fake accounts and sign up for the service. If Uber’s security team discovered one of the accounts was fake and blocked it, all a fraudster had to do was erase the iPhone of its data and create another new account, which took only a few minutes and was endlessly repeatable.


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Don't Be Evil: How Big Tech Betrayed Its Founding Principles--And All of US by Rana Foroohar

"side hustle", accounting loophole / creative accounting, Airbnb, AltaVista, autonomous vehicles, banking crisis, barriers to entry, Bernie Madoff, Bernie Sanders, bitcoin, book scanning, Brewster Kahle, Burning Man, call centre, cashless society, cleantech, cloud computing, cognitive dissonance, Colonization of Mars, computer age, corporate governance, creative destruction, Credit Default Swap, cryptocurrency, data is the new oil, death of newspapers, Deng Xiaoping, disintermediation, don't be evil, Donald Trump, drone strike, Edward Snowden, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, Etonian, Filter Bubble, future of work, game design, gig economy, global supply chain, Gordon Gekko, greed is good, income inequality, informal economy, information asymmetry, intangible asset, Internet Archive, Internet of things, invisible hand, Jaron Lanier, Jeff Bezos, job automation, job satisfaction, Kenneth Rogoff, life extension, light touch regulation, Lyft, Mark Zuckerberg, Marshall McLuhan, Martin Wolf, Menlo Park, move fast and break things, move fast and break things, Network effects, new economy, offshore financial centre, PageRank, patent troll, paypal mafia, Peter Thiel, pets.com, price discrimination, profit maximization, race to the bottom, recommendation engine, ride hailing / ride sharing, Robert Bork, Sand Hill Road, search engine result page, self-driving car, shareholder value, sharing economy, Shoshana Zuboff, Silicon Valley, Silicon Valley startup, smart cities, Snapchat, South China Sea, sovereign wealth fund, Steve Jobs, Steven Levy, subscription business, supply-chain management, TaskRabbit, Telecommunications Act of 1996, The Chicago School, the new new thing, Tim Cook: Apple, too big to fail, Travis Kalanick, trickle-down economics, Uber and Lyft, Uber for X, uber lyft, Upton Sinclair, WikiLeaks, zero-sum game

There are a number of activists and even some investors lobbying for the government to create a kind of Food and Drug Administration–style regulatory body for highly manipulative, highly addictive technology. And to be fair, some companies, including Apple and, more recently, Google, are trying to get out in front of such efforts, by making tweaks to their own devices and systems that make it easier for people to track and limit their own technology usage. In 2018, in a speech to EU officials, Apple CEO Tim Cook admitted that there was, and is, a serious dark side to the Big Tech revolution. “We shouldn’t sugar-coat the consequences. This is surveillance. And these stockpiles of personal data only serve to enrich the companies that collect them.” Earlier that year, he admitted that he himself—like many Apple users—was spending way too much time on his phone, and that this was a problem. “I think it’s become clear to all of us that some of us are spending too much time on our devices,” said Cook at a 2018 event in San Francisco, “and we’ve tried to think through pretty deeply about how we can help that.

In a speech at a European privacy commissioners conference in late October 2018, Apple CEO Tim Cook decried the “data industrial complex” made up of companies (including Google and Facebook) that make the vast majority of their money by keeping people online for as long as possible in order to garner as much of their personal data as possible. “Our own information—from the everyday to the deeply personal—is being weaponized against us with military efficiency,” said Cook, whose own company still makes most of its money from hardware. Apple has its own issues—from tax offshoring to legal battles over intellectual property infringement, which we will explore later. And Cook is being somewhat hypocritical when he criticizes his competitors for “keeping people online for as long as possible,” given that Apple tries, with some exceptions, to do that, too, particularly via its promotion of the “freemium” gaming that hooked my son.

Apple is also touting a technique known as “differential privacy,” which allows the company to gain insights into what users are doing, while preserving a certain amount of privacy by encrypting the data before it leaves a user’s device, in such a way that Apple can’t associate the data it receives with any particular user. The data is used to improve the devices and services that are sold within the Apple ecosystem, rather than to send customers hyper-targeted ads from other businesses that they had no idea were getting their data to begin with. That is, again, quite a departure from the Google/Facebook approach. Does this solve all the problems? No. But on the other hand, Apple’s business model doesn’t lend itself to influencing an election like Russia attempted to do in the United States via Facebook. It’s also refreshing to hear Tim Cook say that he believes “privacy is a fundamental human right.” Ginni Rometty, IBM’s chief executive, has also announced a new set of principles and practices around data aimed at increasing trust in Big Tech. These include a pledge not to keep any proprietary data in their servers for more than a specified contract period, never to turn over client data to any government surveillance program in any country, and a promise that clients will own not only the rights to their end data, but to any algorithmic “learning” from it.


pages: 515 words: 143,055

The Attention Merchants: The Epic Scramble to Get Inside Our Heads by Tim Wu

1960s counterculture, Affordable Care Act / Obamacare, AltaVista, Andrew Keen, anti-communist, Apple II, Apple's 1984 Super Bowl advert, barriers to entry, Bob Geldof, borderless world, Brownian motion, Burning Man, Cass Sunstein, citizen journalism, colonial rule, East Village, future of journalism, George Gilder, Golden Gate Park, Googley, Gordon Gekko, housing crisis, informal economy, Internet Archive, Jaron Lanier, Jeff Bezos, jimmy wales, Live Aid, Mark Zuckerberg, Marshall McLuhan, McMansion, Nate Silver, Network effects, Nicholas Carr, placebo effect, post scarcity, race to the bottom, road to serfdom, Saturday Night Live, science of happiness, self-driving car, side project, Silicon Valley, slashdot, Snapchat, Steve Jobs, Steve Wozniak, Steven Levy, Ted Nelson, telemarketer, the built environment, The Chicago School, the scientific method, The Structural Transformation of the Public Sphere, Tim Cook: Apple, Torches of Freedom, Upton Sinclair, upwardly mobile, white flight, zero-sum game

CHAPTER 28: WHO’S BOSS HERE? 1. Matthew Panzarino, “Apple’s Tim Cook Delivers Blistering Speech on Encryption, Privacy,” TechCrunch, June 2, 2015, http://techcrunch.com/​2015/​06/​02/​apples-tim-cook-delivers-blistering-speech-on-encryption-privacy/. 2. Ibid. 3. Tim Cook, “Apple’s Commitment to Your Privacy,” Apple, http://www.apple.com/​privacy/. 4. Robin Anderson, Consumer Culture and TV Programming (Boulder, CO: Westview Press, 1995). 5. Richard Serra and Carlota Fay Schoolman, “Television Delivers People,” Persistence of Vision—Volume 1: Monitoring the Media (1973), video. 6. Farhad Manjoo, “What Apple’s Tim Cook Overlooked in His Defense of Privacy,” New York Times, June 10, 2015, http://www.nytimes.com/​2015/​06/​11/​technology/​what-apples-tim-cook-overlooked-in-his-defense-of-privacy.html?

“DVD’s are perfect for fast-paced arc shows like ‘24,’ increasing the intensity of the action and introducing the sickly pleasures of binge-viewing.” But the word became widely used in 2013 after Netflix began releasing the full seasons at once, prompting the Oxford Dictionary to add it to the language and also short-list it as “Word of the Year” (the ultimate winner was “selfie”). CHAPTER 28 WHO’S BOSS HERE? On June 1, 2015, Tim Cook, CEO of Apple, the world’s most valuable company, gave a speech at the annual dinner of a small Washington nonprofit named EPIC, the Electronic Privacy Information Center. Apple’s leaders almost never give speeches in Washington, making Cook’s appearance something of a surprise; though to be fair, he didn’t actually show up at the dinner, but rather videoconferenced his way in. All the same, even more surprising was what he had to say. “I’m speaking to you from Silicon Valley, where some of the most prominent and successful companies have built their businesses by lulling their customers into complacency about their personal information,” said Cook.

The New York Times accused Cook of ignoring “the substantial benefits that free, ad-supported services have brought to consumers worldwide.”6 Mark Zuckerberg, CEO of Facebook, shot back, too. “What, you think because you’re paying Apple that you’re somehow in alignment with them? If you were in alignment with them, then they’d make their products a lot cheaper!”7 Cook was not claiming that Apple maximized value for what it charged, but then he had not appeared there to praise his own business model, only to bury someone else’s. It didn’t take an MBA to notice that Apple’s defense of individual privacy was also an assault on the principal revenue scheme of its competitors. Although it was a hardly subtle indictment of Facebook and Google, Cook’s speech was also aimed at the entire web and what it had become. For behind the scenes, Apple had grown impatient with the practices of those publishing content on the web; they were loading up their sites with bloated advertisements, complex tracking technology, and other junk that was making the mobile web an unattractive and unpleasant experience.


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The Perfect Weapon: War, Sabotage, and Fear in the Cyber Age by David E. Sanger

active measures, autonomous vehicles, Bernie Sanders, bitcoin, British Empire, call centre, Cass Sunstein, Chelsea Manning, computer age, cryptocurrency, cuban missile crisis, Donald Trump, drone strike, Edward Snowden, Google Chrome, Google Earth, Jacob Appelbaum, John Markoff, Mark Zuckerberg, MITM: man-in-the-middle, mutually assured destruction, RAND corporation, ransomware, Sand Hill Road, Silicon Valley, Silicon Valley ideology, Skype, South China Sea, Steve Jobs, Steven Levy, Stuxnet, Tim Cook: Apple, too big to fail, undersea cable, uranium enrichment, Valery Gerasimov, WikiLeaks, zero day

Spy Agencies,” Washington Post, November 20, 2017, www.washingtonpost.com/news/business/wp/2017/11/20/amazon-launches-new-cloud-storage-service-for-u-s-spy-agencies/?utm_term=.8dcf7ac21a9f. Cook’s social and political intuition: Todd Frankel, “The Roots of Tim Cook’s Activism Lie in Rural Alabama,” Washington Post, March 7, 2016, www.washingtonpost.com/news/the-switch/wp/2016/03/07/in-rural-alabama-the-activist-roots-of-apples-tim-cook/?utm_term=.5f670fd2354d. “more than 5½ years”: Computer-security experts question that figure, because Apple does not fully realize how quickly the NSA’s supercomputers can crack codes. the agency developed the “Clipper chip”: Steven Levy, “Battle of the Clipper Chip,” New York Times, June 12, 1994, www.nytimes.com/1994/06/12/magazine/battle-of-the-clipper-chip.html.

But the real irony was that as tech firms publicly protested the NSA’s intrusions into their networks—Microsoft, IBM, and AT&T among them—they were privately vying for the hugely profitable business of managing the intelligence community’s data. * * * — Tim Cook, the quiet, almost ascetic chief executive of Apple, rose in the company as a counterweight to Steve Jobs. Jobs was the showman, Cook the understated strategist. Jobs erupted when products didn’t look right or politics limited the ideal technological solution; Cook lacked Jobs’s intuitive sense of what made a product feel distinctly like an Apple product, but what he lacked as a designer he made up for with his considerable geopolitical sensibility. Whereas Jobs was no ideologue and rarely dug deeply into the question of Apple’s place in society, Cook seemed as comfortable making a civil-liberties argument as a technological one. Perhaps Cook’s social and political intuition was the result of his years growing up in Alabama, where one of his searing memories was of bicycling by a group of Klansmen burning a cross on the lawn of a black family in the town of Robertsdale and yelling at them to stop.

The burden of arguing for government access fell on Comey, who had a bit of a flair for the dramatic—as the world later learned in his confrontations with Hillary Clinton and Donald Trump—and soon he was reaching for the most emotive example he could come up with to support his position: What would happen, he asked, when the parents of a kidnapped child came to him with a phone that might reveal the whereabouts of their kid, but its contents could not be determined because they were automatically encrypted—just so that Apple could extend its profits around the world? Comey predicted there would be a moment, soon, when those parents would come to him “with tears in their eyes, look at me, and say, ‘What do you mean you can’t’ ” decode the phone’s contents? “The notion that someone would market a closet that could never be opened—even if it involves a case involving a child kidnapper and a court order—to me does not make any sense,” he said. He extended the analogy to apartment doors and car trunks to which there were no keys. That would stymie a legal search warrant, he said. If it wouldn’t be tolerated in the physical world, he said, why should it be tolerated in the digital world? From the other coast, Tim Cook had an answer: the apartment keys and trunk keys belonged to the owner of the apartment and the car, not to the manufacturer of their locks.


pages: 382 words: 92,138

The Entrepreneurial State: Debunking Public vs. Private Sector Myths by Mariana Mazzucato

"Robert Solow", Apple II, banking crisis, barriers to entry, Bretton Woods, business cycle, California gold rush, call centre, carbon footprint, Carmen Reinhart, cleantech, computer age, creative destruction, credit crunch, David Ricardo: comparative advantage, demand response, deskilling, endogenous growth, energy security, energy transition, eurozone crisis, everywhere but in the productivity statistics, Financial Instability Hypothesis, full employment, G4S, Growth in a Time of Debt, Hyman Minsky, incomplete markets, information retrieval, intangible asset, invisible hand, Joseph Schumpeter, Kenneth Rogoff, Kickstarter, knowledge economy, knowledge worker, natural language processing, new economy, offshore financial centre, Philip Mirowski, popular electronics, profit maximization, Ralph Nader, renewable energy credits, rent-seeking, ride hailing / ride sharing, risk tolerance, shareholder value, Silicon Valley, Silicon Valley ideology, smart grid, Steve Jobs, Steve Wozniak, The Wealth of Nations by Adam Smith, Tim Cook: Apple, too big to fail, total factor productivity, trickle-down economics, Washington Consensus, William Shockley: the traitorous eight

Studies in Comparative International Development 32, nos. 3–4: 208–32. Liedtke, M. 2012. ‘Apple Cash: CEO Tim Cook Says Company Has More Than It Needs’. Huffington Post, 23 February. Available online at http://www.huffingtonpost.com/2012/02/23/apple-cash-ceo-tim-cook_n_1297897.html?view=print&comm_ref=false (accessed 19 July 2012). Lim, B. and S. Rabinovitch. 2010. ‘China Mulls $1.5 Trillion Strategic Industries Boost: Sources’. Reuters, 3 December. Available online at http://www.reuters.com/article/2010/12/03/us-china-economy-investmentidUSTRE6B16U920101203 (accessed 24 July 2012). Linden, G., K. L. Kraemer and J. Dedrick. 2009. ‘Who Captures Value in a Global Innovation Network? The Case of Apple’s iPod’. Communications of the ACM 52, no. 3: 140–44. Liu, C. 2011. ‘China Uses Feed-In Tariff to Build Domestic Solar Market’.

Borrowing the method that Shapiro used, one could factor that the top 9 Apple executives are expected to earn the same amount of money as roughly 17,600 of the company’s US retail employees did in 2011 (64 per cent of the total) and 15,000 (55 per cent of the total) in 2012 (Shapiro 2012).2 When Apple’s CEO, Tim Cook, announced in February 2012 that the company has more cash ($98 billion) than it currently needs to sustain its operations, many analysts and shareholders expected Apple to return a portion of its record-high cash to its shareholders (Liedtke 2012). The top executives were intrigued by the question of what to do with the excess sitting cash, since the company had not been distributing dividends or repurchasing its own stocks during Steve Jobs’ tenure. As many have predicted, Apple has recently announced a 3-year dividend and share repurchase plan that would divert slightly less than half of the company’s current cash stock ($45 billion) to its shareholders (Dowling 2012).

Economic Journal 49, no. 193 (March): 14–33. Hart, J. and M. Borrus. 1992. ‘Display’s the Thing: The Real Stakes in the Conflict over High Resolution Displays’. Berkeley Roundtable on the International Economy (BRIE) Working Paper no. 52. Available online at http://brie.berkeley.edu/publications/WP%2052.pdf (accessed 24 January 2013). Haslam, K. 2012. ‘Tim Cook’s Disastrous First Appointment as CEO’. Macworld, 30 October. Available online at http://www.macworld.co.uk/apple-business/news/?newsid=3407940&pagtype=allchandate (accessed 22 January 2013). Henderson, J. 2004. ‘UT Professor, 81, Is Mired in Patent Lawsuit’. Houston Chronicle, 5 June. Available online at http://www.chron.com/default/article/UT-professor-81-is-mired-in-patent-lawsuit-1662323.php (accessed 11 February 2013). Henderson, N. and M. Schrage. 1984.


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Samsung Rising: The Inside Story of the South Korean Giant That Set Out to Beat Apple and Conquer Tech by Geoffrey Cain

Apple's 1984 Super Bowl advert, Asian financial crisis, autonomous vehicles, Berlin Wall, business intelligence, cloud computing, corporate governance, creative destruction, don't be evil, Donald Trump, double helix, Dynabook, Elon Musk, fear of failure, Internet of things, John Markoff, Jony Ive, Kickstarter, Mahatma Gandhi, Mark Zuckerberg, megacity, Mikhail Gorbachev, Nelson Mandela, patent troll, rolodex, shareholder value, Silicon Valley, Silicon Valley startup, Skype, Steve Jobs, Superbowl ad, Tim Cook: Apple, too big to fail, WikiLeaks, wikimedia commons

Samsung was the Apple iPhone chip supplier that dared to compete directly against Apple by making a similar-looking smartphone, and with the Android operating system, which Jobs abhorred. Jobs was prepared to sue. Tim Cook, as Apple’s supply chain expert, was wary of endangering the relationship with a supplier that Apple depended on. When Jay Lee visited the Cupertino campus, Jobs and Cook expressed their concerns to him. Apple drafted a proposal to license some of its patents to Samsung for $30 per smartphone and $40 per tablet, with a 20 percent discount for cross-licensing Samsung’s portfolio back to Apple. For 2010 that revenue would have come to $250 million. In the end, Samsung’s lawyers reversed the offer. Since Apple was copying Samsung’s patents, they argued, Apple had to pay Samsung.

The commercial was more a brand-building exercise than an effort to sell more phones, poking fun at Apple’s lawsuit. Samsung was riding a powerful wave of positive publicity. Forbes described the ad as “a barrage of not-so-subtle jabs at competitor Apple Inc.” Phil Schiller, Apple’s senior vice president for marketing, was livid at Samsung’s marketing campaign. He shot an email to Apple’s ad agency, TBWA\Chiat\Day, with a link to the Wall Street Journal article. “We have a lot of work to do to turn this around,” he wrote. He emailed Apple CEO Tim Cook that Apple “may need to start a search for a new agency.” “We feel it too and it hurts,” wrote an advertising executive at TBWA back to Schiller. “We understand that this moment is pretty close to 1997 in terms of the need for advertising to help pull Apple through this moment.” Schiller blew up at the response.

She told them during the trial, “Unless you’re smoking crack, you know these witnesses aren’t going to be called when you have less than four hours.” She later decided that the jury had miscalculated Samsung’s damages and cut Apple’s award down to $600 million. The legal war between the two companies, however, was far from over. A second trial between Apple and Samsung was already in the works. Samsung took home some legal victories as well in the UK, Japan, and South Korea. * * * — ON THE MORNING OF September 12, 2012, Apple CEO Tim Cook took the stage in Cupertino for his first product launch as successor to the late Steve Jobs. “Today we’re taking it to the next level,” he said. After years of waiting to deliver something dramatically new, Apple was releasing the iPhone 5. A few hundred miles south in Los Angeles, Pendleton and the team were camped out in a war room at a Wolfgang Puck restaurant in Los Angeles, huddling around tables with laptops and TV screens, monitoring social-media reactions to Cook’s remarks on each new feature.


Deep Value by Tobias E. Carlisle

activist fund / activist shareholder / activist investor, Andrei Shleifer, availability heuristic, backtesting, business cycle, buy and hold, corporate governance, corporate raider, creative destruction, Daniel Kahneman / Amos Tversky, discounted cash flows, fixed income, intangible asset, joint-stock company, margin call, passive investing, principal–agent problem, Richard Thaler, riskless arbitrage, Robert Shiller, Robert Shiller, Rory Sutherland, shareholder value, Sharpe ratio, South Sea Bubble, statistical model, The Myth of the Rational Market, The Wealth of Nations by Adam Smith, Tim Cook: Apple

The coda to Einhorn’s and Icahn’s campaigns to have Apple pay out $150 billion in excess capital clearly demonstrates the power of this idea. After both had prodded Apple for 6 months, writing letters and meeting with Apple chief executive Tim Cook, Apple initiated a buyback in 2013. By February 2014 it had repurchased $40 billion of stock, a record amount for any company over a 12-month span.21 Shortly afterward, Icahn withdrew his plan to have the company undertake the bigger buyback he had proposed, writing in an open letter to Apple shareholders, “We see no reason to persist with our nonbinding proposal, especially when the company is already so close to fulfilling our requested repurchase target.”22 After Icahn had withdrawn his plan, Apple announced in April that it would in fact 210 DEEP VALUE return $130 billion in capital through an increased buyback and a hike in its dividend.

Applied Deep Value 207 Einhorn argued that, at a 10 percent cost of capital, the cash represented an opportunity cost of close to $13.7 billion per year, or $14 in earnings per share. His solution was for Apple to issue to existing shareholders “iPrefs”— high-yielding preference shares—which, said Einhorn, would allow Apple to “unlock significant shareholder value” by reducing the cash on its “bloated balance sheet.”18 He wasn’t the only activist to complain about Apple’s huge cash stockpile. Shortly after Einhorn unveiled his idea at the Ira W. Sohn Conference, Icahn would also propose in an open letter to Tim Cook, Apple’s CEO, that Apple return cash through a $150 billion buyback:19 When we met, you agreed with us that the shares are undervalued. In our view, irrational undervaluation as dramatic as this is often a short-term anomaly.

Available at SSRN: http://ssrn.com/abstract=1598056. 14. Ibid. 15. Ibid. 16. David Einhorn. “iPrefs: Unlocking Value.” Greenlight Capital, 2013. Available at https://www.greenlightcapital.com/905284.pdf. 17. Ibid. 18. Ibid. 19. Carl Icahn, “Letter to Tim Cook.” Icahn Enterprises, October 8, 2013. Available at http://www.scribd.com/doc/178753981/Carl-Icahn-s-Letter-To-Apple-s-Tim-Cook. 20. Einhorn, 2013. 21. David Benoit. “Icahn Ends Apple Push With Hefty Paper Profit.” The Wall Street Journal, February 10, 2014. Applied Deep Value 215 22. Steven Russolillo. “Carl Icahn: ‘Agree Completely’ With Apple’s Bigger Buyback.” The Wall Street Journal, April 23, 2014. 23. Benoit, 2014. 24. Benjamin Graham and David Dodd. Security Analysis. (New York: McGraw Hill) 1934. 25. United States Government Printing Office. Washington. 1955.


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Success and Luck: Good Fortune and the Myth of Meritocracy by Robert H. Frank

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, Amazon Mechanical Turk, American Society of Civil Engineers: Report Card, attribution theory, availability heuristic, Branko Milanovic, Capital in the Twenty-First Century by Thomas Piketty, carried interest, Daniel Kahneman / Amos Tversky, David Brooks, deliberate practice, en.wikipedia.org, endowment effect, experimental subject, framing effect, full employment, hindsight bias, If something cannot go on forever, it will stop - Herbert Stein's Law, income inequality, invisible hand, labor-force participation, lake wobegon effect, loss aversion, minimum wage unemployment, Network effects, Paul Samuelson, Report Card for America’s Infrastructure, Richard Thaler, Rod Stewart played at Stephen Schwarzman birthday party, Ronald Reagan, Rory Sutherland, selection bias, side project, sovereign wealth fund, Steve Jobs, The Wealth of Nations by Adam Smith, Tim Cook: Apple, ultimatum game, Vincenzo Peruggia: Mona Lisa, winner-take-all economy

Frank, Thomas Gilovich, and Dennis Regan, “The Evolution of One-Shot Cooperation,” Ethology and Sociobiology 14 (July 1993): 247–56. 7. Adam Smith, The Wealth of Nations, part 4, section 3, Library of Economics and Liberty, http://www.econlib.org/library/Smith/smWN.html. 8. Adam Satariano, Peter Burrows, and Brad Stone, “Scott Forstall, the Sorcerer’s Apprentice at Apple,” Bloomberg Business, October 12, 2011, http://www.bloomberg.com/bw/magazine/scott-forstall-the-sorcerers-apprentice-at-apple-10122011.html. 9. Jay Yarrow, “Tim Cook: Why I Fired Scott Forstall,” Business Insider, December 6, 2012, http://www.businessinsider.com/tim-cook-why-i-fired-scott-forstall-2012–12. 10. Robert D. Putnam, Our Kids: The American Dream in Crisis, New York: Simon and Shuster, 2015. 11. M. A. Fox, B. A. Connolly, and T. D. Snyder, “Youth Indicators 2005: Trends in the Well-Being of American Youth,” Washington, DC, US Department of Education, National Center for Education Statistics, table 21, http://nces.ed.gov/pubs2005/2005050.pdf. 12.

According to Bloomberg Business, some associates described him off the record as someone who “routinely takes credit for collaborative successes, deflects blame for mistakes.”8 When Forstall was dismissed in October 2012, Apple CEO Tim Cook explained that the move was necessary to preserve the company’s collaborative culture.9 Does willingness to acknowledge the contributions of others—to admit that your success stemmed in part from what others did—affect your attractiveness as a teammate? My experience with former Fed chairman Ben Bernanke, with whom I had the privilege of coauthoring an introductory economics textbook, suggests that it does. Ben is by far the most successful economist I’ve ever worked with closely. In addition to his tenure as chair at the Fed, he served as editor of the prestigious American Economic Review and was for many years the chairman of Princeton’s highly ranked department of economics.

Perceptions that someone is “too ambitious” may sometimes be rooted in jealousy or envy, but unusually ambitious individuals can threaten team cohesion even in the absence of such emotions. Many believe, for example, that former Apple senior vice president Scott Forstall was discharged from his post for that reason. Forstall had been the chief architect of the iOS operating system that powers the iPhone and iPad, whose meteoric sales growth made Apple the most profitable company in history. He had been the longtime protégé of Apple cofounder Steve Jobs, was universally acknowledged as an extraordinary engineering talent, and was sometimes mentioned as a potential future Apple CEO. Yet few press accounts of him during his heyday at the company failed to mention that he was unusually ambitious. According to Bloomberg Business, some associates described him off the record as someone who “routinely takes credit for collaborative successes, deflects blame for mistakes.”8 When Forstall was dismissed in October 2012, Apple CEO Tim Cook explained that the move was necessary to preserve the company’s collaborative culture.9 Does willingness to acknowledge the contributions of others—to admit that your success stemmed in part from what others did—affect your attractiveness as a teammate?


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Weapons of Math Destruction: How Big Data Increases Inequality and Threatens Democracy by Cathy O'Neil

Affordable Care Act / Obamacare, Bernie Madoff, big data - Walmart - Pop Tarts, call centre, carried interest, cloud computing, collateralized debt obligation, correlation does not imply causation, Credit Default Swap, credit default swaps / collateralized debt obligations, crowdsourcing, Emanuel Derman, housing crisis, I will remember that I didn’t make the world, and it doesn’t satisfy my equations, illegal immigration, Internet of things, late fees, mass incarceration, medical bankruptcy, Moneyball by Michael Lewis explains big data, new economy, obamacare, Occupy movement, offshore financial centre, payday loans, peer-to-peer lending, Peter Thiel, Ponzi scheme, prediction markets, price discrimination, quantitative hedge fund, Ralph Nader, RAND corporation, recommendation engine, Rubik’s Cube, Sharpe ratio, statistical model, Tim Cook: Apple, too big to fail, Unsafe at Any Speed, Upton Sinclair, Watson beat the top human players on Jeopardy!, working poor

“In terms of business competitiveness”: Businessweek Archives, “Same Sex Benefits: Where IBM Goes, Others May Follow,” Bloomberg Business, October 6, 1996, www.​bloomberg.​com/​bw/​stories/​1996-​10-​06/same-​sex-​benefits-​where-​ibm-​goes-​others-​may-​follow. a gay man, Tim Cook: Timothy Donald Cook, “Tim Cook Speaks Up,” Bloomberg Business, October 30, 2014, www.​bloomberg.​com/​news/​articles/​2014-​10-​30/​tim-​cook-​speaks-​up. Apple, the most valuable company: Verne Kopytoff, “Apple: The First $700 Billion Company,” Fortune, February 10, 2015, http://​fortune.​com/​2015/​02/​10/​apple-​the-​first-​700-​billion-​company/. In 1907 alone, 3,242 miners died: MSHA, “Coal Fatalities for 1900 Through 2014,” US Department of Labor, accessed January 9, 2016, www.​msha.​gov/​stats/​centurystats/​coalstats.​asp. drew up such an oath: Emanuel Derman and Paul Wilmott, “The Financial Modeler’s Manifesto,” January 7, 2009, www.​uio.​no/​studier/​emner/​sv/​oekonomi/​ECON4135/​h09/​under​visning​smateriale/​Financial​ModelersManifesto.​pdf.

If we think about human resources policies at IBM and other companies as algorithms, they codified discrimination for decades. The move to equalize benefits nudged them toward fairness. Since then, gays and lesbians have registered impressive progress in many domains. This progress is uneven, of course. Many gay, lesbian, and transgender Americans are still victims of prejudice, violence, and WMDs. This is especially true among poor and minority populations. Still, as I write this, a gay man, Tim Cook, is the chief executive of Apple, the most valuable company on earth. And if he so chooses, he has the constitutional right to marry a man. Now that we’ve seen how corporations can move decisively to right a wrong in their hiring algorithms, why can’t they make similar adjustments to the mathematical models wreaking havoc on our society, the WMDs? Unfortunately, there’s a glaring difference. Gay rights benefited in many ways from market forces.

But with the Internet, people across the earth have produced quadrillions of words about our lives and work, our shopping, and our friendships. By doing this, we have unwittingly built the greatest-ever training corpus for natural-language machines. As we turned from paper to e-mail and social networks, machines could study our words, compare them to others, and gather something about their context. The progress has been fast and dramatic. As late as 2011, Apple underwhelmed most of techdom with its natural-language “personal assistant,” Siri. The technology was conversant only in certain areas, and it made laughable mistakes. Most people I know found it near useless. But now I hear people talking to their phones all the time, asking for the weather report, sports scores, or directions. Somewhere between 2008 and 2015, give or take, the linguistic skills of algorithms advanced from pre-K to middle school, and for some applications much higher.


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Technically Wrong: Sexist Apps, Biased Algorithms, and Other Threats of Toxic Tech by Sara Wachter-Boettcher

Airbnb, airport security, AltaVista, big data - Walmart - Pop Tarts, Donald Trump, Ferguson, Missouri, Firefox, Grace Hopper, job automation, Kickstarter, lifelogging, Mark Zuckerberg, Menlo Park, move fast and break things, move fast and break things, natural language processing, pattern recognition, Peter Thiel, recommendation engine, ride hailing / ride sharing, self-driving car, Silicon Valley, Silicon Valley startup, Snapchat, Steve Jobs, Tim Cook: Apple, Travis Kalanick, upwardly mobile, women in the workforce, zero-sum game

Erica Joy, “The Other Side of Diversity,” Medium, November 4, 2014, https://medium.com/this-is-hard/the-other-side-of-diversity-1bb3de2f053e#.xn7th3cbt. 4. Megan Rose Dickey, “Apple’s Tim Cook on Latest Diversity Numbers: There’s ‘a Lot More Work to be Done,’” TechCrunch, August 13, 2015, https://techcrunch.com/2015/08/13/apples-tim-cook-on-latest-diversity-numbers-theres-a-lot-more-work-to-be-done. 5. Maxine Williams, “Facebook Diversity Update: Positive Hiring Trends Show Progress,” Facebook Newsroom, July 14, 2016, http://newsroom.fb.com/news/2016/07/facebook-diversity-update-positive-hiring-trends-show-progress. 6. Nancy Lee, “Focusing on Diversity,” The Keyword (blog), June 30, 2016, https://www.blog.google/topics/diversity/focusing-on-diversity30. 7. Apple, “Inclusion & Diversity,” accessed October 15, 2016, http://www.apple.com/diversity. 8. Google, “Diversity,” accessed October 2016, https://www.google.com/diversity. 9.

Until the tech industry becomes more representative of the people it’s trying to serve, these problems will persist—and our products will be worse off because of it. CRAWLING TOWARD REPRESENTATION To be fair, I’m not saying tech isn’t doing anything to improve diversity. You can find annual diversity reports from most of the big companies now, highlighting shifts in employee demographics and glossy profiles of staff from underrepresented groups. Whenever a new one comes out, though, it tends to read something like this one, from Apple CEO Tim Cook, in 2015: We are proud of the progress we’ve made, and our commitment to diversity is unwavering. But we know there is a lot more work to be done.4 Or this one, from Facebook’s global director of diversity, Maxine Williams, in 2016: Over the past few years, we have been working hard to increase diversity at Facebook through a variety of internal and external programs and partnerships.

And the title “Doctor” was coded as male.2 Or in March of 2016, when JAMA Internal Medicine released a study showing that the artificial intelligence built into smartphones from Apple, Samsung, Google, and Microsoft isn’t programmed to help during a crisis. The phones’ personal assistants didn’t understand words like “rape,” or “my husband is hitting me.” In fact, instead of doing even a simple web search, Siri—Apple’s product—cracked jokes and mocked users.3 It wasn’t the first time. Back in 2011, if you told Siri you were thinking about shooting yourself, it would give you directions to a gun store. After getting bad press, Apple partnered with the National Suicide Prevention Lifeline to offer users help when they said something that Siri identified as suicidal. But five years later, no one had looked beyond that one fix. Apple had no problem investing in building jokes and clever comebacks into the interface from the start.


pages: 271 words: 62,538

The Best Interface Is No Interface: The Simple Path to Brilliant Technology (Voices That Matter) by Golden Krishna

Airbnb, computer vision, crossover SUV, en.wikipedia.org, fear of failure, impulse control, Inbox Zero, Internet Archive, Internet of things, Jeff Bezos, Jony Ive, Kickstarter, Mark Zuckerberg, new economy, Oculus Rift, pattern recognition, QR code, RFID, self-driving car, Silicon Valley, Skype, Snapchat, Steve Jobs, technoutopianism, Tim Cook: Apple, Y Combinator, Y2K

Adam Lashinsky, “Amazon’s Jeff Bezos: The Ultimate Disrupter,” Fortune, November 16, 2012. http://fortune.com/2012/11/16/amazons-jeff-bezos-the-ultimate-disrupter/ 3 “Cook: It’s never been stronger. Innovation is so deeply embedded in Apple’s culture. The boldness, ambition, belief there aren’t limits, a desire to make the very best products in the world. It’s the strongest ever. It’s in the DNA of the company.” “Live Recap: Apple CEO Tim Cook Speaks at Goldman Conference,” Wall Street Journal - Digits, February 12, 2013. http://blogs.wsj.com/digits/2013/02/12/live-apple-ceo-tim-cook-speaks-at-goldman-conference/ 4 Jesse Solomon, “Google Worth More Than Exxon. Apple Next?” CNN, February 7, 2014. http://money.cnn.com/2014/02/07/investing/google-exxon-market-value/ 5 2012 Lobbying (Millions $) Google, 18.22 Exxon Mobil, 12.97 “Biggest Increases in Lobbying in U.S.,” Bloomberg, May 28, 2013. http://www.bloomberg.com/visual-data/best-and-worst/biggest-increases-in-lobbying-in-u-dot-s-companies 2014 April–June (Q2) Lobbying (Millions $) Google, 5.03 Exxon Mobil, 2.80 Pfizer, 1.60 Lauren Hepler, “Google Drops $5M on Q2 2014 Lobbying: Self-Driving Cars, Health, Tax, Immigration,” Silicon Valley Business Journal, July 28, 2014. http://www.bizjournals.com/sanjose/news/2014/07/28/self-driving-cars-health-tech-immigration-google.html 6 Ashlee Vance, “This Tech Bubble Is Different,” Businessweek, April 14, 2011. http://www.businessweek.com/magazine/content/11_17/b4225060960537.htm Chapter 5 Addiction UX 1 “A whopping 96 percent of Google’s $37.9 billion 2011 revenue came from advertising . . .”

It likely lies near the root of the commonly pervasive and disturbingly screen-obsessed approach to design. The result is that much of our lives today is dominated by digital interfaces asking us to tap, touch, swipe, click, and hover because that’s what people were hired to create. HP CEO Meg Whitman says, “We’ve got to continue the innovation engine.”1 Amazon CEO Jeff Bezos says, “We innovate by starting with the customer and working backwards.”2 Apple CEO Tim Cook says, “Innovation is so deeply embedded in Apple’s culture.”3 But when you specifically hire someone to generate UI, you won’t get new, innovative solutions. You’ll get more UI, not better UX. This is UI: Navigation, subnavigation, menus, drop-downs, buttons, links, windows, rounded corners, shadowing, error messages, alerts, updates, checkboxes, password fields, search fields, text inputs, radio selections, text areas, hover states, selection states, pressed states, tooltips, banner ads, embedded videos, swipe animations, scrolling, clicking, iconography, colors, lists, slideshows, alt text, badges, notifications, gradients, pop-ups, carousels, OK/Cancel, etc. etc. etc.

1 John Pavlus, “A Tale of Two Newspaper Interfaces,” MIT Technology Review, March 13, 2013. http://www.technologyreview.com/view/512486/a-tale-of-two-newspaper-interfaces/ 2 Karis Hustad, ““Netflix Rolls Out Updated, Smarter TV Interface,” Christian Science Monitor, November 13, 2013. http://www.csmonitor.com/Innovation/2013/1113/Netflix-rolls-out-updated-smarter-TV-interface 3 “Apple TV: A Simpler Interface, Easier Access to Media Through the iCloud” Washington Post, March 8, 2012. http://www.washingtonpost.com/business/economy/apple-tv-a-simpler-interface-easier-access-to-media-through-icloud/2012/03/08/gIQARVivzR_story.html Chapter 2 Let’s Make an App 1 “Apple iPhone 3G ad - There’s An App For That (2009),” YouTube, Last accessed August 2014. https://www.youtube.com/watch?v=Mc-pV2YYOAs 2 Simon Hudson, Bumps for Boomers: Marketing Sport Tourism to the Aging Tourist, 2011, (Oxford: Goodfellow Publishers), p.14 3 Apple in 2009 started using the phrase, “There’s an app for that” in TV ads to show off the multitude of apps available for iOS devices through its popular App Store, which opened July 2008. Brian X. Chen, “Apple Registers Trademark for ‘There’s an App for That,’” Wired, October 11, 2010. http://www.wired.com/2010/10/app-for-that/ 4 “According to a joint report by UNICEF and the United Nations, of the 783 million people still without safe drinking water, the majority live in countries that are not among the world’s poorest.”


pages: 459 words: 138,689

Slowdown: The End of the Great Acceleration―and Why It’s Good for the Planet, the Economy, and Our Lives by Danny Dorling, Kirsten McClure

Affordable Care Act / Obamacare, Berlin Wall, Bernie Sanders, Boris Johnson, British Empire, business cycle, capital controls, clean water, creative destruction, credit crunch, Donald Trump, drone strike, Elon Musk, en.wikipedia.org, Flynn Effect, full employment, future of work, gender pay gap, global supply chain, Google Glasses, Henri Poincaré, illegal immigration, immigration reform, income inequality, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Isaac Newton, James Dyson, jimmy wales, John Harrison: Longitude, Kickstarter, low earth orbit, Mark Zuckerberg, market clearing, Martin Wolf, mass immigration, means of production, megacity, meta analysis, meta-analysis, mortgage debt, nuclear winter, pattern recognition, Ponzi scheme, price stability, profit maximization, purchasing power parity, QWERTY keyboard, random walk, rent control, rising living standards, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Reagan, Scramble for Africa, sexual politics, Skype, Stephen Hawking, Steven Pinker, structural adjustment programs, the built environment, Tim Cook: Apple, transatlantic slave trade, trickle-down economics, very high income, wealth creators, wikimedia commons, working poor

., “A Genomic History of Aboriginal Australia,” Nature, 21 September 2016, https://www.nature.com/articles/nature18299. 13. Grantham, “The Race of Our Lives Revisited,” 4. 14. Tom Orlik, “China’s Latest Official GDP Report Is Accurate. No, Really,” Bloomberg Businessweek, 25 January 2019, https://www.bloomberg.com/news/articles/2019-01-25/china-s-latest-official-gdp-report-is-accurate-no-really. 15. Tim Cook, “Letter from Tim Cook to Apple Investors,” Apple Press Release, 2 January 2019, https://www.apple.com/newsroom/2019/01/letter-from-tim-cook-to-apple-investors/. 16. Tim Jackson, Chasing Progress: Beyond Measuring Economic Growth (London: New Economics Foundation, 2004), https://neweconomics.org/2004/03/chasing-progress. 17. George Monbiot, “Goodbye, Kind World,” 10 August 2004, https://www.monbiot.com/2004/08/10/goodbye-kind-world/. 18. Drones controlled by men sitting in the United States target people on the other side of the planet.

And what happens when our politicians and business leaders can no longer promise “their people” that the next generation will be better off than the last? Do you quickly look for people in another country to blame? Do that and then it becomes hard to maintain a common front. Some businesspeople will turn on their own politicians—turning on Donald Trump, in the case referred to above—to try to explain why their government’s approach is not helping. Although to see that in Tim Cook’s message, you need to read between the lines. That the chief executive officer of Apple, the eleventh-largest company in the world by revenue in 2019 and the fourth largest in America, should be so concerned about U.S. relations with China is telling. His predecessors were worried about whether it was best to manufacture in China and what the risks might be. Cook is now increasingly worried about the country as a place where he will be able to continue to sell his products, about the competing products the Chinese may make, and especially about China’s slowing GDP growth.

See also great acceleration Advanced Research Projects Agency Network (ARPANET), 31 Affordable Care Act, 313 Afghanistan, 172, 173 Africa: children in, 316–17; fertility rates, 158, 226, 227; language in, 73; Niger fertility rate, 201–4, 203; out-migration from, 158; population, 157–61, 159 agnosia, 287 AI (artificial intelligence), 85, 87, 96–97, 301–2 air travel, 302–4, 303, 363n2 Alexa, 79, 97 Americas: fertility rates, 226, 227; population, 177–79, 178, 209. See also United States Amsterdam: as center of selfishness, 263; house prices, 248, 249 Anderson, Li, 312 Angus Maddison Project Database 2018, 149, 155; GDP, 234, 238; population, 146, 148, 150, 151, 156, 159, 164, 167, 169, 172, 176 Apple (Tim Cook, CEO), 239–40 Ardern, Edward, 269 Armstrong, William, 94, 97 artificial intelligence (AI), 85, 87, 96–97, 301–2 Australia, population, 175, 176, 177 automobile debt, 43–49, 48 automobiles: and carbon emissions, 101–2, 112–16; and debt, 43–49, 48; numbers manufactured, 114–15, 118 babies, 143, 218, 309. See also birth rates; infant mortality baby booms, 104–5, 143, 147, 165, 205, 309 Ballas, Roula and Vassilis, 16–18 Bangladesh, 165, 167, 168 Beaumont, Paul, 279 Beveridge, William, 185–86 Bézier curves, 33, 337 Bible, 65, 66, 73, 77, 288 biodiversity, 298–301, 300, 302, 304, 366n32.


pages: 706 words: 202,591

Facebook: The Inside Story by Steven Levy

active measures, Airbnb, Airbus A320, Amazon Mechanical Turk, Apple's 1984 Super Bowl advert, augmented reality, Ben Horowitz, blockchain, Burning Man, business intelligence, cloud computing, computer vision, crowdsourcing, cryptocurrency, don't be evil, Donald Trump, East Village, Edward Snowden, El Camino Real, Elon Musk, Firefox, Frank Gehry, glass ceiling, indoor plumbing, Jeff Bezos, John Markoff, Jony Ive, Kevin Kelly, Kickstarter, Lyft, Mahatma Gandhi, Marc Andreessen, Mark Zuckerberg, Menlo Park, Metcalfe’s law, MITM: man-in-the-middle, move fast and break things, move fast and break things, natural language processing, Network effects, Oculus Rift, PageRank, Paul Buchheit, paypal mafia, Peter Thiel, pets.com, post-work, Ray Kurzweil, recommendation engine, Robert Mercer, Robert Metcalfe, rolodex, Sam Altman, Sand Hill Road, self-driving car, sexual politics, Shoshana Zuboff, side project, Silicon Valley, Silicon Valley startup, slashdot, Snapchat, social graph, social software, South of Market, San Francisco, Startup school, Steve Ballmer, Steve Jobs, Steven Levy, Steven Pinker, Tim Cook: Apple, web application, WikiLeaks, women in the workforce, Y Combinator, Y2K

“If you’re not”: Cook’s remark was made on an MSNBC “Revolution” event in an interview with Kara Swisher and Chris Hayes, on April 6, 2018. Cook disagreed: Matthew Panzarino, “Apple’s Tim Cook Delivers Blistering Speech on Encryption, Privacy,” TechCrunch, June 2, 2015. measure their worth with Likes: Brian Fung, “Apple’s Tim Cook May Have Taken a Subtle Dig at Facebook in His MIT Commencement Speech,” Washington Post, June 9, 2017. After Cambridge: Peter Kafka, “Tim Cook Says Facebook Should Have Regulated Itself, but It’s Too Late for That Now,” Recode, March 28, 2018. “extremely glib”: Ezra Klein, “Mark Zuckerberg on Facebook’s Hardest Year, and What Comes Next,” Vox, April 2, 2018. Facebook did withdraw: Deepa Seetharaman, “Facebook Removed Data-Security App from Apple Store,” Wall Street Journal, August 22, 2018. Those users also included: Josh Constine, “Facebook Pays Teens to Install VPN that Spies on Them,” TechCrunch, January 29, 2019.

While Facebook’s critics were abundant, one in particular seemed to get under Zuckerberg’s skin: Apple’s CEO, Tim Cook. As Facebook’s problems became more public after the election, Cook began to voice reservations about social media, and Facebook in particular. Apple’s business model, Cook noted at every opportunity, was based on a straightforward exchange: you pay for the product and use it. The Facebook business model, Cook would note, provides a service that seems free but actually isn’t, as you are paying with your personal information and constant exposure to ads. With a touch of his native Alabama in his tone, Cook would say, “If you’re not the customer, you’re the product.” He implied that Apple’s model was morally superior. Years after the death of Apple’s fabled CEO and co-founder Steve Jobs, the company still had the aura of the elite operation in Silicon Valley.

In 2017, Zuckerberg had been upset at a remark Cook had made at a commencement speech; the Apple CEO had told the graduates not to measure their worth with Likes, and Zuckerberg had taken that personally. Tim Cook wasn’t about to run his speeches past Zuckerberg. By then Cook was promoting privacy as a pillar of Apple’s deal with its customers. The targets of his jibes were Google and Facebook, but only Google was a direct competitor, and Zuckerberg felt sideswiped. After Cambridge Analytica, Cook was asked what he would do if he were in Zuckerberg’s place. “I wouldn’t be in that situation,” he said. In an interview soon afterward, Zuckerberg called the comment “extremely glib.” In mid-2018, Zuckerberg arranged a CEO sit-down at Apple Park, the company’s exotic spaceship-like headquarters. Once again, Zuckerberg complained about Cook’s remarks.


pages: 159 words: 42,401

Snowden's Box: Trust in the Age of Surveillance by Jessica Bruder, Dale Maharidge

anti-communist, Bay Area Rapid Transit, Berlin Wall, blockchain, Broken windows theory, Burning Man, cashless society, Chelsea Manning, citizen journalism, computer vision, crowdsourcing, Donald Trump, Edward Snowden, Elon Musk, Ferguson, Missouri, Filter Bubble, Firefox, Internet of things, Jeff Bezos, Julian Assange, license plate recognition, Mark Zuckerberg, mass incarceration, medical malpractice, Occupy movement, off grid, pattern recognition, Peter Thiel, Robert Bork, Shoshana Zuboff, Silicon Valley, Skype, social graph, Steven Levy, Tim Cook: Apple, web of trust, WikiLeaks

p. 93 Hundreds of millions of records purged: Charlie Savage, “N.S.A. Purges Hundreds of Millions of Call and Text Records,” New York Times, June 28, 2018. p. 93 German media scholar Till Wäscher: Wäscher, “Six Frames against Surveillance.” p. 94 Apple CEO Tim Cook: Eric Lichtblau and Katie Benner, “Apple Fights Order to Unlock San Bernardino Gunman’s iPhone,” New York Times, February 17, 2016; Kate Fazzini, “In a Three-Way Privacy Fight, Apple Has More to Lose Than Facebook or Google,” CNBC, October 25, 2018. p. 94 Justice Department officials derided the company’s refusal to cooperate: Eric Lichtblau and Matt Apuzzo, “Justice Department Calls Apple’s Refusal to Unlock iPhone a ‘Marketing Strategy,’” New York Times, February 19, 2016. p. 94 Snowden told the Guardian he had no regrets: Ewen MacAskill and Alex Hern, “Edward Snowden: ‘The People Are Still Powerless, but Now They’re Aware,” Guardian, June 4, 2018.

‘‘By forming temporary alliances with Google, Facebook and [others], privacy activists gave them a PR platform to show the world that they are also concerned about their users’ privacy — rather than to actively challenging their business practices and informing the public about the essential role they have played — voluntarily or not — in the NSA’s regime,’’ wrote German media scholar Till Wäscher. In 2016, the popular messaging service WhatsApp began using end-to-end encryption to protect users’ communications. The same year, tensions rose as Apple defied a federal court order to help the FBI break into an iPhone belonging to one of the perpetrators of a San Bernardino mass shooting that killed fourteen people. “The same engineers who built strong encryption into the iPhone to protect our users would, ironically, be ordered to weaken those protections and make our users less safe,” said Apple CEO Tim Cook, who later made “privacy is a human right” his public mantra. Justice Department officials derided the company’s refusal to cooperate, calling it a “marketing strategy.” On the fifth anniversary of the leaks, Snowden told the Guardian he had no regrets.

“These reports are deeply concerning and raise questions about whether our constitutional rights are secure.” I absorbed the story, trying to process the enormity of it all. A national freakout was brewing. I called Dale: “Is that it?” “Yes.” “Shit.” I felt light-headed. “Is that all of it?” “No.” Over the next few days, more disclosures followed. The NSA had been collecting users’ private communications from AOL, Apple, Facebook, Google, Microsoft, Yahoo, and other companies. Obama had told intelligence officials to make a list of possible foreign targets for American cyberattacks. During a single thirty-day period, the NSA had harvested nearly 3 billion pieces of intelligence from US computer networks. And so on. On June 9, the Guardian ran a short film by Laura Poitras. It showed Snowden answering questions posed by Greenwald.


pages: 363 words: 92,422

A Fine Mess by T. R. Reid

Affordable Care Act / Obamacare, Bernie Sanders, Capital in the Twenty-First Century by Thomas Piketty, carried interest, centre right, clean water, Donald Trump, Double Irish / Dutch Sandwich, game design, Gini coefficient, High speed trading, Home mortgage interest deduction, Honoré de Balzac, income inequality, industrial robot, land value tax, loss aversion, mortgage tax deduction, obamacare, Occupy movement, offshore financial centre, oil shock, plutocrats, Plutocrats, race to the bottom, Ronald Reagan, seigniorage, Silicon Valley, Skype, Snapchat, sovereign wealth fund, Tesla Model S, The Wealth of Nations by Adam Smith, Tim Cook: Apple, Tobin tax, We are the 99%, WikiLeaks

“We pay all the taxes we owe, every single dollar,” declared Tim Cook, Apple’s CEO, who noted that Apple paid significant sums in U.S. taxes on its sales in the United States—more than $16 million in corporate income tax every day of the year. “We do not depend on tax gimmicks. . . . We do not stash money on some Caribbean island.” The problem, Cook said, was that 35% corporate tax rate, which would make it “very expensive” to record those international sales in the United States or to bring home the billions of dollars Apple had assigned to its foreign subsidiaries. The best solution would be for the United States to “eliminate all corporate tax expenditures, lower corporate income tax rates, and implement a reasonable tax on foreign earnings that allows the free flow of capital back to the United States.” In short, Tim Cook gave Congress the same message that Gérard Depardieu had given to François Hollande: if you set tax rates high, taxpayers will fall back on “convoluted and pernicious strategies” to avoid them—including taking their money to a different country.

“Rather, it is designed to minimize tax on sales of products sold in the United States. . . . By routing its manufacturing through a tiny factory in Puerto Rico, Microsoft saved over $4.5 billion in taxes on goods sold in the United States” over a three-year period.8 Despite these industrious efforts to escape American taxes, Caterpillar, Apple, Google, and Microsoft still declare themselves to be American corporations. Apple’s CEO, Tim Cook, was adamant on this point that day when the senators were grilling him about “stateless income.” “I am often asked,” Cook said, “if Apple still considers itself an American company. My answer has always been an emphatic ‘Yes.’ We are proud to be an American company and equally proud of our contribution to the U.S. economy.” But the lure of tax avoidance is so strong that other American companies have been perfectly willing to renounce legal ties to their home country and move overseas (on paper at least) in pursuit of a lower rate of corporate income tax.

., a U.S. corporation, has used a variety of offshore structures, arrangements, and transactions to shift billions of dollars in profits away from the United States and into Ireland, where Apple has negotiated a special corporate tax rate of less than 2%,” a congressional investigation found.6 But even a 2% rate was more tax than Apple wanted to pay. So the company bookkeepers set up a subsidiary company, Apple Operations International. This legal entity was incorporated in Ireland but managed and controlled from the company headquarters in Cupertino, California. This “company” had no employees and no address; it had a three-member board of directors, which held its meetings in Cupertino. The home office then created a subsidiary of this Irish subsidiary, Apple Operations Europe, and a separate subsidiary of that subsidiary, Apple Sales International. Those two lower-level subsidiaries of Apple Operations International were also incorporated in Ireland but controlled and managed in Cupertino.


pages: 339 words: 95,270

Trade Wars Are Class Wars: How Rising Inequality Distorts the Global Economy and Threatens International Peace by Matthew C. Klein

Albert Einstein, Asian financial crisis, asset allocation, asset-backed security, Berlin Wall, Bernie Sanders, Branko Milanovic, Bretton Woods, British Empire, business climate, business cycle, capital controls, centre right, collective bargaining, currency manipulation / currency intervention, currency peg, David Ricardo: comparative advantage, deglobalization, deindustrialization, Deng Xiaoping, Donald Trump, Double Irish / Dutch Sandwich, Fall of the Berlin Wall, falling living standards, financial innovation, financial repression, fixed income, full employment, George Akerlof, global supply chain, global value chain, illegal immigration, income inequality, intangible asset, invention of the telegraph, joint-stock company, land reform, Long Term Capital Management, Malcom McLean invented shipping containers, manufacturing employment, Martin Wolf, mass immigration, Mikhail Gorbachev, money market fund, mortgage debt, New Urbanism, offshore financial centre, oil shock, open economy, paradox of thrift, passive income, reserve currency, rising living standards, Robert Shiller, Robert Shiller, Ronald Reagan, savings glut, Scramble for Africa, sovereign wealth fund, The Nature of the Firm, The Wealth of Nations by Adam Smith, Tim Cook: Apple, trade liberalization, Wolfgang Streeck

Imperialism is the fruit of this false economy. . . . The only safety of nations lies in removing the unearned increments of income from the possessing classes, and adding them to the wage-income of the working classes or to the public income, in order that they may be spent in raising the standard of consumption. John A. Hobson, Imperialism: A Study (1902) Contents Acknowledgments Introduction ONE From Adam Smith to Tim Cook: The Transformation of Global Trade TWO The Growth of Global Finance THREE Saving, Investment, and Imbalances FOUR From Tiananmen to the Belt and Road: Understanding China’s Surplus FIVE The Fall of the Wall and the Schwarze Null: Understanding Germany’s Surplus SIX The American Exception: The Exorbitant Burden and the Persistent Deficit Conclusion. To End the Trade Wars, End the Class Wars Notes Index Acknowledgments This book is a joint project between two authors who live six thousand miles apart—a genuinely transpacific partnership between San Francisco and Beijing.

But the rapid increases in inequality and the deepening economic links across national borders since the end of the Cold War have made Hobson’s wisdom more relevant than ever. The challenge is an intellectual one (getting people to appreciate this perspective) and a political one (defeating entrenched interests that benefit from the status quo). To understand how all this works, it helps to have a historical perspective of how we got here. O•N•E From Adam Smith to Tim Cook The Transformation of Global Trade International trade used to be simple. High transport costs and politically imposed constraints limited the flow of finished goods and raw materials across borders. In the late eighteenth and early nineteenth centuries, British thinkers argued for removing tariffs and other barriers to encourage specialization, while Americans and Germans proposed protecting infant industries to develop diversified domestic markets.

Hobson, Imperialism: A Study (New York: James Pott, 1902). See also Thomas Hauner, Branko Milanovic, and Suresh Naidu, “Inequality, Foreign Investment, and Imperialism,” Stone Center Working Paper 2017, for a modern quantitative analysis of Hobson’s thesis. 8. Kenneth Austin, “Communist China’s Capitalism: The Highest Stage of Capitalist Imperialism,” World Economics, January–March 2011, 79–94. ONE From Adam Smith to Tim Cook 1. Adam Smith, An Inquiry into the Nature and Causes of the Wealth of Nations, 2 vols., ed. Edwin Cannan (London: Methuen, 1904), vol. 1, bk. 1, chap. 1, available at https://oll.libertyfund.org/. 2. R. H. Coase, “The Nature of the Firm,” Economica 4, no. 16 (November 1937): 386–405. 3. Smith, Wealth of Nations, vol. 1, bk. 4, chap. 2. 4. David Ricardo, On the Principles of Political Economy and Taxation, 3rd ed.


pages: 598 words: 134,339

Data and Goliath: The Hidden Battles to Collect Your Data and Control Your World by Bruce Schneier

23andMe, Airbnb, airport security, AltaVista, Anne Wojcicki, augmented reality, Benjamin Mako Hill, Black Swan, Boris Johnson, Brewster Kahle, Brian Krebs, call centre, Cass Sunstein, Chelsea Manning, citizen journalism, cloud computing, congestion charging, disintermediation, drone strike, Edward Snowden, experimental subject, failed state, fault tolerance, Ferguson, Missouri, Filter Bubble, Firefox, friendly fire, Google Chrome, Google Glasses, hindsight bias, informal economy, Internet Archive, Internet of things, Jacob Appelbaum, Jaron Lanier, John Markoff, Julian Assange, Kevin Kelly, license plate recognition, lifelogging, linked data, Lyft, Mark Zuckerberg, moral panic, Nash equilibrium, Nate Silver, national security letter, Network effects, Occupy movement, Panopticon Jeremy Bentham, payday loans, pre–internet, price discrimination, profit motive, race to the bottom, RAND corporation, recommendation engine, RFID, Ross Ulbricht, self-driving car, Shoshana Zuboff, Silicon Valley, Skype, smart cities, smart grid, Snapchat, social graph, software as a service, South China Sea, stealth mode startup, Steven Levy, Stuxnet, TaskRabbit, telemarketer, Tim Cook: Apple, transaction costs, Uber and Lyft, uber lyft, undersea cable, urban planning, WikiLeaks, zero day

Google has done much the same: Associated Press (2 Apr 2013), “Timeline: A look at developments linked to Google privacy concerns,” CTV News, http://www.ctvnews.ca/sci-tech/timeline-a-look-at-developments-linked-to-google-privacy-concerns-1.1220927. Apple is somewhat of an exception: Rich Mogull (25 Jun 2014), “Why Apple really cares about your privacy,” Macworld, http://www.macworld.com/article/2366921/why-apple-really-cares-about-your-privacy.html. It uses iTunes purchase information: Charles Arthur (18 Sep 2014), “Apple’s Tim Cook attacks Google and Facebook over privacy flaws,” Guardian, http://www.theguardian.com/technology/2014/sep/18/apple-tim-cook-google-facebook-privacy-surveillance. It’s very big business for Amazon: Jay Greene (18 Mar 2014), “Amazon easing into $1 billion sideline business: ad sales,” Union Bulletin, http://union-bulletin.com/news/2014/mar/18/amazon-easing-1b-sideline-business-ad-sales.

The UK wants similar access: Guardian (19 Sep 2014), “Former UK ambassador to the United States given data-access role,” Guardian, http://www.theguardian.com/technology/2014/sep/19/sir-nigel-shienwald-data-access-role-david-cameron. Apple’s business model protects: Rich Mogull (25 Jun 2014), “Why Apple really cares about your privacy,” Macworld, http://www.macworld.com/article/2366921/why-apple-really-cares-about-your-privacy.html. Charles Arthur (18 Sep 2014), “Apple’s Tim Cook attacks Google and Facebook over privacy flaws,” Guardian, http://www.theguardian.com/technology/2014/sep/18/apple-tim-cook-google-facebook-privacy-surveillance. Do you trust a company: European countries allow for far more permissive government access than the US does. Cyrus Farivar (13 Oct 2013), “Europe won’t save you: Why e-mail is probably safer in the US,” Ars Technica, http://arstechnica.com/tech-policy/2013/10/europe-wont-save-you-why-e-mail-is-probably-safer-in-the-us.

threatened massive fine to force Yahoo to release data,” Washington Post, http://www.washingtonpost.com/business/technology/us-threatened-massive-fine-to-force-yahoo-to-release-data/2014/09/11/38a7f69e-39e8-11e4-9c9f-ebb47272e40e_story.html. companies are employing “warrant canaries”: Cyrus Farivar (5 Nov 2013), “Apple takes strong privacy stance in new report, publishes rare ‘warrant canary,’” Ars Technica, http://arstechnica.com/tech-policy/2013/11/apple-takes-strong-privacy-stance-in-new-report-publishes-rare-warrant-canary. valiant and clever effort: In fact, Apple’s canary disappeared in the report following the one where it debuted. No one is sure what it means. Jeff John Roberts (18 Sep 2014), “Apple’s ‘warrant canary’ disappears, suggesting new Patriot Act demands,” Gigaom, https://gigaom.com/2014/09/18/apples-warrant-canary-disappears-suggesting-new-patriot-act-demands. many companies are stepping up: The Electronic Frontier Foundation is keeping a scorecard.


pages: 321 words: 92,828

Late Bloomers: The Power of Patience in a World Obsessed With Early Achievement by Rich Karlgaard

Airbnb, Albert Einstein, Amazon Web Services, Apple's 1984 Super Bowl advert, Bernie Madoff, Bob Noyce, Brownian motion, Captain Sullenberger Hudson, cloud computing, cognitive dissonance, Daniel Kahneman / Amos Tversky, deliberate practice, Electric Kool-Aid Acid Test, Elon Musk, en.wikipedia.org, experimental economics, fear of failure, financial independence, follow your passion, Frederick Winslow Taylor, hiring and firing, Internet of things, Isaac Newton, Jeff Bezos, job satisfaction, knowledge economy, labor-force participation, longitudinal study, low skilled workers, Mark Zuckerberg, meta analysis, meta-analysis, Moneyball by Michael Lewis explains big data, move fast and break things, move fast and break things, pattern recognition, Peter Thiel, Sand Hill Road, science of happiness, shareholder value, Silicon Valley, Silicon Valley startup, Snapchat, Steve Jobs, Steve Wozniak, theory of mind, Tim Cook: Apple, Toyota Production System, unpaid internship, upwardly mobile, women in the workforce, working poor

Michael Jordon and Magic Johnson: Michael Jordan owns approximately 90 percent of the NBA team the Charlotte Hornets. Magic Johnson heads a group that bought Major League Baseball’s Los Angeles Dodgers from Frank McCourt for $2 billion. most recent Forbes list: “Forbes Releases 2018 List of America’s Richest Self-Made Women, a Ranking of the Successful Women Entrepreneurs in the Country,” Forbes, July 11, 2018, https://bit.ly/​2NI4zje. Apple CEO: Tim Cook, “Tim Cook Speaks Up,” Bloomberg, October 30, 2014. attitudes toward diversity: Gary R. Hicks and Tien-Tsung Lee, “Public Attitudes Toward Gays and Lesbians: Trends and Predictors,” Journal of Homosexuality 51, no. 2 (2006): 57–77; Andrew Markus, “Attitudes to Multiculturalism and Cultural Diversity,” in Multiculturalism and Integration: A Harmonious Relationship, ed. James Jupp and Michael Clyne (Canberra: ANU E Press, 2011).

Prominent African Americans like Michael Jordan and Magic Johnson aren’t just former athletes, they’re now team owners. The most recent Forbes list of “America’s Richest Self-Made Women” includes seventeen billionaires, with businesses ranging from roofing to trucking to retail. Same-sex marriage is now a federally mandated constitutional right in all fifty states, and high-profile business leaders like Apple CEO Tim Cook openly identify as gay. And even though we’ve lately taken a step back as a society in terms of public and political tolerance, polls confirm that over recent decades, attitudes toward diversity in education and the workplace, gender equality, and same-sex marriage have shifted steadily. This growing sense of social acceptance has stretched to include personal style, unusual interests, and radical identity politics.

Exceptionally gifted, Holmes was also exceptionally driven. Her business hero was Steve Jobs, the prodigy who cofounded Apple and later led it to glory. She quickly adopted Jobs’s tropes and mannerisms. She wore black turtlenecks. She steepled her hands. Her slow-blinking stare, it was said, could bore holes through your eye sockets. She also took on Jobs’s less admirable traits. She ran Theranos like a police state, obsessed with preventing employees from talking about their work with each other. She became a master at employing Jobs’s “reality distortion field”—a fictional narrative about her own genius and wondrous Theranos products that were unyielding to the facts. Jobs was only twenty-one when he cofounded Apple, and twenty-five when Apple first sold its stock to the public, making Jobs a young celebrity and centi-millionaire.


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Busy by Tony Crabbe

airport security, British Empire, business process, cognitive dissonance, Daniel Kahneman / Amos Tversky, fear of failure, Frederick Winslow Taylor, haute cuisine, informal economy, inventory management, Isaac Newton, job satisfaction, knowledge worker, Lao Tzu, loss aversion, low cost airline, meta analysis, meta-analysis, Milgram experiment, placebo effect, Richard Feynman, Rubik’s Cube, Saturday Night Live, science of happiness, Shai Danziger, Thorstein Veblen, Tim Cook: Apple

Kjell Nordström and Jonas Ridderstrale, Karaoke Capitalism (New York: Financial Times Prentice Hall, 2004). 6. Cited by Susan Adams, “The Test That Measures a Leader’s Strengths,” Forbes.com (August 28, 2009), http://www.forbes.com/2009/08/28/strengthsfinder-skills-test-leadership-managing-jobs.html. 7. Quoted by Dan Frommer, “Apple COO Tim Cook: ‘We Have No Interest In Being In The TV Market,’” Business Insider (February 23, 2010), http://www.businessinsider.com/live-apple-coo-tim-cook-at-the-goldman-tech-conference-2010-2. 8. Robert S. Kaplan and David P. Norton, “The Balanced Scorecard: Measures That Drive Performance,” Harvard Business Review 83 (July–August 2005): 172–80. 9. M. Baghai, S. Coley, and D. White, The Alchemy of Growth, (New York: Basic Books, 2000). 10. D. S. Kirschenbaum, L. L. Humphrey, and S.

Less Is More We are the most focused company that I know of or have read of or have any knowledge of. We say “no” to good ideas every day. We say “no” to great ideas in order to keep the amount of things we focus on very small in number so that we can put enormous energy behind the ones we choose.7 —Tim Cook, Apple CEO Succeeding in a world of too much is not about producing “more”; in fact, it is about doing less, better and with more impact. It’s about focusing on fewer, bigger things with enormous energy. Like Apple. Here are some practical tactics to help you to do this. Do the Big Stuff First There is a little experiment Stephen Covey used to do with rocks, gravel and sand. You take a big jug and fill it with big rocks. When you can’t get any more in, you add the pebbles until you can add no more.

“Sexy” means producing a product or service that has an emotional appeal—that stands out from the crowd because it is cooler, more desirable. Product-based positioning can come from either strategy. Henkel, the German company, invented the glue stick to allow people to easily and cleanly glue paper. Henkel released Pritt Stick in 1969, which fit a need (we didn’t know we had) in schools and offices; by 2001 they were being sold in 121 countries. Apple is the obvious example of sexy. At the time iPods were becoming dominant, there were many other MP3 players, but none were so cool. It’s about doing very few things really well, so that they stand out from the competition in a crowded market. How could you differentiate yourself through what you do? What capabilities or areas of expertise could you develop that would truly set you apart? What service could you develop or offer that uniquely fits a specific need in your organization or market, or that’s just downright “sexy”?


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Platform Revolution: How Networked Markets Are Transforming the Economy--And How to Make Them Work for You by Sangeet Paul Choudary, Marshall W. van Alstyne, Geoffrey G. Parker

3D printing, Affordable Care Act / Obamacare, Airbnb, Alvin Roth, Amazon Mechanical Turk, Amazon Web Services, Andrei Shleifer, Apple's 1984 Super Bowl advert, autonomous vehicles, barriers to entry, big data - Walmart - Pop Tarts, bitcoin, blockchain, business cycle, business process, buy low sell high, chief data officer, Chuck Templeton: OpenTable:, clean water, cloud computing, connected car, corporate governance, crowdsourcing, data acquisition, data is the new oil, digital map, discounted cash flows, disintermediation, Edward Glaeser, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, financial innovation, Haber-Bosch Process, High speed trading, information asymmetry, Internet of things, inventory management, invisible hand, Jean Tirole, Jeff Bezos, jimmy wales, John Markoff, Khan Academy, Kickstarter, Lean Startup, Lyft, Marc Andreessen, market design, Metcalfe’s law, multi-sided market, Network effects, new economy, payday loans, peer-to-peer lending, Peter Thiel, pets.com, pre–internet, price mechanism, recommendation engine, RFID, Richard Stallman, ride hailing / ride sharing, Robert Metcalfe, Ronald Coase, Satoshi Nakamoto, self-driving car, shareholder value, sharing economy, side project, Silicon Valley, Skype, smart contracts, smart grid, Snapchat, software is eating the world, Steve Jobs, TaskRabbit, The Chicago School, the payments system, Tim Cook: Apple, transaction costs, Travis Kalanick, two-sided market, Uber and Lyft, Uber for X, uber lyft, winner-take-all economy, zero-sum game, Zipcar

Charles Duhigg, “How Companies Learn Your Secrets,” New York Times, February 16, 2012, http://www.nytimes.com/2012/02/19/magazine/shopping-habits.html?pagewanted=all. 18. Wade Roush, “The Story of Siri, from Birth at SRI to Acquisition by Apple—Virtual Personal Assistants Go Mobile,” xconomy, June 14, 2010, http://www.xconomy.com/san-francisco/2010/06/14/the-story-of-siri-from-birth-at-sri-to-acquisition-by-apple-virtual-personal-assistants-go-mobile/?single_page=true. 19. “A letter from Tim Cook on Maps,” Apple, http://www.apple.com/letter-from-tim-cook-on-maps/. 20. Amadeo, “Google’s Iron Grip on Android.” CHAPTER 8: GOVERNANCE 1. Josh Dzieza, “Keurig’s Attempt to DRM Its Coffee Cups Totally Backfired,” The Verge, February 5, 2015, http://www.theverge .com/2015/2/5/7986327/keurigs-attempt-to-drm-its-coffee-cups-totally-backfired. 2.

The new app misclassified nurseries as airports and cities as hospitals, suggested driving routes that passed over open water (your car had better float!), and even stranded unwary travelers in an Australian desert a full seventy kilometers from the town they expected to find there. iPhone users erupted in howls of protest, the media had a field day lampooning Apple’s misstep, and CEO Tim Cook had to issue a public apology.19 Apple accepted the bad publicity, likely reasoning that it could quickly improve its mapping service to an acceptable quality level—and this is essentially what has happened. The iPhone platform is no longer dependent on Google for mapping technology, and Apple has control over the mapping application as a source of significant value. Second, if particular functionality is reinvented by a number of extension developers and gains widespread acceptance by platform users, the manager of the platform should acquire the functionality and make it available through an open API.

In 2012, Google Maps had become the premier provider of mapping services and location data for mobile phone users. It was a popular feature on Apple’s iPhone. However, with more consumer activity moving to mobile devices and becoming increasingly integrated with location data, Apple realized that Google Maps was becoming a significant threat to the long-term profitability of its mobile platform. There was a real possibility that Google could make its mapping technology into a separate platform, offering valuable customer connections and geographic data to merchants, and siphoning this potential revenue source away from Apple. Apple’s decision to create its own mapping app to compete with Google Maps made sound strategic sense—despite the fact that the initial service was so poorly designed that it caused Apple significant public embarrassment. The new app misclassified nurseries as airports and cities as hospitals, suggested driving routes that passed over open water (your car had better float!)


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Loonshots: How to Nurture the Crazy Ideas That Win Wars, Cure Diseases, and Transform Industries by Safi Bahcall

accounting loophole / creative accounting, Albert Einstein, Apple II, Apple's 1984 Super Bowl advert, Astronomia nova, British Empire, Cass Sunstein, Charles Lindbergh, Clayton Christensen, cognitive bias, creative destruction, disruptive innovation, diversified portfolio, double helix, Douglas Engelbart, Douglas Engelbart, Edmond Halley, Gary Taubes, hypertext link, invisible hand, Isaac Newton, Johannes Kepler, Jony Ive, knowledge economy, lone genius, Louis Pasteur, Mark Zuckerberg, Menlo Park, Mother of all demos, Murray Gell-Mann, PageRank, Peter Thiel, Philip Mirowski, Pierre-Simon Laplace, prediction markets, pre–internet, Ralph Waldo Emerson, RAND corporation, random walk, Richard Feynman, Richard Thaler, side project, Silicon Valley, six sigma, Solar eclipse in 1919, stem cell, Steve Jobs, Steve Wozniak, the scientific method, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, Tim Cook: Apple, tulip mania, Wall-E, wikimedia commons, yield management

He had learned to nurture both types of loonshots: P-type and S-type. He had separated his phases: the studio of Jony Ive, Apple’s chief product designer, who reported only to Jobs, became “as off-limits as Los Alamos during the Manhattan Project.” He had learned to love both artists and soldiers: it was Tim Cook who was groomed to succeed him as CEO. Jobs tailored the tools to the phase and balanced the tensions between new products and existing franchises in ways that have been described in many books and articles written about Apple. He had learned to be a gardener nurturing loonshots, rather than a Moses commanding them. “The whole notion of how you build a company is fascinating,” Jobs told his biographer, Walter Isaacson. “I discovered that the best innovation is sometimes the company, the way you organize.” Jobs arrived at the same conclusion that the military historian James Phinney Baxter did half a century earlier, reflecting on the success of Bush’s system in turning the course of World War II: “If a miracle had been accomplished anywhere along the line,” Baxter wrote, “it was in the field of organization, where conditions had been created under which success was more likely to be achieved in time.”

Steve Wozniak, Apple’s cofounder along with Jobs, who was working on the Apple II franchise, left, along with other critical employees; the Mac launch failed commercially; Apple faced severe financial pressure; Jobs was exiled; and John Sculley took over (eventually rescuing the Mac and restoring financial stability). When Jobs returned twelve years later, he had learned to love his artists (Jony Ive) and soldiers (Tim Cook) equally. Although equal-opportunity respect is a rare skill by nature, it can be nurtured with practice (more on this in chapter 5). Manage the transfer, not the technology Bush, although a brilliant inventor and engineer, pointedly stayed out of the details of any one loonshot. “I made no technical contribution whatever to the war effort,” he wrote. “Not a single technical idea of mine ever amounted to shucks. At times I have been called an ‘atomic scientist.’ It would be fully as accurate to call me a child psychologist.” Vail similarly stayed out of the details of the technical program. Both Bush and Vail saw their jobs as managing the touch and the balance between loonshots and franchises—between scientists exploring the bizarre and soldiers assembling munitions; between the blue-sky research of Bell Labs and the daily grind of telephone operations.

Elevating Jobs first to interim CEO in mid-1997 and then to full-time CEO in early 1998 was viewed as a Hail Mary play, and one with a particularly small chance of saving the company. The many failed promises of NeXT had reduced Jobs’s credibility as a technology leader in the eyes of industry analysts and observers. When Jobs finally took over, gone was the dismissive attitude toward soldiers. In March 1998, he hired Tim Cook, known as the “Attila the Hun of inventory,” from Compaq to run operations. Also gone were the blinders to S-type loonshots. For example, by 2001 music piracy on the internet was rampant. The idea of an online store selling what could easily be downloaded for free seemed absurd. And no one sold music online that customers could keep on their own computers (online music, at the time, was available only through subscription: monthly fees for streaming songs).


pages: 56 words: 16,788

The New Kingmakers by Stephen O'Grady

AltaVista, Amazon Web Services, barriers to entry, cloud computing, correlation does not imply causation, crowdsourcing, David Heinemeier Hansson, DevOps, Jeff Bezos, Khan Academy, Kickstarter, Marc Andreessen, Mark Zuckerberg, Netflix Prize, Paul Graham, Ruby on Rails, Silicon Valley, Skype, software as a service, software is eating the world, Steve Ballmer, Steve Jobs, Tim Cook: Apple, Y Combinator

Even its forgotten desktop business is showing steady if unspectacular growth. There are many factors contributing to Apple’s remarkable success, from the brilliance of the late Steve Jobs to the supply chain sophistication of current CEO Tim Cook. And of course, Apple’s success is itself fueling more success. In the tablet market, for example, would-be competitors face not only the daunting task of countering Apple’s unparalleled hardware and software design abilities, but the economies of scale that allow Apple to buy components more cheaply than anyone else. The perfect storm of Apple’s success is such that some analysts are forecasting that it could become the world’s first trillion-dollar company. Lost in the shuffle has been the role of developers in Apple’s success. But while the crucial role played by Apple’s developers in the company’s success might be lost on the mainstream media, it is not lost on Apple itself.

Here are five businesses that, in at least one area, understood the importance of developers and engaged appropriately. Apple In August 2011, a month after reporting record earnings, Apple surpassed Exxon as the world’s biggest company by market capitalization. This benchmark was reached in part because of fluctuations in oil price that affected Exxon’s valuation, but there’s little debate that Apple is ascendant. By virtually any metric, Steve Jobs’s second tenure at Apple has turned into one of the most successful in history, in any industry. Seamlessly moving from hit product to hit product, the Apple of 2012 looks nothing like the Apple of the late nineties, when Dell CEO Michael Dell famously suggested that Apple should be shut down, to “give the money back to the shareholders.” It is no longer the leader in smartphone shipments, but according to independent analyst Horace Dediu, Apple regularly collects two-thirds of the industry’s total available mobile phone profits.

An iPhone or iPad user contemplating a switch would have to evaluate whether they can get all of the same applications on a competitive platform, then decide whether they’re willing to purchase the commercial apps a second time for a different platform. Apple has, with its success, created a virtuous cycle that will continue to reward it for years to come. Developers are attracted to its platform because of the size of the market…those developers create thousands of new applications…the new applications give consumers thousands of additional reasons to buy Apple devices rather than the competition…and those new Apple customers give even more developers reason to favor Apple. Apple not only profits from this virtuous cycle, it benefits from ever-increasing economies of scale, realizing lower component costs than competitors. None of which would be possible without the developers Apple has recruited and, generally, retained. Amazon Web Services The company that started the cloud computing craze was founded in 1994 as a bookstore.


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Thinking Machines: The Inside Story of Artificial Intelligence and Our Race to Build the Future by Luke Dormehl

Ada Lovelace, agricultural Revolution, AI winter, Albert Einstein, Alexey Pajitnov wrote Tetris, algorithmic trading, Amazon Mechanical Turk, Apple II, artificial general intelligence, Automated Insights, autonomous vehicles, book scanning, borderless world, call centre, cellular automata, Claude Shannon: information theory, cloud computing, computer vision, correlation does not imply causation, crowdsourcing, drone strike, Elon Musk, Flash crash, friendly AI, game design, global village, Google X / Alphabet X, hive mind, industrial robot, information retrieval, Internet of things, iterative process, Jaron Lanier, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, John von Neumann, Kickstarter, Kodak vs Instagram, Law of Accelerating Returns, life extension, Loebner Prize, Marc Andreessen, Mark Zuckerberg, Menlo Park, natural language processing, Norbert Wiener, out of africa, PageRank, pattern recognition, Ray Kurzweil, recommendation engine, remote working, RFID, self-driving car, Silicon Valley, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, social intelligence, speech recognition, Stephen Hawking, Steve Jobs, Steve Wozniak, Steven Pinker, strong AI, superintelligent machines, technological singularity, The Coming Technological Singularity, The Future of Employment, Tim Cook: Apple, too big to fail, Turing machine, Turing test, Vernor Vinge, Watson beat the top human players on Jeopardy!

Get Ready for the Internet to Disappear In January 2015, Google’s executive chairman Eric Schmidt caused a stir while speaking at the World Economic Forum in Davos, Switzerland. Asked about his predictions for the future of the Web, Schmidt said, ‘I will answer very simply that the Internet will disappear.’ There was, of course, nothing simple about this answer. Upon first listen, it was a bit like Apple CEO Tim Cook telling people that they should put down the smartphones and have a face-to-face conversation with friends, or a movie studio boss saying that cinema is stuck in a rut and people ought to spend their time reading books or going for walks. In reality, Schmidt was saying nothing of the kind. Instead, he was making an observation about what has happened to technology in recent years as it has become both smaller and more pervasive.

‘Uh, sorry, you guys aren’t ready for that,’ he apologises. ‘But your kids are gonna love it.’ The sounds of classic rock and roll – which extrapolated ideas from the rhythm and blues music of the 1940s – make sense to a 1955 audience. Heavy metal music, which did the same to ideas from 1960s and 70s rock music, made no sense. However, the act of simply combining ideas by themselves is not necessarily creative, even if the result is novel. As Apple’s CEO Tim Cook has said about unnecessary invention, ‘You can converge a toaster and a refrigerator, but you know those things are not going to probably be pleasing to the user.’ One of my favourite movies of all time is a film by Robert Altman called The Player, a satire on Hollywood and its sometimes lack of creativity. Throughout The Player, a running joke is the lazy shorthand descriptions that Hollywood insiders use to describe the different projects they are working on, which are always billed as ‘Movie A meets Movie B’, with each referring to an existing popular hit.

However, as AI becomes a larger part of all our lives, a number of companies have started emphasising – rather than downplaying – the role humans have to play in their systems. Like Google, Facebook and other tech companies, Apple has competed fiercely to hire AI experts in recent years. According to a former Apple employee, the company’s number of machine learning experts has tripled or quadrupled in the past several years. As with these other companies, Apple uses humans as part of its largely AI-driven services. However, unlike the other companies, Apple presents its human workers as a selling point; not simply as a stand-in for the bits of its technology which don’t quite work properly yet. When Apple introduced its much-anticipated Apple Music streaming service in June 2015, one of its most heavily advertised features was its reliance on humans with specialist music knowledge to curate playlists.


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Evil by Design: Interaction Design to Lead Us Into Temptation by Chris Nodder

4chan, affirmative action, Amazon Mechanical Turk, cognitive dissonance, crowdsourcing, Daniel Kahneman / Amos Tversky, Donald Trump, en.wikipedia.org, endowment effect, game design, haute couture, jimmy wales, Jony Ive, Kickstarter, late fees, loss aversion, Mark Zuckerberg, meta analysis, meta-analysis, Milgram experiment, Netflix Prize, Nick Leeson, Occupy movement, pets.com, price anchoring, recommendation engine, Rory Sutherland, Silicon Valley, Stanford prison experiment, stealth mode startup, Steve Jobs, telemarketer, Tim Cook: Apple, trickle-down economics, upwardly mobile

Use pre-persuasion. Apple often shies away from direct technical comparison with competitors. Indeed, CEO Tim Cook said, “[Product specifications] are the things tech companies invent because they can’t provide a great experience.” Instead, the company bypasses this rational comparison. Apple marketing normally makes performance comparisons only to previous versions of the same Apple product, and instead redirects by providing aesthetic and emotional (metaphysical) comparisons to competitor products. 8. Frequently use heuristics and commonplaces. Some of the widely accepted statements that Apple has adopted include “Quality is never cheap,” “You are paying for good design,” “It’s easy to use,” and “Think different.” 9. Attack opponents. This is one technique that Apple doesn’t tend to openly employ.

“The Scientific Impotence Excuse: Discounting Belief-Threatening Scientific Abstracts.” Journal of Applied Social Psychology 40 (2010): 579–600. Pratkanis’ techniques: Anthony R. Pratkanis. “How to Sell a Pseudoscience.” Skeptical Inquirer T9 (1995). Tim Cook quote: Goldman Sachs Technology and Internet conference, February 12, 2013. BBC Superbrands documentary: Alex Riley and Adam Boome. “Superbrands' success fuelled by sex, religion and gossip” BBC (bbc.co.uk). May 16, 2011. Retrieved December 2012. Kirsten Bell’s observations: Francie Diep. “Why Apple Is the New Religion.” TechNewsDaily (technewsdaily.com). Oct 23 2012. Retrieved December 2012. Apple as religion: Pui-Yan Lam. “May the Force of the Operating System be with You: Macintosh Devotion as Implicit Religion.” Sociology of Religion 62:2 (2001): 243–262. Every iKeynote ever comic: Ray, Raf, and Will.

The newer influx of Apple users may have diluted the original fervor of Mac devotees, but it’s still possible to see rationalization at work just by starting a discussion of the relative value-per-dollar of Apple computers versus generic PCs. 3. Manufacture source credibility and sincerity. Steve Jobs, the now-deceased father of Apple, has been replaced by head designer Jony Ive as the spiritual leader of the Apple clan. 4. Establish a granfalloon. Enter any Apple store to see ritual, symbolism, and feelings at work creating a feeling of belonging for the in-group of Apple users. Door greeters might as well be saying, “Welcome home.” 5. Use self-generated persuasion. Apple fans are the company’s best salespeople. Hype and limited initial availability lead to total strangers asking early adopters how they like their new toy. It’s unlikely these avid fans are going to say, “I hate it!” 6. Construct vivid appeals.


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Everydata: The Misinformation Hidden in the Little Data You Consume Every Day by John H. Johnson

Affordable Care Act / Obamacare, Black Swan, business intelligence, Carmen Reinhart, cognitive bias, correlation does not imply causation, Daniel Kahneman / Amos Tversky, Donald Trump, en.wikipedia.org, Kenneth Rogoff, labor-force participation, lake wobegon effect, Long Term Capital Management, Mercator projection, Mercator projection distort size, especially Greenland and Africa, meta analysis, meta-analysis, Nate Silver, obamacare, p-value, PageRank, pattern recognition, publication bias, QR code, randomized controlled trial, risk-adjusted returns, Ronald Reagan, selection bias, statistical model, The Signal and the Noise by Nate Silver, Thomas Bayes, Tim Cook: Apple, wikimedia commons, Yogi Berra

Mathews, “Leisure Time Physical Activity and Mortality,” JAMA Internal Medicine, published online April 6, 2015, doi:10.1001/jamainternmed.2015.0533. 11. Nathan Yau, “Fox News Makes the Best Pie Chart. Ever,” Flowing Data website, accessed August 4, 2015. http://flowingdata.com/2009/11/26/fox-news-makes-the-best-pie-chart-ever/. The pie chart was aired on Fox Chicago, and the source was given as Opinion Dynamics. 12. David Yanofsky, “The Chart Tim Cook Doesn’t Want You to See,” Quartz website, September 10, 2013, http://qz.com/122921/the-chart-tim-cook-doesnt-want-you-to-see/. 13. For a stunning look at how data can be captured, check out www.dear-data.com—“a year-long, analog data drawing project” by two extremely talented information designers: Giorgia Lupi and Stefanie Posavec, “Dear Data,” accessed June 7, 2015, http://www.dear-data.com/. 14. “American Time Use,” Bureau of Labor Statistics website, http://data.bls.gov/cgi-bin/surveymost?

Weighting can be a valid statistical tool if done correctly—but you need to know if, and how, it’s happening in order to be a smart consumer of data. 5. Finally, identify outliers, and understand the impact they can have on your average. Some outliers are perfectly valid parts of the data set. Other times, it makes sense to exclude extreme examples in order to get a fair answer to the question you’re asking. One bad apple can spoil the bunch, as they say. Not every outlier is a bad apple—but an outlier can skew your results in a way you need to be aware of.46 4 Are You Smarter Than an iPhone-Using, Radiohead-Loving Republican? Understanding Correlation Versus Causation As any self-respecting parent will tell you, there’s a lot of pressure to make sure little Susie and Johnny are smarter than their classmates. That’s why we make our kids take gifted assessments, start them in training classes at an early age (contributing to the $54+ billion market worldwide for test preparation, tutoring, and counseling),1 and enroll them in every type of program imaginable.

For example, Starbucks chief creative officer and president of Global Innovation and Evolution Fresh Retail (and former director of real estate) Arthur Rubinfeld has written an entire book on how everyday franchisees can learn the lessons of Starbucks with respect to site selection; his secrets include looking for oil stains in the parking lot (a sign that there’s lots of traffic).18 Maybe a Starbucks location is more likely to have sidewalks, and people like living where there are sidewalks. Maybe every time a Starbucks opens, an Apple Store opens next door—and that’s what is driving the rise in real estate prices. We don’t know. And that’s the point. OMITTED VARIABLES All of these factors—town centers, sidewalks, Apple Stores—are possible omitted variables. An omitted variable is one of the primary reasons why correlation doesn’t equal causation. Remember when we talked about bivariate relationships—relationships between two variables? The problem is that often there are more than two variables. You have a relationship between two variables (also known as dependence), but there’s actually a third variable that matters as well.


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Company of One: Why Staying Small Is the Next Big Thing for Business by Paul Jarvis

Airbnb, big-box store, Cal Newport, call centre, corporate social responsibility, David Heinemeier Hansson, effective altruism, Elon Musk, en.wikipedia.org, endowment effect, follow your passion, gender pay gap, glass ceiling, Inbox Zero, index fund, job automation, Kickstarter, Lyft, Mark Zuckerberg, Naomi Klein, passive investing, Paul Graham, pets.com, remote working, Results Only Work Environment, ride hailing / ride sharing, Ruby on Rails, side project, Silicon Valley, Skype, Snapchat, software as a service, Steve Jobs, supply-chain management, Tim Cook: Apple, too big to fail, uber lyft, web application, Y Combinator, Y2K

Petitions and boycotts quickly went up online, with thousands of ex-customers, feeling betrayed by the change in the core values on which Daiya had been founded, signing on within days of the announcement. Several retailers, like Portland’s Food Fight and Brooklyn’s Orchard Grocer, stopped selling Daiya immediately. Within hours, over 6,000 people signed a petition to boycott the brand. Bear in mind that Daiya is not just an isolated incident. When Apple released its bug-filled maps software, CEO Tim Cook had to issue a public apology. When United Airlines yanked a customer from his paid-for seat, the internet exploded, and United stock plummeted by a market value of about $1 billion. When Nivea staged an ill-conceived “White Is Purity” campaign that was quickly embraced by white supremacy groups (not their target audience), the company saw a huge backlash from consumers who felt that the ad was overtly racist.

., not pitching them products they’ve already purchased), and working to be the best at what you offer. Next, customers need to admire your “whole person”—not just how you act when you’re trying to sell them something. What charities do you support? How do you act outside of work? With everyone sharing everything on social media, your entire life is available to anyone with access to Google. CEOs are sharing the news when their own babies are born (like Mark Zuckerberg or Marissa Mayer). Tim Cook, an incredibly private man, shared an essay about being gay and campaigns against anti-transgender laws. Customers admire businesses that feel and act similarly to them. Admiration develops when you do this well, and once you have their admiration, customers develop an interest in your success and accomplishments instead of a sense of resentment or jealousy. Finally, it’s important that you maintain the relationship over time, even with customers who haven’t financially supported your business in a while with a purchase.

As a small business or one that isn’t aiming to grow rapidly, you can use polarization to provide an avenue for reaching your potential audience—without massive advertising spends or paid user acquisition—by getting people talking. Think back to before Apple was a monolith in the tech industry, when it was a tiny company going up against the giant IBM. In a now-famous Apple television advertisement—an homage to George Orwell’s classic book 1984—a hero battles against conformity and “Big Brother.” The ad was so controversial and different from all the other ads at the time that all the cable news outlets picked it up after it first aired and re-aired it for free as a news story. By being different, Apple ended up selling $3.5 million worth of its new Macintoshes just after the ad first ran. In my own business, the stance I take on business and even social issues puts some people off.


pages: 302 words: 80,287

When the Wolves Bite: Two Billionaires, One Company, and an Epic Wall Street Battle by Scott Wapner

activist fund / activist shareholder / activist investor, asset allocation, Bernie Madoff, corporate governance, corporate raider, Credit Default Swap, Mark Zuckerberg, Ponzi scheme, price discrimination, Ronald Reagan, short selling, Silicon Valley, Tim Cook: Apple, unbiased observer

In a little more than six months, Cheniere shares lost 50 percent of their value from where Icahn had bought in. Investments in Freeport-McMoRan and Hertz had also fallen hard. Even Icahn’s top horse, Apple, which had been a home-run investment, hadn’t been cooperating lately. Icahn had revealed the position back in August 2013 when he tweeted, “We currently have a large position in APPLE. We believe the company to be extremely undervalued. Spoke to Tim Cook today. More to come.” The news had sent Wall Street into a full-fledged frenzy. Apple wasn’t just any stock; it was the market’s crown jewel and the biggest company on Earth by market cap. Back in September 2012, shares had hit an all-time intraday high of $705, but had recently fallen on hard times as investors began to worry about Apple’s margins and the pace of iPhone sales. By January 2013, shares had fallen more than 35 percent from those highs, including a 12 percent plunge in a single day.59 Headlines even began talking about Apple’s stock as a “bubble.”60 By February, shares had lost a third of their value from the top and didn’t look ready to stop anytime soon.

By January 2013, shares had fallen more than 35 percent from those highs, including a 12 percent plunge in a single day.59 Headlines even began talking about Apple’s stock as a “bubble.”60 By February, shares had lost a third of their value from the top and didn’t look ready to stop anytime soon. By the time the summer rolled around, Icahn had clearly seen enough and stepped in. Shares quickly rallied 5 percent on the news of his position to $489.57, the highest level they’d been in six months. Trading volume spiked more than 300 percent as investors rushed to grab hold of Icahn’s coattails. Four minutes later, Icahn sent a second tweet that read, “Had a nice conversation with [CEO] Tim Cook today. Discussed my opinion that a larger buyback should be done now. We plan to speak again shortly.” Icahn had called Cook before going public out of respect for the CEO and to give him a head’s up about what was about to hit the tape.

Believe we’ll also be happy when we see new products,” Icahn said in a tweet.61 That summer, shares topped $600 as the company—which looked on its way toward becoming the first business to top $700 billion in market cap—continued to make Icahn happy by buying back shares in huge numbers. By December, Apple had spent the most of any company in the S&P 500 on the move, according to FactSet, which tracks such data.62 Apple shares would close the year up more than 40 percent, scoring Icahn and other company shareholders a windfall. Icahn had even grander ambitions. On May 18, 2015, with shares trading near $130 apiece because of the split, Icahn sent another letter to Cook, only this time the correspondence came with a stunning prediction of how high shares could trade. “After reflecting upon Apple’s tremendous success, we now believe Apple shares are worth $240 today,” he wrote. Apple shares ended the day up 1 percent at $130.19, adding more than $8 billion in market cap. Though Icahn’s Apple trade was shaping up to be one of the greatest investments ever—he’d made $3.4 billion since first buying it—2015 was a letdown.


pages: 239 words: 80,319

Lurking: How a Person Became a User by Joanne McNeil

4chan, A Declaration of the Independence of Cyberspace, Ada Lovelace, Airbnb, AltaVista, Amazon Mechanical Turk, Burning Man, Chelsea Manning, Chris Wanstrath, citation needed, cloud computing, crowdsourcing, delayed gratification, dematerialisation, don't be evil, Donald Trump, drone strike, Edward Snowden, Elon Musk, feminist movement, Firefox, Google Earth, Google Glasses, Google Hangouts, helicopter parent, Internet Archive, invention of the telephone, Jeff Bezos, jimmy wales, l'esprit de l'escalier, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, means of production, Menlo Park, moral panic, move fast and break things, move fast and break things, Network effects, packet switching, PageRank, pre–internet, profit motive, QAnon, recommendation engine, Saturday Night Live, Shoshana Zuboff, Silicon Valley, slashdot, Snapchat, social graph, Stephen Hawking, Steve Jobs, Steven Levy, Stewart Brand, technoutopianism, Ted Nelson, Tim Cook: Apple, trade route, Turing complete, We are the 99%, web application, white flight, Whole Earth Catalog

Amazon, with its books-to-Mars trajectory, demonstrates the limitlessness of American avarice and exploitation, while for libraries to offer not only books but also suit jackets and bicycles upholds in perfect opposition the limitless spirit of compassion and generosity to those in need—a spirit that is curtailed only by the reality of municipal budgets. Apple has even set up shop in an old library. You can upgrade your phone at the Apple Carnegie Library in Washington, D.C., which opened in 2019. As Tim Cook announced, the company will “continue the legacy of this beautiful building as a place where people seek knowledge and a sense of community.” Once it was home to ninety-five thousand volumes; now a customer can purchase a laptop there for three thousand dollars. Then again, there’s a reason why it wasn’t called the Central Public Library when Apple took over. Its very name—Apple Carnegie Library—demonstrates a problem older than the personal computer. The differences between libraries and Google or Facebook are more subtle than the differences between libraries and Apple Stores. Libraries do not have customers; they have patrons.

From Utopian Space Colonies to Dissing Elon Musk’s Martian Dream, Here Are the Most Notable Things He Said,” February 23, 2019). Tim Cook’s announcement about the Apple Carnegie Library comes from a post to his Twitter account on May 1, 2019. The library held ninety-five thousand volumes according to The Washington Post (Judith Valente, “UDC Opens $4.2 Million Library, But Its Campus Not Likely to Be Built,” December 11, 1980). Andrew Carnegie’s philanthropy “was certainly not unimpeachable—it was often warped by his own ego and eccentricity—but we don’t need to idealize it in order to admire elements of it, especially his library campaign,” Benjamin Soskis wrote in a piece about the complicated history of the library for Boston Review (“Apple’s Newest Store and the Perverse Logic of Philanthro-Capitalism,” May 21, 2019). “Nothing about us without us” is a recommendation in a 2018 report, “#MoreThanCode: Practitioners Reimagine the Landscape of Technology for Justice and Equity,” produced by the Research Action Design and the Open Technology Institute (Sasha Costanza-Chock, Maya Wagoner, Berhan Taye, Caroline Rivas, Chris Schweidler, Georgia Bullen, and the T4SJ Project, 2018.

The internet realm and the world outside your phone were—while not quite one and the same—interleaved, entwined, mutually dependent. * * * Around the time of its first smartphone launch in 2007, it was possible, if unwise, to talk about Apple as an underdog, and adopt the corporation’s own narrative, a holdover since its famous 1984-inspired Super Bowl commercial, directed by Ridley Scott, featuring a spry bleached blonde racing to attack “Big Brother” with a sledgehammer. In 2007, Apple was ranked 367 on Fortune’s Global 500. Ten years later, it was ninth on the list (between Berkshire Hathaway and Exxon Mobil). With the iPhone, Apple was off to the races: in 2010, Apple sold almost forty million devices, and by 2014, sales were just shy of 170 million. Now the figure is north of two hundred million new Apple phones each year. The company, unique for its fastidious design-first approach to product, developed a near universally acclaimed gadget, both in function and appearance—a totem, a scrying mirror for the twenty-first century.


pages: 340 words: 97,723

The Big Nine: How the Tech Titans and Their Thinking Machines Could Warp Humanity by Amy Webb

Ada Lovelace, AI winter, Airbnb, airport security, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, artificial general intelligence, Asilomar, autonomous vehicles, Bayesian statistics, Bernie Sanders, bioinformatics, blockchain, Bretton Woods, business intelligence, Cass Sunstein, Claude Shannon: information theory, cloud computing, cognitive bias, complexity theory, computer vision, crowdsourcing, cryptocurrency, Daniel Kahneman / Amos Tversky, Deng Xiaoping, distributed ledger, don't be evil, Donald Trump, Elon Musk, Filter Bubble, Flynn Effect, gig economy, Google Glasses, Grace Hopper, Gödel, Escher, Bach, Inbox Zero, Internet of things, Jacques de Vaucanson, Jeff Bezos, Joan Didion, job automation, John von Neumann, knowledge worker, Lyft, Mark Zuckerberg, Menlo Park, move fast and break things, move fast and break things, natural language processing, New Urbanism, one-China policy, optical character recognition, packet switching, pattern recognition, personalized medicine, RAND corporation, Ray Kurzweil, ride hailing / ride sharing, Rodney Brooks, Rubik’s Cube, Sand Hill Road, Second Machine Age, self-driving car, SETI@home, side project, Silicon Valley, Silicon Valley startup, skunkworks, Skype, smart cities, South China Sea, sovereign wealth fund, speech recognition, Stephen Hawking, strong AI, superintelligent machines, technological singularity, The Coming Technological Singularity, theory of mind, Tim Cook: Apple, trade route, Turing machine, Turing test, uber lyft, Von Neumann architecture, Watson beat the top human players on Jeopardy!, zero day

They ranged from creating sweeping new legislation to mirror Europe’s aggressive GDPR rules, to a proposal that would designate web platforms as information fiduciaries that would have to follow a prescribed code of conduct, not unlike law firms.78 Just a few months later, Apple CEO Tim Cook went on Twitter to post a screed about the future of privacy, the big tech giants, and America. On October 24, he wrote that companies should make the protection of user privacy paramount. “Companies should recognize that data belongs to users and we should make it easy for people to get a copy of their personal data, as well as correct and delete it,” he wrote, continuing with, “Everyone has a right to the security of their data.”79 Sensing that regulation is becoming a real possibility in the US, Apple has been promoting its data protection services and the privacy protections embedded in its mobile and computer operating systems. We agree to constant surveillance in exchange for services.

Jordan Novet, “Why Tech Companies Are Racing Each Other to Make Their Own Custom AI Chips,” CNBC, April 21, 2018, https://www.cnbc.com/2018/04/21/alibaba-joins-google-others-in-making-custom-ai-chips.html. 78. The full paper can be accessed at https://graphics.axios.com/pdf/PlatformPolicyPaper.pdf?_ga=2.167458877.2075880604.1541172609-1964512884.1536872317. 79. Tweets can be accessed at https://twitter.com/tim_cook/status/1055035534769340418. CHAPTER 3: A THOUSAND PAPER CUTS: AI’S UNINTENDED CONSEQUENCES 1. “‘An Owners’ Manual’ for Google’s Shareholders,” 2004 Founders’ IPO Letter, Alphabet Investor Relations, https://abc.xyz/investor/founders-letters/2004/ipo-letter.html. 2. Ibid. 3. “Leadership Principles,” Amazon, https://www.amazon.jobs/principles. 4. “Focus on Impact,” Facebook, September 8, 2015, https://www.facebook.com/facebookcareers/photos/a.1655178611435493.1073741828.1633466236940064/1655179928102028/?

With interoperability still a critical weak point in the West’s AI ecosystem, by 2035 we settle into a de facto system of segregation. Our devices are hooked into Google, Apple, or Amazon, and so we tend to buy only the products and services offered by one of those three companies. Because the data in our heritable PDRs are owned and managed by one of those companies—companies that also sold us all the AI-powered stuff in our homes—we are Google families, Apple families, or Amazon families. That designation comes with unintended biases. Apple households tend to be wealthier and older. They can afford all of Apple’s sleek, beautiful hardware products available in one of three colors: palladium silvery-white, osmium grey, or dark onyx. Apple’s smart glasses, smart toilets, and custom refrigerators carry on its long tradition of pricey products anyone can use right out of the box. Apple’s PDRs come with spoken interfaces and a choice of two soothing voices, Joost (who has a “unisex higher tone”) or Deva (who has a “unisex lower tone”).


pages: 344 words: 104,077

Superminds: The Surprising Power of People and Computers Thinking Together by Thomas W. Malone

agricultural Revolution, Airbnb, Albert Einstein, Amazon Mechanical Turk, Apple's 1984 Super Bowl advert, Asperger Syndrome, Baxter: Rethink Robotics, bitcoin, blockchain, business process, call centre, clean water, creative destruction, crowdsourcing, Donald Trump, Douglas Engelbart, Douglas Engelbart, drone strike, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, experimental economics, Exxon Valdez, future of work, Galaxy Zoo, gig economy, happiness index / gross national happiness, industrial robot, Internet of things, invention of the telegraph, inventory management, invisible hand, Jeff Rulifson, jimmy wales, job automation, John Markoff, Joi Ito, Joseph Schumpeter, Kenneth Arrow, knowledge worker, longitudinal study, Lyft, Marshall McLuhan, Occupy movement, Pareto efficiency, pattern recognition, prediction markets, price mechanism, Ray Kurzweil, Rodney Brooks, Ronald Coase, Second Machine Age, self-driving car, Silicon Valley, slashdot, social intelligence, Stephen Hawking, Steve Jobs, Steven Pinker, Stewart Brand, technological singularity, The Nature of the Firm, The Wealth of Nations by Adam Smith, The Wisdom of Crowds, theory of mind, Tim Cook: Apple, transaction costs, Travis Kalanick, Uber for X, uber lyft, Vernor Vinge, Vilfredo Pareto, Watson beat the top human players on Jeopardy!

And depending on how empathetic we’re willing to be, it seems likely that Apple may even have experiences analogous to the experiences we humans have. So is Apple conscious? In many important senses, I think we’d have to say yes. Whether these senses capture the essence of what consciousness means to you is something only you can say. But it seems to me that we are justified in saying that Apple is conscious in a way that is closer to being literally true than just metaphorical. By the way, here’s one more piece of evidence: When Apple’s CEO, Tim Cook, spoke at MIT’s commencement, I told him I was writing a book that included the example you’ve just read. When I asked him whether he thought Apple was conscious, he considered the question very thoughtfully. Then, over the course of several minutes, he said he thought Apple was an organism like a person with values and goals and that, of course, it was conscious.

Over many millennia, we have created vast hierarchies that include thousands of people with many different levels and subgroups, and—in many cases—strict bureaucratic rules about the kinds of decisions people at different levels can make. And human hierarchies have been critical to our remarkable dominance over the other life forms on our planet.2 Of all the types of superminds, hierarchies are the easiest to recognize. A human hierarchy usually has a single person at its top, and that person speaks on behalf of the whole group.3 When Tim Cook at Apple says something publicly, he is speaking for the whole organization in a way that isn’t possible in any other form of supermind. Since a few people in a hierarchy usually make the most important decisions for the supermind as a whole, their individual human emotions, values, and limitations play a more influential role than in other types of superminds. In fact, you can view a hierarchy as a supermind that mobilizes large numbers of individuals to achieve the goals of whoever controls the hierarchy.

To explore this question, let’s consider a very specific example of a human group: Apple, Inc. IS APPLE CONSCIOUS? First, let’s define the supermind called Apple as including all the employees of Apple, Inc., along with all the machines, buildings, and other resources the employees use to do their work. Is this group conscious according to the definitions above? Awareness Apple certainly reacts to stimuli in the outside world. If you buy a song on iTunes, Apple will make it available for you to download. If you walk into an Apple store, someone will greet you and try to help you buy an Apple product. In 2007, Apple responded to a variety of changes in the markets for mobile phones, computers, and their components by introducing a widely acclaimed new product called the iPhone. In 2011, after Samsung introduced products that Apple believed infringed on its iPhone patents, Apple sued Samsung in various countries around the world.


The Code: Silicon Valley and the Remaking of America by Margaret O'Mara

"side hustle", A Declaration of the Independence of Cyberspace, accounting loophole / creative accounting, affirmative action, Airbnb, AltaVista, Amazon Web Services, Apple II, Apple's 1984 Super Bowl advert, autonomous vehicles, back-to-the-land, barriers to entry, Ben Horowitz, Berlin Wall, Bob Noyce, Buckminster Fuller, Burning Man, business climate, Byte Shop, California gold rush, carried interest, clean water, cleantech, cloud computing, cognitive dissonance, commoditize, computer age, continuous integration, cuban missile crisis, Danny Hillis, DARPA: Urban Challenge, deindustrialization, different worldview, don't be evil, Donald Trump, Doomsday Clock, Douglas Engelbart, Dynabook, Edward Snowden, El Camino Real, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, Frank Gehry, George Gilder, gig economy, Googley, Hacker Ethic, high net worth, Hush-A-Phone, immigration reform, income inequality, informal economy, information retrieval, invention of movable type, invisible hand, Isaac Newton, Jeff Bezos, Joan Didion, job automation, job-hopping, John Markoff, Julian Assange, Kitchen Debate, knowledge economy, knowledge worker, Lyft, Marc Andreessen, Mark Zuckerberg, market bubble, mass immigration, means of production, mega-rich, Menlo Park, Mikhail Gorbachev, millennium bug, Mitch Kapor, Mother of all demos, move fast and break things, move fast and break things, mutually assured destruction, new economy, Norbert Wiener, old-boy network, pattern recognition, Paul Graham, Paul Terrell, paypal mafia, Peter Thiel, pets.com, pirate software, popular electronics, pre–internet, Ralph Nader, RAND corporation, Richard Florida, ride hailing / ride sharing, risk tolerance, Robert Metcalfe, Ronald Reagan, Sand Hill Road, Second Machine Age, self-driving car, shareholder value, side project, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, skunkworks, Snapchat, social graph, software is eating the world, speech recognition, Steve Ballmer, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, supercomputer in your pocket, technoutopianism, Ted Nelson, the market place, the new new thing, There's no reason for any individual to have a computer in his home - Ken Olsen, Thomas L Friedman, Tim Cook: Apple, transcontinental railway, Uber and Lyft, uber lyft, Unsafe at Any Speed, upwardly mobile, Vannevar Bush, War on Poverty, We wanted flying cars, instead we got 140 characters, Whole Earth Catalog, WikiLeaks, William Shockley: the traitorous eight, Y Combinator, Y2K

His death prompted an extraordinary outpouring of grief, not only from those who knew him personally but from the millions of Apple users who felt that they knew him nearly as well. “Steve was a dreamer and a doer,” one wrote in a tribute wall on the company’s website. “I am grateful for the gift he was in his creative genius,” wrote another. At Apple retail stores throughout the world, people brought flowers and personal notes in tribute.12 At the private memorial service held on Apple’s Cupertino campus a few weeks after his death, new CEO Tim Cook played a recording for the assembled crowd of company employees, celebrities, and Valley power players. It was Jobs’s voice that boomed out through the speakers, reading the copy for the 1997 ad campaign—titled “Think Different”—that had started airing soon after his return to the company he’d founded. “Here’s to the crazy ones,” Jobs said. “The misfits. The rebels. The troublemakers . . .

(The United States, as tech giants and others would continually point out in their defense, had the second-highest corporate tax rate in the world.) Tech firms further reduced their tax bills by writing off stock options, depreciation of facilities, and expenditures on R&D. The elaborate shell game—entirely permissible under IRS rules—made rich companies like Apple, Google, and Amazon even richer. Washington made spasmodic efforts to change the system in the Obama years, but it was hard to cast beloved tech brands as tax-dodging fat cats. “I love Apple!” rhapsodized Missouri Democrat Claire McCaskill at a 2013 Senate hearing where Tim Cook was supposedly being called to account for his company’s creative accounting. Kentucky Republican Rand Paul berated his fellow Senators for “bullying” Cook and a company that was “one of America’s greatest success stories.”12 Facebook employees and alumni also joined the ranks of the breathtakingly wealthy.

Theodore Schleifer, “Mary Meeker, the Legendary Internet Analyst, Is Leaving Kleiner Perkins,” Recode, September 14, 2018, https://www.recode.net/2018/9/14/17858582/kleiner-perkins-mary-meeker-split, archived at https://perma.cc/FJ8S-DVUM. 11. Jesse Drucker, “Kremlin Cash Behind Billionaire’s Twitter and Facebook Investments,” The New York Times, November 5, 2017; Michael Wolff, “How Russian Tycoon Yuri Milner Bought His Way into Silicon Valley,” Wired, October 21, 2011. 12. Chris William Sanchirico, “As American as Apple Inc.: International Tax and Ownership Nationality,” Tax Law Review 68, no. 2 (2015): 207–74; Rebecca Greenfield, “Senators Turn Tim Cook’s Hearing into a Genius Bar Visit,” The Atlantic, May 21, 2013. 13. David Kirkpatrick, “Inside Sean Parker’s Wedding,” Vanity Fair, August 1, 2013. 14. “Yammer Raises $17 Million in Financing Round Led by The Social+Capital Partnerhip,” Marketwire, September 27, 2011. 15. Ben Horowitz, The Hard Thing about Hard Things: Building a Business When There Are No Easy Answers (New York: HarperBusiness, 2014), 62. 16.


pages: 124 words: 39,011

Beyond Outrage: Expanded Edition: What Has Gone Wrong With Our Economy and Our Democracy, and How to Fix It by Robert B. Reich

2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, affirmative action, banking crisis, business cycle, carried interest, collateralized debt obligation, collective bargaining, Credit Default Swap, credit default swaps / collateralized debt obligations, desegregation, full employment, Home mortgage interest deduction, job automation, Mahatma Gandhi, minimum wage unemployment, money market fund, Nelson Mandela, new economy, Occupy movement, offshore financial centre, plutocrats, Plutocrats, Ponzi scheme, race to the bottom, Ronald Reagan, single-payer health, special drawing rights, The Wealth of Nations by Adam Smith, Tim Cook: Apple, too big to fail, trickle-down economics, women in the workforce, working poor, zero-sum game

Even though the rate of unemployment has begun to fall, jobs still remain scarce, and the pay of the bottom 90 percent continues to drop, adjusted for inflation. But CEO pay is still rising through the stratosphere. Among the CEOs who took in more than $50 million in 2011 were Qualcomm’s Paul Jacobs ($50.6 million), JCPenney’s Ron Johnson ($51.5 million), Starbucks’s Howard Schultz ($68.8 million), Tyco International’s Ed Breen ($68.9 million), and Apple’s Tim Cook ($378 million). The titans of Wall Street are doing even better. The super-rich are not investing in jobs and growth. They’re putting their bonanza into U.S. Treasury bills or investing it in Brazil or South Asia or anywhere else it can reap the highest return. The American economy is in trouble because so much income and wealth have been going to the top that the rest of us no longer have the purchasing power to keep the economy going.

According to the Commerce Department, American-based global corporations added 2.4 million workers abroad in the first decade of this century while cutting their American workforce by 2.9 million. Between 2009 and 2011, the thirty-five biggest U.S. companies added 113,000 American jobs but almost three times that many jobs (333,000) abroad, according to a survey by The Wall Street Journal. Nearly 60 percent of their revenue growth came from outside the United States. Apple employs 43,000 people in the United States but contracts with over 700,000 workers abroad. It makes iPhones in China both because wages are low there and because Apple’s Chinese contractor can quickly mobilize workers from company dormitories at almost any hour of the day or night. American companies aren’t creating just routine jobs overseas. They’re also creating good high-tech jobs there and doing more of their research and development abroad. The share of research and development spending going to their foreign subsidiaries rose from 9 percent in 1989 to almost 16 percent in 2009.

The rest involved agricultural commodities that don’t require much U.S. labor (because American agribusiness is highly automated) and chemical and high-tech goods that are even less labor-intensive. American corporations signed up for deals with China involving energy and aviation manufacturing, but much of the work would be done in China. American companies don’t care, as long as the deals help their bottom lines. An Apple executive told The New York Times, “We don’t have an obligation to solve America’s problems. Our only obligation is making the best product possible.” He might have added, and showing profits big enough to continually increase our share price. If Apple or any other big American company can make a product best and cheapest in China or anywhere else, then that’s where it’ll do it. I don’t blame the companies. American corporations are in business to make profits and boost their share value, not to create good American jobs.


pages: 459 words: 140,010

Fire in the Valley: The Birth and Death of the Personal Computer by Michael Swaine, Paul Freiberger

1960s counterculture, Amazon Web Services, Apple II, barriers to entry, Bill Gates: Altair 8800, Byte Shop, cloud computing, commoditize, computer vision, Douglas Engelbart, Douglas Engelbart, Dynabook, Google Chrome, I think there is a world market for maybe five computers, Internet of things, Isaac Newton, Jaron Lanier, job automation, John Markoff, John von Neumann, Jony Ive, Loma Prieta earthquake, Marc Andreessen, Menlo Park, Mitch Kapor, Mother of all demos, Paul Terrell, popular electronics, Richard Stallman, Robert Metcalfe, Silicon Valley, Silicon Valley startup, stealth mode startup, Steve Ballmer, Steve Jobs, Steve Wozniak, Stewart Brand, Ted Nelson, Tim Cook: Apple, urban sprawl, Watson beat the top human players on Jeopardy!, Whole Earth Catalog

Intel’s 80386 and Motorola’s 68030 were the chips that most new computers were using, although Intel had recently introduced its 80486 and Motorola was about to release its 68040. The two lines of processors battled for the lead in capability. Intel, though, held the lead in sales quite comfortably. Its microprocessors powered most of the IBM computers and clones, whereas Motorola had one primary customer for its processors—Apple. (Atari and Commodore, with their 680x0-based ST and Amiga computers, had to wait in line for chips behind Apple, foreshadowing Apple supply-chain strategies that would be solidified under Tim Cook as COO.) In 1989 “Moore’s law,” Intel cofounder Gordon Moore’s two-decade-old formulation that memory-chip capacity would double every 18 months, was proving to still roughly predict growth in many key aspects of the technology, including memory capacity and processor speed. The industry seemed to be on an exponential-growth path, just as Moore had predicted.

Paralleling this shift away from the personal computer has been a general changing of the guard among the players. Leaving the Stage In 2011, at the age of 56, Steve Jobs died due to complications from pancreatic cancer. A few months earlier he had stepped down as CEO, telling the board, “I have always said if there ever came a day when I could no longer meet my duties and expectations as Apple’s CEO, I would be the first to let you know. Unfortunately, that day has come.” COO Tim Cook was named CEO. In 2013, Steve Ballmer retired as CEO of Microsoft. The company had been struggling to find its way in recent years, failing to secure a significant market share in the new product categories. Satya Nadella, a 22-year Microsoft veteran, would become only the third CEO in Microsoft’s history. Tellingly, Microsoft turned to cloud computing to lead it into the future.

One day he sneaked into a programmer’s cubicle and placed a mouse inside his computer. When the programmer returned, it took him more than a few minutes to figure out why his Apple was squeaking. Meanwhile, without the singular vision of a Steve Wozniak, the Apple III project was floundering. Delays in the Apple III were soon causing concern in the marketing department. The young company was beginning to feel growing pains at last. When Apple was formed, the Apple II was already near completion. The Apple III was the first computer that Apple—as a company—had designed and built from scratch. The Apple III was also the first Apple not conceived by Steve Wozniak in pursuit of his personal dream machine. Instead the Apple III was a bit of a hodgepodge, pasted together by many hands and designed by committee. And, as is typical of anything created by committee, the various members weren’t completely happy with the results.


pages: 482 words: 121,173

Tools and Weapons: The Promise and the Peril of the Digital Age by Brad Smith, Carol Ann Browne

Affordable Care Act / Obamacare, AI winter, airport security, Albert Einstein, augmented reality, autonomous vehicles, barriers to entry, Berlin Wall, Boeing 737 MAX, business process, call centre, Celtic Tiger, chief data officer, cloud computing, computer vision, corporate social responsibility, Donald Trump, Edward Snowden, en.wikipedia.org, immigration reform, income inequality, Internet of things, invention of movable type, invention of the telephone, Jeff Bezos, Mark Zuckerberg, minimum viable product, national security letter, natural language processing, Network effects, new economy, pattern recognition, precision agriculture, race to the bottom, ransomware, Ronald Reagan, Rubik’s Cube, school vouchers, self-driving car, Shoshana Zuboff, Silicon Valley, Skype, speech recognition, Steve Ballmer, Steve Jobs, The Rise and Fall of American Growth, Tim Cook: Apple, WikiLeaks, women in the workforce

The White House had announced publicly that the meeting would address “health, IT procurement, and surveillance issues.” It was a bit like telling baseball fans that they could go to an event that included the national anthem, a hot dog eating contest, and the first game of the World Series. We all knew what brought us to Washington on that cold winter morning. An all-star cast of tech leaders arrived at the West Wing, including Apple CEO Tim Cook, Google chairman Eric Schmidt, Facebook COO Sheryl Sandberg, Netflix CEO Reed Hastings, and a dozen others. Most of us already knew each other. Eight of our companies—virtually all competitors—had just come together to create a new coalition, called Reform Government Surveillance, to work together on precisely the issues we were there to discuss. After a round of enthusiastic greetings, we put our smartphones in a rack of cubbies in the hallway and filed into the Roosevelt Room.

Satya successfully guided the president on a tour and gave a welcome address, while Harry Shum demonstrated our HoloLens technology. Then we stepped into a large room for what reporters would call “the most memorable moment” of the state visit—not just at Microsoft or in Seattle, but for the entire six days across the country.5 The leaders of twenty-eight technology companies from both the United States and China had gathered for a photo opp. Flanking President Xi was a group that included Tim Cook, Jeff Bezos, Ginni Rometty, Mark Zuckerberg, and the CEOs of basically every household technology name in America. It was a photo that built on President Xi’s cybersecurity announcement during dinner the night before, one that made every other image of the trip pale in comparison. There was only one president from a country other than the United States who could command this audience. Clearly, President Xi—and the Chinese nation—had taken a central position not just in the global economy, but on the world’s technology stage.

The result is that companies like Google and Facebook, household names everywhere else, are basically absent in China. While other American companies are present in China, only Apple with its iPhone has enjoyed success in the country on a level that is comparable to its leadership in the rest of the world. In recent years, Apple has earned three times as much revenue as Intel, which is the number two US tech company in China.6 When it comes to profits, the situation is likely starker. Apple may well generate more profits within China than the rest of the American tech sector put together. It’s a notable accomplishment but also a challenge for the company, given China’s large contribution to Apple’s global profitability. As we’ve found at Microsoft over time and more globally with products like Windows and Office, anytime you’re dependent on a particular source for a large share of revenue or profitability, it makes it difficult to contemplate changes in that area.


pages: 716 words: 192,143

The Enlightened Capitalists by James O'Toole

activist fund / activist shareholder / activist investor, anti-communist, Ayatollah Khomeini, Bernie Madoff, British Empire, business cycle, business process, California gold rush, carbon footprint, City Beautiful movement, collective bargaining, corporate governance, corporate social responsibility, Credit Default Swap, crowdsourcing, cryptocurrency, desegregation, Donald Trump, double entry bookkeeping, end world poverty, equal pay for equal work, Frederick Winslow Taylor, full employment, garden city movement, germ theory of disease, glass ceiling, God and Mammon, greed is good, hiring and firing, income inequality, indoor plumbing, inventory management, invisible hand, James Hargreaves, job satisfaction, joint-stock company, Kickstarter, knowledge worker, Lao Tzu, longitudinal study, Louis Pasteur, Lyft, means of production, Menlo Park, North Sea oil, passive investing, Ponzi scheme, profit maximization, profit motive, Ralph Waldo Emerson, rolodex, Ronald Reagan, shareholder value, Silicon Valley, Social Responsibility of Business Is to Increase Its Profits, Socratic dialogue, sovereign wealth fund, spinning jenny, Steve Jobs, Steve Wozniak, stocks for the long run, stocks for the long term, The Fortune at the Bottom of the Pyramid, The Wealth of Nations by Adam Smith, Tim Cook: Apple, traveling salesman, Uber and Lyft, uber lyft, union organizing, Vanguard fund, white flight, women in the workforce, young professional

While I join the chorus in praise of executives who want to hire veterans, fight global warming, and stamp out racism, my head reminds me that such advocacy can be a mixed blessing. Mounting evidence that influential CEOs like Apple’s Tim Cook have the power to sway public opinion raises alarms because big company executives already wield disproportionate political power through their personal wealth, the financial clout of the corporations they lead, and the influence of lobbyists in their employ. Is it then good for society if they also exercise the considerable power of the bully pulpit that comes with their position? Moreover, when such power is used with regard to sensitive political or religious issues, it is unlikely to be universally appreciated. For example, when Tim Cook spoke in favor of gay marriage, his pronouncement was greeted positively by those on the left, but negatively by those on the right; similarly, when Chick-fil-A CEO Dan Cathy took the opposite stand, the right cheered, and the left jeered.35 The issue is where to draw the line between legitimate and illegitimate use of executive bully pulpits.

Trend One: An Emerging Generation of Enlightened and Effective Business Leaders My heart is drawn to evidence that a new generation of enlightened capitalists has emerged in recent years—a generation of men and women as committed to social engagement as their forbearers, but more sophisticated and skilled, and thus more likely to be able to create sustainable legacies. Among the contemporary chief executives often mentioned in this regard are Starbucks’ Howard Schultz, Salesforce’s Marc Benioff, Apple’s Tim Cook, PepsiCo’s Indra Nooyi, Campbell Soup’s Denise Morrison, Merck’s Kenneth Frazier, and, especially, Unilever’s Paul Polman and Whole Foods’ John Mackey. Because they all lead large, publicly traded corporations, optimists posit that those CEOs are on the verge of finally proving that shareholder capitalism and enlightened business practices are fully compatible. As sincerely as I hope they succeed, my head is drawn to some inconvenient facts concerning the recent experiences of Polman and Mackey.

For what is most remarkable about our business iconoclasts is the extent to which they broke with long-established traditions, norms, and beliefs about the hows and whys of business that are traceable back to humankind’s earliest trading activities. In essence, we first must understand the tenets of business orthodoxy before we can appreciate our enlightened capitalists’ heresies. Received Wisdom: The Practice of Business Throughout Most of History COMMON TO ALL MANKIND, Adam Smith wrote, is “the propensity to truck, barter and exchange” goods. Indeed, at some point in prehistory, one of our ancestors may have swapped a bunch of apples for a joint of meat, and the species has been engaged in business ever since. Hence it might be said, contrary to competing claims, that the world’s oldest profession is business. If you think about business in terms of stories, as I do, one story is as old as human society itself: the one about the division of labor, and the trading of goods to meet the necessities of life. For most of early human history “business” consisted solely of trading and bartering.


pages: 511 words: 132,682

Competition Overdose: How Free Market Mythology Transformed Us From Citizen Kings to Market Servants by Maurice E. Stucke, Ariel Ezrachi

affirmative action, Airbnb, Albert Einstein, Andrei Shleifer, Bernie Sanders, Boeing 737 MAX, Cass Sunstein, choice architecture, cloud computing, commoditize, corporate governance, Corrections Corporation of America, Credit Default Swap, crony capitalism, delayed gratification, Donald Trump, en.wikipedia.org, George Akerlof, gig economy, Goldman Sachs: Vampire Squid, Google Chrome, greed is good, hedonic treadmill, income inequality, income per capita, information asymmetry, invisible hand, job satisfaction, labor-force participation, late fees, loss aversion, low skilled workers, Lyft, mandatory minimum, Mark Zuckerberg, market fundamentalism, mass incarceration, Menlo Park, meta analysis, meta-analysis, Milgram experiment, mortgage debt, Network effects, out of africa, payday loans, Ponzi scheme, precariat, price anchoring, price discrimination, profit maximization, profit motive, race to the bottom, Richard Thaler, ride hailing / ride sharing, Robert Bork, Robert Shiller, Robert Shiller, Ronald Reagan, shareholder value, Shoshana Zuboff, Silicon Valley, Snapchat, Social Responsibility of Business Is to Increase Its Profits, Stanford prison experiment, Stephen Hawking, The Chicago School, The Market for Lemons, The Myth of the Rational Market, The Wealth of Nations by Adam Smith, Thomas Davenport, Thorstein Veblen, Tim Cook: Apple, too big to fail, transaction costs, Uber and Lyft, uber lyft, ultimatum game, Vanguard fund, winner-take-all economy

That’s all to the good. But one cannot seriously argue that these benefits should depend on our accepting the inevitability of a toxic competition in which the Gamemakers are always the winners and we have to agree to be the product. Just as US President Dwight D. Eisenhower warned against the creeping powers of the military industrial complex in his farewell address to the nation in 1961, Tim Cook, Apple’s CEO, in 2018, warned against the dangers of the “data industrial complex” where “[o]ur own information, from the everyday to the deeply personal, is being weaponized against us with military efficiency. . . . We shouldn’t sugarcoat the consequences. This is surveillance. And these stockpiles of personal data serve only to enrich the companies that collect them.”169 Cook also firmly endorsed the creation of “a comprehensive federal privacy law in the United States” and went into some detail about what it should cover.

US44413318, November 2018, 13, https://www.seagate.com/files/www-content/our-story/trends/files/idc-seagate-dataage-whitepaper.pdf. 166.Lara O’Reilly, “Walgreens Tests Digital Cooler Doors with Cameras to Target You with Ads,” Wall Street Journal, January 11, 2019, https://www.wsj.com/articles/walgreens-tests-digital-cooler-doors-with-cameras-to-target-you-with-ads-11547206200. 167.Facebook, “About: Mission,” accessed May 2, 2019, https://www.facebook.com/pg/facebook/about/. 168.Google, “About Google,” accessed May 2, 2019, https://www.google.com/about/. 169.Tim Cook, “Remarks before the International Conference of Data Protection & Privacy Commissioners” (Brussels, October 24, 2018), https://www.privacy conference2018.org/system/files/2018-10/Tim%20Cook%20speech%20-%20ICDPPC2018.pdf. 170.Bundeskartellamt, “Bundeskartellamt Prohibits Facebook.” 171.Jennifer Valentino-DeVries et al., “How Game Apps That Captivate Kids Have Been Collecting Their Data,” New York Times, September 12, 2018, https://nyti.ms/2N90yFh. 172.The protection of that privacy law is very narrow: Tiny Lab is liable only if its games were directed to children under thirteen years old, or if Tiny Lab had actual knowledge that it was collecting personal information online from children under thirteen years of age.

Gerber, Caroline Opio, and Henning Steinfeld, Poultry Production and the Environment—a Review (Rome, Italy: Animal Production and Health Division, Food and Agriculture Organization of the United Nations, 2008), http://www.fao.org/ag/againfo/home/events/bangkok2007/docs/part2/2_2.pdf. 43.US Food & Drug Administration, “FDA Announces Pending Withdrawal of Approval of Nitarsone,” April 1, 2015, https://wayback.archive-it.org/7993/20170406075820/https://www.fda.gov/AnimalVeterinary/NewsEvents/CVMUpdates/ucm440668.htm. 44.Yuanan Hu et al., “Public Health Risk of Arsenic Species in Chicken Tissues from Live Poultry Markets of Guangdong Province, China,” Environmental Science & Technology, 51 (February, 2017): 3508, https://pubs.acs.org/doi/pdf/10.1021/acs.est.6b06258. 45.Richard Bilton, “Apple ‘Failing to Protect Chinese Factory Workers,’” BBC News, December 18, 2014, https://www.bbc.com/news/business-30532463; Marcus Wohlsen, “Apple Isn’t the Only One to Blame for Smartphone Labor Abuses,” Wired, December 19, 2014, https://www.wired.com/2014/12/apple-isnt-one-blame-smartphone-supply-chain-abuses/; Charles Arthur, “Samsung Accused of Exploiting Younger Workers in China,” Guardian (Manchester), September 5, 2012, https://www.theguardian.com/technology/2012/sep/05/samsung-accused-exploiting-workers-china; Charles Arthur, “Samsung Finds Labour Violations at Dozens of Its Chinese Suppliers,” Guardian (Manchester), July 1, 2014, https://www.theguardian.com/technology/2014/jul/01/samsung-working-practice-breaches-chinese-suppliers. 46.Michelle Chen, “Was Your Smartphone Built in a Sweatshop?


pages: 431 words: 129,071

Selfie: How We Became So Self-Obsessed and What It's Doing to Us by Will Storr

Albert Einstein, autonomous vehicles, banking crisis, bitcoin, computer age, correlation does not imply causation, Donald Trump, Douglas Engelbart, Douglas Engelbart, Elon Musk, en.wikipedia.org, gig economy, greed is good, invisible hand, job automation, John Markoff, Kickstarter, longitudinal study, Lyft, Menlo Park, meta analysis, meta-analysis, Mont Pelerin Society, mortgage debt, Mother of all demos, Nixon shock, Peter Thiel, QWERTY keyboard, rising living standards, road to serfdom, Robert Gordon, Ronald Reagan, selective serotonin reuptake inhibitor (SSRI), Silicon Valley, Silicon Valley startup, Steve Jobs, Steven Levy, Stewart Brand, The Future of Employment, The Rise and Fall of American Growth, Tim Cook: Apple, Travis Kalanick, twin studies, Uber and Lyft, uber lyft, War on Poverty, Whole Earth Catalog

These days, when business leaders are challenged about the lengths they go to reduce their tax bills, for example, they frequently defend their actions by presenting themselves as ultra-smart contestants in the neoliberal game who are managing to reduce their liabilities whilst still cleverly playing within its rules. In 2016, a three-year investigation by the EU found that electronics company Apple Inc. had paid between 0.005 per cent and 1 per cent tax on their European profits. The commission found that their ‘sweetheart’ deal with Ireland, where they’d based their European HQ, amounted to a form of illegal state aid and attempted to claw back $13bn. Dismissing all this as ‘political crap’, Chief Executive Tim Cook defended Apple by explaining that they’d ‘played by the rules’. Similarly, following the financial crisis, some bankers in Wall Street saw their bailing out by the state as proof of their superior skill at the game. ‘The fact that I benefited from [the bailout] is because I’m smart,’ one told This American Life reporter Adam Davidson.

.: ‘US concentrated poverty in the wake of the Great Recession’, Elizabeth Kneebone and Natalie Holmes, Brookings Institute, 31 March 2016. ‘Extremely poor’ neighbourhoods are here defined as ‘census tracts where 40 percent or more of the population lives below the federal poverty line.’ Back in 1981 the American Business Roundtable: Mirror, Mirror, Simon Blackburn (Princeton University Press, 2014), p. 97. In 2016, a three-year EU investigation . . . ‘political crap’: ‘Tim Cook condemns Apple tax ruling’, Julia Kollewe, Guardian, 1 September 2016. some bankers in Wall Street saw their bailing out: This American Life, WBEX Chicago, episode 415: ‘Crybabies’, originally aired 24 September 2010. As veteran tech reporter Dan Lyons has observed: Disrupted, Dan Lyons (Hachette, 2016), pp. 117–18. sales of Ayn Rand’s most famous work, Atlas Shrugged, began booming: In the final stages of fact checking I came across an article (‘Ayn Rand: the Tea Party’s Miscast Matriarch’, by Pam Martens, CounterPunch, 27 February 2012) that suggested this sales boom might have been artificially engineered by the Ayn Rand Institute, which had earmarked a large amount of money for distributing free copies.

Aristotle, his pupil, rejected this, insisting that the only reality is that which we can sense. We live in a world of things, he thought, and each of those things has unique properties that can be defined and categorized and acts predictably according to certain laws: an apple that falls to the ground does so under the force of gravity, he said, just as it floats on the sea under that of levity. His view of reality, and of change, was deeply optimistic. Historian Adrienne Mayor writes that Aristotle believed that ‘all things in nature moved towards achieving perfection of their potentials’. One thing in the world that undergoes change is a human. A person, like an apple, is an object in isolation that possesses its own unique properties. But what kind of thing is it? A sort of ‘political animal’, thought Aristotle. And this, crucially, was an animal that could be improved.


pages: 128 words: 38,187

The New Prophets of Capital by Nicole Aschoff

3D printing, affirmative action, Affordable Care Act / Obamacare, Airbnb, American Legislative Exchange Council, basic income, Bretton Woods, clean water, collective bargaining, commoditize, crony capitalism, feminist movement, follow your passion, Food sovereignty, glass ceiling, global supply chain, global value chain, helicopter parent, hiring and firing, income inequality, Khan Academy, late capitalism, Lyft, Mark Zuckerberg, mass incarceration, means of production, performance metric, post-work, profit motive, rent-seeking, Ronald Reagan, Rosa Parks, school vouchers, shareholder value, sharing economy, Silicon Valley, Slavoj Žižek, structural adjustment programs, Tim Cook: Apple, urban renewal, women in the workforce, working poor, zero-sum game

They can see how much every person in the company, including Mackey himself, makes. And, while the salaries of US corporate executives have skyrocketed over the past two decades, the company has restrained executive pay to nineteen times the average pay of all team members ($18 an hour for full-time, permanent employees). By comparison, in 2011 Apple’s Tim Cook took home $378 million in salary, stock, and other benefits, which was 6,258 times the pay of an average Apple employee. How can Whole Foods do all these things and remain profitable in the cutthroat food industry, where most food retailers make profits of pennies on the dollar? Although Whole Foods saw a temporary dip in profits following the 2008 financial crisis, Mackey attributes the long-term prosperity of the company to its conscious growth model.


pages: 209 words: 53,236

The Scandal of Money by George Gilder

Affordable Care Act / Obamacare, bank run, Bernie Sanders, bitcoin, blockchain, borderless world, Bretton Woods, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, central bank independence, Claude Shannon: information theory, Clayton Christensen, cloud computing, corporate governance, cryptocurrency, currency manipulation / currency intervention, Daniel Kahneman / Amos Tversky, Deng Xiaoping, disintermediation, Donald Trump, fiat currency, financial innovation, Fractional reserve banking, full employment, George Gilder, glass ceiling, Home mortgage interest deduction, index fund, indoor plumbing, industrial robot, inflation targeting, informal economy, Innovator's Dilemma, Internet of things, invisible hand, Isaac Newton, Jeff Bezos, John von Neumann, Joseph Schumpeter, Kenneth Rogoff, knowledge economy, Law of Accelerating Returns, Marc Andreessen, Mark Zuckerberg, Menlo Park, Metcalfe’s law, money: store of value / unit of account / medium of exchange, mortgage tax deduction, obamacare, Paul Samuelson, Peter Thiel, Ponzi scheme, price stability, Productivity paradox, purchasing power parity, quantitative easing, quantitative trading / quantitative finance, Ray Kurzweil, reserve currency, road to serfdom, Robert Gordon, Robert Metcalfe, Ronald Reagan, Sand Hill Road, Satoshi Nakamoto, Search for Extraterrestrial Intelligence, secular stagnation, seigniorage, Silicon Valley, smart grid, South China Sea, special drawing rights, The Great Moderation, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Tim Cook: Apple, time value of money, too big to fail, transaction costs, trickle-down economics, Turing machine, winner-take-all economy, yield curve, zero-sum game

The oligopsonists include Facebook’s Mark Zuckerberg, Microsoft’s Satya Nadella, Google’s alphabetic Larry Page, Disney’s Robert Iger, Verizon’s Lowell McAdam, Amazon’s Jeff Bezos, Netflix’s Reed Hastings, and Apple’s Tim Cook. None seems a good bet for a gaggle of gulls. What is really going on is the displacement of the open and rabble-run IPO market by an exclusive game of horse trading among the most exalted elite of “qualified investors,” the owners of the leviathans of the last generation of IPOs. Capped by such regulatory tolls and encumbrances as the accounting mazes of Sarbanes-Oxley, Fair Disclosure’s code of omertà, and the EPA’s “cautionary principle” barring innovative manufacturing, the new Silicon Valley confines ascendant companies beneath a glass ceiling. From Apple to Google, a few public giants dominate this private-company market since they are the only potential buyers.

The Boston Consulting Group and Bain & Company charted learning curves across the entire capitalist economy, affecting everything from pins to cookies, insurance policies to phone calls, transistors to lines of code, pork bellies to bottles of milk, steel ingots to airplanes.2 Growing apace with output and sales is entrepreneurial learning, yielding new knowledge across companies and industries, bringing improvements to every facet of production, every manufacturing process, every detail of design, marketing, and management. Crucially, the curve extends to customers, who learn how to use the product and multiply applications as it drops in price. The proliferation of hundreds of thousands of applications for Apple’s iPhones, for example, represented the learning curve of the users as much as the learning curve at Apple. The most famous such curve is that described by Moore’s Law, which predicts a doubling of computer cost-effectiveness every twenty-four months. It has been recycled by the solar industry in the form of Swanson’s Law, showing the decline of the cost of silicon photovoltaic cells from seventy-six dollars per watt in 1977 to fifty cents per watt in 2014.

As we saw in chapter 2, it is the most thoroughly documented phenomenon in all enterprise, ordaining that the cost of producing any good or service drops by between 20 percent and 30 percent with every doubling of total units sold. Crucially, the curve extends to customers, who learn how to use the product and multiply applications as it drops in price. The proliferation of hundreds of thousands of applications for Apple’s iPhones, for example, represented the learning curve of the users as much as the learning curve at Apple. All these curves document the essential identity of growth and learning as a central rule of capitalist change. Sound management of money cannot focus on finding stable elements among existing goods and services that are endlessly multifarious and changing. These very changes are what money must measure. The only feasible goal of policy is to foster neutrality between the past and the future.


pages: 199 words: 56,243

Trillion Dollar Coach: The Leadership Playbook of Silicon Valley's Bill Campbell by Eric Schmidt, Jonathan Rosenberg, Alan Eagle

Apple's 1984 Super Bowl advert, augmented reality, Ben Horowitz, cloud computing, El Camino Real, Erik Brynjolfsson, fear of failure, Jeff Bezos, longitudinal study, Marc Andreessen, Mark Zuckerberg, Menlo Park, meta analysis, meta-analysis, Sand Hill Road, shareholder value, Silicon Valley, speech recognition, Steve Ballmer, Steve Jobs, Tim Cook: Apple

—Adam Grant Chapter 1 The Caddie and the CEO On a warm April day in 2016, a large crowd gathered on the football field at Sacred Heart School, in the heart of Atherton, California, to honor William Vincent Campbell, Jr., who had recently succumbed to cancer at the age of seventy-five. Bill had been a transcendent figure in the technology business since moving west in 1983, playing a critical role in the success of Apple, Google, Intuit, and numerous other companies. To say he was tremendously respected would be a gross understatement—loved is more like it. Among the audience that day were dozens of technology leaders—Larry Page. Sergey Brin. Mark Zuckerberg. Sheryl Sandberg. Tim Cook. Jeff Bezos. Mary Meeker. John Doerr. Ruth Porat. Scott Cook. Brad Smith. Ben Horowitz. Marc Andreessen. Such a concentration of industry pioneers and power is rarely seen, at least not in Silicon Valley. We—Jonathan Rosenberg and Eric Schmidt—sat among the audience, making subdued small talk, soft sunshine contrasting with the somber mood.

Bill didn’t take the job that John offered at Pepsi, but in 1983 Sculley decamped to Silicon Valley to become CEO of Apple, and shortly thereafter he gave Bill a call. Would he be willing to leave Kodak and move his young family—he had married the former Roberta Spagnola, a dean at Columbia, in 1976—west to come to Apple? “My career had been blunted by a lot of years as a dumb-ass football coach,” Bill later said. “I felt that because of my background, I would always be below my peer group and trying to catch up. Going out to the wild, woolly west, where it was more a meritocracy, I would have a chance to move quickly and sit on the management team.”8 Move quickly, indeed. Within nine months of joining Apple, Bill was promoted to VP of sales and marketing and given the task of overseeing the launch of the highly anticipated Macintosh, Apple’s new computer that would replace the Apple II as the company’s flagship product.

.* Although he did not know it at the time, he was about to enter the third chapter of his career, a return to coaching full-time, but not on a football field. When Steve Jobs was forced out of Apple in 1985, Bill Campbell was one of the few leaders at the company who fought against the move. Dave Kinser, an Apple colleague of Bill’s at the time, recalls Bill saying that “we’ve got to keep Steve in the company. He’s way too talented to just let him leave!” Steve remembered that loyalty. When he returned to Apple and became its CEO in 1997, and most of the board members stepped down, Steve named Bill as one of the new directors.* (Bill served on the Apple board until 2014.) Steve and Bill became close friends, speaking frequently and spending many Sunday afternoons walking around their Palo Alto neighborhood discussing all sorts of topics.


pages: 202 words: 59,883

Age of Context: Mobile, Sensors, Data and the Future of Privacy by Robert Scoble, Shel Israel

Albert Einstein, Apple II, augmented reality, call centre, Chelsea Manning, cloud computing, connected car, Edward Snowden, Edward Thorp, Elon Musk, factory automation, Filter Bubble, G4S, Google Earth, Google Glasses, Internet of things, job automation, John Markoff, Kickstarter, lifelogging, Marc Andreessen, Mars Rover, Menlo Park, Metcalfe’s law, New Urbanism, PageRank, pattern recognition, RFID, ride hailing / ride sharing, Robert Metcalfe, Saturday Night Live, self-driving car, sensor fusion, Silicon Valley, Skype, smart grid, social graph, speech recognition, Steve Jobs, Steve Wozniak, Steven Levy, Tesla Model S, Tim Cook: Apple, ubercab, urban planning, Zipcar

Soon they will become even more integral and they will be inextricable from life itself in the Age of Context. Location In September 2012, Apple launched its own mobile maps. It took very little time for the public to realize that they were so awful as to be comedic. But the humor got lost if you were using them to find your way along a snowy road late at night. Apple Maps somehow managed to erase famous landmarks from their sites in the world’s major cities; others were relocated under bodies of water. Drivers reported that turn-by-turn voice directions were misguiding them, occasionally urging them to take abrupt turns mid-span on suspension bridges. The maps were so flawed that CEO Tim Cook soon publicly apologized, encouraging customers to use competing products, including Google Maps. It was a head-scratcher.

Some pointed to a bitter and public divorce between Apple and Google. Steve Jobs had considered Google Android to be a direct rip-off of Apple’s iOS operating system. Could Apple Maps have simply been a crudely devised and poorly executed act of revenge against a powerful former ally? We think not. In our view, Apple made a huge mistake, but it was strategically motivated and not part of a petty Silicon Valley vendetta. Although Google and Apple historically had lots of good reasons to be allies, they were destined to become the rivals they now are. In the past, tech companies were pretty much divided between hardware and software, so an alliance between world leaders in each of the two categories was formidable, to say the least. Apple was clearly the pacesetter in world-changing mobile hardware.

To remain a leader, Apple and Google each needed to vie for online time, for alliances with third-party developers and to provide platforms that make those apps valuable. For Google that meant having its own operating system; for Apple it meant having maps because it saw the unquestionable value of location-based services. For Apple, and many companies, mobile apps are the secret sauce of the Age of Context; mobile mapping is the most strategic of all categories. Caterina Fake, CEO and founder of Findery, a location-based platform, explains it best in a statement that is simultaneously obvious and profound: “Without location, there is no context.” And for Apple, without context there will be no leadership. So Apple and Google divorced. Today Android and iOS compete for mobile operating system dominance, and thus Apple had little choice but to develop its own maps. Its big mistake was not in the play, but in being unprepared for the enormous challenges they faced on an unrealistically short timeline and then blindly plowing forward.


pages: 184 words: 53,625

Future Perfect: The Case for Progress in a Networked Age by Steven Johnson

Airbus A320, airport security, algorithmic trading, banking crisis, barriers to entry, Bernie Sanders, call centre, Captain Sullenberger Hudson, Cass Sunstein, Charles Lindbergh, cognitive dissonance, credit crunch, crowdsourcing, dark matter, Dava Sobel, David Brooks, Donald Davies, future of journalism, hive mind, Howard Rheingold, HyperCard, Jane Jacobs, John Gruber, John Harrison: Longitude, Joi Ito, Kevin Kelly, Kickstarter, lone genius, Mark Zuckerberg, mega-rich, meta analysis, meta-analysis, Naomi Klein, Nate Silver, Occupy movement, packet switching, peer-to-peer, Peter Thiel, planetary scale, pre–internet, RAND corporation, risk tolerance, shareholder value, Silicon Valley, Silicon Valley startup, social graph, Steve Jobs, Steven Pinker, Stewart Brand, The Death and Life of Great American Cities, Tim Cook: Apple, urban planning, US Airways Flight 1549, WikiLeaks, William Langewiesche, working poor, X Prize, your tax dollars at work

Tech critics such as Scott Rosenberg and Andrew Leonard at Salon wrote tens of thousands of words on the latest developments at Apple. (I wrote a few thousand myself at the online magazine I had founded, FEED.) Sometime around then, Apple launched its first official website; now I could get breaking news about the company directly from the source, the second they announced it. If my nineteen-year-old self could time-travel to the present day, he would no doubt be amazed by all the Apple technology—the iPhones and MacBook Airs—but I think he would be just as amazed by the sheer volume and diversity of the information about Apple available now. In the old days, it might have taken months for details from a John Sculley keynote to make it to the College Hill Bookstore; now the lag is seconds, with dozens of people live-blogging every passing phrase from a Steve Jobs or Tim Cook speech. There are 8,000-word dissections of each new release of OS X at the technological site Ars Technica, written with attention to detail and technical sophistication that far exceed anything a traditional newspaper would ever attempt.

I made my monthly pilgrimages to College Hill because I was interested in the Mac, which was, it should be said, a niche interest in 1987, though not that much of a niche. Apple was one of the world’s largest creators of personal computers, and by far the most innovative. But if you wanted to find out news about the Mac—new machines from Apple, the latest word on the upcoming System 7 or HyperCard, or any new releases from the thousands of software developers or peripheral manufacturers—if you wanted to keep up with any of this, there was just about one channel available to you, as a college student in Providence, Rhode Island. You read Macworld. Even then, even if you staked out the College Hill Bookstore, waiting for issues hot off the press, you were still getting the news a month or two late, given the long lead times of a print magazine back then. Yes, if Apple had a major product announcement, or fired Steve Jobs, it would make it into The New York Times or The Wall Street Journal the next day.

Decentralization, peer-to-peer networks, gateways, platform stacks—the principles that Baran, Davies, Cerf, Kahn, and others hit upon together in the 1960s and 1970s provided a brilliant solution to the problem of sharing information on a planetary scale. Tellingly, the solution ultimately outperformed any rival approaches developed by the marketplace. Billions of dollars were spent by private companies trying to build global networks based on proprietary standards: AOL, CompuServe, Prodigy, Microsoft, Apple, and many others made epic efforts to become mainstream consumer networks in the late 1980s and early 1990s. They were all defeated by a set of networking standards—TCP/IP, the e-mail protocols of POP and SMTP, and the Web standards of HTML and HTTP—that were effectively public property: collectively developed and owned by no one, or by everyone. This was the stunning coda to Hayek’s career: he won a Nobel Prize by explaining how markets shared information much more effectively than centralized states, but when it came time to build a global system for sharing information, the ultimate solution came from outside the marketplace.


pages: 497 words: 144,283

Connectography: Mapping the Future of Global Civilization by Parag Khanna

"Robert Solow", 1919 Motor Transport Corps convoy, 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, 9 dash line, additive manufacturing, Admiral Zheng, affirmative action, agricultural Revolution, Airbnb, Albert Einstein, amateurs talk tactics, professionals talk logistics, Amazon Mechanical Turk, Asian financial crisis, asset allocation, autonomous vehicles, banking crisis, Basel III, Berlin Wall, bitcoin, Black Swan, blockchain, borderless world, Boycotts of Israel, Branko Milanovic, BRICs, British Empire, business intelligence, call centre, capital controls, charter city, clean water, cloud computing, collateralized debt obligation, commoditize, complexity theory, continuation of politics by other means, corporate governance, corporate social responsibility, credit crunch, crony capitalism, crowdsourcing, cryptocurrency, cuban missile crisis, data is the new oil, David Ricardo: comparative advantage, deglobalization, deindustrialization, dematerialisation, Deng Xiaoping, Detroit bankruptcy, digital map, disruptive innovation, diversification, Doha Development Round, edge city, Edward Snowden, Elon Musk, energy security, Ethereum, ethereum blockchain, European colonialism, eurozone crisis, failed state, Fall of the Berlin Wall, family office, Ferguson, Missouri, financial innovation, financial repression, fixed income, forward guidance, global supply chain, global value chain, global village, Google Earth, Hernando de Soto, high net worth, Hyperloop, ice-free Arctic, if you build it, they will come, illegal immigration, income inequality, income per capita, industrial cluster, industrial robot, informal economy, Infrastructure as a Service, interest rate swap, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Isaac Newton, Jane Jacobs, Jaron Lanier, John von Neumann, Julian Assange, Just-in-time delivery, Kevin Kelly, Khyber Pass, Kibera, Kickstarter, LNG terminal, low cost airline, low cost carrier, low earth orbit, manufacturing employment, mass affluent, mass immigration, megacity, Mercator projection, Metcalfe’s law, microcredit, mittelstand, Monroe Doctrine, mutually assured destruction, New Economic Geography, new economy, New Urbanism, off grid, offshore financial centre, oil rush, oil shale / tar sands, oil shock, openstreetmap, out of africa, Panamax, Parag Khanna, Peace of Westphalia, peak oil, Pearl River Delta, Peter Thiel, Philip Mirowski, plutocrats, Plutocrats, post-oil, post-Panamax, private military company, purchasing power parity, QWERTY keyboard, race to the bottom, Rana Plaza, rent-seeking, reserve currency, Robert Gordon, Robert Shiller, Robert Shiller, Ronald Coase, Scramble for Africa, Second Machine Age, sharing economy, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, six sigma, Skype, smart cities, Smart Cities: Big Data, Civic Hackers, and the Quest for a New Utopia, South China Sea, South Sea Bubble, sovereign wealth fund, special economic zone, spice trade, Stuxnet, supply-chain management, sustainable-tourism, TaskRabbit, telepresence, the built environment, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, Tim Cook: Apple, trade route, transaction costs, UNCLOS, uranium enrichment, urban planning, urban sprawl, WikiLeaks, young professional, zero day

Even what looks like de-globalization is actually still globalization. Apple is a perfect example of these complex realities. The Berkeley economist Enrico Moretti estimates that Apple is substantially responsible for sixty thousand jobs in Silicon Valley, only twelve thousand of which are employees in its Cupertino headquarters. “In Silicon Valley,” Moretti claims, “high-tech jobs are the cause of local prosperity, and the doctors, lawyers, roofers and yoga teachers are the effect.”2 What appears a thriving community is primarily the result of corporate innovation and global growth—not public investment. Apple is now taking its passive provision of goods a step further by strategically relaunching the production of one iMac line in Texas. As the CEO, Tim Cook, said in December 2013, “I don’t think we have a responsibility to create a certain kind of job.

In early 2015, the trading house Itochu made the largest Japanese foreign investment ever in China, buying (together with Thailand’s CP Group) a 10 percent stake in CITIC, one of China’s oldest and most respected conglomerates. CHAPTER 7: THE GREAT SUPPLY CHAIN WAR 1. Interview with author, July 18, 2015. 2. Enrico Moretti, The New Geography of Jobs (Houghton Mifflin Harcourt, 2012). 3. Josh Tyrangiel, “Tim Cook’s Freshman Year: The Apple CEO Speaks,” Bloomberg Businessweek, Dec. 6, 2012. 4. However, additive manufacturing and the sharing economy together do cause tremendous domestic dislocation. The construction sector is not tradable, but it can increasingly be automated as entire homes are designed, printed, and assembled out of 3-D printing kits, displacing contractors and builders across America and Europe. 5.

The more connectivity we have, the more such companies can make their mastery of it their competitive advantage. Even Silicon Valley’s technology companies increasingly make their products—and keep their money—in the cloud. There are fewer than five countries in the world whose GDP is larger than the more than $200 billion of liquid cash Apple Inc. holds in securities worldwide, meaning Apple could buy many countries’ combined output (minus their debt). Having sold almost two billion products to over one billion people, Apple not only has more money but also occupies greater mind share than most nations. Countries run by supply chains, cities that run themselves, communities that know no borders, and companies with more power than governments—all are evidence of the shift toward a new kind of pluralistic world system. The ranks of such global authorities that belong on our maps of connectivity are rapidly growing, a reminder that the map itself is never finished in a world of constant change.


pages: 265 words: 70,788

The Wide Lens: What Successful Innovators See That Others Miss by Ron Adner

barriers to entry, call centre, Clayton Christensen, inventory management, iterative process, Jeff Bezos, Lean Startup, M-Pesa, minimum viable product, mobile money, new economy, RAND corporation, RFID, smart grid, smart meter, spectrum auction, Steve Ballmer, Steve Jobs, Steven Levy, supply-chain management, Tim Cook: Apple, transaction costs

CNET.com, July 12, 2002, http://news.cnet.com/2100-1040-943519.xhtml. 210 iPod, boasting 100 million customers: Steven Levy, “Why We Went Nuts About the iPhone,” Newsweek, July 16, 2007. 210 Apple’s stock shot up 44 percent: Matt Krantz, “iPhone Powers up Apple’s Shares,” USA Today, June 28, 2007. 211 “four times the number of PCs that ship every year”: Morris, “Steve Jobs Speaks Out.” 211 Ericsson released the R380: Dave Conabree, “Ericsson Introduces the New R380e,” Mobile Magazine, September 25, 2001. 211 Palm followed up with its version: Sascha Segan, “Kyocera Launches First Smartphone in Years,” PC Magazine, March 23, 2010, http://www.pcmag.com/article2/0,2817,2361664,00.asp#fbid=C81SVwKJIvh. 211 “one more entrant into an already very busy space”: “RIM Co-CEO Doesn’t See Threat from Apple’s iPhone,” InformationWeek, February 12, 2007. 212 the phone was exclusively available from only one carrier: In a handful of markets regulators ruled the exclusivity arrangement illegal. 212 “The bigger problem is the AT&T network”: David Pogue, “The iPhone Matches Most of Its Hype,” New York Times, June 27, 2007. 212 priced at a mere $99 in 2007: Kim Hart, “Rivals Ready for iPhone’s Entrance; Pricey Gadget May Alter Wireless Field,” Washington Post, June 24, 2007. 212 “cause irreparable damage to the iPhone’s software”: Apple, press release, September 24, 2007. 213 “I say I like our strategy”: Steve Ballmer interviewed on CNBC, January 17, 2007. 213 They ran out of the older model six weeks before the July 2008 launch: Tom Krazit, “The iPhone, One Year Later,” CNET.com, June 26, 2008, http://news.cnet.com/8301-13579_3-9977572-37.xhtml. 213 60 percent went to buyers who already owned at least one iPod: Apple COO Tim Cook’s comments at Goldman Sachs Technology and Internet Conference, cited in JPMorgan analyst report, “Strolling Through the Apple Orchard: The Good, the Bad and the Ugly Scenarios,” March 4, 2008. 215 the average iPhone user paid AT&T $2,000: Jenna Wortham, “Customers Angered as iPhones Overload AT&T,” New York Times, September 2, 2009. 215 as high as $18 per user per month: Tom Krazit, “Piper Jaffray: AT&T Paying Apple $18 per iPhone, Per Month,” CNET.com, October 24, 2007, http://news.cnet.com/8301-13579_3-9803657-37.xhtml. 216 Apple announced its 10 billionth app download: Apple.com, “iTunes Store Tops 10 Billion Songs Sold,” February 25, 2010, http://www.apple.com/pr/library/2010/02/25iTunes-Store-Tops-10-Billion-Songs-Sold.xhtml.

Beyond a clear focus on their own capabilities, these firms were meticulous in their approach to configuring external elements around those capabilities. But while we can see these three principles employed by scores of successful organizations, no recent firm is a better exemplar of their use than Apple. Apple’s Success in the New Millennium Everyone knows that Apple has been on an incredible run for the last decade. But while a great deal of attention has focused on Apple’s sleek product designs, what is often misunderstood is Apple’s systematic approach to its ecosystem strategy—its hidden source of advantage. Apple has no monopoly on great products, great interfaces, or a great brand. Apple’s product design is key, of course, but Apple’s rivals have been at its heels—behind but close—for years, even garnering praise for comparable design quality and better functionality. In awarding the Consumer Electronics Show 2006 prize for Best in Show, CNET’s editors commented, “iPod killer?

,” EDN.com, June 25, 2001, http://www.edn.com/article/484332-Is_MP3_Here_to_Stay_.php. 145 “the hit of the holiday season”: Arik Hesseldahl, “iPod’s a Winner,” Forbes.com, December 7, 2001, http://www.forbes.com/2001/12/07/1207tentech.xhtml. 145 “revolutionary,” and “brilliant”: Eliot Van Buskirk, “How the iPod Will Change Computing,” CNET.com, November 2, 2001, http://reviews.cnet.com/4520-6450_7-5020659-1.xhtml. 146 purchased over 600,000 iPods: “Apple Press Info,” Apple.com., 2011, http://www.apple.com/pr/products/ipodhistory/. Accessed July 23, 2011. 146 Apple held only 15 percent of the digital player market: Brian Garrity, “Digital Devices Get Smaller, Capacity Grows; Will Consumers Respond?,” Billboard, November 9, 2002. 146 “iTunes Music Store offers a groundbreaking solution”: Apple, “Apple Launches the iTunes Music Store,” press release, April 28, 2003. 146 200,000 songs from major labels: Ibid. 146 8 billion songs: William Blair & Company, “Apple Inc.,” equity research report, September 2, 2009. 146 operating margin of 10 percent: Estimate from report by Pacific Crest Securities analyst Andy Hargreaves, discussed in Eric Savitz, “Apple: Turns Out, iTunes Makes Money, Pacific Crest Says, Subscription Service Seems Inevitable,” Tech Trader Daily, April 23, 2007. 146 compatible with both FireWire and USB cables: Michelle Megna, “Apple’s Shining Moment: The Company Hits the Right Notes with Its New Online Music Store and Revamped iPods,” New York Daily News, May 11, 2003. 146 sales of portable CD players were still more than double: Christopher Walsh, “All They Want for Xmas Is the iPod,” Billboard, January 29, 2005. 147 sales of the iPod had leaped 616 percent: Mark Evans, “Apple’s iPod Is ‘the Kleenex’ of MP3 Players: Cultural Phenomenon Garnered Apple US$1.1-Billion in Q3,” National Post (Canada), July 15, 2005. 147 closest competitor with 8 percent market share: IDC data cited in William Blair & Company, “Apple Inc.,” equity research report., September 2, 2009. 147 “These waves of technology, you can see them way before they happen”: Betsy Morris, “Steve Jobs Speaks Out,” Fortune, March 7, 2008. 147 “the Walkman of the early 21st century”: “Behind the Smiles at Sony,” Economist, March 12, 2005. 148 pioneers are the ones with arrows in their backs: Peter N.


pages: 244 words: 66,977

Subscribed: Why the Subscription Model Will Be Your Company's Future - and What to Do About It by Tien Tzuo, Gabe Weisert

3D printing, Airbnb, airport security, Amazon Web Services, augmented reality, autonomous vehicles, blockchain, Build a better mousetrap, business cycle, business intelligence, business process, call centre, cloud computing, cognitive dissonance, connected car, death of newspapers, digital twin, double entry bookkeeping, Elon Musk, factory automation, fiat currency, Internet of things, inventory management, iterative process, Jeff Bezos, Kevin Kelly, Lean Startup, Lyft, manufacturing employment, minimum viable product, natural language processing, Network effects, Nicholas Carr, nuclear winter, pets.com, profit maximization, race to the bottom, ride hailing / ride sharing, Sand Hill Road, shareholder value, Silicon Valley, skunkworks, smart meter, social graph, software as a service, spice trade, Steve Ballmer, Steve Jobs, subscription business, Tim Cook: Apple, transport as a service, Uber and Lyft, uber lyft, Y2K, Zipcar

Its February 1, 2018, earnings call was almost exclusively dedicated to highlighting its service revenue, which was $31.15 billion in 2017 and could constitute a Fortune 100 company itself. That revenue is growing at 27 percent a year and represents more than half of Apple’s growth. And while its hardware business is seasonal and subject to wide peaks and troughs, its service business shows consistent, predictable growth quarter over quarter. But guess what? Some people still don’t get it! The Q&A session of that last earnings call was dominated by analyst questions around iPhone supply and demand. It’s enough to make you slam your forehead on your desk. Now, I understand that today Apple is doing just fine by selling expensive phones to affluent people. But just imagine what would happen at the next Apple keynote if Tim Cook announced a simple monthly Apple subscription plan that covered everything: network provider charges, automatic hardware upgrades, and add-on options for extra devices, music and video content, specialty software, gaming, etc.

But just imagine what would happen at the next Apple keynote if Tim Cook announced a simple monthly Apple subscription plan that covered everything: network provider charges, automatic hardware upgrades, and add-on options for extra devices, music and video content, specialty software, gaming, etc. Not just an upgrade program, but Apple as a Service. I have to admit, this isn’t my idea—it belongs to Goldman Sachs. Goldman analyst Jankowski has suggested an “Apple Prime” $50 monthly subscription that would include a guaranteed phone upgrade, Apple TV, and Apple Music. If, as a result, Cupertino could deliver a financial statement similar to Salesforce’s noting that 80 percent of next year’s revenue was already in the bank, how fast do you think it would take for Apple to hit that trillion-dollar valuation? As each year passes, Apple cares less and less about how many iPhones it ships, and more about its revenue per Apple ID, lifetime value per Apple ID, and efficiency metrics toward growing the base and value of those Apple IDs. Apple has cleverly integrated those IDs into its retail experience as well.

It’s about establishing ongoing relationships. It’s about flipping the script—starting with the digital experience, and then building the store. APPLE AS A SERVICE Every year, several thousand tech journalists show up to hear Apple executives wax enthusiastic about a new iPhone that is a little bit thinner, shinier, and wider than the iPhone they talked enthusiastically about last year. As transformative as the first iPhone was, today this whole exercise is getting to be pretty silly. As Goldman Sachs analyst Simona Jankowski rightly notes, “The smartphone battleground is shifting from unit land grab to user monetization.” I think the Apple executives must realize this as well, because lately they’ve been taking great pains to point to the growth of their service revenue, which they hope to double by the year 2020.


pages: 391 words: 71,600

Hit Refresh: The Quest to Rediscover Microsoft's Soul and Imagine a Better Future for Everyone by Satya Nadella, Greg Shaw, Jill Tracie Nichols

"Robert Solow", 3D printing, Amazon Web Services, anti-globalists, artificial general intelligence, augmented reality, autonomous vehicles, basic income, Bretton Woods, business process, cashless society, charter city, cloud computing, complexity theory, computer age, computer vision, corporate social responsibility, crowdsourcing, Deng Xiaoping, Donald Trump, Douglas Engelbart, Edward Snowden, Elon Musk, en.wikipedia.org, equal pay for equal work, everywhere but in the productivity statistics, fault tolerance, Gini coefficient, global supply chain, Google Glasses, Grace Hopper, industrial robot, Internet of things, Jeff Bezos, job automation, John Markoff, John von Neumann, knowledge worker, Mars Rover, Minecraft, Mother of all demos, NP-complete, Oculus Rift, pattern recognition, place-making, Richard Feynman, Robert Gordon, Ronald Reagan, Second Machine Age, self-driving car, side project, Silicon Valley, Skype, Snapchat, special economic zone, speech recognition, Stephen Hawking, Steve Ballmer, Steve Jobs, telepresence, telerobotics, The Rise and Fall of American Growth, Tim Cook: Apple, trade liberalization, two-sided market, universal basic income, Wall-E, Watson beat the top human players on Jeopardy!, young professional, zero-sum game

Believing that the iPhone used by one of the shooters might contain information that would illuminate just what had happened and thereby help prevent future attacks, the FBI filed suit to force Apple to unlock the phone. Apple pushed back. Tim Cook, Apple’s CEO, argued that his company could breach the phone’s security only by creating new software that would expose a so-called backdoor that anyone could then infiltrate. The FBI, in Apple’s view, was threatening data security by seeking to establish a precedent that the U.S. government could use to force any technology company to create software that would undermine the security of its products. Other technologists backed Apple’s position. Once again, Microsoft faced a difficult decision—one that weighed heavily on me personally. I have relatives who have worked in law enforcement, and I understand the need to obtain evidence to protect public safety—in many cases the safety of our customers.

Partnering is too often seen as a zero-sum game—whatever is gained by one participant is lost by another. I don’t see it that way. When done right, partnering grows the pie for everyone—for customers, yes, but also for each of the partners. Ultimately the consensus was that this partnership with Apple would help to ensure Office’s value was available to everyone, and Apple was committing to make its iOS really show off the great things Office can do, which would further solidify Microsoft as the top developer for Apple. On launch day, Apple’s Senior Vice President for Worldwide Marketing, Phil Schiller, teased the audience as he set up the next demo at the iPad Pro launch. “We’ve been lucky to have some developers come in to work with us on professional productivity. Who knows productivity more than Microsoft?” Nervous laughter filled the room.

I wanted unambiguously to declare, both internally and externally, that the strategy would be to center our innovation agenda around users’ needs and not simply their device. We announced that we would bring Office to iOS in March 2014, two months into my new role. Soon Apple sent a cryptic note to our Office team asking for an engineer to sign a nondisclosure agreement and come to Cupertino for a meeting. This is standard operating procedure in our secretive industry where intellectual property must be guarded. After a few meetings, it became clear that what Apple wanted was for Microsoft to work with them to optimize Office 365 for their new iPad Pro. Apple told us that they felt there was a new openness at Microsoft. They trusted us and wanted us to be part of their launch event. There was passionate debate internally about whether this was a good idea. At first some product-line leaders within Microsoft felt uneasy about partnering with their competitor; I definitely heard some resistance behind closed doors.


pages: 222 words: 70,132

Move Fast and Break Things: How Facebook, Google, and Amazon Cornered Culture and Undermined Democracy by Jonathan Taplin

1960s counterculture, affirmative action, Affordable Care Act / Obamacare, Airbnb, Amazon Mechanical Turk, American Legislative Exchange Council, Apple's 1984 Super Bowl advert, back-to-the-land, barriers to entry, basic income, battle of ideas, big data - Walmart - Pop Tarts, bitcoin, Brewster Kahle, Buckminster Fuller, Burning Man, Clayton Christensen, commoditize, creative destruction, crony capitalism, crowdsourcing, data is the new oil, David Brooks, David Graeber, don't be evil, Donald Trump, Douglas Engelbart, Douglas Engelbart, Dynabook, Edward Snowden, Elon Musk, equal pay for equal work, Erik Brynjolfsson, future of journalism, future of work, George Akerlof, George Gilder, Google bus, Hacker Ethic, Howard Rheingold, income inequality, informal economy, information asymmetry, information retrieval, Internet Archive, Internet of things, invisible hand, Jaron Lanier, Jeff Bezos, job automation, John Markoff, John Maynard Keynes: technological unemployment, John von Neumann, Joseph Schumpeter, Kevin Kelly, Kickstarter, labor-force participation, life extension, Marc Andreessen, Mark Zuckerberg, Menlo Park, Metcalfe’s law, Mother of all demos, move fast and break things, move fast and break things, natural language processing, Network effects, new economy, Norbert Wiener, offshore financial centre, packet switching, Paul Graham, paypal mafia, Peter Thiel, plutocrats, Plutocrats, pre–internet, Ray Kurzweil, recommendation engine, rent-seeking, revision control, Robert Bork, Robert Gordon, Robert Metcalfe, Ronald Reagan, Ross Ulbricht, Sam Altman, Sand Hill Road, secular stagnation, self-driving car, sharing economy, Silicon Valley, Silicon Valley ideology, smart grid, Snapchat, software is eating the world, Steve Jobs, Stewart Brand, technoutopianism, The Chicago School, The Market for Lemons, The Rise and Fall of American Growth, Tim Cook: Apple, trade route, transfer pricing, Travis Kalanick, trickle-down economics, Tyler Cowen: Great Stagnation, universal basic income, unpaid internship, We wanted flying cars, instead we got 140 characters, web application, Whole Earth Catalog, winner-take-all economy, women in the workforce, Y Combinator

Facebook, with its libertarian financier’s roots, takes much of the same stance toward content and advertising, but there are signs that its CEO has real ethical questions about where the company is going. Amazon, whose founder, Jeff Bezos, embraces the libertarian creed but has not taken the “don’t ask permission” route, has instead opened a new front: a relentless push to lower prices and commoditize content (especially books), which presents a different danger. And then there is Apple, the dissenter from the libertarian creed. Both Steve Jobs and Tim Cook have been real allies to the content community, and their stance against the surveillance-marketing model that is at the core of Google’s and Facebook’s businesses—i.e., their support of ad blockers—puts them in direct opposition to the dominant search and social platforms. The tech elite’s jealous guarding of its own monopoly platforms is built upon blatant disregard for the artist’s intellectual property, a fact that came home to me in April of 2012 when I debated Alexis Ohanian, the founder of Reddit, at the Fast Company Innovation Uncensored event.

Jobs went back to Cupertino and called a board meeting, saying he had to build a new computer based on the PARC architecture and that it should not be backward-compatible with the existing Apple II. The board thought he was crazy, but Jobs applied his charisma—his “reality distortion field”—and got his way. Xerox got its Apple shares, and in December of 1980, Apple went public at $22 per share. Xerox’s holdings were instantly worth millions. The first version of a computer using the PARC architecture, the Lisa, was a commercial failure, but when Jobs introduced the Macintosh in an iconic advertisement that aired during the 1984 Super Bowl, the long-awaited vision of the future arrived. The tragedy for Xerox was that two years later, the Xerox CFO sold all its Apple stock. Imagine what it would have meant to the company if it had held on to 5 percent of Apple, which would now be worth about $32 billion. In 1985, after the debut of the Macintosh, Microsoft quickly introduced Windows, an operating system that totally mimicked the Macintosh.

What was the chance that any of the PARC stuff could ever be sold through the Xerox channels? Zero.” So the decision was made to try to partner with Apple. Almost every version of the story of Steve Jobs visiting PARC for a demonstration in December of 1979 is wrong. It is usually said to epitomize the complete failure on Xerox’s part to understand what they had invented. A bit of background: Apple had successfully launched the Apple II computer in April of 1977. It was an instant hit, and between September of 1977 and September of 1980, yearly sales grew from $775,000 to $118 million, an average annual growth rate of 533 percent. But Jobs refused to sit still. He had heard about the Xerox Alto and had worked out a deal with Xerox in which he would sell them perhaps as much as 5 percent of Apple in return for a licensing agreement to all the PARC technology. But in a true sign of how dysfunctional Xerox management was, it did not inform the PARC executives of the pending stock transaction.


pages: 223 words: 63,484

Making Ideas Happen: Overcoming the Obstacles Between Vision and Reality by Scott Belsky

centralized clearinghouse, index card, lone genius, market bubble, Merlin Mann, New Journalism, Results Only Work Environment, rolodex, side project, Silicon Valley, Steve Jobs, Steve Wozniak, supply-chain management, Tim Cook: Apple, Tony Hsieh, young professional

A Doer will push the Incrementalist into more of a Dreamer mode when necessary, while a Dreamer brings out the Incrementalist’s impatience and organizational Doer-like tendencies. As we examine the history of spectacular creations and the leaders behind these accomplishments, some obvious examples of Doers, Dreamers, and Incrementalists stand out. Bill Bowerman, the former track coach who developed Nike’s running shoes, partnered with Phil Knight to transform his vision into a business. In the leadership of Apple, one might call Jonathan Ive (chief designer), Tim Cook (chief operating officer), and Steve Jobs (chief executive officer) Dreamer, Doer, and Incrementalist, respectively. In the world of fashion, the Dreamer Calvin Klein had Barry Schwartz, Ralph Lauren had Roger Farah, and Marc Jacobs had Robert Duffy—three fashion visionaries paired with a world-class Doer as a partner. And so, there is no ideal category. The Doers, Dreamers, and Incrementalists all have their own strengths and limitations.

You don’t need to set aside three actual rooms, but you do need a period of scrutiny in your creative process. You also don’t want to create too much structure around when you can and cannot generate new ideas. However, you must be willing to kill ideas liberally—for the sake of fully pursuing others. In a rare interview in BusinessWeek on Apple’s system for innovation, CEO Steve Jobs explained that, in fact, there is no system at Apple—and that spontaneity is a crucial element for innovation, so long as it is paired with the ability to say no without hesitation: Apple is a very disciplined company, and we have great processes. But that’s not what it’s about. Process makes you more efficient. But innovation comes from people meeting up in the hallways or calling each other at 10:30 at night with a new idea, or because they realized something that shoots holes in how we’ve been thinking about a problem.

At the same time, many of us don’t really associate such tasks with creativity and ideas. Since 2004, AMR Research, a leading authority on supply chain research that serves numerous Fortune 500 companies, has published an annual list of the twenty-five companies with the best supply chain management. You might be surprised to learn that Apple debuted on the list at No. 2 in 2007, and overtook companies such as Anheuser-Busch, Wal-Mart, Procter & Gamble, and Toyota to take the No. 1 slot in 2008. Why would Apple, a company known for new ideas and its ability to “think different,” also be one of the most organized companies on the planet? The answer is that—like it or not—organization is a major force for making ideas happen. Organization is just as important as ideas when it comes to making an impact. Consider the following equation: CREATIVITY X ORGANIZATION = IMPACT If the impact of our ideas is, in fact, largely determined by our ability to stay organized, then we would observe that those with tons of creativity but little to no organization yield, on average, nothing.


pages: 260 words: 76,223

Ctrl Alt Delete: Reboot Your Business. Reboot Your Life. Your Future Depends on It. by Mitch Joel

3D printing, Amazon Web Services, augmented reality, call centre, clockwatching, cloud computing, Firefox, future of work, ghettoisation, Google Chrome, Google Glasses, Google Hangouts, Khan Academy, Kickstarter, Kodak vs Instagram, Lean Startup, Marc Andreessen, Mark Zuckerberg, Network effects, new economy, Occupy movement, place-making, prediction markets, pre–internet, QR code, recommendation engine, Richard Florida, risk tolerance, self-driving car, Silicon Valley, Silicon Valley startup, Skype, social graph, social web, Steve Jobs, Steve Wozniak, Thomas L Friedman, Tim Cook: Apple, Tony Hsieh, white picket fence, WikiLeaks, zero-sum game

And what this data indicates is that the one-screen world is not a possible trend but an inevitability that has already taken place, and that the growth continues at an exponential pace. When Apple CEO Tim Cook took to the stage at the Yerba Buena Center for the Arts on March 7, 2012, many people were waiting to see both how Cook would handle the first major release from Apple in a post–Steve Jobs world and what the rumored iPad would be capable of, as the iPad 2 was still selling well. Beyond a smooth performance and a new iPad that featured Retina Display with a faster computer processor (dual-core A5X processor with quad-core graphics, thank you very much), few picked up on the staggering data point that Cook enlightened us all with. Apple sold over fifteen million iPads in the first quarter of 2012. That was more than any PC maker’s total computer sales during the same quarter (including companies like HP, Lenovo, Dell, and Acer). In 2011, Apple had sold close to 175 million iPads, when all PC manufacturers combined shipped nearly 300 million PCs during that same year.

The company never pulled the trigger on their e-commerce project, and now they’re busy scrambling for “likes” on Facebook and are selling their products through the handful of big-box retailers left. Ironically, other, scrappier startups have disrupted this traditional retail model with digital-only brands that are capturing the imagination (and money) of consumers all over the world. WHAT APPLE KNOWS. What happened prior to 2001 that made Apple go into the retail business? Whenever the topic of Apple and the Apple retail experience (aka Apple Store) is brought up, many media pundits roll their eyes as if the success of these sparse and crisp stores is some kind of anomaly in business lore. It’s not. Apple came to a conclusion in the 1990s that many businesses have yet to wake up to. They knew that if potential customers walked into a traditional consumer electronics goods store and became inundated with a massive selection of computers and laptops, they would, instinctively, defer to the first sales associate they could wrestle down.

No one knows the value of simplicity and the power that it brings better than Ron Johnson. Prior to becoming the CEO of JCPenney, Johnson was the senior vice president of retail operations at Apple. In short, he led the concept of both the Apple retail stores and the Genius Bar. His record at Apple is pristine. Within two years of the first store opening, the retail operation of Apple surpassed a billion dollars in annual sales (beating the record held by The Gap). Globally, Apple now has over three hundred stores, and their expansion plans continue to be as aggressive as their product launches. In November 2011, Johnson left Apple to lead JCPenney through this time of purgatory and reboot. His first big and bold moves made news as the 110-year-old company not only struggles to remain relevant but fights within the constraints of the traditional retail world—a place where being an anchor store at a highly coveted shopping mall was the difference between success and failure.


pages: 269 words: 70,543

Tech Titans of China: How China's Tech Sector Is Challenging the World by Innovating Faster, Working Harder, and Going Global by Rebecca Fannin

Airbnb, augmented reality, autonomous vehicles, blockchain, call centre, cashless society, Chuck Templeton: OpenTable:, cloud computing, computer vision, connected car, corporate governance, cryptocurrency, data is the new oil, Deng Xiaoping, digital map, disruptive innovation, Donald Trump, El Camino Real, Elon Musk, family office, fear of failure, glass ceiling, global supply chain, income inequality, industrial robot, Internet of things, invention of movable type, Jeff Bezos, Kickstarter, knowledge worker, Lyft, Mark Zuckerberg, megacity, Menlo Park, money market fund, Network effects, new economy, peer-to-peer lending, personalized medicine, Peter Thiel, QR code, RFID, ride hailing / ride sharing, Sand Hill Road, self-driving car, sharing economy, Shenzhen was a fishing village, Silicon Valley, Silicon Valley startup, Skype, smart cities, smart transportation, Snapchat, social graph, software as a service, South China Sea, sovereign wealth fund, speech recognition, stealth mode startup, Steve Jobs, supply-chain management, Tim Cook: Apple, Travis Kalanick, Uber and Lyft, Uber for X, uber lyft, urban planning, winner-take-all economy, Y Combinator, young professional

China’s massive $9 trillion mobile payments market led by Alibaba and Tencent is light-years ahead of the United States.5,6 Nearly everyone in the country, about 900 million, uses their smartphone as a mobile wallet, Alipay or WeChat Pay, to scan items and pay instantly without banking and credit card fees. Cash is a thing of the past in China. Cash, checks, money orders, and credit and debit cards are still commonly used in the United States, and Apple Pay and Google Pay are not yet mainstream in the States.7 Breaking into China now isn’t an option for American financial brands, given the dominance of Alibaba and Tencent. Google’s app store is blocked, and Apple Pay has such limited traction that Apple CEO Tim Cook agreed to accept Alipay at Apple’s 41 retail stores in China. Master-Card and Visa have tried for years to break into China while American Express was recently approved, but it’s probably too late. China has bypassed credit cards just as it did the personal computer for mobile phones and retail stores for online commerce.

DJI’s new flashy home in Shenzhen is a futuristic twin skyscraper designed by Foster & Partners, the same architect as for Apple’s orbit-like base in Cupertino. The plush building features cantilevered floors, a sky bridge where drones will be tested, and even a robot-fighting ring. The Apple of Drones DJI has positioned itself as the Apple of drones. Rumors have popped up that Apple would buy DJI as the iPhone maker mulls an entry into the drone market. In a stroke of marketing genius, DJI has obtained a dedicated section of prime real estate space at Apple retail stores globally for a line of advanced consumer drones. Its drones are sold on Amazon, eBay, Alibaba’s online retail service AliExpress, DJI’s site, and retail stores. Taking another cue from Apple, DJI has moved into physical retailing with swanky stores. DJI has four of its own retail outlets, including a three-story flagship store with an Apple-white decor in Hong Kong.

With its reach into communications and entertainment, Tencent’s pinnacle position will be extremely hard to overtake—and certainly no American competitor can really try in China. CHAPTER 3 ________________ GAINING FAST: CHINA’S NEXT TECH TITANS The next group of up-and-comers is right behind China’s BAT and leading the future for smartphones that rival Apple, internet-connected smart homes, superapps for speedy on-demand takeout lunches, plus 15-second video thrills and AI-fed news. XIAOMI: The Apple of the East Chinese tech entrepreneur Lei Jun is sometimes called the Steve Jobs of Apple. An entrepreneur celebrity in China much as Jobs was in Silicon Valley, he launched China’s smartphone maker Xiaomi in the spirit of Jobs and copied his products and style down to blue jeans and black T-shirt attire and stage presentations for new iPhones and iPads, even once teasing an introduction with the adopted line “Just one more thing.”


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Prediction Machines: The Simple Economics of Artificial Intelligence by Ajay Agrawal, Joshua Gans, Avi Goldfarb

"Robert Solow", Ada Lovelace, AI winter, Air France Flight 447, Airbus A320, artificial general intelligence, autonomous vehicles, basic income, Bayesian statistics, Black Swan, blockchain, call centre, Capital in the Twenty-First Century by Thomas Piketty, Captain Sullenberger Hudson, collateralized debt obligation, computer age, creative destruction, Daniel Kahneman / Amos Tversky, data acquisition, data is the new oil, deskilling, disruptive innovation, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, everywhere but in the productivity statistics, Google Glasses, high net worth, ImageNet competition, income inequality, information retrieval, inventory management, invisible hand, job automation, John Markoff, Joseph Schumpeter, Kevin Kelly, Lyft, Minecraft, Mitch Kapor, Moneyball by Michael Lewis explains big data, Nate Silver, new economy, On the Economy of Machinery and Manufactures, pattern recognition, performance metric, profit maximization, QWERTY keyboard, race to the bottom, randomized controlled trial, Ray Kurzweil, ride hailing / ride sharing, Second Machine Age, self-driving car, shareholder value, Silicon Valley, statistical model, Stephen Hawking, Steve Jobs, Steven Levy, strong AI, The Future of Employment, The Signal and the Noise by Nate Silver, Tim Cook: Apple, Turing test, Uber and Lyft, uber lyft, US Airways Flight 1549, Vernor Vinge, Watson beat the top human players on Jeopardy!, William Langewiesche, Y Combinator, zero-sum game

Permission to Learn Learning often requires customers who are willing to provide data. If strategy involves doing something at the expense of something else, then in the AI space, few companies made a stronger, earlier commitment than Apple. Tim Cook wrote, in a special section devoted to privacy on Apple’s home page: “At Apple, your trust means everything to us. That’s why we respect your privacy and protect it with strong encryption, plus strict policies that govern how all data is handled.”11 He went on: A few years ago, users of Internet services began to realize that when an online service is free, you’re not the customer. You’re the product. But at Apple, we believe a great customer experience shouldn’t come at the expense of your privacy. Our business model is very straightforward: We sell great products. We don’t build a profile based on your email content or web browsing habits to sell to advertisers.

And we don’t read your email or your messages to get information to market to you. Our software and services are designed to make our devices better. Plain and simple.12 Apple did not make this decision due to a government regulation. Some claimed Apple made the decision because it was purportedly lagging behind Google and Facebook in developing AI. No company, certainly not Apple, could eschew AI. This commitment would make its job harder. It plans to do AI in a way that respects privacy. It is making a big strategic bet that consumers will want control over their own data. Whether for security or privacy, Apple has bet that its commitment will make consumers more, not less, likely to allow AI onto their devices.13 Apple isn’t alone in betting that protecting privacy will pay off. Salesforce, Adobe, Uber, Dropbox, and many others have invested heavily in privacy.

Many other companies, including Google, Facebook, and Amazon, have chosen a different path, telling users that they will use data to provide better products. Apple’s focus on privacy limits the products it can offer. For instance, both Apple and Google have face recognition built into their photo services. To be useful to consumers, the faces have to be tagged. Google does this, preserving the tags, regardless of device, since the recognition runs on Google servers. Apple, however, because of privacy concerns, has opted to have that recognition occur at the device level. That means if you tag faces of people you know on your Mac, the tags will not carry over to your iPhone or iPad. Not surprisingly, this creates a situation where privacy concerns and consumer usability hit a roadblock. (How Apple will deal with these issues is unknown at the time of writing.) We do not know what will emerge in practice.


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Future Crimes: Everything Is Connected, Everyone Is Vulnerable and What We Can Do About It by Marc Goodman

23andMe, 3D printing, active measures, additive manufacturing, Affordable Care Act / Obamacare, Airbnb, airport security, Albert Einstein, algorithmic trading, artificial general intelligence, Asilomar, Asilomar Conference on Recombinant DNA, augmented reality, autonomous vehicles, Baxter: Rethink Robotics, Bill Joy: nanobots, bitcoin, Black Swan, blockchain, borderless world, Brian Krebs, business process, butterfly effect, call centre, Charles Lindbergh, Chelsea Manning, cloud computing, cognitive dissonance, computer vision, connected car, corporate governance, crowdsourcing, cryptocurrency, data acquisition, data is the new oil, Dean Kamen, disintermediation, don't be evil, double helix, Downton Abbey, drone strike, Edward Snowden, Elon Musk, Erik Brynjolfsson, Filter Bubble, Firefox, Flash crash, future of work, game design, global pandemic, Google Chrome, Google Earth, Google Glasses, Gordon Gekko, high net worth, High speed trading, hive mind, Howard Rheingold, hypertext link, illegal immigration, impulse control, industrial robot, Intergovernmental Panel on Climate Change (IPCC), Internet of things, Jaron Lanier, Jeff Bezos, job automation, John Harrison: Longitude, John Markoff, Joi Ito, Jony Ive, Julian Assange, Kevin Kelly, Khan Academy, Kickstarter, knowledge worker, Kuwabatake Sanjuro: assassination market, Law of Accelerating Returns, Lean Startup, license plate recognition, lifelogging, litecoin, low earth orbit, M-Pesa, Mark Zuckerberg, Marshall McLuhan, Menlo Park, Metcalfe’s law, MITM: man-in-the-middle, mobile money, more computing power than Apollo, move fast and break things, move fast and break things, Nate Silver, national security letter, natural language processing, obamacare, Occupy movement, Oculus Rift, off grid, offshore financial centre, optical character recognition, Parag Khanna, pattern recognition, peer-to-peer, personalized medicine, Peter H. Diamandis: Planetary Resources, Peter Thiel, pre–internet, RAND corporation, ransomware, Ray Kurzweil, refrigerator car, RFID, ride hailing / ride sharing, Rodney Brooks, Ross Ulbricht, Satoshi Nakamoto, Second Machine Age, security theater, self-driving car, shareholder value, Silicon Valley, Silicon Valley startup, Skype, smart cities, smart grid, smart meter, Snapchat, social graph, software as a service, speech recognition, stealth mode startup, Stephen Hawking, Steve Jobs, Steve Wozniak, strong AI, Stuxnet, supply-chain management, technological singularity, telepresence, telepresence robot, Tesla Model S, The Future of Employment, The Wisdom of Crowds, Tim Cook: Apple, trade route, uranium enrichment, Wall-E, Watson beat the top human players on Jeopardy!, Wave and Pay, We are Anonymous. We are Legion, web application, Westphalian system, WikiLeaks, Y Combinator, zero day

In short, it’s high time to encrypt the Internet to help protect the privacy and security of our digital communications and computer data. Though modern computer operating systems, including those from both Microsoft and Apple, come with free hard disk encryption tools built in, they are not turned on by default, and only a small minority of companies and a tiny percentage of consumers encrypt the data on their laptops or desktops. In fact, most consumers have no idea these security protocols even exist. In the wake of the celebrity iCloud hacking fiasco of 2014, Apple’s chief executive, Tim Cook, acknowledged the company had to do more to ratchet up customers’ awareness of cyber-security matters. I thoroughly agree. In September 2014, Apple announced that its latest iPhone would encrypt all data on the device when a password was set, a move Google vowed to match with its forthcoming Android mobile phone operating system.

In September 2014, Apple announced that its latest iPhone would encrypt all data on the device when a password was set, a move Google vowed to match with its forthcoming Android mobile phone operating system. These are important steps forward in minimizing smartphone security risks, but given that 40 percent of users don’t even use a password on their mobile phones at all, Tim Cook was right: much more education and awareness are needed. Taking a Byte out of Cyber Crime: Education Is Essential Civilization is in a race between education and catastrophe. H. G. WELLS We have a literacy problem in the United States and around the world, and it’s not the one most think of. It is the problem of technical literacy. In a world replete with gadgets, algorithms, computers, wearables, RFID chips, and smart phones, only a minute portion of the general population has any idea how these objects actually work. Whether it’s Crime, Inc. or the NSA, those who know how to code will hold power over those who don’t in the same way that those who could not read and write in the last centuries found their opportunities limited.

While much less common, malicious apps have also been found in Apple’s App Store. Although the Apple iOS ecosystem is tightly regulated and controlled, many users find the environment too stifling. When they initially purchase their products, iPhone users cannot customize their keyboards, change their default browsers, manage files locally, or add widgets to their home screens—all features standard in Android. To get around these limitations, many users “jailbreak” their iOS devices, using specialized software to hack their own mobiles in order to obtain root administrative access to phones and control over features locked down by Apple. Jailbreaking an iOS device allows users to gain access to thousands of software programs not officially approved by Apple. Nearly ten million iOS devices have been jailbroken, and their users have turned to third-party app stores like Cydia to download their apps.


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The Four: How Amazon, Apple, Facebook, and Google Divided and Conquered the World by Scott Galloway

activist fund / activist shareholder / activist investor, additive manufacturing, Affordable Care Act / Obamacare, Airbnb, Amazon Web Services, Apple II, autonomous vehicles, barriers to entry, Ben Horowitz, Bernie Sanders, big-box store, Bob Noyce, Brewster Kahle, business intelligence, California gold rush, cloud computing, commoditize, cuban missile crisis, David Brooks, disintermediation, don't be evil, Donald Trump, Elon Musk, follow your passion, future of journalism, future of work, global supply chain, Google Earth, Google Glasses, Google X / Alphabet X, Internet Archive, invisible hand, Jeff Bezos, Jony Ive, Khan Academy, longitudinal study, Lyft, Mark Zuckerberg, meta analysis, meta-analysis, Network effects, new economy, obamacare, Oculus Rift, offshore financial centre, passive income, Peter Thiel, profit motive, race to the bottom, RAND corporation, ride hailing / ride sharing, risk tolerance, Robert Mercer, Robert Shiller, Robert Shiller, Search for Extraterrestrial Intelligence, self-driving car, sentiment analysis, shareholder value, Silicon Valley, Snapchat, software is eating the world, speech recognition, Stephen Hawking, Steve Ballmer, Steve Jobs, Steve Wozniak, Stewart Brand, supercomputer in your pocket, Tesla Model S, Tim Cook: Apple, Travis Kalanick, Uber and Lyft, Uber for X, uber lyft, undersea cable, Whole Earth Catalog, winner-take-all economy, working poor, young professional

Stores, touch screens, and a reheated MP3 player all, at the time, made no sense. For all the good that Jobs did for Apple, he was also a destructive force inside the company. He bullied employees; his attitudes around philanthropy and inclusiveness were small; his mercurial personality and megalomania kept Apple perpetually in borderline chaos. His death ended the company’s historic run of innovation, but it also let Apple, under Tim Cook, focus on predictability, profitability, and scale. You can see the results on the balance sheet: if profits are a sign of success, in fiscal year 2015 Apple was the most successful firm in history, registering $53.4 billion in net profit.9 If Apple were anything but a Fortune 500 tech darling, Congress would have implemented tax reforms.10 But most politicians, like other privileged classes around the world, feel a tiny rush when they pull out their iPhones.

Price, Rob. “Apple is taking 92% of profits in the entire smartphone industry.” Business Insider. July 13, 2015. http://www.businessinsider.com/apple-92-percent-profits-entire-smartphone-industry-q1-samsung-2015-7. 20. “Louis Vuitton Biography.” Biography. http://www.biography.com/people/louis-vuitton-17112264. 21. Apple Newsroom. “‘Designed by Apple in Calfornia’ chronicles 20 years of Apple design.” https://www.apple.com/newsroom/2016/11/designed-by-apple-in-california-chronicles-20-years-of-apple-design/. 22. Ibid. 23. Norman, Don. Emotional Design: Why We Love (or Hate) Everyday Things (New York: Basic Books, 2005). 24. Turner, Daniel. “The Secret of Apple Design.” MIT Technology Review, May 1, 2007. https://www.technologyreview.com/s/407782/the-secret-of-apple-design/. 25.

And so, when the federal government decides to force Apple to change its behavior, the Apple Macolytes leap to its defense. I’m not one of them. Double Standard I’ve always tried to give the impression that I just don’t care what others think. But when coworkers, many of whom are millennials with Ivy League degrees, sent me polite hate mail (which hurts more than just plain hateful, “hope you die,” hate mail), it rattled me. The source of their disappointment was my views on the Apple privacy issue. More specifically, that I wasn’t on the correct side of the Apple privacy issue. They felt I wasn’t protecting personal privacy. What they failed to see, I believe, is they were not so much on the side of privacy as on the side of Apple. Their, and Apple’s, arguments: Apple, by creating a new IOS that allowed the FBI to open the phone with brute force, would create a back door that could not be contained and could end up in the wrong hands (SPECTRE?)


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Humans Are Underrated: What High Achievers Know That Brilliant Machines Never Will by Geoff Colvin

Ada Lovelace, autonomous vehicles, Baxter: Rethink Robotics, Black Swan, call centre, capital asset pricing model, commoditize, computer age, corporate governance, creative destruction, deskilling, en.wikipedia.org, Freestyle chess, future of work, Google Glasses, Grace Hopper, industrial cluster, industrial robot, interchangeable parts, job automation, knowledge worker, low skilled workers, Marc Andreessen, meta analysis, meta-analysis, Narrative Science, new economy, rising living standards, self-driving car, sentiment analysis, Silicon Valley, Skype, social intelligence, Steve Jobs, Steve Wozniak, Steven Levy, Steven Pinker, theory of mind, Tim Cook: Apple, transaction costs

Emma E. A. Cohen, Robin Ejsmond-Frey, Nicola Knight, R. I. M. Dunbar, “Rowers’ High: Behavioural Synchrony Is Correlated with Elevated Pain Thresholds,” Biology Letters 15, September 2009, doi:10.1098/rsbl.2009.0670. Nonetheless, by the time Jobs stepped down as CEO in August 2011 . . . See biographies at www.apple.com for the tenures as of August 2011 of Eddy Cue (twenty-two years), Phil Schiller (fourteen years), Jonathan Ive (nineteen years), Scott Forstall (nineteen years), and Tim Cook (thirteen years). To see how wrong things can go . . . “Why Teams Don’t Work: An interview with J. Richard Hackman by Diane Coutu,” Harvard Business Review, May 2009. Dr. John Noseworthy, CEO of the Mayo Clinic, told me about the considerable lengths to which he has gone . . . Personal interview with John Noseworthy, 4 December 2012.

Exhibit A was Apple’s top team under Steve Jobs. The conventional view of Apple’s success is that it derived from Jobs’s genius and dictatorial management, but Jobs knew that wasn’t nearly enough. He worked extraordinarily hard to assemble and keep a highly effective top team, which is an extremely difficult feat in a successful company. As the company prospers, other firms try to lure away its executives, usually with higher-level, higher-paying, more highly visible roles, and the temptation can be overwhelming. Nonetheless, by the time Jobs stepped down as CEO in August 2011, the six-executive inner circle he had assembled had been working as a team for thirteen years, meeting together for hours every week. This is virtually unheard of and appears to be unique among companies of Apple’s size and success.

Creativity comes from spontaneous meetings, from random discussions. You run into someone, you ask what they’re doing, you say ‘Wow,’ and soon you’re cooking up all sorts of ideas.’” It all has to happen in person. That’s why Jobs famously designed the Pixar headquarters the way he did. Pixar is the animation studio that Jobs initially funded and eventually ran in the years before he returned to Apple and for several years thereafter. It’s arguably the most successful film studio ever, since it has never produced a flop. The Toy Story films, Finding Nemo, the Cars films—of the fourteen features it had produced through 2013, every one was a major financial winner. Jobs wanted to keep it that way, so he insisted that Pixar’s new headquarters be designed around a central atrium; he then placed the café, mailboxes, conference rooms, and other elements so as to force people to criss-cross it.


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Big Business: A Love Letter to an American Anti-Hero by Tyler Cowen

23andMe, Affordable Care Act / Obamacare, augmented reality, barriers to entry, Bernie Sanders, bitcoin, blockchain, Bretton Woods, cloud computing, cognitive dissonance, corporate governance, corporate social responsibility, correlation coefficient, creative destruction, crony capitalism, cryptocurrency, dark matter, David Brooks, David Graeber, don't be evil, Donald Trump, Elon Musk, employer provided health coverage, experimental economics, Filter Bubble, financial innovation, financial intermediation, global reserve currency, global supply chain, Google Glasses, income inequality, Internet of things, invisible hand, Jeff Bezos, late fees, Mark Zuckerberg, mobile money, money market fund, mortgage debt, Network effects, new economy, Nicholas Carr, obamacare, offshore financial centre, passive investing, payday loans, peer-to-peer lending, Peter Thiel, pre–internet, price discrimination, profit maximization, profit motive, RAND corporation, rent-seeking, reserve currency, ride hailing / ride sharing, risk tolerance, Ronald Coase, shareholder value, Silicon Valley, Silicon Valley startup, Skype, Snapchat, Social Responsibility of Business Is to Increase Its Profits, Steve Jobs, The Nature of the Firm, Tim Cook: Apple, too big to fail, transaction costs, Tyler Cowen: Great Stagnation, ultimatum game, WikiLeaks, women in the workforce, World Values Survey, Y Combinator

And then there’s the fact that large American companies are much more globalized than ever before, and their supply chains are spread across a larger number of countries. Apple’s iPhone, for instance, relies on components and assembly from the United States, South Korea, Thailand, Malaysia, the Philippines, Taiwan, India, and China. A lot of Apple’s key innovation was not the technology behind the iPhone, much of which already was in place, but rather new ideas about how to build up and maintain such a supply chain. Steve Jobs and Tim Cook had to develop a great deal of knowledge about trade patterns, foreign direct investment, and the global economy more generally. In each of the countries in which it does business, Apple has faced unique institutional and regulatory obstacles. It’s not that any CEO comes to the job already having such knowledge inside his or her head; rather, a CEO must know which questions to ask and how to put the answers in the proper context.

It’s still a far freer intellectual world than what we knew only a short time ago. To consider a third major tech company: Apple too continues to be a major innovator, in spite of its reputation to the contrary. Not only does Apple have three truly major developments under its belt—personal computers, smartphones, and smart tablets—but the company continues to try to drive further advances. The future of the Apple Watch remains uncertain, but at the very least it is a major achievement along the path of developing higher-quality and more practical internet-connected wearables; its millions of users already find it a convenient way to receive messages and track and measure certain aspects of their behavior. Apple Pay is a major player in fintech, and millions of people use it to pay for goods and services with a simple swipe at a terminal.

For each copy of Microsoft Word that is sold, other copies are pirated or otherwise reproduced in a way that does not result in a traditional fee for sale at the price set by Microsoft. Apple is the company on this list that charges luxury prices, at least for its hardware. But before the iPhone, you couldn’t buy something like that at any price. And within a few years after the debut of the iPhone, there were plenty of cheaper smartphone models on the market, and since that time those models have gained most of the market share. As of this writing, smartphones are becoming cheaper yet, due to imports from China, and the quality of those products is likely to improve rapidly. Apple helped enable these cheaper products, whether it wanted to or not, and all along the company knew it would end up creating competitors. So it is inaccurate and unjust to attack the big tech companies on the grounds of price, most of all compared to the counterfactual in which those tech companies did not exist.


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Insane Mode: How Elon Musk's Tesla Sparked an Electric Revolution to End the Age of Oil by Hamish McKenzie

Airbnb, Albert Einstein, augmented reality, autonomous vehicles, barriers to entry, basic income, Bay Area Rapid Transit, Ben Horowitz, business climate, car-free, carbon footprint, Chris Urmson, Clayton Christensen, cleantech, Colonization of Mars, connected car, crony capitalism, Deng Xiaoping, disruptive innovation, Donald Trump, Elon Musk, Google Glasses, Hyperloop, Internet of things, Jeff Bezos, John Markoff, low earth orbit, Lyft, Marc Andreessen, margin call, Mark Zuckerberg, megacity, Menlo Park, Nikolai Kondratiev, oil shale / tar sands, paypal mafia, Peter Thiel, ride hailing / ride sharing, Ronald Reagan, self-driving car, Shenzhen was a fishing village, short selling, side project, Silicon Valley, Silicon Valley startup, Snapchat, South China Sea, special economic zone, stealth mode startup, Steve Jobs, Tesla Model S, Tim Cook: Apple, Uber and Lyft, uber lyft, universal basic income, urban planning, urban sprawl, Zipcar

Apple was also slow to make the latest iPhones available in the country, with Chinese consumers typically getting them months after they went on sale in the United States. And for the first four years that the iPhone was on sale, it wasn’t even compatible with China Mobile, which accounted for 700 million customers. Since then, Apple has fixed those problems, and China is now arguably its most important market, having registered more iPhone sales than in the United States. In October 2015, Apple CEO Tim Cook said China will be “Apple’s top market in the world.” Apple’s commitment to the country shows in its products. In particular, the large-format plus-size iPhones (starting with the iPhone 6 Plus) were perfect for China, where mobile phones serve as showpieces. The flashy Apple Watch is an equally powerful status item. There is little reason to suggest that Tesla can’t capitalize on the same dynamics. Tesla has made moves to bolster sales in China, including a deal with China Unicom to install charging stations at retail outlets, and it has committed to spending hundreds of millions of dollars on service centers and charging installations around the country.

And Byton has nabbed a handful of former Tesla highfliers, including erstwhile senior manager of vehicle engineering Paul Thomas, former director of supply-chain manufacturing Mark Duchesne, and former director of vehicle purchasing Stephen Ivsan. Then there’s Apple. “They have hired people we’ve fired,” Musk told the German newspaper Handelsblatt in September 2015. Rumors that Apple was working on an electric car project had emerged that February, when an Apple employee allegedly e-mailed Business Insider to say that the Cupertino company was working on a project that would “give Tesla a run for its money.” Former Tesla people had been joining the company in droves. Musk had his own view of the situation. “We always jokingly call Apple the ‘Tesla Graveyard,’” he said. “If you don’t make it at Tesla, you go work at Apple. I’m not kidding.” Steve Jobs had floated the idea of making a car in several discussions in 2008, according to former Apple vice president Tony Fadell, who went on to start the smart-devices company Nest, which was eventually acquired by Google (and which he left in 2016).

When news broke of Porritt’s hire, Tesla noted that Porritt had been out of the company for seven months. Apple, which is one of the most secretive companies on the planet, has not revealed any details of its car plans, so the press has been left to do its reporting based on speculation or leaks. In Sunnyvale, neighbors of a fenced-off Apple-occupied facility reported mysterious noises—bangs, thumps, beeps, whines, and hums—that would come in the middle of the night. Both BMW and Daimler had broken off talks with Apple about working together on a car, a German newspaper reported. Apple had been meeting with charging-station companies with a view to laying the groundwork for a charging infrastructure for a self-driving electric car, said another report. In April 2016, grasping for something to write about, Motor Trend hired a graduate student to mock up a design of what an Apple car could look like and then convened a panel to spitball ideas of how such a product might work.


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The Switch: How Solar, Storage and New Tech Means Cheap Power for All by Chris Goodall

3D printing, additive manufacturing, decarbonisation, demand response, Elon Musk, energy transition, first square of the chessboard / second half of the chessboard, Haber-Bosch Process, hydrogen economy, Internet of things, M-Pesa, Negawatt, off grid, Peter Thiel, smart meter, standardized shipping container, Tim Cook: Apple, wikimedia commons

To some people, growing corporate investment in solar (and in wind, which until recent months was getting more investment from big companies) is simply public relations. There is indeed probably an element of window-dressing in the actions of some businesses. They are seeking to appeal to environmentally conscious customers, and possibly investors. But most businesses are driven primarily by a desire to save money and avoid future electricity price rises. Discussing Apple’s investments in renewable energy, CEO Tim Cook said recently that ‘we expect to have very significant savings’. Similarly, Walmart – not usually seen as an environmental do-gooder – stresses the financial benefits of PV as much as its other benefits: ‘Using the power of the sun and installing solar panels lowers our energy costs and is clearly good for the environment, but another benefit is that it keeps prices low for our customers.’

Among the most notable solar supporters is Apple, the world’s most valuable company, which has made a promise of carbon neutrality for its operations and manufacturing plants around the world. As well as investing in solar in the US, the business has started to commission PV farms in China. One series of investments in Inner Mongolia will produce 170 megawatts of peak output across three huge farms. To get a sense of the scale of this, a solar portfolio of this size will produce enough electricity to meet about one thousandth of the UK’s total annual power need. But to wipe out its entire carbon impact Apple will need to make investments of about ten times this size. For a company with $200bn of cash on its balance sheet, this represents little more than small change. Apple is not alone. Google has made renewable investment pledges totalling $2.5 billion in recent years including financing the largest US residential PV installer, SolarCity.

‘Capital doesn’t like change,’ he said, ‘and there are lots of other types of investment to put money behind’. However, the investment strike will eventually pass. After the ‘behind the meter’ projects which don’t need subsidy, the first category to return will be backing for extensive solar farms with committed investment grade customers, such as the large private companies like WalMart and Unilever. Many large companies, of which Apple is the most visible today, want to buy a guaranteed supply of low carbon electricity and therefore sign contracts with solar farms for all their output. A credit-worthy customer committing to buy the electricity output provides banks with the security that they need to finance the largest solar farms. Bill went on to talk about the long-term drift of intensive energy users to geographical places where power will be cheap.


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The Twittering Machine by Richard Seymour

4chan, anti-communist, augmented reality, Bernie Sanders, Cal Newport, Cass Sunstein, Chelsea Manning, citizen journalism, colonial rule, correlation does not imply causation, credit crunch, crowdsourcing, don't be evil, Donald Trump, Elon Musk, Erik Brynjolfsson, Filter Bubble, Google Chrome, Google Earth, hive mind, informal economy, Internet of things, invention of movable type, invention of writing, Jaron Lanier, Jony Ive, Kevin Kelly, knowledge economy, late capitalism, liberal capitalism, Mark Zuckerberg, Marshall McLuhan, meta analysis, meta-analysis, Mohammed Bouazizi, moral panic, move fast and break things, move fast and break things, Network effects, new economy, packet switching, patent troll, Philip Mirowski, post scarcity, post-industrial society, RAND corporation, Rat Park, rent-seeking, replication crisis, sentiment analysis, Shoshana Zuboff, Silicon Valley, Silicon Valley ideology, smart cities, Snapchat, Steve Jobs, Stewart Brand, Stuxnet, TaskRabbit, technoutopianism, the scientific method, Tim Cook: Apple, undersea cable, upwardly mobile, white flight, Whole Earth Catalog, WikiLeaks

‘Whether there’s a notification or not, it doesn’t really feel that good. Whatever we’re hoping to see, it never quite meets that bar.’ For the sake of her own sanity, she delegated the management of her Facebook account to an employee. Many social industry and tech executives resist their own technologies. Mark Zuckerberg’s Facebook account is run by employees. Apple’s Steve Jobs wouldn’t let his children near an iPad, while his replacement, Tim Cook, doesn’t allow his nephew to use social networking sites. Apple’s design strategist Jony Ive warns that ‘constant use’ of tech is overuse.3 As always, tech is adept at producing profitable solutions to the problems it creates. Now smartphone users can trade in their addictive devices for a range of minimalist alternatives, with the limited texting and call-making functionality of a very old mobile phone.

Twitter fought the Justice Department on its demands for the account information of WikiLeaks volunteers, in a case brought jointly with the American Civil Liberties Union, which it ultimately lost.28 Yahoo fought the National Security Agency in a secret Foreign Intelligence Surveillance Act court case over the latter’s demand for user account details under its PRISM program. Google resorted to internal encryption to evade surveillance when it was revealed that both the NSA and GCHQ had wiretapped the firm’s communications. Apple fought the FBI to a standstill over encryption on its phones. The FBI wanted to force Apple to unlock an iPhone belonging to Rizwan Farook, one of the shooters in the San Bernardino massacre in December 2015. Apple resisted in the courts, and ultimately the FBI backed off when it used third-party software to hack the phone, revealing nothing of pertinence. FBI director James Comey complained that Apple allowed ‘people to hold themselves beyond the law’.29 This was revealing, suggesting that he expected there to be no area of life not potentially scrutable by the law. If the internet was nothing but an elaborate surveillance mechanism, the law should be the beneficiary.

Increasingly, these abstractions are linked to an emerging web of ubiquitous computing technologies which Greenfield has presciently called ‘everyware’.76 Ostensibly designed to smooth the edges of life, this network connects smartphones, sensors, data collectors, cookies and platforms in a constant flow of information. In so doing, it quietly outsources important decisions. When you ask Alexa or Siri for a nearby restaurant or shoe shop, it will be Apple or Google or Amazon that determines your path of movement through the urban space on the basis of their commercial needs. Naturally, these structures can be used by political authority to promote governing norms, but they can also work as more insidious forms of control. The emerging ideal of the ‘smart city’, where sensors and data collectors determine the allocation of resources and assets, is a case in point.


pages: 346 words: 89,180

Capitalism Without Capital: The Rise of the Intangible Economy by Jonathan Haskel, Stian Westlake

"Robert Solow", 23andMe, activist fund / activist shareholder / activist investor, Airbnb, Albert Einstein, Andrei Shleifer, bank run, banking crisis, Bernie Sanders, business climate, business process, buy and hold, Capital in the Twenty-First Century by Thomas Piketty, cloud computing, cognitive bias, computer age, corporate governance, corporate raider, correlation does not imply causation, creative destruction, dark matter, Diane Coyle, Donald Trump, Douglas Engelbart, Douglas Engelbart, Edward Glaeser, Elon Musk, endogenous growth, Erik Brynjolfsson, everywhere but in the productivity statistics, Fellow of the Royal Society, financial innovation, full employment, fundamental attribution error, future of work, Gini coefficient, Hernando de Soto, hiring and firing, income inequality, index card, indoor plumbing, intangible asset, Internet of things, Jane Jacobs, Jaron Lanier, job automation, Kenneth Arrow, Kickstarter, knowledge economy, knowledge worker, laissez-faire capitalism, liquidity trap, low skilled workers, Marc Andreessen, Mother of all demos, Network effects, new economy, open economy, patent troll, paypal mafia, Peter Thiel, pets.com, place-making, post-industrial society, Productivity paradox, quantitative hedge fund, rent-seeking, revision control, Richard Florida, ride hailing / ride sharing, Robert Gordon, Ronald Coase, Sand Hill Road, Second Machine Age, secular stagnation, self-driving car, shareholder value, sharing economy, Silicon Valley, six sigma, Skype, software patent, sovereign wealth fund, spinning jenny, Steve Jobs, survivorship bias, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Tim Cook: Apple, total factor productivity, Tyler Cowen: Great Stagnation, urban planning, Vanguard fund, walkable city, X Prize, zero-sum game

It seems obvious that there are businesses with strong cultures of good management and high performance, that creating and maintaining these cultures takes investment (both of time and of money), and that these companies are more likely to succeed than ones with worse cultures: think, for example, of kaizen in Toyota, or Six Sigma in General Electric (GE). Further examples are discussed in chapter 8. We know that innovation often involves investing in organizational change, such as creating a new business unit to sell a new product line. And it’s also possible to think of examples of companies that have invested to create valuable organizational assets outside their own firms. The remarkable Apple supply chain that Tim Cook was responsible for developing is clearly a long-term source of value for Apple, allowing it to bring products to market extraordinarily quickly. A valuable asset of so-called sharing-economy businesses like Uber or AirBnB is typically their network of committed suppliers—Uber’s drivers or AirBnB’s hosts. This too is an asset of lasting value that both companies have invested heavily to develop (and which they invest to protect, for example, against legal actions requiring them to treat their suppliers as employees).

But spillovers don’t just arise from R&D. After Apple released the iPhone, almost all smartphones started looking just like it. Apple’s investments in software, design, and supply chains (for example, creating the software supply chain we call the App Store) were adopted or imitated by its competitors as they sought to create phones like Apple’s. By creating what marketing experts would call the smartphone “category” (or more precisely, growing it significantly), Apple benefited not just themselves but other smartphone manufacturers. The iPhone also provides an example of marketing spillovers. Part of the iPhone’s success was a result of Apple’s willingness to throw its brand behind the new product. Earlier smartphones had been rather clunky, but Apple had a reputation for making stylish, user-friendly devices.

These synergies not only give companies an advantage over competitors: they also affect the dynamics between companies and their talented employees. Consider an expert designer at Apple, a company famed for, and to some extent reliant on, its good design. What stops that designer, from an economic point of view, demanding more and more money in return for not leaving for the competition or setting up a new, design-led start-up? One answer to the question is synergies. Apple’s design is especially valuable in the context of a whole set of intangible assets Apple owns: its technologies, its customer service, and the power of its brand and marketing channels. All of these things make an Apple designer more valuable to Apple than to an alternative employer, and they reduce the incentives to leave. So, synergies matter because they create strong incentives for companies and governments to bring together different intangibles, especially new ideas.


pages: 290 words: 73,000

Algorithms of Oppression: How Search Engines Reinforce Racism by Safiya Umoja Noble

A Declaration of the Independence of Cyberspace, affirmative action, Airbnb, borderless world, cloud computing, conceptual framework, crowdsourcing, desegregation, Donald Trump, Edward Snowden, Filter Bubble, Firefox, Google Earth, Google Glasses, housing crisis, illegal immigration, immigration reform, information retrieval, Internet Archive, Jaron Lanier, Mitch Kapor, Naomi Klein, new economy, PageRank, performance metric, phenotype, profit motive, Silicon Valley, Silicon Valley ideology, Snapchat, Tim Cook: Apple, union organizing, women in the workforce, yellow journalism

In China, Human Costs Are Built into an iPad. New York Times. Retrieved from www.nytimes.com. Dunbar, A. (2006). Introducing Critical Race Theory to Archival Discourse: Getting the Conversation Started. Archival Science, 6, 109–129. Dyer, R. (1997). White. London: Routledge. Eddie, R., and Prigg, M. (2015, November 13). “This Does Not Represent Our Values”: Tim Cook Addresses Racism Claims after Seven Black Students Are Ejected from an Apple Store and Told They “Might Steal Something.” Daily Mail. Retrieved from www.dailymail.co.uk. Eglash, R. (2002). Race, Sex, and Nerds: From Black Geeks to Asian American Hipsters. Social Text, 20(2), 49–64. Eglash, R. (2007). Ethnocomputing with Native American Design. In L. E. Dyson, M. A. N. Hendriks, and S. Grant (Eds.), Information Technology and Indigenous People, 210–219.

See reviews in the New York Times as well as a detailed overview of the conditions in the Congo due to mining by Anup Shah, at www.globalissues.org, which asserts that an elite network of multinational companies, politicians, and military leaders have essentially kept the issues from the view of the public. See Hardenaug, 2001; Shah, 2010. 43. While less formal scholarship has been dedicated to this issue, considerable media attention in 2011 and 2012 has been focused on the labor conditions in parts of China where Apple manufactures its products. While some of the details of the journalistic reporting have been prone to factual error in location and dates, there is considerable evidence that labor conditions by Apple’s supplier Foxconn are precarious and rife with human-rights abuses. See Duhigg and Barboza, 2012. 44. See Fields, 2004. 45. Wallace, 1990, 98. 46. See Hobson, 2008. 47. See Harvey, 2005. 48. See Jensen, 2005; Brown, 2003; Burdman, 2008. 49. See Harvey, 2005. 50. The Children’s Internet Protection Act (CIPA) was adopted by the FCC in 2001 and is designed to address filtering of pornographic content from any computers in federally funded agencies such as schools and libraries.

With all of the aberrations and challenges that tech companies face in charges of data discrimination, the possibility of hiring recent graduates and advanced-degree holders in Black studies, ethnic studies, American Indian studies, gender and women’s studies, and Asian American studies with deep knowledge of history and critical theory could be a massive boon to working through the kinds of complex challenges facing society, if this is indeed the goal of the technocracy. From claims of Twitter’s racist trolling that drives people from its platform34 to charges that Airbnb’s owners openly discriminate against African Americans who rent their homes35 to racial profiling at Apple stores in Australia36 and Snapchat’s racist filters,37 there is no shortage of projects to take on in sophisticated ways by people far more qualified than untrained computer engineers, whom, through no fault of their own, are underexposed to the critical thinking and learning about history and culture afforded by the social sciences and humanities in most colleges of engineering nationwide. The lack of a diverse and critically minded workforce on issues of race and gender in Silicon Valley impacts its intellectual output.


pages: 327 words: 84,627

The Green New Deal: Why the Fossil Fuel Civilization Will Collapse by 2028, and the Bold Economic Plan to Save Life on Earth by Jeremy Rifkin

1919 Motor Transport Corps convoy, 2013 Report for America's Infrastructure - American Society of Civil Engineers - 19 March 2013, American Society of Civil Engineers: Report Card, autonomous vehicles, Bernie Sanders, blockchain, borderless world, business cycle, business process, carbon footprint, collective bargaining, corporate governance, corporate social responsibility, creative destruction, decarbonisation, en.wikipedia.org, energy transition, failed state, ghettoisation, hydrogen economy, information asymmetry, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Internet of things, invisible hand, Joseph Schumpeter, means of production, megacity, Network effects, new economy, off grid, oil shale / tar sands, peak oil, planetary scale, renewable energy credits, Ronald Reagan, shareholder value, sharing economy, Silicon Valley, Skype, smart cities, smart grid, sovereign wealth fund, Steven Levy, the built environment, The Wealth of Nations by Adam Smith, Tim Cook: Apple, trade route, union organizing, urban planning, women in the workforce, zero-sum game

And it’s the proliferation of data centers that accounts for most of the energy use and carbon footprint, which by 2020 is estimated to be near 4 percent of all of the world’s power and 45 percent of the entire ICT footprint.18 The Green New Deal agenda will have to pay close attention to the ICT sector’s decarbonization as it comes to use an increasing percentage of the global electricity being generated. The world’s giant internet companies are leading the way in decoupling from fossil fuels and reinvesting in green energy in the ICT sector, with Apple, Google, and Facebook setting the pace. In April 2018, Apple announced that all of its data centers worldwide are now powered by renewable energy. The company also announced that twenty-three of its key manufacturing partners around the world have agreed to power all of Apple’s production with 100 percent green energy. Commenting on this milestone, Apple’s CEO, Tim Cook, said, “We’re going to keep pushing the boundaries of what is possible with the materials in our products, the way we recycle them, our facilities and our work with suppliers to establish new creative and forward-looking sources of renewable energy because we know the future depends on it.”19 Google achieved 100 percent renewable energy usage in its data centers in 2017 and is currently operating twenty renewable energy projects with a total investment of $3.5 billion in renewable energy infrastructure.20 In July 2017, Facebook announced that “all” of its new data centers from here on out will be powered by 100 percent renewable energy.21 The internet behemoths are out front in decoupling from the fossil fuel civilization, but many other leading ICT and telecom companies are running nearly apace.

., “Worldwide Energy Needs for ICT: The Rise of Power-Aware Networking,” paper presented at the 2008 International Conference on Advanced Networks and Telecommunication Systems, 2, doi:10.1109/ants.2008.4937762; Lotfi Belkhir and Ahmed Elmeligi, “Assessing ICT Global Emissions Footprint: Trends to 2040 & Recommendations,” Journal of Cleaner Production 177 (January 2, 2018): 448, doi:10.1016/j.jclepro.2017.12.239. 17.  Belkhir and Elmeligi, “Assessing ICT Global Emissions Footprint,” 458. 18.  Ibid., 458–59. 19.  Apple, “Apple Now Globally Powered by 100 Percent Renewable Energy,” news release, April 9, 2018, https://www.apple.com/newsroom/2018/04/apple-now-globally-powered-by-100-percent-renewable-energy/ (accessed January 15, 2019). 20.  Urs Hölzle, “100% Renewable Is Just the Beginning,” Google news release, December 12, 2016, https://sustainability.google/projects/announcement-100 (accessed February 7, 2019). 21.  Facebook, “2017 Year in Review: Data Centers,” news release, December 11, 2017, https://code.fb.com/data-center-engineering/2017-year-in-review-data-centers/ (accessed February 7, 2019). 22.  

Africa North Africa power grid plans for solar and wind energy in South Africa Age of Progress Age of Resilience aggregate energy efficiency agriculture sector carbon farming digital operations effect of animal rearing on greenhouse gas emissions green electricity cooperatives Internet of Things infrastructure organic farming percentage of crops and land used for animal feed use of public land and vegetarian or vegan diets AIG Alliance of Liberals and Democrats for Europe (ALDE) Allianz Alphabet Inc.. See also Google American Society of Civil Engineers (ASCE) infrastructure report card apartheid divestment movement Apple apprenticeships, green Arias Cañete, Miguel artificial intelligence (AI) Ashton, Kevin AT&T autonomous (self-driving) electric vehicles AXA Balsillie, Jim Bank of America Bank of England Prudential Regulation Authority (PRA) Barber, Randy Barbier, Edward Bernhard, Wolfgang Bernstein Research Big Data Bilicic, George bio-based materials biosphere consciousness Blair, Tony blockchain technology Bloomberg, Michael Bond, Kingsmill Booker, Cory Boston Tea Party Bowser, Muriel Brattle Group Brown, Jerry Buffett, Warren building sector decoupling from fossil fuel industry nodal IoT buildings retrofits Bulc, Violeta Burger King Burns, Larry Burrow, Sharan Buttigieg, Pete Byrd, Harry Caldecott, Ben Canada and liquefied natural gas (LNG) pipeline and natural gas Toronto waterfront smart city project capital market capital pension capital public capital social capital capitalism and near-zero marginal costs and pension capital pension fund divest/invest campaign and Sharing Economy social capitalism and socially responsible investment (SRI) carbon bubble carbon capture and storage and agriculture sector limitations of process of carbon tax Carbon Tracker Initiative Carney, Mark Castro, Julián Cavoukian, Ann Changing Wealth of Nations 2018: Building a Sustainable Future, The (World Bank report) China.


pages: 343 words: 91,080

Uberland: How Algorithms Are Rewriting the Rules of Work by Alex Rosenblat

"side hustle", Affordable Care Act / Obamacare, Airbnb, Amazon Mechanical Turk, autonomous vehicles, barriers to entry, basic income, big-box store, call centre, cashless society, Cass Sunstein, choice architecture, collaborative economy, collective bargaining, creative destruction, crowdsourcing, disruptive innovation, don't be evil, Donald Trump, en.wikipedia.org, future of work, gender pay gap, gig economy, Google Chrome, income inequality, information asymmetry, Jaron Lanier, job automation, job satisfaction, Lyft, marginal employment, Mark Zuckerberg, move fast and break things, Network effects, new economy, obamacare, performance metric, Peter Thiel, price discrimination, Ralph Waldo Emerson, regulatory arbitrage, ride hailing / ride sharing, self-driving car, sharing economy, Silicon Valley, Silicon Valley ideology, Skype, social software, stealth mode startup, Steve Jobs, strikebreaker, TaskRabbit, Tim Cook: Apple, transportation-network company, Travis Kalanick, Uber and Lyft, Uber for X, uber lyft, union organizing, universal basic income, urban planning, Wolfgang Streeck, Zipcar

(It’s a bit like if a company were to send a tech reporter a new smartwatch to test and review—under the pretense that it is their normal product—but the device sent to the reporter secretly includes a faster processor not available to everyone else, so that the tech reporter will give it a better grade.) In a meeting that took place years before the event became public knowledge, Apple CEO Tim Cook summoned a nervous Travis Kalanick to his office to discuss Uber’s willful disregard for Apple’s rules. Kalanick agreed to comply properly. Between 2016 and 2017, Uber’s many violations of the public trust were publicized broadly in the media. Because Uber’s practices are representative of more common dynamics of how we use technology today, the company’s actions have pulled the veil off of the way practices that bring us so many valuable services can also take advantage of us.

But in direct violation of these rules, Uber continued to track iPhone data even after users had deleted the ridehail app from their phones, as Mike Isaac reported for the New York Times.48 Normally, app developers who flout Apple’s app-store guidelines risk being cut from the app store, which in Uber’s case would have resulted in their losing access to millions of Apple customers. Given the stakes, Uber went to elaborate lengths to hide its noncompliance: the ridehail company purposefully set out to evade Apple’s fraud detection protocols by manipulating what Apple’s app-review team would see when approving the Uber app. Under orders from then-CEO Travis Kalanick, Uber’s engineers duped Apple for a time by building a “geofence” around Apple’s corporate headquarters in Cupertino, California. Anyone within that geofence (e.g., Apple’s app-review team) would see a different version of Uber’s app. (It’s a bit like if a company were to send a tech reporter a new smartwatch to test and review—under the pretense that it is their normal product—but the device sent to the reporter secretly includes a faster processor not available to everyone else, so that the tech reporter will give it a better grade.)

As privacy and legal scholar Woodrow Hartzog observes publicly on Twitter, “By not including a common option like “only while app is in use,” they [Uber] manipulate users into sharing by making privacy costly.”47 (Uber later revised the settings when Apple made it mandatory as a condition of hosting Uber and others in its app store, though Android users were still affected before Uber changed course.) Most consumers, who are generally further removed from Uber drama, accept data practices that are not in their best interests simply because they want a cheap taxi ride and a convenient service. It is clear that consumers can be taken advantage of through data exploits. And it’s not just individual consumers who are vulnerable—large companies can also get duped by sly data practices. Apple’s app store has specific privacy rules that all apps must follow, including the Uber app. But in direct violation of these rules, Uber continued to track iPhone data even after users had deleted the ridehail app from their phones, as Mike Isaac reported for the New York Times.48 Normally, app developers who flout Apple’s app-store guidelines risk being cut from the app store, which in Uber’s case would have resulted in their losing access to millions of Apple customers.


pages: 302 words: 74,878

A Curious Mind: The Secret to a Bigger Life by Brian Grazer, Charles Fishman

4chan, Airbnb, Albert Einstein, Apple II, Asperger Syndrome, Bonfire of the Vanities, en.wikipedia.org, game design, Google Chrome, Howard Zinn, Isaac Newton, Jeff Bezos, Kickstarter, Norman Mailer, orbital mechanics / astrodynamics, out of africa, RAND corporation, Ronald Reagan, Silicon Valley, stem cell, Steve Jobs, Steve Wozniak, the scientific method, Tim Cook: Apple

Simpson Jared Cohen: director of Google Ideas Joel Cohen: population specialist, mathematical biologist Kat Cohen: university admissions counselor, author of The Truth About Getting In William Colby: CIA director, 1973–1976 Elizabeth Baron Cole: nutritionist Jim Collins: management consultant, expert on business and management, author of Good to Great Robert Collins: neurologist, former chairman of neurology at UCLA School of Medicine Sean Combs: musician, music producer, fashion designer, entrepreneur Richard Conniff: author who specializes in human and animal behavior Tim Cook: CEO of Apple, Inc. Tatiana Cooley-Marquardt: repeat winner of USA Memory Championship Anderson Cooper: journalist, author, TV personality, anchor of CNN’s Anderson Cooper 360 Norman Cousins: medical guru, author of Anatomy of an Illness: As Perceived by the Patient Jacques Cousteau: oceanographer, pioneered marine conservation Chris W. Cox: chief lobbyist for the National Rifle Association Steve Coz: former editor of National Enquirer Donald Cram: professor of chemistry at UCLA, Nobel laureate in chemistry Jim Cramer: investor, author, TV personality, host of CNBC’s Mad Money Clyde Cronkhite: criminal justice expert, former police chief of Santa Ana, former deputy police chief of Los Angeles Mark Cuban: investor, owner of the NBA’s Dallas Mavericks Heidi Siegmund Cuda: journalist, former music critic for the Los Angeles Times Thomas Cummings: leading expert in designing high-performing organizations and strategic change at USC Marshall School of Business Fred Cuny: disaster relief specialist Mario Cuomo: governor of New York, 1983–1994 Alan Dershowitz: attorney, constitutional scholar, professor emeritus at Harvard Law School Donny Deutsch: advertising executive, TV personality Jared Diamond: evolutionary biologist, author, professor at UCLA, winner of the Pulitzer Prize Alfred “Fred” DiSipio: record promoter investigated during payola scandal DMX: musician, actor Thomas R.

Williams: former police chief of Los Angeles Marianne Williamson: spiritual teacher, New Age guru Ian Wilmut: embryologist, led the team of researchers who first successfully cloned a mammal (a sheep named Dolly) E. O. Wilson: biologist, author, professor emeritus at Harvard University, two-time winner of the Pulitzer Prize Oprah Winfrey: founder and chairwoman of the Oprah Winfrey Network, actress, author George C. Wolfe: playwright, theater director, two-time winner of the Tony Award Steve Wozniak: cofounder of Apple Inc., designer of Apple I and Apple II computers, inventor John D. Wren: president and CEO of marketing and communications company Omnicom Will Wright: game designer, creator of Sim City and The Sims Steve Wynn: businessman, Las Vegas casino magnate Gideon Yago: writer, former correspondent for MTV News Eitan Yardeni: teacher and spiritual counselor at the Kabbalah Centre Daniel Yergin: economist, author of The Prize: The Epic Quest for Oil, Money and Power, winner of the Pulitzer Prize Dan York: chief content officer at DirecTV, former president of content and advertising sales, AT&T Michael W.

News & World Report, winner of the Pulitzer Prize for investigative reporting Jack Healey: human rights activist, former executive director of Amnesty International USA Thomas Heaton: seismologist, professor at California Institute of Technology, contributed to the development of earthquake early warning systems Peter Herbst: journalist, former editor of Premiere and New York magazines Danette Herman: talent executive for Academy Awards Seymour Hersh: investigative reporter, author, winner of the Pulitzer Prize for uncovering the My Lai massacre and its cover-up during the Vietnam War Dave Hickey: art and cultural critic who has written for Harper’s, Rolling Stone, and Vanity Fair Jim Hightower: progressive political activist, radio talk-show host Tommy Hilfiger: fashion designer, founder of lifestyle brand Christopher Hitchens: journalist and author who was a critic of politics and religion David Hockney: artist and major contributor to the Pop art movement in the 1960s Nancy Irwin: hypnotherapist Chris Isaak: musician, actor Michael Jackson: singer, songwriter, his 1982 album Thriller is the bestselling album of all time LeBron James: NBA basketball player Mort Janklow: literary agent, founder and chairman of the literary agency Janklow & Nesbit Associates Jay Z: musician, music producer, fashion designer, entrepreneur Wyclef Jean: musician, actor James Jebbia: CEO of the Supreme clothing brand Harry J. Jerison: paleoneurologist, professor emeritus at UCLA Steve Jobs: cofounder and former CEO of Apple Inc., cofounder and former CEO of Pixar Betsey Johnson: fashion designer Jamie Johnson: documentary filmmaker who directed Born Rich, heir to Johnson & Johnson fortune Larry C. Johnson: former analyst for the CIA, security and terrorism consultant Robert L. Johnson: businessman, media magnate, cofounder and former chairman of BET Sheila Johnson: cofounder of BET, first African American woman to be an owner/partner in three professional sports teams Steve Johnson: media theorist, popular science author, cocreated online magazine FEED Jackie Joyner-Kersee: Olympic gold medalist, track star Paul Kagame: president of Rwanda Michiko Kakutani: book critic for the New York Times, winner of the Pulitzer Prize for criticism Sam Hall Kaplan: former architecture critic for the Los Angeles Times Masoud Karkehabadi: wunderkind who graduated from college at age thirteen Patrick Keefe: author, staff writer for the New Yorker Gershon Kekst: founder of the corporate communications company Kekst and Co.


Alpha Girls: The Women Upstarts Who Took on Silicon Valley's Male Culture and Made the Deals of a Lifetime by Julian Guthrie

Airbnb, Apple II, barriers to entry, blockchain, Bob Noyce, call centre, cloud computing, credit crunch, disruptive innovation, Elon Musk, equal pay for equal work, fear of failure, game design, glass ceiling, hiring and firing, Jeff Bezos, Louis Pasteur, Lyft, Mark Zuckerberg, Menlo Park, Mitch Kapor, new economy, PageRank, peer-to-peer, pets.com, phenotype, place-making, Ronald Reagan, Rosa Parks, Sand Hill Road, Silicon Valley, Silicon Valley startup, Skype, Snapchat, software as a service, South of Market, San Francisco, stealth mode startup, Steve Jobs, Steve Wozniak, TaskRabbit, Tim Cook: Apple, Travis Kalanick, uber lyft, unpaid internship, upwardly mobile, urban decay, web application, William Shockley: the traitorous eight, women in the workforce

Women, outnumbered and overmatched, were mostly reduced to entertainers, companions, wives, or housekeepers. Things were not that different in the more recent gold rush. The Valley was always a region dominated by men, from William Hewlett, Dave Packard, Bob Noyce, Gordon Moore, Andy Grove, Larry Ellison, Steve Jobs, and Steve Wozniak to, decades later, in the twenty-first century, Larry Page, Sergey Brin, Mark Zuckerberg, Elon Musk, Tim Cook, Travis Kalanick, and Marc Benioff. Mary Jane, fueled by peanut butter sandwiches packed in wax paper for the two-day journey, was under no illusion that it would be easy to navigate the old boys’ club of Sand Hill Road and Silicon Valley. Even today, decades after Mary Jane first arrived, 94 percent of investing partners at venture capital firms—the financial decision makers shaping the future—are men, and more than 80 percent of venture firms have never had a woman investing partner.

Even before she finished her master’s degree, Magdalena had gone to seven job interviews and received seven offers. Her first interview had been with Steve Jobs and Steve Wozniak of Apple. The founders invited double-e students to the LOTS computer center to hear a pitch about their three-year-old company. If the students liked what they heard, they could stay and be interviewed. Jobs, wearing wire-rimmed glasses and jeans, told Magdalena and the other double-e students that working for Apple would be like “an extension of college.” Magdalena was one of sixteen students who showed up for the interview. She loved the idea of working for Apple. Jobs had dropped out of college and spent time studying Hinduism and Buddhism in India. He was a technologist but also a student of the mind. Magdalena had a window opened to her own mind through her love of technology.

Magdalena knew that the spirit of entrepreneurship had always been a part of Marc’s life. When he was a teenager, he and a few friends started a company called Liberty Software to make adventure games for the Atari 800. He earned extra money going to people’s homes to repair antennas and CB radios, and he worked for Apple Computer the summer before his junior year at the University of Southern California. Largely unsupervised, Marc started writing software for a game about raiding IBM’s headquarters. His manager at Apple said the game wasn’t appropriate and later suggested Marc consider a job at Oracle. They had the best salespeople in the world, he was told. In his first year at Oracle, Benioff was named rookie of the year. After lunch at the country club, Magdalena jumped on a call with Benioff and Parker Harris, who was running a software programming and consulting company called Left Coast Software with two engineers.


pages: 411 words: 98,128

Bezonomics: How Amazon Is Changing Our Lives and What the World's Best Companies Are Learning From It by Brian Dumaine

activist fund / activist shareholder / activist investor, AI winter, Airbnb, Amazon Web Services, Atul Gawande, autonomous vehicles, basic income, Bernie Sanders, Black Swan, call centre, Chris Urmson, cloud computing, corporate raider, creative destruction, Danny Hillis, Donald Trump, Elon Musk, Erik Brynjolfsson, future of work, gig economy, Google Glasses, Google X / Alphabet X, income inequality, industrial robot, Internet of things, Jeff Bezos, job automation, Joseph Schumpeter, Kevin Kelly, Lyft, Marc Andreessen, Mark Zuckerberg, money market fund, natural language processing, pets.com, plutocrats, Plutocrats, race to the bottom, ride hailing / ride sharing, Sand Hill Road, self-driving car, shareholder value, Silicon Valley, Silicon Valley startup, Snapchat, speech recognition, Steve Jobs, Stewart Brand, supply-chain management, Tim Cook: Apple, too big to fail, Travis Kalanick, Uber and Lyft, uber lyft, universal basic income, wealth creators, web application, Whole Earth Catalog

Even smaller businesses need to adopt the tenets of Bezonomics if they want to survive. Stitch Fix built its online women’s clothing business around a smart algorithm that identifies which fashions its customers prefer. The impact that Bezonomics is having on society is just as profound. Some of the big tech companies are sowing discord with fake news, interfering with elections, and violating personal privacy. As Apple CEO Tim Cook put it: “If you’ve built a chaos factory, you can’t dodge responsibility for the chaos.” The global wealth gap has become so out of kilter that politicians in America and Europe have singled out Amazon and other big tech companies for blame. These wealth-creation machines have become so efficient at creating riches for their top employees and shareholders that they’re likely to engender more public outrage and become easy targets for regulators—perhaps in some cases even be broken up.

See also Alexa Bezos and development of, 49, 111 goal of becoming part of people’s lives with, 14–15 Internet of Things and, 123–24 introduction of, 26 Prime Video use with, 26 shopping assistance with, 115–16 Amazon Flex, 23, 172–73 Amazon 4-star stores, 24, 167 AmazonFresh, 170–71, 189 Amazon Go stores, 13, 24, 111, 139–41, 143, 167 Amazonia (Marcus), 41 Amazon Lending, 13, 233–34 Amazon Music, 10, 26, 80, 97, 98, 100, 220, 260 Amazon Pay, 234 Amazon Prime, 93–105, 109 addictive nature of, 98–99 AI flywheel and, 94, 99, 102, 115 Alexa and, 115 all-you-can-eat aspect of shipping and services with, 99 Amazon ecosystem around, 94 Amazon’s income from, 154 Amazon’s sale of its own products and, 153 annual fee for, 14 Bezos’s focus on shortening delivery time by, 22 corporate synergy with other Amazon services, 98 cross-category spending in, 100 customer data from, 101 customer service and selection in, 104–5 decision to launch, 95–96 free delivery options from, 4, 10, 14, 22, 80, 98, 101, 154, 171, 186 free services with, 97, 101–2 free shipping debate over, 96–97 growth in number of members of, 94 health-care purchases and, 226 household percentage having, 15 merchant’s expenses for, 146 naming of, 96 number of shoppers in, 14 1-Click design and, 18, 98, 232–33 Prime Video and new members in, 102–3 shopping behavior change with, 98 spending by members of, 95, 100 as stand-alone business within Amazon, 97–98 streaming music service with, 26 streaming video service with, 25 Whole Foods discount with, 97, 101, 168, 260 Amazon Prime Air, 179 Amazon Prime Now, 22, 171 Amazon Restaurants food delivery business, 64 Amazon Robotics Challenge, 138 Amazon Studios, 101–2 Amazon Visa card, 234 Amazon Web Services (AWS), 51–52 Bezos’s creation of, 7, 218 Bezos’s long-term vision for, 63–64 medical records using, 225 Prime with free storage space on, 97 profitability of, 25, 64, 65 small business use of, 10–11 ambient computing, 111 American Civil Liberties Union (ACLU), 36 American Culture and Faith Institute, 240 Anderson, Chris, 18 Anderson, Joel, 186 Anderson, Sterling, 175 Andreessen, Marc, 248 Android operating system, 14, 64, 225 Android TV, 237 Ant Financial, 198, 234–35 antitrust law, 257–68, 271 academic arguments for breakup under, 258–59 Amazon lobbyists on, 247 congressional testimony on, 258 critics and proposed breakup of Amazon under, 255, 257–58, 261, 263–64, 266–67 Department of Justice review in, 257, 267 European investigations under, 259 evidence showing lack of violation of, 259–60 historical background to, 264–66 Apollo software platform, 176 Apple AI skills and customer knowledge of, 8, 114 brand value of, 16 corporate campus of, 75 economic power of, 265–66 global wealth gap and, 271 health-care innovation and, 90, 222, 225 identification with founder, 53 iOS operating system of, 225 iWatch from, 222 Jobs’s working culture at, 55 Siri voice assistant app from, 108 Apple Music, 26, 98 Apple Pay, 234, 235 Apple TV, 237 Arcadia Group, 223 Aronowitz, Nona Willis, 16–17 artificial intelligence (AI) Alexa and voice recognition and, 108–9, 111, 112–13 Amazon’s application of, 270 Amazon smart speakers and, 109–10 Bezonomics and companies’ adaptation to, 125 black box and, 91, 147 business plans driven by, 4, 6, 86, 125, 269–70 buying model and, 85–87 coining of term, 107 connected devices and, 124 disruptive nature of, 125 doctors’ diagnosis using, 27 early voice recognition and, 108 Echo’s use of, 26 expectations for future of, 112–13 flywheel model and, 5, 88.

Amazon is one of those corporations like Apple, Microsoft, Tesla, Google, and Facebook that is identified with its founder. Bezos, as of the writing of this book, is only fifty-five, but investors—not to mention employees—worry what would happen to Amazon should Bezos leave or something happen to him. With his S-team, the signal that Bezos seems to be sending to the world is that if something were to happen to him or if he retired (although no one believes that will happen anytime soon), Amazon has a deep bench of all-pro players who could step in and drive the company. Of course, it is unclear whether any of these talented executives have the vision, intuition, and genius of a Jeff Bezos. His leaving would doubtless be a negative for the company in the same way that Apple is still struggling to find its creative way after the death of Steve Jobs.


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Everything's Trash, but It's Okay by Phoebe Robinson

23andMe, Airbnb, Bernie Madoff, Bernie Sanders, crack epidemic, Donald Trump, double helix, Downton Abbey, Elon Musk, feminist movement, Firefox, Lyft, Mahatma Gandhi, Mark Zuckerberg, Rosa Parks, Silicon Valley, Silicon Valley startup, Tim Cook: Apple, uber lyft

The speech is iconic, and dare I write that, in particular, Tyra’s “I was rooting for you; we were all rooting for you” is one of the most important quotes of our time, right up there with John F. Kennedy’s “Ask not what your country can do for you, ask what you can do for your country,” Michelle Obama’s “When they go low, we go high,” and the classic Ying Yang Twins rap lyric “Ay, bitch! Wait till you see my dick.” . . . Y’all, this is like when Apple hints there’s going to be a big announcement regarding the iPhone, so we all tune in to Tim Cook’s live stream of the product launch, and he’s just like, “The phone is slightly bigger,” and we’re all like, “Dat could’ve been a Post-it note message next to an empty bag of Chex Mix.” Ying Yang, your dicks are like practically all of the dicks that have ever been seen, so calm down. But I digress. Back to Tyra and Tiffany. If you haven’t seen this showdown, please bless your eyeballs with the once-in-a-lifetime clip ASAP.

For every one of these glaringly outrageous situations, there are thousands where going for the complaint case is just ignorant. Take, for example, that 2013 viral video of a lady going off on a Los Angeles Apple store employee because she thought she could roll in there sans an appointment and get replacement parts. Raise of hands if you’ve ever gone into an Apple store that wasn’t insanely crowded. For real, every time I go to Apple’s Genius Bar, I just see a line of Old Roses from Titanic who were formerly young hipsters, talking about how “it’s been eighty-four years” since they first walked into Apple, seeking help for their technology woes. Of course, waiting for something to be fixed when you weren’t planning on waiting can be annoying; however, losing your mind over something that insignificant is abuse of the complaint attaché case.

Then there was the De-Peening of 2017 aka very powerful men such as award-winning actor Kevin Spacey, legendary journalist Charlie Rose, comedian/auteur Louis C.K. watching their lives and careers implode following the uncovering of their sometimes decades-long sexual-deviant behavior, which ranged from harassment to sexual assault. And let’s not forget the murder of Harambe, the gorilla, at the Cincinnati Zoo; Apple removing the headphone jack from their iPhones because this company is hell-bent on being the Nurse Ratched of our time; or the first black bachelorette, Rachel Lindsay, incorrectly choosing Bryan over Peter, thus denying the world some cocoa, gap-teefed babies. Oh! And remember a few years ago when a dude in the US legit had Ebola and went bowling and ate chicken wings with friends instead of quarantining himself because #WhiteNonsense?


The Pirate's Dilemma by Matt Mason

"side hustle", Albert Einstein, augmented reality, barriers to entry, citizen journalism, creative destruction, don't be evil, Donald Trump, Douglas Engelbart, East Village, Firefox, future of work, glass ceiling, global village, Hacker Ethic, haute couture, Howard Rheingold, Internet of things, invisible hand, Isaac Newton, jimmy wales, job satisfaction, John Markoff, Joseph Schumpeter, Kickstarter, Lao Tzu, Marshall McLuhan, means of production, Naomi Klein, new economy, New Urbanism, patent troll, peer-to-peer, prisoner's dilemma, RAND corporation, RFID, Richard Florida, Richard Stallman, SETI@home, Silicon Valley, South China Sea, Stephen Hawking, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, Tim Cook: Apple, urban sprawl, Whole Earth Catalog

David Pinch, Jamie-James Medina, Seth Godin, Tom Curry, Susan Arciero and Milos Bang, Ryan Senser (for his idea of using a Venn diagram to illustrate the Pirate’s Dilemma), Sweet Joy Hachuela-Johansson, Corey Tatarczuk, Jacques DeJardin, Phoebe Eng and Zubin Schroff (for letting me hide out at their place in the Hamptons and get some serious writing done), my uncle Stephen Boyd, my uncle Graham Brown, Esther Gold, Chris Campion, Alex Donne Johnson, Fabio Scianna, Alicia Hansen, Mr. Richard Antwi, Kirk Vallis, Anthony Mouskoundi, Tim Cooke, Graeme Pretty, Jit Shergill, Dave McConachie, Rob Moore, Spencer Giles, Rob Marciano, Jon Allen, Gaby Marciano, Laura Sunley, Laurie Basannavar, Jeff Chang, Harold Anthony at jumpoff.tv, James Barrett, Dilia Baille, Shane Tomlinson, Marvin Lutrell, everyone at dissensus.com, all the staff at the Brooklyn Public Library, and Lynne D. Johnson, who first put the idea of writing a book in my head.

In May 2006 he financed a lawsuit that overturned New York legislation that banned anyone age eighteen to twenty from buying or carrying spray paint or broad-tipped marker pens, which effectively prohibited many art students from buying supplies for school, or even carrying them to class. Judge George B. Daniels granted a temporary injunction against the law, arguing, “That’s like telling me I can eat an apple, but I can’t buy an apple, no one can sell me an apple and I can’t bring it to work for lunch.” 110 | THE PIRATE’S DILEMMA hoax was spectacular* and his ongoing defense of street art and free speech is admirable, but some critics see nothing more than thinly veiled PR stunts for his multinational corporation. The one thing both artists proved for certain is that the media afterlife of a piece of graffiti can be way more powerful than its temporary terrestrial body.

If we also consider that over 800 million mobile phones are sold every year, which will all be able to receive music, and study the growth of new technologies and their application in the last century, the industry should be confident.” The jury is still out on Jenner’s solution, but EMI and Universal became the first major labels to begin selling MP3s without DRM encryption in 2007. That February, Apple’s Steve Jobs made a plea to all the record companies to abolish DRM completely, saying it was “clearly the best alternative for consumers, and Apple would embrace it in a heartbeat.” John Kennedy, Boundaries | 161 the CEO of the IFPI (the International Federation of Phonograph Industries), summed up the music industry’s new position on the Pirate’s Dilemma it faced: “At long last the threat has become the opportunity.” The sad truth is that it was an opportunity all along.


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Creative Intelligence: Harnessing the Power to Create, Connect, and Inspire by Bruce Nussbaum

3D printing, Airbnb, Albert Einstein, Berlin Wall, Black Swan, Chuck Templeton: OpenTable:, clean water, collapse of Lehman Brothers, creative destruction, Credit Default Swap, crony capitalism, crowdsourcing, Danny Hillis, declining real wages, demographic dividend, disruptive innovation, Elon Musk, en.wikipedia.org, Eugene Fama: efficient market hypothesis, Fall of the Berlin Wall, follow your passion, game design, housing crisis, Hyman Minsky, industrial robot, invisible hand, James Dyson, Jane Jacobs, Jeff Bezos, jimmy wales, John Gruber, John Markoff, Joseph Schumpeter, Kickstarter, lone genius, longitudinal study, manufacturing employment, Marc Andreessen, Mark Zuckerberg, Martin Wolf, new economy, Paul Graham, Peter Thiel, QR code, race to the bottom, reshoring, Richard Florida, Ronald Reagan, shareholder value, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, six sigma, Skype, Steve Ballmer, Steve Jobs, Steve Wozniak, supply-chain management, Tesla Model S, The Chicago School, The Design of Experiments, the High Line, The Myth of the Rational Market, thinkpad, Tim Cook: Apple, too big to fail, tulip mania, We are the 99%, Y Combinator, young professional, Zipcar

Each app allows consumers to “personalize” their access to Apple and interaction with other users. And the recent addition of Siri adds a new sense (voice) to touch and vision, re-creating a part of that face-to-face dimension so important in Benjamin’s account of ritual aura. What Apple has done (and what Google and Facebook are trying to do) is involve the individual customer and wider community in an open-ended process of creating. But, of course, a company cannot live on what it’s already created alone. It has to continually maintain the aura of its products to keep the company going and support its creativity. We have recently seen a spate of what seemed to be innovative companies fail in maintaining that aura in their products, and there is no guarantee that Apple will succeed despite Jobs’s assurances that his successor, Tim Cook, understands the need to have goals that transcend simply making a profit.

But the technology of our time—their improved features and lowered costs, their ability to make us all creators and not just passive users—can, in fact, connect people in ways that the films or photographs of seven decades ago could not. As with many of the Creative Intelligence competencies, the road leads back to Apple. Consumers call Apple products “cool” and “easy to use,” and more sophisticated business analysts applaud Apple’s “ecosystem” of integrated software and hardware. But none of those qualities alone explains why we feel the way we do about Apple products; it’s impossible to discuss Apple products without mentioning how they feel in the hand, look to the eye, and connect to our deep emotions. The story of how Apple began creating beautiful, easy-to-use products should be required reading for anyone interested in creating something that’s not just useful but meaningful. WHEN STEVE JOBS RETURNED TO Apple in 1997, after twelve years in exile, he bet the company and his future on a radical new idea: an easy-to-use, stand-alone PC that looked unlike any other computer before it—translucent, colorful, fun.

; http://designmuseum.org/exhibitions/ online/jonathan-ive-on-apple/imac-1998, accessed September 5, 2012; Janet Abrams, “Radical Craft/The Second Art Center Design Conference,” http://www.core77.com/reactor/ 04.06_artcenter.asp, accessed September 5, 2012. 187 Ive then spent yet more: Burrows, “Who Is Jonathan Ive?” 188 They also designed a beautiful: Neil Hughes, “Book Details Apple’s ‘Packaging Room,’ Steve Jobs’ Interest in Advanced Cameras,” Apple Insider, January 24, 2012, accessed September 5, 2012, http://www.appleinsider.com/ articles/12/01/24/book_details_apples_packaging_ room_interests_in_advanced_cameras_.html; Yonu Heisler, “Inside Apple’s Secret Packaging Room,” Network World, January 24, 2012, accessed September 5, 2012, http://www.networkworld.com/community/ blog/inside-apples-secret-packaging-room. 188 The iMac’s launch in 1998: http://www.youtube.com/watch?v=0BHPtoTctDY, accessed September 5, 2012; http://designmuseum.org/design/jonathan-ive, accessed September 5, 2012; John Webb, “10 Success Principles of Apple’s Innovation Master Jonathan Ive,” Innovation Excellence, April 30, 2012, accessed September 5, 2012, http://www.innovationexcellence.com/blog/2012/ 04/30/10-success-principles-of-apples-innovation-master-jonathan-ive/. 188 In a 2006 interview with Peter Burrows: Burrows, “Who Is Jonathan Ive?”


pages: 788 words: 223,004

Merchants of Truth: The Business of News and the Fight for Facts by Jill Abramson

23andMe, 4chan, Affordable Care Act / Obamacare, Alexander Shulgin, Apple's 1984 Super Bowl advert, barriers to entry, Bernie Madoff, Bernie Sanders, Charles Lindbergh, Chelsea Manning, citizen journalism, cloud computing, commoditize, corporate governance, creative destruction, crowdsourcing, death of newspapers, digital twin, diversified portfolio, Donald Trump, East Village, Edward Snowden, Ferguson, Missouri, Filter Bubble, future of journalism, glass ceiling, Google Glasses, haute couture, hive mind, income inequality, information asymmetry, invisible hand, Jeff Bezos, Joseph Schumpeter, Khyber Pass, late capitalism, Marc Andreessen, Mark Zuckerberg, move fast and break things, move fast and break things, Nate Silver, new economy, obamacare, Occupy movement, performance metric, Peter Thiel, phenotype, pre–internet, race to the bottom, recommendation engine, Robert Mercer, Ronald Reagan, Saturday Night Live, self-driving car, sentiment analysis, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, skunkworks, Snapchat, social intelligence, social web, Steve Jobs, Steven Levy, technoutopianism, telemarketer, the scientific method, The Wisdom of Crowds, Tim Cook: Apple, too big to fail, WikiLeaks

Thompson wanted the suite on a fast timetable. I scrambled to find the appropriate editors to work on these projects in teams often co-led with the business side. I invited Thompson to accompany me on a trip to Silicon Valley. I had been invited to give a speech at San Francisco’s Commonwealth Club, to be the guest at one of Sheryl Sandberg’s monthly gatherings in her home for the most influential women in tech, and for lunch with Apple CEO Tim Cook, with whom I was trying to create better communication after he took umbrage over the Times’s series on his company. We chatted amiably through the three-day trip. He told me several times that he was developing a plan to restructure the leadership of the Times. I feared this didn’t bode well for the independence of the newsroom. Soon another issue strained our relationship, a big scandal at the BBC in which he became embroiled and I believed the Times had to cover aggressively.

These aren’t appropriate behaviors.” Two days after the election, Bezos tried to bury the hatchet, tweeting, “Congratulations to @realDonaldTrump. I for one give him my most open mind and wish him great success in his service to the country.” Trump ended up inviting Bezos to attend a tech summit at the White House in June 2017 to discuss ways to modernize the government’s technology. Along with Apple’s Tim Cook and Microsoft’s CEO Satya Nadella, Bezos was a member of Trump’s American Technology Council, sitting with an impassive look on his face just a seat away from the president. But the detente did not last long. Less than a week later, the President tweeted, “The #AmazonWashingtonPost, sometimes referred to as the guardian of Amazon not paying internet taxes (which they should) is FAKE NEWS!” Trump was still bashing Amazon in March 2018, saying the company used the U.S.

Years later Lerer would recall: Kenneth Lerer, interviewed by Jill Abramson, New York, December 2, 2015. Within 24 hours: Sarah Phillips, “A Brief History of Facebook,” Guardian, July 25, 2007, https://www.theguardian.com/technology/2007/jul/25/media.newmedia. “You had the underpinnings: Chris Cox, interviewed by Martin Nisenholtz, Digital Riptide, April 1, 2013, https://www.digitalriptide.org/person/chris-cox/. “iPhone is a revolutionary: “Apple Reinvents the Phone with iPhone,” Apple, Inc. (press release), January 9, 2007, https://www.apple.com/newsroom/2007/01/09Apple-Reinvents-the-Phone-with-iPhone/. The release date was set: “Where Would Jesus Queue?,” The Economist, July 5, 2007, https://www.economist.com/business/2007/07/05/where-would-jesus-queue. With seed funding: Tanner Greenring, Scott Lamb, Jack Shepherd, Matt Stopera, and Peggy Wang, interviewed by Jill Abramson and John Stillman, New York, June 26, 2015.


pages: 327 words: 90,542

The Age of Stagnation: Why Perpetual Growth Is Unattainable and the Global Economy Is in Peril by Satyajit Das

"Robert Solow", 9 dash line, accounting loophole / creative accounting, additive manufacturing, Airbnb, Albert Einstein, Alfred Russel Wallace, Anton Chekhov, Asian financial crisis, banking crisis, Berlin Wall, bitcoin, Bretton Woods, BRICs, British Empire, business cycle, business process, business process outsourcing, call centre, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, Clayton Christensen, cloud computing, collaborative economy, colonial exploitation, computer age, creative destruction, cryptocurrency, currency manipulation / currency intervention, David Ricardo: comparative advantage, declining real wages, Deng Xiaoping, deskilling, disintermediation, disruptive innovation, Downton Abbey, Emanuel Derman, energy security, energy transition, eurozone crisis, financial innovation, financial repression, forward guidance, Francis Fukuyama: the end of history, full employment, gig economy, Gini coefficient, global reserve currency, global supply chain, Goldman Sachs: Vampire Squid, happiness index / gross national happiness, Honoré de Balzac, hydraulic fracturing, Hyman Minsky, illegal immigration, income inequality, income per capita, indoor plumbing, informal economy, Innovator's Dilemma, intangible asset, Intergovernmental Panel on Climate Change (IPCC), Jane Jacobs, John Maynard Keynes: technological unemployment, Kenneth Rogoff, knowledge economy, knowledge worker, light touch regulation, liquidity trap, Long Term Capital Management, low skilled workers, Lyft, Mahatma Gandhi, margin call, market design, Marshall McLuhan, Martin Wolf, Mikhail Gorbachev, mortgage debt, mortgage tax deduction, new economy, New Urbanism, offshore financial centre, oil shale / tar sands, oil shock, old age dependency ratio, open economy, passive income, peak oil, peer-to-peer lending, pension reform, plutocrats, Plutocrats, Ponzi scheme, Potemkin village, precariat, price stability, profit maximization, pushing on a string, quantitative easing, race to the bottom, Ralph Nader, Rana Plaza, rent control, rent-seeking, reserve currency, ride hailing / ride sharing, rising living standards, risk/return, Robert Gordon, Ronald Reagan, Satyajit Das, savings glut, secular stagnation, seigniorage, sharing economy, Silicon Valley, Simon Kuznets, Slavoj Žižek, South China Sea, sovereign wealth fund, TaskRabbit, The Chicago School, The Great Moderation, The inhabitant of London could order by telephone, sipping his morning tea in bed, the various products of the whole earth, the market place, the payments system, The Spirit Level, Thorstein Veblen, Tim Cook: Apple, too big to fail, total factor productivity, trade route, transaction costs, uber lyft, unpaid internship, Unsafe at Any Speed, Upton Sinclair, Washington Consensus, We are the 99%, WikiLeaks, Y2K, Yom Kippur War, zero-coupon bond, zero-sum game

In a parallel development, superstar managers increased their earnings. Between 1979 and 2005, around 70 percent of increases in income accrued to the top 0.1 percent of workers. In the 1950s, the average US chief executive officer was paid around twenty times the typical employee. Currently, the pay ratio of a CEO to an average employee is in excess of 200 times. In 2011, Apple CEO Tim Cook was paid US$378 million in salary, stock, and other benefits, over 6,000 times the earnings of an average Apple employee. At Walmart, the CEO earned 900 times the earnings of a typical worker. Deregulation, incentive-based remuneration, the use of equity options, managers’ bargaining powers, and their ability to convince remuneration committees of a shortage of talent all boosted compensation packages. Interlinked boards of directors (often former or current CEOs), consultants, and other insiders approved each other's pay, in a display of corporate solidarity.

While it helped improve living standards in emerging nations, the influx of around 1.5 billion additional workers into the global economy reduced the bargaining power of employees in developed markets, ushering in declines in real wages. Ironically, China's new socialism did not unite the workers of the world, but divided them, triggering “the profoundest global reshuffle of people's economic positions since the Industrial Revolution.”4 Automation increased both corporate profits and income inequality. Apple's ubiquitous i-gadgets consist of components made in multiple countries and assembled in China, with the supply chain being managed in the US by Apple, which earns around 30–50 percent of the final price. The process favors skilled labor, reducing the share of revenue accruing to low-skilled workers. Similar complex and fragmented production processes apply to the products that constitute around 85 percent of global GDP. This approach has created a rising wage premium for skilled labor and a growing number of poorly paid, insecure, low-skilled jobs.

This reflected a lack of investment opportunities and caution about future business and financial market conditions. By 2014, total cash balances worldwide were as much as US$7 trillion, roughly double the level of ten years earlier. American corporations held over US$1.7 trillion in cash. The five largest hoarders alone held around half a billion dollars in cash. Technology firms held around US$690 billion in cash, roughly double the levels of five years ago. Apple alone held over US$170 billion. Over 60 percent of this cash was held abroad. Interestingly, the large cash balances coexisted with elevated overall corporate debt levels. Many corporations borrowed at home to fund their spending, taking advantage of low interest rates and avoiding paying taxes on repatriated overseas profits. Inflation requires imbalances between demand and supply. Many developed economies had a significant output gap—the amount by which the economy's potential to produce exceeds total demand—reflecting lower demand and excess capacity, though the extent was uncertain due to lower labor participation, which reduced the theoretical output.


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Frenemies: The Epic Disruption of the Ad Business by Ken Auletta

Airbnb, barriers to entry, Bernie Sanders, Boris Johnson, Build a better mousetrap, Burning Man, call centre, carbon footprint, cloud computing, commoditize, connected car, corporate raider, crossover SUV, disintermediation, Donald Trump, Elon Musk, forensic accounting, Google Glasses, Internet of things, Jeff Bezos, Khan Academy, Lyft, Mark Zuckerberg, market design, Menlo Park, move fast and break things, move fast and break things, Naomi Klein, NetJets, Network effects, pattern recognition, pets.com, race to the bottom, Richard Feynman, ride hailing / ride sharing, Saturday Night Live, self-driving car, sharing economy, Shoshana Zuboff, Silicon Valley, Snapchat, Steve Ballmer, Steve Jobs, Tim Cook: Apple, transaction costs, Uber and Lyft, uber lyft, Upton Sinclair, éminence grise

The marketing community gulped when Apple, which three decades before had famously aired a TV ad that declared a rebellion against the ruling IBM computer Goliath, now seemed to want to smash most advertising. Tim Cook, the CEO of Apple, stood on a San Francisco stage late that summer and announced that Apple would offer a new operating system for iPhones and iPads that would contain apps empowering users to block ads. Apple, which received less than one percent of its revenues from advertising, was helping consumers seal their devices from ads. For consumers annoyed by intrusive pre-roll and banner ads, sluggish ad page load speeds, and uninvited marketing messages draining their batteries, or worried that their privacy was being invaded, this was a happy solution. The user experience must be paramount, Apple proclaimed.

No, no, proclaimed Web sites, media companies, marketers, and ad-reliant companies like Facebook and Google: our ability to inform users and subsidize content is crippled by ad blockers. Those dependent on advertising accused Apple and ad blockers of murder. Apple and ad blocker advocates accused advertisers of committing suicide with mindless and intrusive ads. What neither Apple nor Google said publicly was that Apple’s maneuver was part of a raging war between Apple and Google for smartphone supremacy. Apple made its money selling hardware and software; Google made its money selling ads. Apple was strategically offering consumers something Google couldn’t. In a June 2015 speech to the Electronic Privacy Information Center, Cook came down hard on how his neighbors in Silicon Valley “have built their businesses by lulling their customers into complacency about their personal information” and were monetizing it.

Apple raised its voice against Facebook and Google. With little reliance on advertising, in September 2017 Apple wielded privacy as a weapon against its digital competitors. For its upgraded Safari browser, Apple said it would limit how advertisers and websites could use cookies to track and target users. Apple was, once again, portraying itself as a company on the side of consumers and their privacy. Arrayed against Apple were the trade groups of the entire advertising universe—the Interactive Advertising Bureau, the ANA, and the 4A’s. In an open letter, they accused Apple of “sabotage,” insisting that the blocking of cookies could murder the advertising business. Governments were awakened. The European Union questioned Facebook’s privacy protections. The attorney general of Missouri announced an antitrust investigation of Google, and nearly forty state attorney generals demanded to learn how Facebook guards privacy.


pages: 385 words: 111,113

Augmented: Life in the Smart Lane by Brett King

23andMe, 3D printing, additive manufacturing, Affordable Care Act / Obamacare, agricultural Revolution, Airbnb, Albert Einstein, Amazon Web Services, Any sufficiently advanced technology is indistinguishable from magic, Apple II, artificial general intelligence, asset allocation, augmented reality, autonomous vehicles, barriers to entry, bitcoin, blockchain, business intelligence, business process, call centre, chief data officer, Chris Urmson, Clayton Christensen, clean water, congestion charging, crowdsourcing, cryptocurrency, deskilling, different worldview, disruptive innovation, distributed generation, distributed ledger, double helix, drone strike, Elon Musk, Erik Brynjolfsson, Fellow of the Royal Society, fiat currency, financial exclusion, Flash crash, Flynn Effect, future of work, gig economy, Google Glasses, Google X / Alphabet X, Hans Lippershey, Hyperloop, income inequality, industrial robot, information asymmetry, Internet of things, invention of movable type, invention of the printing press, invention of the telephone, invention of the wheel, James Dyson, Jeff Bezos, job automation, job-hopping, John Markoff, John von Neumann, Kevin Kelly, Kickstarter, Kodak vs Instagram, Leonard Kleinrock, lifelogging, low earth orbit, low skilled workers, Lyft, M-Pesa, Mark Zuckerberg, Marshall McLuhan, megacity, Metcalfe’s law, Minecraft, mobile money, money market fund, more computing power than Apollo, Network effects, new economy, obamacare, Occupy movement, Oculus Rift, off grid, packet switching, pattern recognition, peer-to-peer, Ray Kurzweil, RFID, ride hailing / ride sharing, Robert Metcalfe, Satoshi Nakamoto, Second Machine Age, selective serotonin reuptake inhibitor (SSRI), self-driving car, sharing economy, Shoshana Zuboff, Silicon Valley, Silicon Valley startup, Skype, smart cities, smart grid, smart transportation, Snapchat, social graph, software as a service, speech recognition, statistical model, stem cell, Stephen Hawking, Steve Jobs, Steve Wozniak, strong AI, TaskRabbit, technological singularity, telemarketer, telepresence, telepresence robot, Tesla Model S, The Future of Employment, Tim Cook: Apple, trade route, Travis Kalanick, Turing complete, Turing test, uber lyft, undersea cable, urban sprawl, V2 rocket, Watson beat the top human players on Jeopardy!, white picket fence, WikiLeaks

Longer term understanding of the evolution of interface design, embedded computing and interaction science lead us to the inevitable conclusion that apps will become less and less important over time. That summer, Google made an eight-pound prototype of a computer meant to be worn on the face. To Ive, then unaware of Google’s plans, “the obvious and right place” for such a thing was the wrist. When he later saw Google Glass, Ive said, it was evident to him that the face “was the wrong place.” [Tim Cook, Apple’s C.E.O.] said, “We always thought that glasses were not a smart move, from a point of view that people would not really want to wear them. They were intrusive, instead of pushing technology to the background, as we’ve always believed.” Ian Parker on Jonathan Ive’s thinking about wearable notification devices20 As context becomes critical to better engagement, functionality is already shifting away from apps.

Let’s dive deeper into this concept of adding years to our lives and life to our years, and building our brains while we are at it, before looking at how to activate the protection against linear decay, and upgrading ourselves. Figure 5.5: Apple’s HealthKit measures 67 different categories. (Credit: Apple) QS products started off as separate products and, by 2013, had reached over US$200 million a year in sales, primarily for devices that counted steps and calculated calories based on height, age and weight input by the user. Several apps have duplicated or emulated this functionality in iOS and Androids. Such an app functionality became part of the Apple iOS in 2015, in large part to increase the functionality and usefulness of the Apple Watch. Apple calls this particular app HealthKit. As you can see from the screen shot of Apple’s HealthKit app in figure 5.5, there are seven major categories (body measurements, fitness, me, nutrition, results, sleep and vitals) and 67 separate categories under All, ranging from active calories through to zinc levels.

Leonard Kleinrock, UCLA, from an interview on the first ARPANET packet-switching test in 1969 In parallel to the development of early computer networks, various computer manufacturers set about shrinking and personalising computer technology so that it could be used at home or in the office. Contrary to popular belief, IBM wasn’t the first company to create a personal computer (PC). In the early 1970s, Steve Jobs and Steve Wozniak had been busy working on their own version of the personal computer. The result—the first Apple computer (retrospectively known as the Apple I)—actually preceded the IBM model6 by almost five years, and used a very different engineering approach. However, it wasn’t until Apple launched the Apple II that personal computing really became a “thing”. Figure 3.2: An original Apple I computer designed by Jobs and Wozniak and released in 19767 (Credit: Bonhams New York) Around the same time as Jobs and Wozniak’s development of the earliest form of PC, there was also a rapid downsizing of computers in the workplace. No longer did computers need to be room-filling behemoths separated into disk packs, printers, input devices and CPUs, and mainframes were no longer the sole domain of the corporate computing landscape.


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Brotopia: Breaking Up the Boys' Club of Silicon Valley by Emily Chang

23andMe, 4chan, Ada Lovelace, affirmative action, Airbnb, Apple II, augmented reality, autonomous vehicles, barriers to entry, Bernie Sanders, Burning Man, California gold rush, Chuck Templeton: OpenTable:, David Brooks, Donald Trump, Elon Musk, equal pay for equal work, Ferguson, Missouri, game design, gender pay gap, Google Glasses, Google X / Alphabet X, Grace Hopper, high net worth, Hyperloop, Jeff Bezos, job satisfaction, Khan Academy, Lyft, Marc Andreessen, Mark Zuckerberg, Maui Hawaii, Menlo Park, meta analysis, meta-analysis, microservices, paypal mafia, Peter Thiel, post-work, pull request, ride hailing / ride sharing, rolodex, Saturday Night Live, shareholder value, side project, Silicon Valley, Silicon Valley startup, Skype, Snapchat, Steve Jobs, Steve Wozniak, Steven Levy, subscription business, Tim Cook: Apple, Travis Kalanick, uber lyft, women in the workforce

“People that just merely point to the pipeline issue, they don’t get it,” Apple’s CEO, Tim Cook, told me at a 2017 fundraiser for a girls’ high school. “The tech companies have a lot to do ourselves. The truth is that in aggregate we all don’t do a good job retaining either.” Diversity matters at Apple, Cook said, because without that mixture of input it would be impossible to create the most desirable products on the planet. To be clear, Apple’s diversity numbers (which include its retail store employees) are also average by Silicon Valley standards, with women representing 32 percent of employees worldwide and 23 percent of tech roles. But the company has accelerated its hiring of women over the last couple of years. Women accounted for 37 percent of new hires at Apple in 2016. “Our best work comes out of when you have a tremendous level of diversity working on a product.

“Of course I do”: Sheryl Sandberg, “Sheryl Sandberg: Bloomberg Studio 1.0 (Full Show),” interview by author, Bloomberg, Aug. 9, 2017, video, 24:16, https://www.bloomberg.com/news/videos/2017-08-10/sheryl-sandberg-bloomberg-studio-1-0-full-show-video. “broader group of employees”: “Uber Report: Eric Holder’s Recommendations for Change.” A true marvel: Steven Levy, “One More Thing: Inside Apple’s Insanely Great (or Just Insane) New Mothership,” Wired, May 16, 2017, https://www.wired.com/2017/05/apple-park-new-silicon-valley-campus. “everything an Apple employee”: Beth Spotswood, “Apple’s Campus Has Everything—Oh, Except Daycare,” SFist, May 19, 2017, http://sfist.com/2017/05/19/apples_campus_has_everything_-_oh_e.php. Because child care has proven: Rose Marcario, “Patagonia’s CEO Explains How to Make On-Site Child Care Pay for Itself,” Fast Company, Aug. 15, 2016, https://www.fastcompany.com/3062792/patagonias-ceo-explains-how-to-make-onsite-child-care-pay-for-itself.

Holder noted that an earlier dinner would allow a “broader group of employees” to utilize the benefit—including those who “have spouses or families waiting for them at home”—and signal an earlier end to the workday. Uber complied. In April 2017, as I was writing this book, Apple opened its new spare-no-expense, spaceship-like campus, Apple Park, at a cost of $5 billion. A true marvel, it includes four-story sliding glass doors, rotating elevators, and a 100,000-square-foot wellness center (plus a two-story yoga room), not to mention a carbon-fiber roof and nine thousand drought-resistant trees. One thing it doesn’t have is a child-care facility. One blogger quipped, Apple’s new campus has “everything an Apple employee could wish for, unless they have children in which case: tough.” Sure, child care might be hard to execute, but Silicon Valley has never claimed to be normal or shied away from hard problems.


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Zucked: Waking Up to the Facebook Catastrophe by Roger McNamee

4chan, Albert Einstein, algorithmic trading, AltaVista, Amazon Web Services, barriers to entry, Bernie Sanders, Boycotts of Israel, Cass Sunstein, cloud computing, computer age, cross-subsidies, data is the new oil, Donald Trump, Douglas Engelbart, Douglas Engelbart, Electric Kool-Aid Acid Test, Elon Musk, Filter Bubble, game design, income inequality, Internet of things, Jaron Lanier, Jeff Bezos, John Markoff, laissez-faire capitalism, Lean Startup, light touch regulation, Lyft, Marc Andreessen, Mark Zuckerberg, market bubble, Menlo Park, Metcalfe’s law, minimum viable product, Mother of all demos, move fast and break things, move fast and break things, Network effects, paypal mafia, Peter Thiel, pets.com, post-work, profit maximization, profit motive, race to the bottom, recommendation engine, Robert Mercer, Ronald Reagan, Sand Hill Road, self-driving car, Silicon Valley, Silicon Valley startup, Skype, Snapchat, social graph, software is eating the world, Stephen Hawking, Steve Jobs, Steven Levy, Stewart Brand, The Chicago School, Tim Cook: Apple, two-sided market, Uber and Lyft, Uber for X, uber lyft, Upton Sinclair, WikiLeaks, Yom Kippur War

Huge thanks to Gail Barnes for being my eyes and ears on social media. Thank you to Alex Knight, Bobby Goodlatte, David Cardinal, Charles Grinstead, Jon Luini, Michael Tchao, Bill Joy, Bill Atkinson, Garrett Gruener, and Andrew Shapiro for ideas, encouragement, and thought-provoking questions. Many thanks to Satya Nadella, Peggy Johnson, and Bill Gates for taking the issues seriously. Thank you to Tim Cook and all of Apple for their commitment to protecting the privacy and freedom of customers. Bono provided invaluable counsel in the early stages of the work that led to this book. My thanks go out to Herb Sandler, Angelo Carusone, Melissa Ryan, Rebecca Lenn, Eric Feinberg, and Gentry Lane. Thank you to the Omidyar Network, the Knight Foundation, the Hewlett Foundation, and the Ford Foundation for their support of the Center for Humane Technology.

During that time, Apple shipped the first iPod. I thought it was a sign of good things to come and reached out to Steve Jobs to see if he would be interested in recapitalizing Apple. At the time, Apple’s share price was about twelve dollars per share, which, thanks to stock splits, is equivalent to a bit more than one dollar per share today. The company had more than twelve dollars in cash per share, which meant investors were attributing zero value to Apple’s business. Most of the management options had been issued at forty dollars per share, so they were effectively worthless. If Silver Lake did a recapitalization, we could reset the options and align interests between management and shareholders. Apple had lost most of its market share in PCs, but thanks to the iPod and iMac computers, Apple had an opportunity to reinvent itself in the consumer market.

The dot-com crash that began in early 2000 left deep scars, but the web continued to grow. In this second phase of the web, Google emerged as the most important player, organizing and displaying what appeared to be all the world’s information. Apple broke the code on tech style—their products were a personal statement—and rode the consumer wave to a second life. Products like the iMac and iPod, and later the iPhone and iPad, restored Apple to its former glory and then some. At this writing, Apple is the most valuable company in the world. (Fortunately, Apple is also the industry leader in protecting user privacy, but I will get to that later.) In the early years of the new millennium, a game changing model challenged the page-centric architecture of the World Wide Web. Called Web 2.0, the new architecture revolved around people.


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The New Gold Rush: The Riches of Space Beckon! by Joseph N. Pelton

3D printing, Any sufficiently advanced technology is indistinguishable from magic, Buckminster Fuller, Carrington event, Colonization of Mars, disruptive innovation, Donald Trump, Elon Musk, en.wikipedia.org, full employment, global pandemic, Google Earth, gravity well, Iridium satellite, Jeff Bezos, job automation, Johannes Kepler, John von Neumann, life extension, low earth orbit, Lyft, Mark Shuttleworth, Mark Zuckerberg, megacity, megastructure, new economy, Peter H. Diamandis: Planetary Resources, post-industrial society, private space industry, Ray Kurzweil, Silicon Valley, skunkworks, Stephen Hawking, Steve Jobs, Thomas Malthus, Tim Cook: Apple, Tunguska event, uber lyft, urban planning, urban sprawl, wikimedia commons, X Prize

Today it is sustainable energy, transportation, communications and virtual reality (VR) telecommuting systems. It is even advanced building materials systems, housing built by 3-D printers, and “smart” building systems designs. These state of the art sustainable products are not being promoted by bleeding heart liberal environmentalists but are being developed by today’s leading figures, such as Tim Cook of Apple, Mark Zuckerberg of FaceBook, Elon Musk of Tesla, and other forward-looking smart industrialists around the world. 3. Planetary Protection to Preserve Modern Infrastructure and Avoid Global Destruction. One of the keys to the future of human survival is for the world’s space agencies to finally recognize that their top strategic objective is to deploy space systems that would save Earth from massive destruction.

All of the companies now seeking to engage in space mining have also indicated that they would also want to do space processing and manufacturing as well. Spaceship EarthPlanet Earth is for humanity simply a 6 sextillion- ton spaceship that currently carries a very large crew of about 7.5 billion people and a lot of other flora and fauna as well. If Earth were a cosmic apple, the protective shielding we call the atmosphere is equivalent in size to the rind of the apple. The Van Allen Belts formed by Earth’s magnetic poles is all that protects us from destruction from periodic coronal mass ejections from the Sun. U. N. Committee on the Peaceful Uses of Outer Space (COPUOS)A committee that meets once a year in Vienna. It has a Technical Subcommittee and a Legal Subcommittee that both meet once a year. In addition it has Working Groups.

(Paul Allen, co-founder of MicroSoft, in “brainy quotes”.) On change: “Here’s to the crazy ones, the misfits, the rebels, the troublemakers, the round pegs in the square hole—they’re not fond of rules… You can quote them, disagree with them, glorify or vilify them, but the only thing you can’t do is ignore them because the ones who are crazy enough to think that they can change the world are the ones who do.” (Steve Jobs, founder of Apple.) On investing $275 million in New Space: “We seek to assist human exploration and the discovery of beneficial resources, whether in Low Earth Orbit (LEO), on the moon, in deep space or on Mars”. (Robert Bigelow, CEO of Budget Suites and Bigelow Aerospace.) On a space elevator providing low-cost access to space: “It’s a phenomenal enabling technology that would open up our Solar System to humankind.


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The Age of Surveillance Capitalism by Shoshana Zuboff

Amazon Web Services, Andrew Keen, augmented reality, autonomous vehicles, barriers to entry, Bartolomé de las Casas, Berlin Wall, bitcoin, blockchain, blue-collar work, book scanning, Broken windows theory, California gold rush, call centre, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, choice architecture, citizen journalism, cloud computing, collective bargaining, Computer Numeric Control, computer vision, connected car, corporate governance, corporate personhood, creative destruction, cryptocurrency, dogs of the Dow, don't be evil, Donald Trump, Edward Snowden, en.wikipedia.org, Erik Brynjolfsson, facts on the ground, Ford paid five dollars a day, future of work, game design, Google Earth, Google Glasses, Google X / Alphabet X, hive mind, impulse control, income inequality, Internet of things, invention of the printing press, invisible hand, Jean Tirole, job automation, Johann Wolfgang von Goethe, John Markoff, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Joseph Schumpeter, Kevin Kelly, knowledge economy, linked data, longitudinal study, low skilled workers, Mark Zuckerberg, market bubble, means of production, multi-sided market, Naomi Klein, natural language processing, Network effects, new economy, Occupy movement, off grid, PageRank, Panopticon Jeremy Bentham, pattern recognition, Paul Buchheit, performance metric, Philip Mirowski, precision agriculture, price mechanism, profit maximization, profit motive, recommendation engine, refrigerator car, RFID, Richard Thaler, ride hailing / ride sharing, Robert Bork, Robert Mercer, Second Machine Age, self-driving car, sentiment analysis, shareholder value, Shoshana Zuboff, Silicon Valley, Silicon Valley ideology, Silicon Valley startup, slashdot, smart cities, Snapchat, social graph, social web, software as a service, speech recognition, statistical model, Steve Jobs, Steven Levy, structural adjustment programs, The Future of Employment, The Wealth of Nations by Adam Smith, Tim Cook: Apple, two-sided market, union organizing, Watson beat the top human players on Jeopardy!, winner-take-all economy, Wolfgang Streeck

Menell, “2014: Brand Totalitarianism” (UC Berkeley Public Law Research Paper, University of California, September 4, 2013), http://papers.ssrn.com/abstract=2318492; “Move Over, Big Brother,” Economist, December 2, 2004, http://www.economist.com/node/3422918; Wojciech Borowicz, “Privacy in the Internet of Things Era,” Next Web, October 18, 2014, http://thenextweb.com/dd/2014/10/18/privacy-internet-things-era-will-nsa-know-whats-fridge; Tom Sorell and Heather Draper, “Telecare, Surveillance, and the Welfare State,” American Journal of Bioethics 12, no. 9 (2012): 36–44, https://doi.org/10.1080/15265161.2012.699137; Christina DesMarais, “This Smartphone Tracking Tech Will Give You the Creeps,” PCWorld, May 22, 2012, http://www.pcworld.com/article/255802/new_ways_to_track_you_via_your_mobile_devices_big_brother_or_good_business_.html; Rhys Blakely, “‘We Thought Google Was the Future but It’s Becoming Big Brother,’” Times, September 19, 2014, http://www.thetimes.co.uk/tto/technology/internet/article4271776.ece; CPDP Conferences, Technological Totalitarianism, Politics and Democracy, 2016, http://www.internet-history.info/media-library/mediaitem/2389-technological-totalitarianism-politics-and-democracy.html; Julian Assange, “The Banality of ‘Don’t Be Evil,’” New York Times, June 1, 2013, https://www.nytimes.com/2013/06/02/opinion/sunday/the-banality-of-googles-dont-be-evil.html; Julian Assange, “Julian Assange on Living in a Surveillance Society,” New York Times, December 4, 2014, https://www.nytimes.com/2014/12/04/opinion/julian-assange-on-living-in-a-surveillance-society.html; Michael Hirsh, “We Are All Big Brother Now,” Politico, July 23, 2015, https://www.politico.com/magazine/story/2015/07/big-brother-technology-trial-120477.html; “Apple CEO Tim Cook: Apple Pay Is Number One,” CBS News, October 28, 2014, http://www.cbsnews.com/news/apple-ceo-tim-cook-apple-pay-is-number-one; Mathias Döpfner, “An Open Letter to Eric Schmidt: Why We Fear Google,” FAZ.net, April 17, 2014, http://www.faz.net/1.2900860; Sigmar Gabriel, “Sigmar Gabriel: Political Consequences of the Google Debate,” Frankfurter Allgemeine Zeitung, May 20, 2014, http://www.faz.net/aktuell/feuilleton/debatten/the-digital-debate/sigmar-gabriel-consequences-of-the-google-debate-12948701-p6.html; Cory Doctorow, “Unchecked Surveillance Technology Is Leading Us Towards Totalitarianism,” International Business Times, May 5, 2017, http://www.ibtimes.com/unchecked-surveillance-technology-leading-us-towards-totalitarianism-opinion-2535230; Martin Schulz, “Transcript of Keynote Speech at Cpdp2016 on Technological, Totalitarianism, Politics and Democracy,” Scribd, 2016, https://www.scribd.com/document/305093114/Keynote-Speech-at-Cpdp2016-on-Technological-Totalitarianism-Politics-and-Democracy. 2.

Max Weber, Economy and Society: An Outline of Interpretive Sociology (Berkeley, CA: University of California Press, 1978), 1:67. CHAPTER TWO 1. Roben Farzad, “Apple’s Earnings Power Befuddles Wall Street,” Bloomberg Businessweek, August 7, 2011, https://www.bloomberg.com/news/articles/2011-07-28/apple-s-earnings-power-befuddles-wall-street. 2. “iTunes Music Store Sells Over One Million Songs in First Week,” Apple Newsroom, March 9, 2018, https://www.apple.com/newsroom/2003/05/05iTunes-Music-Store-Sells-Over-One-Million-Songs-in-First-Week. 3. Jeff Sommer, “The Best Investment Since 1926? Apple,” New York Times, September 22, 2017, https://www.nytimes.com/2017/09/22/business/apple-investment.html. 4. See Shoshana Zuboff and James Maxmin, The Support Economy: How Corporations Are Failing Individuals and the Next Episode of Capitalism (New York: Penguin, 2002), 230. 5.

We relive that August day every day as in some ancient fable, doomed to retrace this looping path until the soul of our information civilization is finally shaped by democratic action, private power, ignorance, or drift. I. The Apple Hack Apple thundered onto the music scene in the midst of a pitched battle between demand and supply. On one side were young people whose enthusiasm for Napster and other forms of music file sharing expressed a new quality of demand: consumption my way, what I want, when I want it, where I want it. On the other side were music-industry executives who chose to instill fear and to crush that demand by hunting down and prosecuting some of Napster’s most-ardent users. Apple bridged the divide with a commercially and legally viable solution that aligned the company with the changing needs of individuals while working with industry incumbents. Napster hacked the music industry, but Apple appeared to have hacked capitalism. It is easy to forget just how dramatic Apple’s hack really was.


Survival of the Friendliest: Understanding Our Origins and Rediscovering Our Common Humanity by Brian Hare, Vanessa Woods

Cass Sunstein, cognitive bias, desegregation, Donald Trump, drone strike, income inequality, Jane Jacobs, Law of Accelerating Returns, meta analysis, meta-analysis, microbiome, Milgram experiment, Nelson Mandela, New Urbanism, nuclear winter, out of africa, phenotype, Ray Kurzweil, Richard Florida, Ronald Reagan, selective serotonin reuptake inhibitor (SSRI), self-driving car, smart cities, social intelligence, Stanford marshmallow experiment, stem cell, Steven Pinker, The Death and Life of Great American Cities, theory of mind, Tim Cook: Apple, trade route, white flight, zero-sum game

Switch to renewable energy and retrofit fossil fuel plants to reuse CO2. Overpopulation bursting the earth at the seams? Build eco-smart cities, grow steak in a petri dish from stem cells, and genetically engineer high-yield drought-resistant crops. Need to make education universal? Develop scalable software for children anywhere in the world to teach themselves reading, writing, and math online in eighteen months flat.76 But as Tim Cook, the CEO of Apple, said, “technology alone isn’t the solution. And sometimes it’s even part of the problem.” Because technology is, and always has been, a double-edged sword. The projectile weapon that we used to cooperatively hunt mammoths could also be used to kill our fellow humans. Nuclear power could be a critical solution to our energy crisis if we manage not to start a nuclear war. Self-driving cars will save a hundred thousand lives a year, until terrorists hijack the network and kill a hundred thousand people in a series of crashes.

“It is simply a fact that blacks, and particularly young black men, engage in lawless conduct, very much including violent conduct, at rates (by percentage of population) significantly higher than do other racial or ethnic groups,” writes Andrew McCarthy in the National Review.41, 42 At the end of World War II, when the full scale of the Nazis’ “final solution” was revealed, what stunned people most was its bureaucratic efficiency. But large-scale atrocities were not seen in Nazi Germany alone. There were the Japanese rape of Nanking, the Hungarian death marches, the Russian rape of Berlin, the Romanian pogroms. Psychologists could not account for it. It was convenient to assign most of the blame to a few psychopathic leaders, but the sheer scale of the carnage made it unlikely that it was the work of just a few bad apples. The field of social psychology emerged primarily to understand what made ordinary people do terrible things. Three dominant explanations came out of their work: prejudice, a desire to conform, and obedience to authority. Gordon Allport described prejudice as “an antipathy based on faulty and inflexible generalization.”43 It starts young, he maintained, and is stubbornly persistent. Children are exposed to the prejudice of their parents and family members, and as children’s sense of identity strengthens, they start to develop an attraction to their group and repulsion to other groups.


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Deep Medicine: How Artificial Intelligence Can Make Healthcare Human Again by Eric Topol

23andMe, Affordable Care Act / Obamacare, AI winter, Alan Turing: On Computable Numbers, with an Application to the Entscheidungsproblem, artificial general intelligence, augmented reality, autonomous vehicles, bioinformatics, blockchain, cloud computing, cognitive bias, Colonization of Mars, computer age, computer vision, conceptual framework, creative destruction, crowdsourcing, Daniel Kahneman / Amos Tversky, dark matter, David Brooks, digital twin, Elon Musk, en.wikipedia.org, epigenetics, Erik Brynjolfsson, fault tolerance, George Santayana, Google Glasses, ImageNet competition, Jeff Bezos, job automation, job satisfaction, Joi Ito, Mark Zuckerberg, medical residency, meta analysis, meta-analysis, microbiome, natural language processing, new economy, Nicholas Carr, nudge unit, pattern recognition, performance metric, personalized medicine, phenotype, placebo effect, randomized controlled trial, recommendation engine, Rubik’s Cube, Sam Altman, self-driving car, Silicon Valley, speech recognition, Stephen Hawking, text mining, the scientific method, Tim Cook: Apple, War on Poverty, Watson beat the top human players on Jeopardy!, working-age population

Merlino, “Medicine: The Final Frontier in Cancer Diagnosis.” Nature, 2017. 542(7639): pp. 36–38. 68. Esteva et al., “Dermatologist-Level Classification of Skin Cancer with Deep Neural Networks.” 69. Zakhem, G. A., C. C. Motosko, and R. S. Ho, “How Should Artificial Intelligence Screen for Skin Cancer and Deliver Diagnostic Predictions to Patients?” JAMA Dermatol, 2018. 70. Leswing, K., “Apple CEO Tim Cook Gave a Shout-Out to a $100-per-Year App for Doctors—Here’s What It Does,” Business Insider. 2017. CHAPTER 7: CLINICIANS WITHOUT PATTERNS 1. Gellert, G., and L. Webster. The Rise of the Medical Scribe Industry: Implications for Advancement of EHRs, in HiMSS 16. 2016. Las Vegas, NV. 2. Wang, M. D., R. Khanna, and N. Najafi, “Characterizing the Source of Text in Electronic Health Record Progress Notes.”

Gundotra, Petterson, and Prakash interview with Topol. 5. Comstock, J., “Apple, Stanford Launch Apple Heart Study to Improve Atrial Fibrillation Detection,” MobiHealthNews. 2017; Loftus, P., and T. Mickle, “Apple Delves Deeper into Health,” Wall Street Journal. 2017, p. B5. 6. Gonzalez, R., “The New ECG Apple Watch Could Do More Harm Than Good,” Wired. 2018. https://www.wired.com/story/ecg-apple-watch/; Dormehl, L., “Why We Should Be Wary of Apple Watch ‘Ultimate’ Health Guardian Claims,” Cult of Mac, 2018. https://www.cultofmac.com/577489 /why-we-should-be-wary-of-apple-watch-ultimate-health-guardian-claims/; Victory, J., “What Did Journalists Overlook About the Apple Watch ‘Heart Monitor’ Feature?” HealthNewsReview, 2018. https://www.healthnewsreview.org/2018/09/what-did-journalists-overlook-about-the-apple-watch-heart-monitor-feature/. 7.

His youthful appearance doesn’t jibe with a track record of twenty years of experience in product development, which included leading the Google Glass design project. He also worked at Apple for nine years, directly involved in the development of the first iPhone and iPad. That background might, in retrospect, be considered ironic. Meanwhile, a team of more than twenty engineers and computer scientists at Apple, located just six miles away, had its sights set on diagnosing atrial fibrillation via their watch. They benefited from Apple’s seemingly unlimited resources and strong corporate support: the company’s chief operating officer, Jeff Williams, responsible for the Apple Watch development and release, had articulated a strong vision for it as an essential medical device of the future. There wasn’t any question about the importance and priority of this project when I had the chance to visit Apple as an advisor and review its progress.


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Bank 3.0: Why Banking Is No Longer Somewhere You Go but Something You Do by Brett King

3D printing, additive manufacturing, Airbus A320, Albert Einstein, Amazon Web Services, Any sufficiently advanced technology is indistinguishable from magic, asset-backed security, augmented reality, barriers to entry, bitcoin, bounce rate, business intelligence, business process, business process outsourcing, call centre, capital controls, citizen journalism, Clayton Christensen, cloud computing, credit crunch, crowdsourcing, disintermediation, en.wikipedia.org, fixed income, George Gilder, Google Glasses, high net worth, I think there is a world market for maybe five computers, Infrastructure as a Service, invention of the printing press, Jeff Bezos, jimmy wales, Kickstarter, London Interbank Offered Rate, M-Pesa, Mark Zuckerberg, mass affluent, Metcalfe’s law, microcredit, mobile money, more computing power than Apollo, Northern Rock, Occupy movement, optical character recognition, peer-to-peer, performance metric, Pingit, platform as a service, QR code, QWERTY keyboard, Ray Kurzweil, recommendation engine, RFID, risk tolerance, Robert Metcalfe, self-driving car, Skype, speech recognition, stem cell, telepresence, Tim Cook: Apple, transaction costs, underbanked, US Airways Flight 1549, web application

Figure 1.2: Technology adoption rates over the last 100 years Ultimately new technologies and initiatives such as the iPod and Facebook are now being adopted by consumers en masse in a period measuring months, not years. To illustrate this shift, Apple sold more iOS devices in 2011 alone than all the Macs it had ever sold in the 28 years prior. “This 55m [iPads sold to-date] is something no one would have guessed. Including us. To put it in context, it took us 22 years to sell 55 million Macs. It took us about 5 years to sell 22 million iPods, and it took us about 3 years to sell that many iPhones. And so, this thing is, as you said, it’s on a trajectory that’s off the charts . . .” —Tim Cook, Apple CEO during February 2012 reporting call Apple then sold more iPhone 4S devices in fiscal Q1 of 2012 than in the preceding 12 months. As we become more used to technology and innovation, it is taking us less time to adopt these technologies in our lives, and this further encourages innovation and thus increases the impact on business (which has less time to adapt).

However, the meet-and-greet component is important in providing a strong initial service offering, an appearance as a brand with the wish to engage the customer. Genius Bars and Pods Apple has been famous for its “genius bar” concept built into its Apple Stores. As per Apple’s own description, the Genius Bar gives high-touch technical support to Apple customers: “When you have questions or need hands-on technical support for your Mac, iPad, iPod, Apple TV, or iPhone, you can get friendly, expert advice at the Genius Bar in any Apple Retail Store. The Genius Bar is home to our resident Geniuses. Trained by Apple, they have extensive knowledge of Apple products and can answer all your technical questions. In fact, Geniuses can take care of everything from troubleshooting problems to actual repairs.”12 Banks are trying to replicate this concept by turning to having specialist advisors roam the floor, ready to engage in a wide range of technical and product discussions.

Does the most excellent “store” experience drive them back to the store repeatedly over time? No. The average Apple Store makes approximately $34m in revenue annually, with $8.3m in operating income. However, if you examine the 10-K filing for Apple, revenue is split almost 50/50 between online and device-based store sales, and its retail presence split between resellers and its own stores.6 Since the Apple “App Store” opened on 10 July 2008, Apple has booked close to $6 billion in revenue just on apps.7 Cyber Monday is used as the benchmark for US online and mobile retail sales, and figures show that iPhones and iPads account for 7–10 per cent of all online sales activity on those days.8 What we know from all the data is this: Customers might start their relationship with Apple in-store, but they don’t have to, and increasingly they’re actually choosing not to.


pages: 572 words: 94,002

Reset: How to Restart Your Life and Get F.U. Money: The Unconventional Early Retirement Plan for Midlife Careerists Who Want to Be Happy by David Sawyer

Airbnb, Albert Einstein, asset allocation, beat the dealer, bitcoin, Cal Newport, cloud computing, cognitive dissonance, crowdsourcing, cryptocurrency, David Attenborough, David Heinemeier Hansson, Desert Island Discs, diversification, diversified portfolio, Edward Thorp, Elon Musk, financial independence, follow your passion, gig economy, hiring and firing, index card, index fund, invention of the wheel, knowledge worker, loadsamoney, low skilled workers, Mahatma Gandhi, Mark Zuckerberg, meta analysis, meta-analysis, mortgage debt, passive income, passive investing, Paul Samuelson, pension reform, risk tolerance, Robert Shiller, Robert Shiller, Ronald Reagan, Silicon Valley, Skype, smart meter, Snapchat, stakhanovite, Steve Jobs, Tim Cook: Apple, Vanguard fund, Y Combinator

[175] 2,617 times a day: “We touch our phones 2,617 times a day, says study | Network World.” 7 Jul. 2016, toreset.me/175. [176] In a 2016 blog post: “How Technology is Hijacking Your Mind — from a Former... – Medium.” 18 May. 2016, toreset.me/176. [177] kids’ screen time: “Bill Gates and Steve Jobs limited screen time for... – Business Insider.” 10 Jan. 2018, toreset.me/177. [178] Cook: “Tim Cook – Wikipedia.” toreset.me/178. The Apple CEO. [179] Horvath: “Michael Horvath | LinkedIn.” toreset.me/179. The Strava co-founder. [180] RescueTime: “RescueTime.” toreset.me/180. [181] Unroll.Me: “Unroll.Me.” toreset.me/181. [182] (3% of people)?: “Sleep with your smartphone in hand? You’re not alone – CNET.” 30 Jun. 2015, toreset.me/182. [183] admiration for the two-thirds of adults who aren’t active Facebook users: “31 Facebook Statistics Marketers Need to Know – Hootsuite Blog.” 14 Jan. 2018, toreset.me/183. 14.

A file storage and synchronisation service embedded in your laptop and smartphone. A linked internet browser and cloud calendar. Email. A work IT department, speedy-service warranty, or a computer specialist who lives locally. That’s it. When you’re linking this together, you have three global behemoths vying for your attention: Microsoft, Google and Apple. Which you pick is up to you. I’m a Google man myself, with an Android smartphone and a subscription to its “brand of cloud computing, productivity and collaboration tools, software and products”, G Suite. I avoid Apple. Microsoft’s Office 365 cloud service is now good and by far the most widely used cloud-based productivity software. If you have neither G Suite nor Office 365 at work and are still storing everything on servers or your computer’s hard drive, speak to your boss and ask them to remedy this dysfunctional situation.

For example, towards the middle of last year, we invested well under 5% of our stash in three companies: Apple (quarter), Microsoft (quarter) and Berkshire Hathaway B (half) after cashing in Standard Life windfall shares. I did my (extensive) research on all three firms, after discarding scores of alternatives (Fidelity didn’t offer a share dealing service to direct customers without an adviser at the time). I picked online share portal IG[404] because it charged nothing for managing the funds (as long as one of them paid dividends). And at a tenner a pop to buy each stock, I thought it would appear rude not to take advantage. With wild fluctuations, the trend has nevertheless been upward and we are sitting on (before-inflation) returns of 24% Apple, 53% Microsoft and 21% Berkshire Hathaway B. This against a suggested-RESET-portfolio return – I practise what I preach – during the same period of 8%.


pages: 330 words: 99,044

Reimagining Capitalism in a World on Fire by Rebecca Henderson

Airbnb, asset allocation, Berlin Wall, Bernie Sanders, business climate, Capital in the Twenty-First Century by Thomas Piketty, carbon footprint, collaborative economy, collective bargaining, commoditize, corporate governance, corporate social responsibility, crony capitalism, dark matter, decarbonisation, disruptive innovation, double entry bookkeeping, Elon Musk, Erik Brynjolfsson, Exxon Valdez, Fall of the Berlin Wall, family office, fixed income, George Akerlof, Gini coefficient, global supply chain, greed is good, Hans Rosling, Howard Zinn, Hyman Minsky, income inequality, index fund, Intergovernmental Panel on Climate Change (IPCC), joint-stock company, Kickstarter, Lyft, Mark Zuckerberg, means of production, meta analysis, meta-analysis, microcredit, mittelstand, Mont Pelerin Society, Nelson Mandela, passive investing, Paul Samuelson, Philip Mirowski, profit maximization, race to the bottom, ride hailing / ride sharing, Ronald Reagan, Rosa Parks, Second Machine Age, shareholder value, sharing economy, Silicon Valley, Snapchat, sovereign wealth fund, Steven Pinker, stocks for the long run, Tim Cook: Apple, total factor productivity, Toyota Production System, uber lyft, urban planning, Washington Consensus, working-age population, Zipcar

Pence urging him to veto the measure, saying: As leaders of technology companies, we not only disagree with this legislation on a personal level, but (believe that) the RFRA will adversely impact our ability to recruit and retain the best and the brightest talent in the technology sector. Technology professionals are by their nature very progressive, and backward-looking legislation such as the RFRA will make the state of Indiana a less appealing place to live and work.38 Following the signing of the act, Tim Cook, the CEO of Apple (the first CEO of a Fortune 500 company to come out as gay) tweeted that he was “deeply disappointed” in the law. Yelp CEO Jeremy Stoppelman remarked, [It] is unconscionable to imagine that Yelp would create, maintain, or expand a significant business presence in any state that encouraged discrimination by businesses against our employees, or consumers at large.… These laws set a terrible precedent that will likely harm the broader economic health of the states where they have been adopted, the businesses currently operating in those states and, most importantly, the consumers who could be victimized under these laws.39 The CEOs of Anthem Inc., Eli Lilly and Company, Cummins, Emmis Communications, Roche Diagnostics, Indiana University Health, and Dow AgroSciences—all companies with significant operations in Indiana—called on the local Republican leadership to pass legislation to prevent “discrimination based upon sexual orientation or gender identity.”

I do not suggest that reimagining capitalism will be easy or cheap. My career has given me extensive firsthand experience of just how difficult it is to do things in new ways. For many years I worked with firms struggling to change. I worked with GM as it attempted to respond to Toyota. With Kodak, as the conventional film business collapsed in the face of digital photography. With Nokia—which at its peak sold more than half of the world’s cell phones—as Apple revolutionized the business.1 Transforming the world’s firms will be hard. Transforming the world’s social and political systems will be even harder. But it is eminently possible, and if you look around, you can see it happening. I am reminded of a moment some years ago when I was in Finland, facilitating a business retreat. It was the first and last time that my agenda has included the item “5.00 pm—Sauna.”

To prosper over time, every company must not only deliver financial performance, but also show how it makes a positive contribution to society. Companies must benefit all of their stakeholders, including shareholders, employees, customers, and the communities in which they operate.”10 BlackRock has just under $7 trillion in assets under management, making it among the largest shareholders in every major publicly traded firm on the planet. It owns 4.6 percent of Exxon, 4.3 percent of Apple, and close to 7.0 percent of the shares of JPMorgan Chase, the world’s second-largest bank.11 For Fink to suggest that “companies must serve a social purpose” is the rough equivalent of Martin Luther nailing his ninety-five theses to Wittenberg Castle’s church door.12 The week after his letter came out, a CEO friend reached out to me to confirm that surely he didn’t—really—mean it? My friend was in a state of shock.


pages: 409 words: 112,055

The Fifth Domain: Defending Our Country, Our Companies, and Ourselves in the Age of Cyber Threats by Richard A. Clarke, Robert K. Knake

A Declaration of the Independence of Cyberspace, Affordable Care Act / Obamacare, Airbnb, Albert Einstein, Amazon Web Services, autonomous vehicles, barriers to entry, bitcoin, Black Swan, blockchain, borderless world, business cycle, business intelligence, call centre, Cass Sunstein, cloud computing, cognitive bias, commoditize, computer vision, corporate governance, cryptocurrency, data acquisition, DevOps, don't be evil, Donald Trump, Edward Snowden, Exxon Valdez, global village, immigration reform, Infrastructure as a Service, Internet of things, Jeff Bezos, Julian Assange, Kubernetes, Mark Zuckerberg, Metcalfe’s law, MITM: man-in-the-middle, move fast and break things, move fast and break things, Network effects, open borders, platform as a service, Ponzi scheme, ransomware, Richard Thaler, Sand Hill Road, Schrödinger's Cat, self-driving car, shareholder value, Silicon Valley, Silicon Valley startup, Skype, smart cities, Snapchat, software as a service, Steven Levy, Stuxnet, technoutopianism, Tim Cook: Apple, undersea cable, WikiLeaks, Y2K, zero day

The FBI was immediately called in to lead the investigation. By February, the FBI was saying publicly that it could not open one of the iPhones used by the terrorists. The devices were set so that after a few failed attempts to open them with a PIN, the phones would wipe all data. FBI Director James Comey called upon Apple to develop software that could be used to bypass the PIN and unlock the devices. Apple CEO Tim Cook, correctly in our view, refused, saying that Apple could not be compelled to weaken the security of its own products. Comey took Cook to court. The backstory was that Comey had been campaigning inside the Obama administration for new legislation that would require companies that make encryption software to build in ways that the government could decrypt the code. It was an idea that had gone down in flames twenty years earlier, when Congress rejected a proposal for a so-called Clipper chip that would permit a court to unlock encryption upon petition by the government.

There were, however, hundreds of other iPhones involved in other cases that the FBI or local police could not open. What happened next tells you a lot about the value of encryption to cybersecurity. Far from supporting Comey and the FBI, former high-level national security officials came out of the woodwork to support Apple, including former CIA and NSA directors. We were part of that chorus. What we were all saying was that encryption is essential to secure private-sector networks and databases. If Apple created a way to break the encryption on its devices, malicious actors would find a way to use it too. In a heated debate at the RSA security conference in 2016, Dick Clarke asserted that the government was looking to create a bad precedent and that, in fact, it already had classified means to open the phone.

The NotPetya malware took billions from companies operating in Ukraine, Europe, and the United States, leading many to report the losses on their quarterly and annual filings with the Securities and Exchange Commission. Yet some, if not most, multinational corporations operating in Ukraine either were not impacted, were minimally impacted, or had some really good lawyers who argued the losses did not need to be reported (more on that later). Companies such as Microsoft, Apple, and Google, all companies that at one time saw concerns over cyber threats as overhyped, now have religion and are investing in cybersecurity with the zealotry of the converted. They view cybersecurity as a competitive advantage in a market where consumers are increasingly wary of doing business online. Large banks such as Citi, Bank of America, and JPMorgan Chase also view cybersecurity as a competitive differentiator for both consumer and commercial clients.


Autonomous Driving: How the Driverless Revolution Will Change the World by Andreas Herrmann, Walter Brenner, Rupert Stadler

Airbnb, Airbus A320, augmented reality, autonomous vehicles, blockchain, call centre, carbon footprint, cleantech, computer vision, conceptual framework, connected car, crowdsourcing, cyber-physical system, DARPA: Urban Challenge, data acquisition, demand response, digital map, disruptive innovation, Elon Musk, fault tolerance, fear of failure, global supply chain, industrial cluster, intermodal, Internet of things, Jeff Bezos, Lyft, manufacturing employment, market fundamentalism, Mars Rover, Masdar, megacity, Pearl River Delta, peer-to-peer rental, precision agriculture, QWERTY keyboard, RAND corporation, ride hailing / ride sharing, self-driving car, sensor fusion, sharing economy, Silicon Valley, smart cities, smart grid, smart meter, Steve Jobs, Tesla Model S, Tim Cook: Apple, uber lyft, upwardly mobile, urban planning, Zipcar

Until now, the company’s focus has been on the development of driver-assist technologies along the levels of automation. TECHNOLOGY COMPANIES Tim Cook, CEO of Apple, described the challenge of building autonomous vehicles as the mother of all artificial intelligence projects. Plans to develop self-driving cars were not confirmed until mid-2017, prior to which the company had remained tight-lipped. However, the focus is less on the vehicles, and more on the development of the artificial intelligence. This technology could be provided in products from other industries to car manufacturers, who do not develop their own software for driverless cars. So far, Apple has tested its software and sensors with three Lexus vehicles in the streets around San Francisco. It has recently recruited numerous engineers in this field, especially from Tesla, Volkswagen, Carnegie Mellon University and Nvidia.

This page intentionally left blank INDEX A9 autobahn in Germany, 134, 135, 407 ACCEL, 324 Accelerating, 8, 22, 27, 59, 78, 91, 122, 295, 296 Access Economy, 344 Acoustic signals, 108 Ad-hoc mobility solutions, 354 Ad-hoc networks, 133 Adaptive cruise control, 4, 51, 72 74, 78, 86, 96, 113, 116, 289, 297, 333 Aerospace industry, 153 Agenda for auto industry culture change, 396 increasing speed, 398 service-oriented business model, 397 398 V-to-home and V-to-business applications, 399 Agile operating models, 330 Agriculture, 154 productivity, 155 sector, 154 157 Air pollution, 27 AirBnB, 311 Airplane electronics, 144 Aisin, 9 Albert (head of design at Yahoo), 228 Alexandra (founder and owner of Powerful Minds), 228 Alibaba Alipay payment system, 372 Alternative fuels, autonomous vehicles enabling use of, 305 Altruistic mode (a-drive mode), 252 Amazon, 138, 141, 311 American Trucking Association, 68 Android operating system, 327 Anthropomorphise products, 290 Appel Logistics transports, 167 Apple, 9, 138, 327 CarPlay, 285 Apple Mac OS, 247 Apple-type model, 323 Application layer, 119 software, 118 Artificial intelligence, 115, 255, 291, 332 333 Artificial neuronal networks, 114 115 Asia projects, 371 374 Assembly Row, 386 Assessment of Safety Standards for Automotive Electronic Control Systems, 144 Assistance systems, 71 77 Audi, 5, 130, 134, 137, 179, 211, 301, 318, 322, 398 Driverless Race Car, 5 piloted driving, 286 piloted-parking technology, 386 387 Audi A7, 44, 198, 282 427 428 Audi A8 series-car, 79, 180 Audi AI traffic jam pilot, 79 Audi Fit Driver service, 318 319 Audi piloted driving lab, 227, 229 Audi Q7, 74 assistance systems in, 75 Audi RS7, 43, 44, 79 autonomous racing car, 179 driverless, 227 Audi TTS, 43 Audi Urban Future Initiative, 384 386, 406 Augmented reality, 279 vision and example, 279 280 Authorities and cities, 171 173 Auto ISAC, 146 Autolib, 317, 344 Autoliv, 285 Automakers’ bug-bounty programs, 146 Automated car, 233, 246, 264, 289, 384 Automated driving division of labour between driver and driving system, 48 examples, 51 53 image, 177 levels of, 47 51 scenarios for making use of travelling time, 52 strategies, 53 56 technology, 160 Automated vehicles, 9, 174, 246 Automated Vehicles Index, 367 368 Automatic car, 233, 244 Automatic pedestrian highlighting, 78 Automation ironies of, 76 responsibility with increasing, 235 Automobile, 3, 21 locations, 405 manufacturers, 311 Index Automotive design, 265 266 Automotive Ethernet, 126 Automotive incumbents operate, 330 Automotive industry, 332 335, 367, 379, 397 Automotive technology, 327 328 AutoNet2030 project, 369 Autonomous buses, 14, 81, 158, 159, 175, 302 Autonomous cars, 25, 126, 197, 205 206, 233, 244, 270 expected worldwide sales of, 85 savings effects from, 67 68 Autonomous driving, 3, 8, 39, 62, 94, 111, 116, 120, 121 123, 141, 160 162, 171, 173, 207 208, 217, 247, 252, 266, 332 333, 379 applications, 10 12, 160 aspects for, 93 Audi car, 5 autonomous Audi TTS on Way to Pikes Peak, 43 in combination with autonomous loading hubs, 166 driving to hub, 213 ecosystem, 18 20, 131 element, 243 facts about, 306 functions, 74 impression, 40 industry, 16 18 living room in Autonomous Mercedes F015, 44 milestones of automotive development, 4 NuTonomy, 6 projects, 41 45 real-world model of, 92 scenarios, 211 215 science fiction, 39 41 technology, 9 10, 92 Index time management, 215 218 vehicles, 12 16 See also Human driving Autonomous driving failure, 221 consequence, 221 222 decision conflict in autonomous car, 223 design options, 222 223 influencer, 223 224 Autonomous Mercedes F015, living room in, 44 Autonomous mobility, 12, 13, 16 17, 172, 405 establishment as industry of future, 404 405 resistance to, 171 172 Autonomous Robocars, 81 Autonomous sharp, 274 ‘Autonomous soft’ mode, 274 Autonomous trucks, 161 from Daimler, 163 savings effects from, 68 69 Autonomous vehicles, 26, 81, 99, 138, 155, 182, 221, 238, 249, 255, 353 354 enabling use of alternative fuels, 305 integration in cities, 406 promoting tests with, 407 uses, 153 AutoVots fleet, 350 Backup levels, 127 Baidu apps, 338, 372 Base layer, 119 Becker, Jan, 42 43 Behavioural law, 234 Being driven, 61, 63, 78, 342 343 Ben-Noon, Ofer, 142, 143, 145 Benz, Carl, 3, 4 Bertha (autonomous research vehicle), 42 Big data, 313, 332 333 BlaBlaCar, 359 429 Blackfriars bridge, lidar print cloud of, 104 Blind-spot detection, 78 Bloggers, 225 227 Blonde Salad, The, 226 Bluetooth, 130, 142, 154 BMW, 6, 130, 137, 174, 180, 316, 320, 322, 332 333, 372, 398 3-series cars, 338 BMW i3, 27 holoactive touch, 285 Boeing 777 development, 243 Boeing, 787, 261 Bosch, 9, 181 182 Bosch, Robert, 333 Bosch suppliers, 315 BosWash, metropolitan region, 384 Budii car, 272 273 Business models, 311, 353 355 automobile manufacturers, 311 content creators, 319 320 data creators, 320 322 examples, 312 hardware creators, 314 315 options, 312 314 passenger looks for new products, 321 passenger visits website, 321 service creators, 316 319 software creators, 315 316 strategic mix, 322 323 Business vehicle, 15 Business-to-consumer car sharing, 342 343 Cadillac, 180 California PATH Research Reports, 298 299 Cambot, 290 Cameras, 111, 126 CAN bus, 126, 143 Capsule, 33 Car and ride sharing, studies on, 348 430 Car dealers, repair shops and insurance companies, 173 174 Car manufacturers, 328, 396 397 business model, 312 Car-pooling efforts, 364 365 Car-sharing programs, 364 365 service, 383 Car-sharing, 206 Car2Go, 317, 345 Casey Neistat, 226 Castillo, Jose, 364 365 Celebrities and bloggers, 225 227 Central driver assistance control unit, 124 Central processing unit, 96, 124 zFAS, 125 Centre for Economic and Business Research in London, 189 Chevrolet, 40 app from General Motors, 316 Spark EV, 27 Cisco, 41 CityMobil project, 369, 406 CityMobil2, 14, 157 Cognitive distraction, 287 Coherent European framework, 246 Committee on Autonomous Road Transport for Singapore, 347 Communication, 198 200 investing in communication infrastructure, 403 404 technology, 261 Community, 341 detection algorithms, 389 Companion app, 316 Compelling force, 223 Competitiveness Iain Forbes, 368 369 projects in Asia, 371 374 Index projects in Europe and United States, 369 371 projects in Israel, 374 375 Computer operating systems, 247 Computer-driven driving, 108 Computerised information processing, 109 Congestion pricing, 296 Connected car, 129 ad-hoc networks, 133 connected driving, 137 138 connected mobility, 138 development of mobile communication networks, 130 digital ecosystems, 138 eCall, 136 137 online services, 136 137 permanent networks, 130 statement by telecommunications experts, 132 133 V-to-I communication, 134 135 V-to-V communication, 133 134 V-to-X communication, 135 136 See also Digitised car Connected mobility, 129, 138 Connected vehicles, 138 vulnerability of, 142 Connected-car services, 313 Connectivity of vehicles, 147 Consumer-electronics companies, 285 Container Terminal, 159 Content creators, 319 320 Continental (automotive suppliers), 9, 284, 315 Continuous feedback, 281 Convenience, 302 304, 306 Conventional breakthrough approach, 332 Index Conventional broadband applications, 132 Conventional car manufacturing, 10 Cook, Tim, 182 Cooperative intelligent transport system (C-ITS), 369 370 Corporate Average Fuel Economy standard, 297 Cost(s), 187 192, 295 autonomous vehicles enabling use of alternative fuels, 305 fuel economy, 297 299 intelligent infrastructures, 299 301 land use, 304 operating costs, 301 302 relationship between road speed and road throughput, 296 vehicle throughput, 295 297 Croove app, 318 Culture, 330 change, 396 differences, 195 197 and organisational transformation, 395 Curtatone, Joseph, 387 Customers’ expectations attitudes, 204 207 incidents, 203 204 interview with 14 car dealers, 207 persuasion, 207 208 statements by two early adopters, 205 Cyber attacks, 141 Cyber hacking or failures in algorithms, 354 Cyber security, 141 146 Cyber-physical systems, 9 Daimler, 130 Data, 121 categories in vehicle, 147 creators, 320 322 431 from passengers, 94 95 privacy, 147 148 processing, 91 protection principles, 148 recorders, 239 Data-capturing technology, 103 Data-protection issues, 239 Database, 98 Decelerating, 91, 122 Decision-making mechanism, 369 Declaration of Amsterdam, 246 247 Deep learning, 115 Deep neural networks, 115 116 Deere, John, 154, 155 Deere, John, 154, 155, 263 Defense Advanced Research Project Agency (DARPA), 41 Degree of autonomous driving, 53 Degree of autonomy, 262 Degree of market penetration, 84 Degree of not-invented-here arrogance, 332 Degree of vehicle’s automation, 233 234 Delhi municipal government, 21 22 Delphi, 9, 181 Delphi Automotive Systems, 6 Demise of Kodak, 111 Denner, Volkmar, 333 334 Denso, 9 Depreciation, 345 Destination control, 299, 300 Digital company development, 395 396 Digital economy, 225 Digital ecosystems, 138 Digital light-processing technology, 277, 279 Digital maps, 101 Digital products, 267 Digitised car algorithms, 113 117 432 backup levels, 127 car as digitised product, 111 112 data, 121 drive recorder, 125 126 drive-by-wire, 122 over-provisioning, 127 processor, 122 125 software, 117 121 See also Connected car Digitising and design of vehicle, 265 267 Dilemma situations, 61 Direct attacks, 141 Direct connectivity of vehicle, 130 Disruptions in mobility, 31, 34 arguments, 34 35 history, 32 33 OICA, 34 Disruptive technologies, 221, 223, 402 Document operation-relevant data, 263 Doll, Claus, 166 Dongles, 142 Drees, Joachim, 165 ‘Drive boost’ mode, 274 “Drive me” project, 370 Drive recorder, 125 126 ‘Drive relax’ mode, 274 Drive-by-wire, 122 DriveNow, 317, 345 Driver, 235 role, 235 238 Driver distraction, 55 causes and consequences, 278 Driver-assistance systems, 53, 71, 160, 174, 222, 298, 333, 353 Driverless cars, 3, 7, 27 28, 222, 233, 244 taxis, 302 vans, 406 vehicles, 168 Index Driverless Audi RS7, 227 229 Driverless Race Car of Audi, 5 Driving manoeuvres, 91 modes, 107 oneself, 342 343 Drunk driving, 303 Dvorak keyboard, 242 Dynamic patterns of movement in city of London, 390 eCall.

The former 118 Autonomous Driving makes sure that the processor, memory and input/output devices are managed and are available to the application software (iOS from Apple, Android from Google). In digitised vehicles, special operating systems developed by the individual automobile manufacturers are currently in use for infotainment systems. Application software relies on the operating system and makes functions available that interest the user (e.g. receiving and sending e-mails). Application software has to be programmed so that it is compatible with the operating system. For example, if a car manufacturer decides on iOS Car Play from Apple as an operating system, only those apps can be used that were programmed for this operating system. The selection of an operating system is an important decision, because all applications have to be reprogrammed if it is changed.


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The Great Divide: Unequal Societies and What We Can Do About Them by Joseph E. Stiglitz

"Robert Solow", accounting loophole / creative accounting, affirmative action, Affordable Care Act / Obamacare, agricultural Revolution, Asian financial crisis, banking crisis, Berlin Wall, Bernie Madoff, Branko Milanovic, Bretton Woods, business cycle, capital controls, Capital in the Twenty-First Century by Thomas Piketty, Carmen Reinhart, carried interest, clean water, collapse of Lehman Brothers, collective bargaining, computer age, corporate governance, credit crunch, Credit Default Swap, deindustrialization, Detroit bankruptcy, discovery of DNA, Doha Development Round, everywhere but in the productivity statistics, Fall of the Berlin Wall, financial deregulation, financial innovation, full employment, George Akerlof, ghettoisation, Gini coefficient, glass ceiling, global supply chain, Home mortgage interest deduction, housing crisis, income inequality, income per capita, information asymmetry, job automation, Kenneth Rogoff, Kickstarter, labor-force participation, light touch regulation, Long Term Capital Management, manufacturing employment, market fundamentalism, mass incarceration, moral hazard, mortgage debt, mortgage tax deduction, new economy, obamacare, offshore financial centre, oil shale / tar sands, Paul Samuelson, plutocrats, Plutocrats, purchasing power parity, quantitative easing, race to the bottom, rent-seeking, rising living standards, Ronald Reagan, school vouchers, secular stagnation, Silicon Valley, Simon Kuznets, The Chicago School, the payments system, Tim Cook: Apple, too big to fail, trade liberalization, transaction costs, transfer pricing, trickle-down economics, Turing machine, unpaid internship, upwardly mobile, urban renewal, urban sprawl, very high income, War on Poverty, Washington Consensus, We are the 99%, white flight, winner-take-all economy, working poor, working-age population

If Americans believe that government is unfair—that ours is a government of the 1 percent, for the 1 percent, and by the 1 percent—then faith in our democracy will surely perish. ______________ * New York Times, April 14, 2013. GLOBALIZATION ISN’T JUST ABOUT PROFITS. IT’S ABOUT TAXES TOO.* THE WORLD LOOKED ON AGOG AS TIM COOK, THE HEAD OF Apple, said his company had paid all the taxes owed—seeming to say that it paid all the taxes it should have paid. There is, of course, a big difference between the two. It’s no surprise that a company with the resources and ingenuity of Apple would do what it could to avoid paying as much tax as it could within the law. While the Supreme Court, in its Citizens United case, seems to have said that corporations are people, with all the rights attendant thereto, this legal fiction didn’t endow corporations with a sense of moral responsibility; and they have the Plastic Man capacity to be everywhere and nowhere at the same time—to be everywhere when it comes to selling their products, and nowhere when it comes to reporting the profits derived from those sales.

At that time, GE was the shining example of a corporate leader that had managed to avoid paying its fair share of taxes. But then the Apple and Google scandals broke out—these Silicon Valley companies, long noted for their ingenuity in technology, had displayed the same ingenuity in tax avoidance. They took advantage of globalization—the ability to move money around the world. Apple claimed that its profits could really be attributed to a few people working in Ireland! Honesty—let alone a sense of fair play—seems a rarer commodity than ingenuity. These companies were willing to take but not to give back: after all, their success depends on the Internet, which was created by government spending. If we don’t replenish the stock of ideas upon which companies can draw through basic research, the flow of innovations won’t be sustained. But that requires money, tax dollars. Google and Apple have shown that the same shortsighted and selfish behavior that was endemic in America’s financial sector can manifest itself in Silicon Valley.

The problem of multinational corporate tax avoidance is deeper, and requires more profound reform, including dealing with tax havens that shelter money for tax evaders and facilitate money-laundering. Google and Apple hire the most talented lawyers, who know how to avoid taxes staying within the law. But there should be no room in our system for countries that are complicitous in tax avoidance. Why should taxpayers in Germany help bail out citizens in a country whose business model was based on tax avoidance and a race to the bottom—and why should citizens in any country allow their companies to take advantage of these predatory countries? To say that Apple or Google simply took advantage of the current system is to let them off the hook too easily: the system didn’t just come into being on its own. It was shaped from the start by lobbyists from large multinationals.


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The Hype Machine: How Social Media Disrupts Our Elections, Our Economy, and Our Health--And How We Must Adapt by Sinan Aral

Airbnb, Albert Einstein, Any sufficiently advanced technology is indistinguishable from magic, augmented reality, Bernie Sanders, bitcoin, carbon footprint, Cass Sunstein, computer vision, coronavirus, correlation does not imply causation, COVID-19, Covid-19, crowdsourcing, cryptocurrency, death of newspapers, disintermediation, Donald Trump, Drosophila, Edward Snowden, Elon Musk, en.wikipedia.org, Erik Brynjolfsson, experimental subject, facts on the ground, Filter Bubble, global pandemic, hive mind, illegal immigration, income inequality, Kickstarter, knowledge worker, longitudinal study, low skilled workers, Lyft, Mahatma Gandhi, Mark Zuckerberg, Menlo Park, meta analysis, meta-analysis, Metcalfe’s law, mobile money, move fast and break things, move fast and break things, multi-sided market, Nate Silver, natural language processing, Network effects, performance metric, phenotype, recommendation engine, Robert Bork, Robert Shiller, Robert Shiller, Second Machine Age, sentiment analysis, shareholder value, skunkworks, Snapchat, social graph, social intelligence, social software, social web, statistical model, stem cell, Stephen Hawking, Steve Jobs, Telecommunications Act of 1996, The Chicago School, The Wisdom of Crowds, theory of mind, Tim Cook: Apple, Uber and Lyft, uber lyft, WikiLeaks, Yogi Berra

Protecting privacy and individual data has been Durov’s sole priority in building Telegram. He has resisted governments’ requests to hand over data or build back doors into Telegram’s infrastructure. In the wake of Edward Snowden, Cambridge Analytica, and the release of Netflix’s The Great Hack, the reasons behind Telegram’s meteoric rise seem obvious. Individuals around the world are clamoring for privacy, security, and freedom from surveillance. Tim Cook, the CEO of Apple, was applauded when he resisted the government’s request to crack the San Bernardino shooter’s private iPhone data, and there are certainly important values and protections that must be preserved in privacy rights and data security. But as we found out on November 13, 2015, unrestricted, private, and anonymous communication can aid and abet the darkness in social media as well. Four months after I discussed Maria Petrova’s paper on the role of social media in the Snow Revolution at the NBER, the band Eagles of Death Metal were playing a concert in the Bataclan nightclub in Paris.

More developers wrote software for Windows, and the indirect network effect created by Windows’ large installed base was evident in CompUSA’s endless rows of Windows software that dwarfed the tiny corner devoted to Apple. By 2013, however, the tables had turned. Apple launched the iPhone in 2007 and everyone wanted one. Apple built so much innovation into the iPhone that its intrinsic value alone was enough to get people to buy iPhones en masse. Software was added to the iPhone through applications, or “apps,” and Apple launched the App Store in 2008. As more people bought the iPhone, developers had more incentive to write apps for it. As a result, the iPhone’s adoption curve looks like Mount Everest. The first iPhone was sold in 2007 and by 2013 Apple had sold 400 million of them. If the user base is like a platform’s mass, and network effects are like gravity, Apple’s gravity increased as the iPhone’s mass increased and consumers flocked to the now iconic brand.

If the user base is like a platform’s mass, and network effects are like gravity, Apple’s gravity increased as the iPhone’s mass increased and consumers flocked to the now iconic brand. In contrast, Microsoft’s share of the cell phone market in 2013 was like Apple’s share of CompUSA’s shelves in the 1980s—minuscule. Developers had very little incentive to write apps for Windows phones. Instead, they wrote for Apple. In 2013 there were over five times as many apps for the iPhone as there were for Windows phones. In fact, Apple’s installed base advantage was so large that while developers were clamoring to write apps for the iPhone for free, Microsoft was paying developers over $100,000 a pop for apps written for Windows phones. It was necessary to try to counteract Apple’s gravity. But it wasn’t enough. The network effect combined with the iPhone’s intrinsic value was simply too strong. Today Apple owns 47.4 percent of the U.S. cell phone market, while Microsoft controls 0.5 percent.


pages: 421 words: 110,272

Deaths of Despair and the Future of Capitalism by Anne Case, Angus Deaton

Affordable Care Act / Obamacare, basic income, Bertrand Russell: In Praise of Idleness, business cycle, call centre, collapse of Lehman Brothers, collective bargaining, Corn Laws, corporate governance, correlation coefficient, crack epidemic, creative destruction, crony capitalism, declining real wages, deindustrialization, demographic transition, Dissolution of the Soviet Union, Donald Trump, Downton Abbey, Edward Glaeser, Elon Musk, falling living standards, Fellow of the Royal Society, germ theory of disease, income inequality, Jeff Bezos, Joseph Schumpeter, Kenneth Arrow, labor-force participation, low skilled workers, Martin Wolf, Mikhail Gorbachev, obamacare, pensions crisis, randomized controlled trial, refrigerator car, rent-seeking, risk tolerance, shareholder value, Silicon Valley, The Spirit Level, The Wealth of Nations by Adam Smith, Tim Cook: Apple, trade liberalization, universal basic income, working-age population, zero-sum game

Some people invent new tools, drugs, or gadgets, or new ways of doing things, and benefit many, not just themselves. They profit from improving and extending other people’s lives. It is good for great innovators to get rich. Making is not the same as taking. It is not inequality itself that is unfair but rather the process that generates it. The people who are being left behind care about their own falling living standards and loss of community, not about Jeff Bezos (of Amazon) or Tim Cook (of Apple) being rich. Yet when they think the inequality comes from cheating or from special favors, the situation becomes intolerable. The financial crisis has much to answer for. Before it, many believed that the bankers knew what they were doing and that their salaries were being earned in the public interest. Afterward, when so many people lost their jobs and their homes, and the bankers continued to be rewarded and were not held to account, American capitalism began to look more like a racket for redistributing upward than an engine of general prosperity.

These local monopolies are today being challenged by internet streaming; long-standing monopolies are often challenged by new technology. More common than monopoly is oligopoly, where there are only a few sellers, each of which has some control over price. There may be only one Toyota dealer nearby, but dealers of other brands provide imperfect competition. Apple is not the only producer of cell phones, but it has a large number of loyal customers who are unlikely to switch to Samsung, and this enables Apple to set the price of an iPhone far above what it costs to make. Airlines have frequent-flyer schemes designed to make customers reluctant to switch carriers when prices are raised. Oligopolists sometimes collude to keep prices up, implicitly or explicitly. Evidence of Pervasive Market Power There are many indications that something is amiss.

We shall also argue that in America, more than elsewhere, market and political power have moved away from labor toward capital. Globalization has aided the shift, both weakening unions and empowering employers,17 and American institutions have helped push this further than elsewhere. Corporations have become more powerful as unions have weakened, and as politics has become more favorable to them. In part, this comes from the phenomenal growth of high-tech firms, such as Apple and Google, that employ few workers for their size and have high profits per worker. This is good for productivity and for national income, but little of the gain is shared by labor, especially by less educated labor. Less positively, consolidation in some American industries—hospitals and airlines are just two of many examples—has brought an increase in market power in some product markets so that it is possible for firms to raise prices above what they would be in a freely competitive market.


pages: 339 words: 103,546

Blood and Oil: Mohammed Bin Salman's Ruthless Quest for Global Power by Bradley Hope, Justin Scheck

augmented reality, Ayatollah Khomeini, clean water, coronavirus, distributed generation, Donald Trump, Downton Abbey, Elon Musk, Exxon Valdez, Google Earth, high net worth, Jeff Bezos, Marc Andreessen, Mark Zuckerberg, MITM: man-in-the-middle, new economy, Peter Thiel, ride hailing / ride sharing, Sand Hill Road, Silicon Valley, South of Market, San Francisco, sovereign wealth fund, starchitect, Steve Jobs, Tim Cook: Apple, trade route, Travis Kalanick, Uber for X, urban planning, women in the workforce, young professional, zero day

Saudi officials were forced to deny to American reporters that the government had paid for the publication. Pecker’s relationship to Trump, rather than the grand plans of the prince, became the focal point for many US pundits. Grine, who preferred to operate on the fringes, was now in the center of an embarrassing uproar that brought lots of publicity and no money. Mohammed continued his visit, meeting executives like Mark Zuckerberg, Bill Gates, and Apple’s Tim Cook. He ate dinner with Jeff Bezos and was photographed with Google founder Sergey Brin wearing his Silicon Valley best: a blazer, dress shoes, and a button-down shirt tucked into dark jeans belted across his broad belly. He sat with Oprah Winfrey, venture capitalist Peter Thiel, and the CEOs of Disney, Uber, and Lockheed. To Jeffrey Goldberg, the Atlantic editor whose interview with Barack Obama years earlier led Mohammed to believe that the former president was supporting Iran over Saudi Arabia, the prince made a surprising pronouncement: He asserted that Israel had the right to exist, a first for a senior Saudi royal, and a huge shift for a kingdom that, as recently as 2012, published middle school textbooks that called Jews apes.

Alwaleed delighted in that image and in representations of his own image, showing visitors to his offices in Riyadh, Paris, and New York thick stacks of magazines with his face on the cover or long interviews about his business career. Some rooms in his homes contained more than a dozen photos or paintings of Alwaleed at different stages of his life. He liked drinking tea from a mug with his face on it. The prince was a force in American business, buying stakes in Citibank, Apple, and Twitter. In a partnership with Bill Gates, Alwaleed’s Kingdom Holding Company owned a chunk of the Four Seasons hotel chain, famed for its luxury accommodations. When he traveled, he brought along a two-dozen-person retinue, including cooks, cleaners, butlers, and business advisors. Yet here he was on a cool November night in 2017, feeling a chill down his spine as he got dressed at his desert retreat for the meeting with the king.

A third, a Saudi, was “a professional” who used encryption to conceal his identity, though once he signed in without encryption, and Alzabarah was able to track his IP address. The Twitter engineer realized he was providing valuable information to Mohammed’s men—some of the accounts he was accessing were, the Royal Court suspected, connected to terrorism, and Saudi officials announced a $1.9 million reward to anyone who helped avert an attack. In his private Apple Notes account, Alzabarah drafted language to ask Asaker about whether he could claim that money. Alzabarah spoke by phone with Asaker on June 18 and the next day accessed the Twitter account of Omar Abdulaziz, a Saudi man who had obtained asylum in Canada after the kingdom cut off his schooling in retribution for public critiques of the government and who would form a strong bond with a Saudi journalist and regime critic named Jamal Khashoggi.


pages: 239 words: 62,005

Don't Burn This Book: Thinking for Yourself in an Age of Unreason by Dave Rubin

Affordable Care Act / Obamacare, battle of ideas, Bernie Sanders, Burning Man, butterfly effect, centre right, cognitive dissonance, Columbine, Donald Trump, failed state, gender pay gap, illegal immigration, immigration reform, job automation, low skilled workers, mutually assured destruction, obamacare, Peter Thiel, pre–internet, Ronald Reagan, Saturday Night Live, school choice, Silicon Valley, Steven Pinker, Tim Cook: Apple, unpaid internship, War on Poverty, women in the workforce, zero-sum game

If you work hard and are nice to people, nobody will give a flying fuck about your sexuality, your race, your gender, or whether you’re an atheist, polysexual vegan with blue hair. Seriously. Nothing is holding you or anyone else back. Especially not straight white men. Not only are minorities some of the most famous and successful players in Hollywood, they are also among the most powerful people in our country’s leading industries. Take, for instance, openly gay CEO of Apple Tim Cook (net worth $500 million); female CEO of YouTube Susan Wojcicki (net worth $500 million); and CEO of General Motors Mary Barra (net worth $60 million). This is part of why Jay-Z (a black man, in case you’d forgotten) is now hip-hop’s first billionaire and why Rihanna (a black immigrant from Barbados) was recently named the world’s richest female musician with a wealth of $600 million. The same goes for Ellen DeGeneres—America’s favorite lesbian—who’s paid a salary of $77 million and is one of TV’s top earners.


pages: 538 words: 145,243

Behemoth: A History of the Factory and the Making of the Modern World by Joshua B. Freeman

anti-communist, British Empire, Capital in the Twenty-First Century by Thomas Piketty, clean water, collective bargaining, Corn Laws, corporate raider, deindustrialization, Deng Xiaoping, disruptive innovation, en.wikipedia.org, factory automation, Ford paid five dollars a day, Frederick Winslow Taylor, global supply chain, indoor plumbing, interchangeable parts, invisible hand, James Hargreaves, joint-stock company, knowledge worker, mass immigration, means of production, mittelstand, Naomi Klein, new economy, On the Economy of Machinery and Manufactures, Panopticon Jeremy Bentham, Pearl River Delta, post-industrial society, Ralph Waldo Emerson, rising living standards, Ronald Reagan, Silicon Valley, special economic zone, spinning jenny, Steve Jobs, strikebreaker, technoutopianism, the built environment, The Wealth of Nations by Adam Smith, Thorstein Veblen, Tim Cook: Apple, transaction costs, union organizing, Upton Sinclair, urban planning, Vanguard fund, women in the workforce, working poor, Works Progress Administration, zero-sum game

Three years later, the company sold more than thirteen million iPhone 6 and 6 Plus units during the first three days after launch. With final product design often locked up only shortly before sales begin, Apple needs to mobilize a vast amount of labor in a very short time to produce inventory for the sales rush to come. Factory giantism has been the solution Apple has adopted, though the giant factories are not its own. Using giant contract manufacturers, like Foxconn and Yue Yuen, has allowed Apple, Nike, and their ilk to operate without large standing inventories of products that tie up capital and run up warehouse expenses. Even more important, just-in-time production avoids the possibility of being stuck with piles of outdated cell phones, laptops, or sneakers in what are essentially fashion industries. Tim Cook—the Apple executive who masterminded the company’s shift from in-house production to contracting out before succeeding Steve Jobs as CEO—once called inventory “fundamentally evil.”

Lüthje, “Electronics Contract Manufacturing,” 230 (Nishimura quote); Marcelo Prince and Willa Plank, “A Short History of Apple’s Manufacturing in the U.S.,” The Wall Street Journal, Dec. 6, 2012, http://blogs.wsj.com/digits/2012/12/06/a-short-history-of-apples-manufacturing-in-the-u-s/; Peter Burrows, “Apple’s Cook Kicks Off ‘Made in USA’ Push with Mac Pro,” Dec. 19, 2013, http://www.bloomberg.com/news/articles/2013-12-18/apple-s-cook-kicks-off-made-in-usa-push-with-mac-pro; G. Clay Whittaker, “Why Trump’s Idea to Move Apple Product Manufacturing to the U.S. Makes No Sense,” Popular Science, Jan. 26, 2016, http://www.popsci.com/why-trumps-idea-to-move-apple-product-manufacturing-to-us-makes-no-sense; Klein, No Logo, 198–99. 40.Vanderbilt, Sneaker Book, 90–99; New York Times, Nov. 8, 1997; Klein, No Logo, 197–98, 365–79; Donald L. Barlett and James B. Steele, “As Apple Grew, American Workers Left Behind,” Nov. 16, 2011, http://americawhatwentwrong.org/story/as-apple-grew-american-workers-left-behind/; David Pogue, “What Cameras Inside Foxconn Found,” Feb. 23, 2012, http://pogue.blogs.nytimes.com/2012/02/23/what-cameras-inside-foxconn-found/. 41.Lüthje, “Electronics Contract Manufacturing,” 231, 234, 236–37; Boy Lüthje, Stefanie Hürtgen, Peter Pawlicki, and Martina Sproll, From Silicon Valley to Shenzhen: Global Production and Work in the IT Industry (Lanham, MD: Rowman & Littlefield, 2013), 69–149; Appelbaum, “Giant Transnational Contractors,” 71–72. 42.For the container revolution, see Marc Levinson, The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger (Princeton, NJ: Princeton University Press, 2006). 43.David Barboza, “In Roaring China, Sweaters Are West of Socks City”; Oliver Wainwright, “Santa’s Real Workshop: The Town in China That Makes the World’s Christmas Decorations,” The Guardian, Dec. 19, 2014, https://www.theguardian.com/artanddesign/architecture-design-blog/2014/dec/19/santas-real-workshop-the-town-in-china-that-makes-the-worlds-christmas-decorations. 44.Ngai et al., “Apple, Foxconn, and Chinese Workers’ Struggles,” 169; Wall Street Journal, July 22, 2014; Adam Starariano and Peter Burrows, “Apple’s Supply-Chain Secret?

Steele, “As Apple Grew, American Workers Left Behind,” Nov. 16, 2011, http://americawhatwentwrong.org/story/as-apple-grew-american-workers-left-behind/; David Pogue, “What Cameras Inside Foxconn Found,” Feb. 23, 2012, http://pogue.blogs.nytimes.com/2012/02/23/what-cameras-inside-foxconn-found/. 41.Lüthje, “Electronics Contract Manufacturing,” 231, 234, 236–37; Boy Lüthje, Stefanie Hürtgen, Peter Pawlicki, and Martina Sproll, From Silicon Valley to Shenzhen: Global Production and Work in the IT Industry (Lanham, MD: Rowman & Littlefield, 2013), 69–149; Appelbaum, “Giant Transnational Contractors,” 71–72. 42.For the container revolution, see Marc Levinson, The Box: How the Shipping Container Made the World Smaller and the World Economy Bigger (Princeton, NJ: Princeton University Press, 2006). 43.David Barboza, “In Roaring China, Sweaters Are West of Socks City”; Oliver Wainwright, “Santa’s Real Workshop: The Town in China That Makes the World’s Christmas Decorations,” The Guardian, Dec. 19, 2014, https://www.theguardian.com/artanddesign/architecture-design-blog/2014/dec/19/santas-real-workshop-the-town-in-china-that-makes-the-worlds-christmas-decorations. 44.Ngai et al., “Apple, Foxconn, and Chinese Workers’ Struggles,” 169; Wall Street Journal, July 22, 2014; Adam Starariano and Peter Burrows, “Apple’s Supply-Chain Secret? Hoard Lasers,” Bloomberg Businessweek, Nov. 3, 2011, http://www.bloomberg.com/news/articles/2011-11-03/apples-supply-chain-secret-hoard-lasers; and Adam Lashinsky, “Apple: The Genius Behind Steve,” Fortune, Nov. 24, 2008, http://fortune.com/2008/11/24/apple-the-genius-behind-steve/ (Cook quote). 45.In 2004, Foxconn employed five thousand engineers in Shenzhen alone. Duhigg and Bradsher, “How the U.S. Lost Out on iPhone Work”; Ngai, Chan, and Selden, Dying for an iPhone; Lüthje et al., From Silicon Valley to Shenzhen, 191. 46.Lüthje, Luo, and Zhang, Beyond the Iron Rice Bowl, 188–89; Ngai, Chan, and Selden, Dying for an iPhone. 47.Ngai, Migrant Labor, 102–03; Xue, “Local Strategies of Labor Control,” 88–89. 48.Lüthje, Luo, and Zhang, Beyond the Iron Rice Bowl, 197; http://www.yueyuen.com/index.php/en/about-us-6/equipments (accessed Dec. 20, 2016); Dean, “The Forbidden City of Terry Gou”; lecture by Pun Ngai, Joseph S.


pages: 289

Hustle and Gig: Struggling and Surviving in the Sharing Economy by Alexandrea J. Ravenelle

"side hustle", active transport: walking or cycling, Affordable Care Act / Obamacare, Airbnb, Amazon Mechanical Turk, barriers to entry, basic income, Broken windows theory, call centre, Capital in the Twenty-First Century by Thomas Piketty, cashless society, Clayton Christensen, clean water, collaborative consumption, collective bargaining, creative destruction, crowdsourcing, disruptive innovation, Downton Abbey, East Village, Erik Brynjolfsson, full employment, future of work, gig economy, Howard Zinn, income inequality, informal economy, job automation, low skilled workers, Lyft, minimum wage unemployment, Mitch Kapor, Network effects, new economy, New Urbanism, obamacare, Panopticon Jeremy Bentham, passive income, peer-to-peer, peer-to-peer model, performance metric, precariat, rent control, ride hailing / ride sharing, Ronald Reagan, sharing economy, Silicon Valley, strikebreaker, TaskRabbit, telemarketer, the payments system, Tim Cook: Apple, transaction costs, Travis Kalanick, Triangle Shirtwaist Factory, Uber and Lyft, Uber for X, uber lyft, ubercab, universal basic income, Upton Sinclair, urban planning, very high income, white flight, working poor, Zipcar

Hull, eds. 2000. The Social Psychology of Stigma. New York: Guilford Press. Helfand, Jessica. 2016. Design: The Invention of Desire. New Haven, CT: Yale University Press. Henwood, Doug. 2015. “What the Sharing Economy Takes.” The Nation, January 27. Higgins, Michelle. 2013. “The Get-into-School Card.” New York Times, May 3. Higgins, Tim, Joseph Ciolli, and Callie Bost. 2014. “Apple Inc. Market Cap Tops US$700B, Double What It Was When Tim Cook Took Over as CEO.” Bloomberg News, November 25. Hill, Steven. 2015a. Raw Deal: How the “Uber Economy” and Runaway Capitalism Are Screwing American Workers. New York: St. Martin’s Griffin. ———. 2015b. “The Unsavory Side of Airbnb.” American Prospect, October 15. Hirsch, Barry T., and Edward J. Schumacher. 1998. “Unions, Wages, and Skills.” Journal of Human Resources 33:201–19.

A self-employed accountant with numerous clients, but who can choose to do all of her work between midnight and 6 a.m., would also be an independent contractor. All gig economy workers would be employees. A worker on Upwork, who is monitored via webcam or keystroke software, would not be covered by the pajama rule and so would be an employee. This model is not revolutionary: even in the tech industry, full-time and part-time workers for Google, Facebook, Apple, and Microsoft are hired as employees with workplace protections and benefits. The default in many fields is to be hired as an employee, with some entrepreneurial individuals seeking to go into business for themselves as independent consultants and contractors. Even workplaces that are part of the gig economy, such as Uber, TaskRabbit, Airbnb, Munchery, and Kitchensurfing, pay their professional workers as employees.

New Yorker, January 14. Mass, Alon Y., David S. Goldfarb, and Ojas Shah. 2014. “Taxi Cab Syndrome: A Review of the Extensive Genitourinary Pathology Experienced by Taxi Cab Drivers and What We Can Do to Help.” Review of Urology 16(3):99–104. Mathews, Joe. 2014. “The Sharing Economy Boom Is about to Bust.” Time, June 27. http://time.com/2924778/airbnb-uber-sharing-economy/. May, Patrick. 2015. “Apple Says It’s Created 1 Million Jobs, App Store Is Going Gangbusters.” San Jose Mercury News, January 8. McAfee, Andrew. N.d. “The Great Decoupling of the US Economy.” Andrew McAfee (website). http://andrewmcafee.org/2012/12/the-great-decoupling-of-the-us-economy/. McAfee, Andrew, and Erik Brynjolfsson. 2017. Machine, Platform, Crowd: Harnessing Our Digital Future. New York: W.W. Norton. McKinney, K. (1994).


Mbs: The Rise to Power of Mohammed Bin Salman by Ben Hubbard

Ayatollah Khomeini, bitcoin, Donald Trump, Jeff Bezos, knowledge economy, Mark Zuckerberg, medical residency, megacity, Mohammed Bouazizi, RAND corporation, ride hailing / ride sharing, Rosa Parks, Rubik’s Cube, Silicon Valley, Snapchat, Steve Jobs, Tim Cook: Apple, urban planning, WikiLeaks, women in the workforce, Yom Kippur War

The American media lightly covered the trip, but the Saudi news media tracked MBS’s every move, trumpeting each nonbinding agreement and implying that America’s tech giants loved Vision 2030. The CEO of Six Flags said his company would look into opening a theme park in Saudi Arabia. Cisco Systems signed a preliminary agreement to upgrade the kingdom’s digital infrastructure. Microsoft signed on to a program to train young Saudis. Dow Chemical received a license, billed as the first ever, allowing it to operate in the kingdom without a Saudi partner. MBS got sit-downs with Tim Cook of Apple and Mark Zuckerberg of Facebook. Photos of the young prince in jeans and a sport coat trying out a virtual reality headset at Facebook headquarters zinged around the kingdom, convincing many young Saudis that this prince was indeed different from the others. In his meetings, MBS pitched a bright future for Saudi Arabia and argued that authoritarianism would help bring it about. “There is an advantage to quickness of decision-making, the kind of fast change that an absolute monarch can do in one step that would take a traditional democracy ten steps,” he said during one Silicon Valley meeting.

King Abdullah then named Salman the new crown prince, and suddenly MBS’s father was next in line to the throne and well positioned to empower his favorite son. MBS has never publicly discussed when he began plotting his political career, but he has talked about his desire to be a new kind of ruler, one who disrupted the old order like the giants of Silicon Valley, instead of one who followed the traditional ways. “There’s a big difference,” he said. “The first, he can create Apple. The second can become a successful employee. I had elements that were much more than what Steve Jobs or Mark Zuckerberg or Bill Gates had. If I work according to their methods, what will I create? All of this was in my head when I was young.” King Abdullah, however, saw MBS as an upstart whose experience fell far short of his ambitions. He named Salman minister of defense, but barred MBS from joining his father in the ministry.

As Westphal settled into his post, someone showed him an old video of Salman getting a tour of some public facility—a factory, or a water treatment plant—elsewhere in the Middle East. Salman was dressed like “a Wall Street banker,” Westphal recalled, and made sure that those giving the tour explained everything to his son, who jotted down copious notes on a small pad. That was MBS, and Westphal was intrigued. “There is something very special about this young guy,” he thought. “There was no question that he was the apple of his father’s eye.” King Abdullah was busy and often ill, so Westphal frequently visited Salman and noticed MBS, usually standing to the side but never speaking. So Westphal requested a meeting with the young prince and got the impression that MBS was excited, because no one as prominent as a U.S. ambassador had ever asked to meet him before. The two men hit it off, chatting about their families and backgrounds, and the ambassador became convinced that the young man was off to do big things.


pages: 579 words: 160,351

Breaking News: The Remaking of Journalism and Why It Matters Now by Alan Rusbridger

accounting loophole / creative accounting, Airbnb, banking crisis, Bernie Sanders, Boris Johnson, centre right, Chelsea Manning, citizen journalism, cross-subsidies, crowdsourcing, David Attenborough, David Brooks, death of newspapers, Donald Trump, Doomsday Book, Double Irish / Dutch Sandwich, Downton Abbey, Edward Snowden, Etonian, Filter Bubble, forensic accounting, Frank Gehry, future of journalism, G4S, high net worth, invention of movable type, invention of the printing press, Jeff Bezos, jimmy wales, Julian Assange, Mark Zuckerberg, Menlo Park, natural language processing, New Journalism, offshore financial centre, oil shale / tar sands, open borders, packet switching, Panopticon Jeremy Bentham, pre–internet, ransomware, recommendation engine, Ruby on Rails, sexual politics, Silicon Valley, Skype, Snapchat, social web, Socratic dialogue, sovereign wealth fund, speech recognition, Steve Jobs, The Wisdom of Crowds, Tim Cook: Apple, traveling salesman, upwardly mobile, WikiLeaks

Jean-Paul Laborde, EU counter-terrorism co-ordinator, Council of the European Union, explicitly stated there was ‘no evidence’ that terrorists had been assisted by the Snowden revelations.52 Over subsequent months it became apparent how widespread were the concerns about the powers and oversight of the so-called five eyes alliance of intelligence agencies.53 In the UK, some of the most vocal support came from right-wing libertarians such as David Davis MP. The Republican congressman who wrote the Patriot Act declared himself appalled it should have been used in ways he never intended. Jim Sensenbrenner54 wrote that the Act was never intended to hand the US government the kind of powers Snowden revealed it had awarded itself. Silicon Valley chief executives, including Apple’s Tim Cook, visited the Guardian to discuss the issue. There was also a memorable Guardian private dinner in Davos attended by Eric Schmidt from Google; inventor of the world wide web, Tim Berners-Lee; the boss of Vodafone, Vittori Colao; former Swedish prime minister Carl Bildt; the founder of LinkedIn, Reid Hoffman; and Fadi Chehadé, CEO of the body charged with co-ordinating the internet. If you were a serious technologist or entrepreneur, you got what Snowden was talking about.

The editor, Andy Coulson, had resigned – he was now on his way to Downing Street as the media adviser to David Cameron – and the official story from News International was that Goodman had been a rotten apple: his phone hacking was a one-off. Nick was here to tell me this story was not true. He’d been contacted by a source who had met him in a hotel room. This person told him that the idea that Goodman was the only person to hack phones was a joke. Loads of reporters were at it: it was how the News of the World had won so many awards. Hacking phones was the system, not an aberration. I listened with interest and a faintly raised heartbeat. Nick’s voice lowered more. The police knew this at the time Goodman had been singled out as a rotten apple, but had done nothing about it. But now one of the other victims of hacking was suing and was trying to find out who had known what, and when they knew it.

The truth was, no one knew.32 * Around this time Emily Bell came into my room with one of her Great Pronouncements. This one was not necessarily mad, but it was heartfelt. The digital world was going to divide between open and closed. We were at a fork in the road. The tech world could see it in the differing approaches of Google versus Apple: for them it was an article of faith that open would always beat closed. The Columbia Law School professor Tim Wu was to write about this argument later, questioning whether (in the wake of a golden period by Apple) it was still true. His conclusion: ‘closed can beat open, but you have to be genius. Under normal conditions, in an unpredictable industry, and given regular levels of human error, open still beats closed.’ Wu conceded that the idea that ‘open beats closed’ was a relatively new one. For most of the twentieth century the opposite was usually believed to be true.


pages: 486 words: 150,849

Evil Geniuses: The Unmaking of America: A Recent History by Kurt Andersen

affirmative action, Affordable Care Act / Obamacare, airline deregulation, airport security, always be closing, American ideology, American Legislative Exchange Council, anti-communist, Apple's 1984 Super Bowl advert, artificial general intelligence, autonomous vehicles, basic income, Bernie Sanders, blue-collar work, Bonfire of the Vanities, bonus culture, Burning Man, call centre, Capital in the Twenty-First Century by Thomas Piketty, Cass Sunstein, centre right, computer age, coronavirus, corporate governance, corporate raider, COVID-19, Covid-19, creative destruction, Credit Default Swap, cryptocurrency, deindustrialization, Donald Trump, Elon Musk, ending welfare as we know it, Erik Brynjolfsson, feminist movement, financial deregulation, financial innovation, Francis Fukuyama: the end of history, future of work, game design, George Gilder, Gordon Gekko, greed is good, High speed trading, hive mind, income inequality, industrial robot, interchangeable parts, invisible hand, Isaac Newton, James Watt: steam engine, Jane Jacobs, Jaron Lanier, Jeff Bezos, jitney, Joan Didion, job automation, John Maynard Keynes: Economic Possibilities for our Grandchildren, John Maynard Keynes: technological unemployment, Joseph Schumpeter, knowledge worker, low skilled workers, Lyft, Mark Zuckerberg, market bubble, mass immigration, mass incarceration, Menlo Park, Naomi Klein, new economy, Norbert Wiener, Norman Mailer, obamacare, Peter Thiel, Picturephone, plutocrats, Plutocrats, post-industrial society, Powell Memorandum, pre–internet, Ralph Nader, Right to Buy, road to serfdom, Robert Bork, Robert Gordon, Robert Mercer, Ronald Reagan, Saturday Night Live, Seaside, Florida, Second Machine Age, shareholder value, Silicon Valley, Social Responsibility of Business Is to Increase Its Profits, Steve Jobs, Stewart Brand, strikebreaker, The Death and Life of Great American Cities, The Future of Employment, The Rise and Fall of American Growth, The Wealth of Nations by Adam Smith, Tim Cook: Apple, too big to fail, trickle-down economics, Tyler Cowen: Great Stagnation, Uber and Lyft, uber lyft, union organizing, universal basic income, Unsafe at Any Speed, urban planning, urban renewal, very high income, wage slave, Wall-E, War on Poverty, Whole Earth Catalog, winner-take-all economy, women in the workforce, working poor, young professional, éminence grise

” *4 One data point refuting the notion that elite universities are strictly leftist indoctrination camps: from 1984 through 2019, Harvard’s introductory undergraduate economics course was taught only by conservative professors—first Feldstein, who served as Reagan’s chief economic adviser, then his student Greg Mankiw, who was George W. Bush’s chief economic adviser. *5 At the beginning of the Great Depression, when the young Burns taught economics at Rutgers University, one of his most devoted students was Milton Friedman. *6 Not-so-fun fact: In 2019, nearly half a century after the Business Roundtable formed, no less than 83 percent of its 182 CEO members—among them its chairman Jamie Dimon, Jeff Bezos, Tim Cook, Michael Dell, and Stephen Schwarzman—were still white men. *7 Not until 1994 did the Times run an article all about the Kochs, and then almost entirely about their business—it included just two paragraphs (of sixty) about their two decades of world-changing political work. *8 The majority opinion in this second case, First National Bank of Boston v. Bellotti, was written by…Justice Lewis Powell.

Most Broadway musicals would now be revivals or a kind of reproduction pseudo-revival that stitched together old songs—jukebox musicals, even the name was from an obsolete old-timey machine. The one genuinely new pop cultural genre, hip-hop, made an explicit, unapologetic point of quoting old songs. Science fiction, the cultural genre that is all about imagining the future, got a new subgenre in the 1990s that was considered supercool because it was set in the past—steampunk. And commercialized futurism also became oddly familiar and nostalgic. Apple devices of the twenty-first century and glassy, supersleek Apple stores feel “contemporary” in the sense that they’re like props and back-on-Earth sets from 2001: A Space Odyssey, the 2000s as they were envisioned in the ’60s, the moment before nostalgia took over everything. The nostalgia division of the fantasy-industrial complex began merchandising in precincts beyond entertainment, from fake-old cars like Miatas and PT Cruisers to retail chains like Restoration Hardware selling stylish fake-old things.

In 1962, when GM made most of the cars sold in America and AT&T manufactured and operated all the telephones, the two together employed more than a million people, one out of sixty American workers, each of whom generated revenues for the companies equivalent to $170,000. Today Apple and Google have revenues and profit margins twice as high as GM and AT&T had in 1962, but together employ only a quarter-million people, just one out of six hundred American workers. Thus those newer companies, in constant dollars, collect twelve times as much revenue per employee, and they earn twenty times as much profit in all. The market value of Apple, Google, Facebook, and Microsoft combined is nearly 10 percent of the value of all public companies, yet those four employ only a small fraction of one percent of the U.S. workforce. Some commentators and scholars have ventured a glass-half-full take on these new small but well-paid digital workforces—that the affluent employees effectively create lots of jobs by living so lifestylishly.


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Valley of Genius: The Uncensored History of Silicon Valley (As Told by the Hackers, Founders, and Freaks Who Made It Boom) by Adam Fisher

Airbnb, Albert Einstein, AltaVista, Apple II, Apple's 1984 Super Bowl advert, augmented reality, autonomous vehicles, Bob Noyce, Brownian motion, Buckminster Fuller, Burning Man, Byte Shop, cognitive dissonance, disintermediation, don't be evil, Donald Trump, Douglas Engelbart, Dynabook, Elon Musk, frictionless, glass ceiling, Hacker Ethic, Howard Rheingold, HyperCard, hypertext link, index card, informal economy, information retrieval, Jaron Lanier, Jeff Bezos, Jeff Rulifson, John Markoff, Jony Ive, Kevin Kelly, Kickstarter, knowledge worker, life extension, Marc Andreessen, Mark Zuckerberg, Marshall McLuhan, Maui Hawaii, Menlo Park, Metcalfe’s law, Mother of all demos, move fast and break things, move fast and break things, Network effects, new economy, nuclear winter, PageRank, Paul Buchheit, paypal mafia, peer-to-peer, Peter Thiel, pets.com, pez dispenser, popular electronics, random walk, risk tolerance, Robert Metcalfe, rolodex, self-driving car, side project, Silicon Valley, Silicon Valley startup, skunkworks, Skype, social graph, social web, South of Market, San Francisco, Startup school, Steve Jobs, Steve Wozniak, Steven Levy, Stewart Brand, Ted Nelson, telerobotics, The Hackers Conference, the new new thing, Tim Cook: Apple, tulip mania, V2 rocket, Whole Earth Catalog, Whole Earth Review, Y Combinator

It was a really hot, weird, Silicon Valley day. It was so close to when he died that everybody was still raw. It wasn’t like one of those things where everybody really has their shit together. It was a really small, very eclectic group: Bob Iger was there, he spoke; Lee Clow read “The Crazy Ones”; Steve’s biological sister Mona Simpson was there; all his children were there; Laurene was there; the only Apple people I recall were Jony Ives, Eddy Cue, and Tim Cook. George Riley was kind of running the show. Larry Brilliant was there. Larry Brilliant: We read something from the Bhagavad Gita, but we’re not going to talk about that. Mike Slade: It was in the cemetery and his coffin was right there. We all formed a semicircle around the casket and then anybody who wanted to speak could speak. It was beautiful, and very visceral.