Apple, It’s Time to Make Something New
Something truly astonishing happened in San Francisco Wednesday. And it had nothing to do with the iPhone 5 launch.
In the blue above the city, three skywriting jets hired by an artist and a design company wrote the first 10,000 numbers of Pi — yes, 3.14159 and 9,994 more — in dot-matrix numerals a quarter-mile high.
Carefully coordinating each plane to write every third character, they looped the number-string 150 miles around the Bay Area, a feat that made geeks everywhere gasp and think of three more characters: O, M and G.
Meanwhile, down on the ground, a technology company released a phone that was a little bit taller.
I don’t mean to begrudge Apple‘s big day. The launch event was a lot of fun. The iPhone 5 is a superior gadget with plenty of under-the-hood incremental innovations, and seems certain to become the world’s bestselling smartphone. The LTE battery life thing is a cool achievement. We get it. If I were on the iPhone 4 two-year upgrade cycle, rather than being halfway through my 4S contract, I’d probably be lining up for one come Sept. 21.
But the “Pi in the Sky” project served as a timely reminder of how much technology can awe and inspire, and that technology companies should try hard to make new things that push the boundaries of that. In fact, it put me in mind of Sergey Brin’s fantastic aerial display at Google I/O.
At that launch event, the Google co-founder bounded on to stage, in an unscripted moment that would make Tim Cook blanche, and asked us if we would like to see a demonstration of his mysterious experimental glasses-with-a-tiny-screen project, Google Glass. Why yes, Sergey, yes we would.
We were rewarded with a jaw-dropping live stream from the glasses of skydivers in a Zeppelin, one of the world’s only three Zeppelins, which happened to be flying right over our heads. The skydivers parachuted onto our roof, jumped on bikes, did tricks, then zoomed into the hall to deliver the glasses. And the crowd went wild.
A stunt? Certainly. But it spoke of the daring risk that Google is taking with Project Glass, an entirely new kind of user interface. The kind of roll of the innovation dice that it’s unfortunately hard to imagine Apple making under its current leadership.
The world’s most valuable company has chosen to play it very safe indeed, throwing all its engineering know-how into microscopic levels of innovation in a handful of hardware products. What’s the only new Apple gadget on the horizon for sure right now? A smaller iPad.
And that’s great. More power to them. I can’t wait to see the iPad Mini either. But at some point soon, Apple might have to look around and admit it has ceded the title of Silicon Valley’s most innovative and inspiring company to Google.
As a loyal Apple user who can’t bear to imagine Android fans getting that smug, I implore Tim Cook: Please don’t let that happen.
Tim Cook’s Walter White Moment
If you’re a Breaking Bad fan, you know this recent and resonant scene (spoiler alert) where Skylar White drags her husband to a storage locker. Here she’s been keeping his surplus cash, spraying it for silverfish, unable to count it because each bundle is stuffed with too many denominations. Skylar turns to Walt and asks: Is this, finally, enough?
(Not quite a spoiler alert:) It does the trick.
I’d like to think that at some point Tim Cook will be taken to a storage locker, or rather an aircraft hangar, and shown the entire pile of Apple’s cash on hand. The company had $100 billion just sitting around in early 2012, and that could grow to $200 billion in 2013.
Apple has grudgingly announced it will start to give $45 billion of that to shareholders, in the form of dividends and stock buybacks (the latter is more an investment for Apple than a giveaway). For the rest, it won’t account.
You can look at this all sorts of ways, but economists tend to get very frustrated at the fact that Apple simply refuses to reinvest this money in the economy — take chances, grow the company, design lots of new things, hire lots and lots of people to make and sell them.
That’s the way money is supposed to work. That’s the way it has worked, historically, in America. And when the world’s most valuable corporations choose to sit on their hoards like feudal lords — especially at a time of high unemployment — the economy suffers. People suffer. And Apple itself suffers, because it’s leaving even greater growth on the table.
It makes sense that Tim Cook would want to keep a healthy hedge against the future, a rainy day fund. Like Walter White, he’s been burned. The scars of 1997 and ’98, when the company was teetering on the edge of going out of business, are still there.
Cook was the inventory guy Steve Jobs hired to fix that problem, and he became the master of delivering just a few products in massive quantities very quickly. This was what part of what took Apple from zero to $100 billion in 14 years.
But the other half was innovation. Specifically, a leader who worshipped it. Who invented entirely new product categories. Who would constantly pepper Jonathan Ive, Apple’s design chief, with product proposals that began: “Hey Jony, here’s a dumb idea.”
Jobs was a restless innovator. Toward the end of his life, he was not only coming up with supposed breakthrough ideas for a television — the still-rumored iTV — he was sketching out designs for planes and boats that outshone those of his billionaire pal Larry Ellison.
The “just a few products” limitation was something Jobs imposed on the company reluctantly, as a way to make it focus, to get out of its rut. But he always wanted to stretch the limits of what technology could do — such as saving the music industry from itself.
Cook has earned the right to run the company the way he wants. And for all we know, Jobs-like innovations at the macro level continue quietly in the most secret bowels of Apple. (They’d have to be a whole lot more secret than the iPhone 5 features.)
But the signs don’t point to that. They point to a company that is spending just 2% of its revenue on R&D, is focused on exquisite tiny details (those shiny diamond-cut edges!) at the expense of big ideas, and is satisfied with being ever more dominant in a few categories with reiterated products.
Jobs’s comeback was Apple’s second act. Now comes its third, in which the old rules and careful constraints don’t apply. An act in which the company has to decide in what way to expand, now that it has so much cash it could build more than 50 Space Shuttles.
So here’s hoping we’ll see some moonshot product launches, ones that surprise and even risk making us laugh (remember how we joked about the iPad name?). Here’s hoping Apple gets what SpaceShipOne builder Burt Rutan once told me. “If you don’t have a consensus that it’s nonsense, you don’t have a breakthrough.”
Here’s hoping, even though — especially when — it’s pie in the sky.