by Andy StroteFortune magazine recently named Steve Jobs CEO of the decade. Why?
Apple just had its best year ever.
Jobs brought Apple back from a near-death experience at the end of the 90s. In 2001 Apple had a 2% share of the U.S. PC market. Today it’s 9%. More importantly, it has over 90% share of market for computers costing over $1,000. That’s where the margins are.
Apple is now Silcon Valley’s most highly-valued company – ahead of Cisco, Intel, Dell and even Google. It has Microsoft in its sights.
Jobs has totally shaken up every industry he’s entered: computer hardware, software, music, telephony and animated movies.
How did he do it? Great instincts, complete control and utter contrariness.
In the computer business he was told to be either a hardware or software company. He stayed both. Much more control over the whole process.
At a time when MP3 files were seen as illegitimate ways of stealing music, he brought them into the fold with iPods and iTunes.
After many had failed in trying to negotiate distribution deals with the music labels, he did it. Today, iTunes is the world’s largest music retailer.
ITunes started out on the margins when it was an Apple-only product. Jobs didn’t wait for someone to make an inferior iTunes knock-off for PCs. Lo and behold, Apple made software for PCs. IPod sales went through the roof.
He was strongly advised by everyone – his board, close advisors, the retail industry, – not to open Apple stores. Today over 275 stores bring in over $1.4 billion. Of course, he built and re-built a complete store in an airplane hanger before unveiling one to the public.
Most companies offer telephone support. So does Apple. But isn’t it so much nicer to walk into any Apple store and get face-to-face support at the Genius Bar? Free advice from friendly experts.
When rumors swirled of Apple entering the phone market, the pundits said leave phones to Nokia and Motorola. In under 3 years, over 24 million iPhones were sold. Look who’s playing catch-up.
While common knowledge espouses ship fast, then fix as you go, Apple hones products before shipping. Would Jobs knowingly ship a buggy product? Doubt it.
For Jobs, the tiniest details are critical. That “jelly bean” clear-on-white finish on early iPods meant key members of the design team spent 3 months in China at the factory to make sure they got it right. That’s how you do out-sourced manufacturing.
Apple doesn’t ask customers what they want. Jobs claims they wouldn’t know anyway. So, no focus groups. Rather, focus on what you want and pursue it to perfection.
Quality over low price. Every time. Trust that people will know the difference and pay for it.
Work like money doesn’t matter (easier to do when you’re personally worth about $5 billion). Make your goal to change the world and make every product answer to that goal.
