Haunted Empire: Apple After Steve Jobs

by Yukari Iwatani Kane

  I would be remiss if I didn’t thank the San Francisco Writers’ Grotto for welcoming me into their fold. They gave me not only an office but the talented community of five-dozen fiction and nonfiction writers who also offered me friendship, advice, and moral support. I am proud to work among them.

  There is nothing like writing a book to make one so completely self-absorbed, yet my friends and family stuck by me through the ups and downs. I dare not name my friends for fear of forgetting someone, but I’d like to thank both sets of my parents, Don and Fumiyo Iwatani and Dennis and Kathleen Kane for believing in me; my chef sister Yuki for keeping me nourished; and Mayu, Ryan, and Sue for their support and love.

  Finally, I want to thank my husband, Patrick. Words cannot express how much his encouragement has meant throughout my career. He is my toughest critic, my biggest champion, and my best friend. It’s because of him that I can do what I do.

  Notes

  The pagination of this electronic edition does not match the edition from which it was made. To locate a specific passage, please use the search feature on your e-book reader.

  Prologue: I Used to Rule the World

  1. That Wednesday: A Celebration of Steve’s Life, Apple video, October 19, 2011, http://events.apple.com.edgesuite.net/10oiuhfvojb23/event/index.html; “Apple Celebrates Steve Jobs at Company Headquarters,” CNET video, October 19, 2011 http://cnettv.cnet.com/apple-celebrates-steve-jobs-company-headquarters/9742-1_53-50113464.html; “Recording of Steve Jobs Is Highlight of Memorial Service at Cupertino Campus,” San Jose Mercury News, October 19, 2011; the account is also partially based on interviews with several Apple employees who were present at the service or had watched it remotely.

  Chapter 1: The Disappearing Visionary

  7. For a company: Author’s personal observations; interviews with former executives and managers, including one person who was part of the campus development team when it was being built. Apple considers only members of the executive team to be executives, but for the purposes of this book, an executive is anyone who is a vice president or higher.

  7. One Infinite Loop: The street was named after a programming concept in an employee contest. The runner-up was Floppy Drive, but it was nixed because it sounded outdated.

  9. One morning that summer: Interviews with two people who were present; Michael Sippey, “Two Minutes With Steve,” Sippey.com, October 6, 2011, http://www.sippey.com/2011/10/two-minutes-with-steve.html.

  10. Only fifty-three, Apple’s savior: Jim Carlton, Apple: The Inside Story of Intrigue, Egomania, and Business Blunders (New York: Random House, 1997); “Steve Jobs Demos Apple Macintosh, 1984,” YouTube video posted by tranquileyedotnet on November 7, 2006, http://www.youtube.com/watch?v=G0FtgZNOD44; “Apple—1984” YouTube video posted by antisubliminal on June 19, 2006, http://www.youtube.com/watch?v=R706isyDrqI.

  11. “Do you really want to sell sugar water: There are a few versions of this quote that are each slightly different. Some have Jobs saying “sugared water.” A few have quoted Jobs as saying, “Do you really want to sell sugar water your whole life?” In September 2011, Sculley told the Triangle Business Journal that Jobs said, “Do you really want to sell sugar water or do you want to come with me and change the world?,” leaving out “for the rest of your life.” While none of these materially change the intention of what Jobs had said, the author went with the most widely used version.

  12. Amelio was in way over his head: Interviews with Gil Amelio, Edgar S. Woolard, and other executives, engineers, and employees at the time; Jim Carlton, “Thinking Different: At Apple a Fiery Jobs Often Makes Headway and Sometimes a Mess,” Wall Street Journal, April 14, 1998.

  12. After the board begged him to return: Interviews with Apple executives at the time; Alan Deutschman, The Second Coming of Steve Jobs (New York: Broadway Books, 2000), 255; Carlton, Apple, 433.

  15. But in October 2003: Interviews with Apple executives and employees at the time; Walter Isaacson, Steve Jobs (New York: Simon & Schuster, 2011), 453, 476; Peter Burrows, “Apple’s Cancer Scare,” BloombergBusinessweek, August 1, 2004, http://www.businessweek.com/stories/2004-08-01/apples-cancer-scare; John Markoff, “Talking of Chief’s Health Weighs on Apple’s Share Price,” New York Times, July 23, 2008.

  17. By 7 a.m. on the first day: Based on an account by Nick Wingfield, former Wall Street Journal Apple beat reporter: Ryan Block, “Steve Jobs Keynote Live from WWDC 2008,” Engadget, June 9, 2008; “WWDC 2008 Keynote Address,” Apple Keynotes podcast, June 9, 2008; Nicholas Carlson, “Apple CEO Steve Jobs Looks Dangerously Thin,” Gawker, June 9, 2008; Henry Blodget, “Apple (AAPL) Weakness and Steve Jobs’ Scare Reveal Need for a Better Apple Plan,” Business Insider, June 13, 2008, http://www.businessinsider.com/2008/5/apple-aapl-crushed-again-on-concerns-about-steve-jobs-health/.

  Chapter 2: Reality Distortion

  20. One Thursday afternoon: Interview with Joe Nocera; Joe Nocera, “Apple’s Culture of Secrecy,” New York Times, July 26, 2008; Peter Elkind, “The Trouble with Steve Jobs,” Fortune, March 5, 2008; author’s interview with a person with firsthand knowledge of Apple contractor firing.

  23. Once the idea: Ryan Tate, “Steve Jobs’ Obituary, As Run by Bloomberg,” Gawker, August 27, 2008.

  23. At a media event: “Apple Special Event October 2008,” Apple Keynotes podcast, October 14, 2008; author’s own recollection of the event.

  24. Several weeks later, it became: “Apple Announces Its Last Year at Macworld,” Apple press release, December 16, 2008; Yukari Iwatani Kane, “Apple CEO Will Skip Macworld Trade Show,” Wall Street Journal, December 17, 2008; Yukari Iwatani Kane and Nick Wingfield, “Apple Shares Slump Amid CEO Worries,” Wall Street Journal, December 18, 2008.

  24. The truth, no matter: Isaacson, Steve Jobs, 480–81; “Letter from Apple CEO Steve Jobs,” Apple press release, January 5, 2009; “Apple Media Advisory,” Apple press release, January 14, 2009; author’s interview with Walter Isaacson as well as former Apple executives and employees who had firsthand knowledge of the situation. William C. Chapman, MD, Washington University in St. Louis transplantation chief, helped provide medical context. Robert Robins, a noted expert on disabled leaders, and Ethan Bernstein, a Harvard Business School professor specializing in leadership and organizational behavior, were consulted about corporate governance laws and CEO health disclosures.

  28. The split in opinions: Isaacson, Steve Jobs, 481–82; author’s interview with a former Apple executive with firsthand knowledge of the events described; reporting associated with “On Apple’s Board, Fewer Independent Voices,” Wall Street Journal, March 24, 2010.

  31. Aside from the occasional gossip: Reporting associated with author’s article “Jobs Maintains Grip at Apple,” Wall Street Journal, April 11, 2009; interview with a former Apple executive with firsthand knowledge of the events described. The incident between the Wall Street Journal and the Apple spokesman at the end of the section refers to an exchange that the author had while she covered the company for the newspaper.

  32. When Jobs went on medical leave: Reporting associated with author’s article with Joann S. Lublin, “Jobs Had Liver Transplant,” Wall Street Journal, June 20, 2009; Alexander Haislip, “Is Steve Jobs Moving to Memphis?,” PEHUB, April 15, 2009; author’s interview with Jim Gilliland, Jobs’s neighbor in Memphis; Brian Caulfield, “What Are You Saying Now About Jobs?,” Forbes.com, June 24, 2009; Yukari Iwatani Kane and Joann S. Lublin, “Apple Mum on Jobs’s Treatment, Diagnosis,” Wall Street Journal, June 30, 2009.

  34. Jobs was motivated: Interview with Walt Mossberg.

  Chapter 3: Vertical

  36. In January 2009: “Apple Inc. F1Q09 Earnings Call Transcript,” Seeking Alpha, http://seekingalpha.com/article/115797-apple-inc-f1q09-qtr-end-12-27-08-earnings-call-transcript.

  37. Jobs was irate: Interviews with sources familiar with the situation, including people with firsthand knowledge; “Apple Reports Second Quarter Results,” Apple, April 22, 2009; reporting associated with
author’s article with Joann S. Lublin, “Absent Jobs, Cook Emerges as Key to Apple’s Core,” Wall Street Journal, June 23, 2009; Isaacson, Steve Jobs, 491.

  39. After redefining computers: Interviews with sources familiar with the situation, including people with firsthand knowledge; reporting associated with author’s article “Jobs, Back at Apple, Focuses on New Tablet,” Wall Street Journal, August 25, 2009; Isaacson, Steve Jobs, 494; “Apple Announces iPad,” Apple Keynotes podcast, January 27, 2010; “The Book of Jobs,” Economist, January 28, 2010.

  41. Jobs was a master evangelist: Isaacson, Steve Jobs, 505; author’s firsthand reporting of Wall Street Journal editorial meeting; author’s interview with sources familiar with the situation including a person with firsthand knowledge about the News Corporation discussions.

  43. “Steve, how are you feeling”: This question was asked by the author in the meeting.

  43. When Apple released the iPad: Michael Arrington, “The Unauthorized TechCrunch iPad Review,” TechCrunch, April 2, 2010, http://techcrunch.com/2010/04/02/the-unauthorized-techcrunch-ipad-review/; reporting associated with author’s article with Ben Worthen, “Steve Jobs Escalates Fight with Adobe,” Wall Street Journal, April 27, 2010; John C. Abell, “Google’s ‘Don’t Be Evil’ Mantra Is ‘Bullshit’, Adobe Is Lazy,” Wired.com, January 30, 2010, http://www.wired.com/business/2010/01/googles-dont-be-evil-mantra-is-bullshit-adobe-is-lazy-apples-steve-jobs/; Steve Jobs, “Thoughts on Flash,” Apple website, http://www.apple.com/hotnews/thoughts-on-flash/.

  45. Apple’s App Store: Reporting associated with author’s article with Thomas Catan, “Apple Draws Scrutiny from Regulators,” Wall Street Journal, May 4, 2010; reporting associated with author’s article with Jeffrey A. Trachtenberg, “Texas Questions E-book Publishers,” Wall Street Journal, June 2, 2010; App Store sales estimate provided by Shaw Wu.

  47. Meanwhile, Apple was soaring: Interview with Jason Chen; Jesus Diaz, “How Apple Lost the iPhone 4,” Gizmodo, April 19, 2010, http://gizmodo.com/5520438/how-apple-lost-the-next-iphone; “Police Seize Jason Chen’s Computers,” Gizmodo, April 26, 2010; Brian Lam, “Steve Jobs Was a Kind Man: My Regrets About Burning Him,” Atlantic.com, October 6, 2011, http://www.theatlantic.com/technology/archive/2011/10/steve-jobs-was-a-kind-man-my-regrets-about-burning-him/246240/.

  48. Hogan wanted ten thousand dollars: In a Reddit thread published in June 2013 (http://www.reddit.com/r/IAmA/comments/1h2m81/i_leaked_the_iphone_4_ama/), Hogan disputed Chen’s account, claiming that Chen had agreed to pay $5,000 up front and another $3,000 upon confirmation by Apple that it was a real prototype. Hogan did not respond to the author’s request to verify the authenticity of this account.

  49. Though Jobs did his best: “Apple WWDC 2010 Keynote,” Apple Keynotes podcast, June 7, 2010.

  50. Fans around the world: Author’s reporting around iPhone 4 launch; “Lab Tests: Why Consumer Reports Can’t Recommend the iPhone 4,” Consumer Reports, July 12, 2010; Isaacson, Steve Jobs, 521; Geoffrey A. Fowler, Ian Sherr, and Niraj Sheth, “A Defiant Steve Jobs Confronts ‘Antennagate,’ ” Wall Street Journal, July 16, 2010; “Live Blogging Apple’s Press Conference: Free Cases For All,” WSJ.com, July 16, 2010, http://blogs.wsj.com/digits/2010/07/16/live-blogging-apples-press-conference/; “Song a Day #561: The iPhone Antenna Song,” YouTube video posted by Jonathan Mann on July 15, 2010, http://www.youtube.com/watch?v=VKIcaejkpD4; Joshua Topolsky, “Live from Apple’s iPhone 4 Press Conference,” Engadget, July 16, 2010.

  Chapter 4: Attila the Hun of Inventory

  53. That April: “Appholes,” The Daily Show with Jon Stewart, April 28, 2010, http://www.thedailyshow.com/watch/wed-april-28-2010/appholes.

  54. Apple’s board recognized: Isaacson, Steve Jobs, 518; author’s interview with Walter Isaacson.

  55. “We have over: The quote reflects the exact wording of the document, including Apple’s inconsistent use of the uppercase A when spelling apps.

  55. Jobs still ruled over Apple: Interviews with Greg Petsch, who had worked with Cook at Compaq; Lashinsky, “Tim Cook: The Genius Behind Steve,” Fortune, August 24, 2011; Angie Lowry, “Thinking Different,” Auburn Magazine, Winter 1999.

  57. Apple needed new blood: Interviews with former and current Apple executives including Joe O’Sullivan, former operations team staff, and suppliers; Adam Lashinsky, Inside Apple (New York: Business Plus Hachette, 2012), 97; Lashinsky, “Tim Cook.”

  59. The black laptop computer: A more popular version of this tale places Sabih Khan’s destination as China, but a person who was present at the meeting recalled that Khan had actually headed to Singapore.

  59. Later when “Wallstreet”: Interviews with former and current Apple executives including Joe O’Sullivan, former operations team staff, and suppliers; Lashinsky, Inside Apple, 97; Lashinsky, “Tim Cook.”

  62. Cook’s meticulous approach: Interviews with former operations team staff, suppliers, and others with firsthand knowledge.

  63. Amid such tensions: Interviews with suppliers and current and former Apple employees. Yukari Iwatani Kane, “For Apple Suppliers, Pressure to Win,” Wall Street Journal, August 15, 2010; Apple Inc. v. Paul Shin Devine et al., No. CV10-035633, Complaint, August 13, 2010, 14, 17. Paul Devine did not respond to an interview request.

  64. Apple’s success brought pressure: Interview with an insider with firsthand knowledge of Foxconn’s suicide situation; David Barboza, “After Suicides, Scrutiny of China’s Grim Factories,” New York Times, June 6, 2010; David Barboza, “Electronics Maker Promises Review After Suicides,” New York Times, May 26, 2010; Gordon G. Chang, “Suicides at Apple Supplier in China,” Forbes, May 28, 2010; Long Kun and Li Wei, “Fu Shi Kang Yuan Gong Chang Qu Nei Si Wang, Jin Fang Chu Bu Pan Ding Xi Cu Si” [Foxconn Employee Died in Factory, Considered Preliminarily as Sudden Death by Police], trans. by Violet Tian, Guangzhou Daily, January 26, 2010.

  Chapter 5: The Next Lily Pad

  66. At dawn one brisk: Interviews with multiple sources who attended the Top 100 and Bottom 100 meetings.

  71. Jobs knew that his cancer: Isaacson, Steve Jobs, 547–49.

  71. One day in late 2010: Interview with Gilbert Wong.

  72. Wong may have been awed: Isaacson, Steve Jobs, 547–49; “Apple Media Advisory,” Apple press release, January 17, 2011; “Apple Reports First Quarter Results,” Apple press release and earnings call, January 18, 2011.

  74. That February, Jobs: Interview with Tom Suiter.

  77. Jobs kept the details of his health: “Apple Special Event, March 2011,” Apple Keynotes podcast, March 2, 2011; Isaacson, Steve Jobs, 552; author’s interviews with Walt Mossberg, Walter Isaacson, Howard Stringer, and other people, whose names are withheld upon mutual agreement.

  79. The next evening: “Steve Jobs Presents to the Cupertino City Council (6/7/11),” YouTube video posted by Cupertino CityChannel on June 7, 2011; Isaacson, Steve Jobs, 535; LSA Associates Inc., “Apple Campus 2 Project Environmental Impact Report,” June 2013; author’s interview with Gilbert Wong.

  80. By July, Job’s cancer had spread: Interview with sources with firsthand knowledge of the situation; Isaacson, Steve Jobs, 557; Josh Tyrangiel, “Tim Cook’s Freshman Year: The Apple CEO Speaks,” BloombergBusinessweek, December 6, 2012.

  81. The date Jobs chose: Isaacson, Steve Jobs, 557–58; “Letter from Steve Jobs,” Apple press release, August 24, 2011.

  82. Back home, Jobs: Isaacson, Steve Jobs, 559; author’s interviews with Walter Isaacson and Walt Mossberg.

  84. Once Jobs announced his resignation: Lashinsky, Inside Apple, 155; Charles Duhigg, “With Time Running Short, Steve Jobs Managed His Farewells,” New York Times, October 7, 2011; Mona Simpson, “A Sister’s Eulogy for Steve Jobs,” New York Times, October 30, 2011.

  84. The death certificate cited: Interview with sources who communicated with executive team members or were inside Apple at the time; “Apple Media Advisory,” Apple press release with Tim Cook’s letter to employees about Steve Jobs’s death, October
5, 2011, http://www.apple.com/pr/library/2011/10/05Apple-Media-Advisory.html; “Steve Jobs After the Resignation,” TMZ, August 26, 2011, http://www.tmz.com/2011/08/26/steve-jobs-apple-photo-resignation-ceo-sick/; Steve Jobs’s death certificate, County of Santa Clara, San Jose, California, October 5, 2011; Lauren Effron, “President Obama, Bill Gates, Mark Zuckerberg, Others React to Steve Jobs’ Death,” ABC News, October 5, 2011, http://abcnews.go.com/Technology/reaction-steve-jobs-death/story?id=14678187#.UX3kmqsacwk.

  Chapter 6: Ghost and Cipher

  87. His ghost loomed everywhere: Interviews with Walter Isaacson; Avie Tevanian, “Steve’s Bachelor Party,” Facebook (post), October 5, 2011, https://www.facebook.com/notes/avie-tevanian/steves-bachelor-party/10150860779725691; Brian Lam, “Steve Jobs Was Always Kind to Me (Or, Regrets of an Asshole)” The Wirecutter (blog), October 5, 2011, http://thewirecutter.com/2011/10/steve-jobs-was-always-kind-to-me-or-regrets-of-an-asshole/; author’s interview with Walter Isaacson.

  88. Even the rituals of remembrances: Interviews with Tom Suiter and other people who were present at the service; Nick Wingfield, “Memorial Service for Steve Jobs at Stanford,” New York Times, Bits blog, October 14, 2011, http://bits.blogs.nytimes.com/2011/10/14/memorial-service-for-steve-jobs-planned-at-stanford/; Jessica E. Vascellaro and Ian Sherr, “Steve Jobs Memorial Held,” Wall Street Journal, October 17, 2011

  89. The genius trap had been set: Interviews with Mike Slade, Debbie Williams, John Underwood, current and former Apple executives and employees; Lowry, “Thinking Different”; Tim Cook, interview by Walt Mossberg and Kara Swisher, D11, All Things Digital, May 29, 2013, http://allthingsd.com/20130529/apples-tim-cook-the-full-d11-interview-video/; Lashinsky, “The Genius Behind Steve”; Donald and Geraldine Cook, interview by Debbie Williams, WKRG, January 16, 2009; Donna Riley-Lein, “Apple No. 2 Has Local Roots,” Independent, December 25, 2008.