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Jobs and Other Apple Execs Summoned Over Latest Backdating Charges

Thursday 24th April, 2008 - 23:36 GMT

Posted in: Apple Legal News, Apple News, Steve Jobs

Written by: Alex Brooks

Apple CEO and other members of Apple’s leadership have been summoned to appear in front of a court as part of a new lawsuit about the companies ongoing options backdating scandal.

The Boston Retirement Board issued summonses against Jobs and other Apple directors, and/or officers: William Campbell, Millard Drexler, Arthur Levinson, Jerome York, Gareth Chang, Edgar Wollard, Fred Anderson and Nancy Heinen.

The summons were put in place by the Superior Court of California, County of Santa Clara and relate to case number 1-08-CV-110403.

The Boston Retirement Board is attempting to prove that Apple wasted more than $105 million on the increased value of backdated stock options. The plaintiffs claim to be basing the suit of new information obtained from confidential records.

A report by FindLaw.com explains that The Boston Retirement Board, “can’t put those details on paper in the new complaint because the court has not ruled yet on how the confidential information should be treated.”

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Fortune Reveals: Jobs Hid Cancer for Nine Months

Thursday 6th March, 2008 - 04:00 GMT

Posted in: Steve Jobs

Written by: Alex Brooks

In an extensive article published by Fortune on which Steve Jobs has declined to comment, the business publication claims that the Apple CEO concealed the fact that he had cancer for nine-months only telling an intimate circle of people.

The companies board of directors reportedly agonised over the situation as they struggled to balance moral and business responsibilities, while Jobs appealed for privacy.

After seeking advice from two external lawyers the board decided not to act upon the news and respect Jobs’ wishes.

Steve Jobs was diagnosed with a form of pancreatic cancer called an islet cell neuroendocrine tumour in October 2003. Jobs was told that the prognosis would be promising if the tumour was surgically removed.

But to the surprise of many, Jobs considered avoiding surgery altogether and attempt “to employ alternative methods to treat his pancreatic cancer, hoping to avoid the operation through a special diet - a course of action that hasn’t been disclosed until now.”

In the end Jobs had surgery on July 31, 2004 at Stanford University Medial Center in Pala Alto. The following day Jobs revealed to Apple employees via email that he had been diagnosed with pancreatic cancer.

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Steve Jobs Interviewed in-Depth, Talks iPhone, Management and More

Thursday 6th March, 2008 - 00:00 GMT

Posted in: Apple News, Steve Jobs

Written by: Alex Brooks

Fortune has posted an interesting interview with Apple CEO Steve Jobs. The interview covers a huge range of topics including the iPhone, management, retail strategy and product design and testing.

In the discussion with Fortune Jobs notes that his top staff meet every Monday to review the entire previous week at Apple.


“So what we do every Monday is we review the whole business. We look at what we sold the week before. We look at every single product under development, products we’re having trouble with, products where the demand is larger than we can make. All the stuff in development, we review. And we do it every single week. I put out an agenda — 80% is the same as it was the last week, and we just walk down it every single week.”

Mirroring remarks made in Tuesday’s shareholders meeting Jobs explains his confidence that a replacement would easily be found within Apple.

“We’ve got really capable people at Apple. I made Tim [Cook] COO and gave him the Mac division and he’s done brilliantly. I mean, some people say, ‘Oh, God, if [Jobs] got run over by a bus, Apple would be in trouble.’ And, you know, I think it wouldn’t be a party, but there are really capable people at Apple. And the board would have some good choices about who to pick as CEO. My job is to make the whole executive team good enough to be successors, so that’s what I try to do.”

Jobs also justifies his reputation of being demanding; “My job is to not be easy on people. My job is to make them better. My job is to pull things together from different parts of the company and clear the ways and get the resources for the key projects.”

Over the course of the interview Jobs notes several times that Apple is a software company and succeeds in its products because of this.

“It was a great challenge. Let’s make a great phone that we fall in love with. And we’ve got the technology. We’ve got the miniaturization from the iPod. We’ve got the sophisticated operating system from Mac. Nobody had ever thought about putting operating systems as sophisticated as OS X inside a phone, so that was a real question. We had a big debate inside the company whether we could do that or not. And that was one where I had to adjudicate it and just say, ‘We’re going to do it. Let’s try.’ The smartest software guys were saying they can do it, so let’s give them a shot. And they did.”

“That allows us to innovate at a much faster rate than if we had to wait for Microsoft, like Dell and HP and everybody else does. Because Microsoft has their own timetable, for probably good reasons. I mean Vista took what — seven or eight years? It’s hard to get your new feature that you need for your new hardware if it has to wait eight years. So we can set our own priorities and look at things in a more holistic way from the point of view of the customer. It also means that we can take it and we can make a version of it to fit in the iPhone and the iPod. And, you know, we certainly couldn’t do that if we didn’t own it.”

The Apple CEO also insists that Apple TV is still a hobby for Apple, he also addresses the issue of not quite reaching his self-imposed target.

“And we only have about 600 movies so far ingested on iTunes, but we’ll have thousands later this year. We lowered the price to $229. And we’ll see how it does. Will this resonate and be something that you just can’t live without and love? We’ll see. I think it’s got a shot.”

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No Flash for iPhone, “Lots of” Applications Coming Soon

Wednesday 5th March, 2008 - 19:32 GMT

Posted in: Apple News, Steve Jobs

Written by: Alex Brooks

More information has come out about yesterdays annual shareholder meeting where Steve Jobs fielded many questions.

iPhone Atlas notes that when questioned on the upcoming iPhone SDK Jobs avoided many questions but did say, “You’ll see a lot of apps out there this summer.”

The CEO also noted that the SDK would open the market for gaming developers.

It appears that despite rumours to the contrary, Apple has no plans to bring Flash to the iPhone.

The Wall Street Journal reported:

As Jobs put it Tuesday during the company’s annual shareholder meeting, Apple’s iPhone, with all its cutting-edge mobile Internet trickery, needs something much better than the current Flash player that Adobe makes for cellphones. The Flash Player option that fits the bill is made for devices like laptops that are larger than the iPhone; as a consequence, it performs too slowly on the iPhone, he said.

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Jobs Reassures Employees and Investors

Tuesday 29th January, 2008 - 00:03 GMT

Posted in: Apple Financial News, Apple News, Steve Jobs

Written by: Alex Brooks

AppleInsider has published a “private communication” from last week in which Steve Jobs “acknowledged the beating his company’s shares have taken during this time of economic uncertainty, but remained confident that investors would inevitably recoup their losses and then some.”

Steve Jobs attached this stock performance chart onto his private internal emailSteve Jobs attached this stock performance chart onto his private internal email

“Wow… what a remarkable last few days,” he wrote in an email to employees. “Our stock is being buffeted around by factors a lot larger than ourselves.”

“As you can see, we have outperformed many other blue-chip tech companies, including Google,” he wrote, attaching a stock performance comparison chart for illustration. “I continue to believe that our fundamentals - our remarkable people, our clear and focused strategy, our new product pipeline, our 200+ retail stores, our $18 billion of cash in the bank with no debt, etc., will serve us well in the coming months and years.”

At the end of the email Jobs expressed his confidence that those who remain loyal to their positions in Apple would reap the benefits in the long run.

“I believe that investors who stay with us will be rewarded as the market’s confidence is restored over time,” he wrote. “Hang in there.”

Apple’s stock which hovered around $200 towards the end of 2007 has dropped as low as $130 recently.

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Apple Details 2007 Executive Remuneration

Wednesday 23rd January, 2008 - 20:25 GMT

Posted in: Apple Financial News, Apple News, Steve Jobs

Written by: Alex Brooks

Yesterday Apple filed a 14A (PDF download) with the SEC, the details of the 14A document show the compensation given to company executives during 2007.

Steve Jobs continues to be paid a $1 salary and received no stock options during 2007. The CEO does however own 5.5 million shares in AAPL and is yet to sell any since rejoining Apple in 2007.

Chief Operation Office Tim Cook was paid $700,014 in salary, earned a $700,000 bonus and received $6.943 million in stock awards. With other compensation (a $13,750 401K contribution and $250 iPhone credit), Cook earned $8,357,190 in 2007.

Chief Financial Officer Peter Oppenheimer was paid $600,012 in salary, earned a $600,000 bonus and received $4.946 million in stock awards. With other compensation (a $13,750 401K contribution, $250 iPhone credit, and $584,973 reimbursement for tax liabitity), Opppenheimer earned $6,745,345 in 2007.

Senior Vice President of Retail Ron Johnson was paid $600,012 in salary, earned a $600,000 bonus and received $4.946 million in stock awards. With other compensation ($379 iPhone credit), Johnson earned $6,147,001 in 2007.

The final executive officer to be detailed in the report is Tony Fadell, Senior Vice President of the iPod Division who earned $500,009 in salary, received a $500,000 bonus and was awarded $3.706 million in stock. With other compensation ($6,750 in patent bonus, $13,500 in 401K, $379 iPhone credit, $73 iPod credit), Fadell earned $5,355,171 in 2007

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Steve Jobs Talks to CNBC

Wednesday 16th January, 2008 - 19:43 GMT

Posted in: Apple News, MacBook Air, Macworld 2008, News of Interest, Steve Jobs

Written by: Alex Brooks

After yesterdays Keynote presentation Steve Jobs joined CNBC for a short interview, of course Jobs talked about the MacBook Air but also the relationship between Intel and Apple.

Possibly the most interesting point to come out of the interview was the fact that Apple is not in a contentious relationship with China Mobile.

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Jobs on MacBook Air, Bill Gates, Android and Kindle

Wednesday 16th January, 2008 - 18:36 GMT

Posted in: Apple News, MacBook Air, Macworld 2008, News of Interest, Steve Jobs

Written by: Alex Brooks

In an interview with The New York Times Steve Jobs expressed his opinions on Android, Bill Gates and the Amazon Kindle but also spoke about Apple’s latest innovation the MacBook Air.

Jobs sat down with David Pogue and John Markoff for half-an-hour, when speaking of the MacBook Air Jobs said;

“I’m going to be the first one in line to buy one of these,”…”I’ve been lusting after this.”

According to the Apple CEO, designers went through around 100 design prototypes to find the right “form.”

He and Jonathan Ive were worried that they’d be unable to “fit the computer into the package that they came up with.”

When talking of Amazon’s Kindle Steve Jobs simpl stated that it was floored due to the fact that people simply don’t read anymore.

It doesn’t matter how good or bad the product is, the fact is that people don’t read anymore,” he said. “Forty percent of the people in the U.S. read one book or less last year. The whole conception is flawed at the top because people don’t read anymore.”

On Google Android Jobs stated;

“Having created a phone its a lot harder than it looks,” he said. “We’ll see how good their software is and we’ll see how consumers like it and how quickly it is adopted.”

Finally when talking of Bill Gates and his imminent retirement from Microsoft this Summer Jobs said;

“Bill’s retiring from Microsoft is a big deal.” “It’s a significant event, and I think he should be honored for the contributions he’s made.”

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Gallery: After the Macworld 2008 Keynote

Tuesday 15th January, 2008 - 21:41 GMT

Posted in: Apple News, MacBook Air, Macworld 2008, Steve Jobs, World of Apple Galleries

Written by: Alex Brooks

After the Macworld 2008 keynote presentation Steve Jobs showed of the MacBook Air to press and we caught some celebrities on film.

View the gallery

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The Development of the iPhone

Thursday 10th January, 2008 - 23:56 GMT

Posted in: Apple News, News of Interest, Steve Jobs, iPhone

Written by: Alex Brooks

Wired magazine has published a lengthy and very interesting article about the conception and birth of the iPhone.

The 4 page article entitled “How the iPhone Blew Up the Wireless Industry,” reveals previously unknown details surrounding the development of the iPhone.

Sources disclosed to the publication that up to $150 million was spent of the research and development of the iPhone.

“To make sure the iPhone didn’t generate too much radiation, Apple built models of human heads — complete with goo to simulate brain density — and measured the effects,” wrote Wired’s Fred Vogelstein. “To predict the iPhone’s performance on a network, Apple engineers bought nearly a dozen server-sized radio-frequency simulators for millions of dollars apiece.”

The entire story began after the failed partnership with Motorola, the ROKR handset was the first iPod and phone convergence but was branded a disaster, at this point, Apple CEO Steve Jobs knew what was required.

Jobs reportedly met with Cingular in February of 2005 to discuss a Motorola-free partnership, during the meeting Jobs laid out three key points to Cingular chief, Stan Sigman.

- Apple had the technology to build something truly revolutionary, “light-years ahead of anything else.”
- Apple was prepared to consider an exclusive arrangement to get that deal done.
- But Apple was also prepared to buy wireless minutes wholesale and become a de facto carrier itself.

Jobs was reportedly confident of his promises as Apple hardware engineers had spent over two years working on touchscreen technology for a tablet PC and had convinced him that they could build a similar interface for a phone.

Through the entire process the highest level of secrecy was being kept with the project being known as P2, P1 reportedly being another iPod phone project.

The article continues to write about how hardware and software engineers never met, most not knowing what they were working on. “Whenever Apple executives traveled to Cingular, they registered as employees of Infineon, the company Apple was using to make the phone’s transmitter,” Wired claims.

In January 2007, Jobs announced the iPhone at Macworld, only 30 or so of the most senior people on the project had seen it.

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