Steve Jobs was an innovative product visionary that helped create some of the most influential
tech products of our time. But that doesn’t mean every decision he made was right.
From iPod socks to the hockey puck mouse, quite a few of Job’s creations have been major flops.
So in this video we’re going to find out five times when Steve Jobs was wrong. This
is Greg with Apple Explained and I want to thank Squarespace for sponsoring this video.
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Let’s start off the list by revisiting the year 2000, when Jobs made one of his earliest product
missteps with the Power Mac G4 Cube. It came just four years after his return to the company
and after a string of successful products like the iMac, iBook, PowerBook, and Power Mac. And
that was important, since Jobs had already proven to be a competent leader capable of returning
Apple to profitability. But he missed the mark in 2000, when he revealed the Power Mac G4 Cube.
Jobs said the idea came from his own desires as a computer user. He told Newsweek, quote, “I wanted
the Cinema display, but I don't need the features of the PowerMac.” What he was referring to was
Apple’s desktop tower for power users, the Power Mac G4. It was released a year earlier and offered
quite a bit of power for the reasonable price of $1,600. For customers who didn’t need that extra
power, the iMac offered a great desktop experience for three hundred dollars less. But Jobs thought
there was a market between those two products. Users who wanted the high-quality cinema display
from the Power Mac G4, without all of the bells and whistles of a full-sized tower. So he set
out to create the perfect product for that segment of users, by miniaturizing most of the Power Mac
G4’s components into an eight inch cube suspended in a clear enclosure. It’s design was absolutely
stunning, and began a new era of Apple design that would heavily influence the iPod released a year
later. But the G4 Cube didn’t just look good, it included many new internal technologies like its
cooling system that didn’t require a fan. Allowing for silent operation. It also had a lock mechanism
that allowed the electronics inside to be lifted out, so users could easily swap out parts as
needed. It also delivered on power, offering the same performance as the Power Mac G4, inside an
enclosure one-fourth the size. It was Jobs’ dream computer. And he spared no expense in creating it.
But when Jobs discovered how much the G4 Cube would cost, he was visibly shaken by the news. It
would retail for $1,800. $200 more than the Power Mac G4 tower. Apple’s highest-performing machine.
This was a huge problem since Jobs was targeting a market between the low-end iMac and high-end G4
tower. But due to it’s premium price, the G4 Cube wasn’t accessible to those users. And for
those professional users who wanted a powerful machine, it didn’t make sense to spend the extra
$200 on the G4 Cube. Since it didn’t offer extra performance, just a more attractive enclosure.
When the product was released, it impressed tech journalists and industrial design groups, but it
didn’t make sense to customers. Sales of the G4 Cube were disappointing, reaching just one third
of Apple’s expectations. And causing them to miss their end-of-year revenue target by ninety million
dollars. Apple tried to remedy the poor sales by lowering the computer’s price to $1,500, making
it more affordable than the G4 tower. But it proved ineffective as sales continued to decline.
By July 2001, a year after its introduction, Jobs issued a press release announcing that
production of the G4 Cube would be suspended indefinitely. And since then, the computer
has faded into obscurity as Apple shifted their focus to more successful products like the iPod.
Now let’s jump to 2007, when Apple was celebrating the successful release of iPhone.
It already had many useful native apps like SMS messaging, Safari, and iPod. But there was
pressure from developers to allow third-party apps on the platform. And there were two ways to do it:
limit developers to web apps, which were essentially websites optimized for mobile devices.
Or create an entire App Store where Apple would offer third-party apps for users
to download. Developers wanted the second option, but Steve Jobs stuck to web apps,
and his reasoning was sound. They wouldn’t have to manage an SDK for developers, they wouldn’t have
to create and operate a marketplace which can be expensive, the web apps wouldn’t break when
a new version of iOS was released, and the apps could be accessible from any device. It appeared
to be a winning strategy. But there was one problem. Creating a wild west web app ecosystem
delivered a poor user experience. And it didn’t give Apple, or developers, an effective method
to monetize apps. And while users may not worry about the profit potential of web apps,
it does effect developer’s motivation to create quality apps for the platform.
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Alright, so Eddy Cue led the charge against Jobs’ approach to apps. Cue believed that Apple should
take the challenging path of creating and operating an App Store, developing an SDK
so developers could easily create quality apps, and review each app submitted to the store before
being published. That way, Apple could ensure apps weren’t riddled with malware, wouldn’t exploit
someone’s personal data, and actually functioned as advertised. Also, the apps would run soother
and be highly optimized, just like the native apps that Apple created for iPhone. When it came to
profit, an App Store definitely made more sense. Apple had no way of taking a cut from purchases
made through a website in Safari. But with their own payment system inside their own store,
Apple could claim a commission to bring in extra revenue. Developers also benefitted,
since they had more ways to make money. Instead of simply serving ads on a website,
they could utilize in-app-purchases and subscription models to bring in even more cash.
But despite these arguments, the original iPhone was released alongside a web app
ecosystem that Apple promoted on the product’s website. Many people weren’t happy. Developers
wanted access to Apple’s API’s so they could create native-quality apps for iPhone,
rather than settle for a mobile-optimized website. Users also weren’t happy. Trying to
browse web apps and bookmark them for easy access later, wasn’t the most straightforward process.
Lastly, and perhaps most important for Apple, users began using web apps to jailbreak
their phones. Which allowed for unauthorized functionality that Apple had no control over. So
Jobs wrote a public letter in October 2007 making it clear that Apple would take a new approach to
apps. He wrote, “Let me just say it: We want native third party applications on the iPhone,
and we plan to have an SDK in developer’s hands in February. We are excited about creating a vibrant
third party developer community around the iPhone and enabling hundreds of new applications for our
users.” And that’s exactly what happened. In its first weekend, over ten million apps
were downloaded. And less than a year after the store’s launch, it was filled with fifty thousand
different apps. The App Store was an instant hit, despite Steve Jobs’ initial hesitations.
Now let’s go to 2010 when Jobs introduced a new service called iTunes Ping. He described it as
"sort of like Facebook and Twitter meets iTunes. It’s a social network all about music.” Ping was
built-in to the latest version of iTunes, and allowed users to follow their favorite artists,
comment on posts, and view their friend’s activity. Ping could also be accessed on
iPhone and iPod touch through the iTunes Store app. Now at launch over one million users signed
up for Ping in its first 48 hours. But issues with the service were clear from the start.
First, the Facebook integration that Jobs demoed on stage was removed due to failed negotiations
between the two companies. That meant there was no easy way for users to locate their existing
friends who might also be using the service. Second, Ping was flooded with spammers just 24
hours after going live. They would create several iTunes profiles and post scam links to website
that falsely promised a free iPhone or iPad if users completed a survey. These links appeared
in comments of posts from popular artists like Britney Spears, Lady Gaga, and Katy Perry. It took
Apple over four hours to remove the links, and led to allegations that Apple hadn’t included spam
filtering in Ping. Which was not only embarrassing for a company Apple’s size, but also surprising
since they appeared to be filtering profile photos. Adding to the mess, fake artist profiles
also began appearing, with Ben Folds being one of the first to mention the problem on Twitter.
So with the lack of Facebook integration, annoying spam, and fake profiles,
Ping became a nightmare for users and artists alike almost immediately after its introduction.
The service never gained much traction, and was eventually shut down after two years of activity.
Now let’s move on to the last two times when Steve Jobs was wrong. Both of these poor decisions
can be attribute to Jobs’ philosophical stubbornness when it came to display size.
First with the iPad in 2011. At that point, the 9.7” iPad had been on the market for a year,
and was selling extremely well. But competition was beginning to emerge. Android-based devices,
most measuring about 7 inches, were slowly starting to find their place in the market
due to their compact size, light form factor, and low price. But Steve Jobs strongly believed Apple
had an advantage with the 9.7” iPad, since its larger display was necessary for a comfortable
internet browsing experience. But Eddy Cue, senior vice president of Internet Software and Services,
tried to convince Jobs otherwise. He sent out emails to the leadership at Apple, citing his
own experience as evidence for why a 7-inch iPad was a good idea. He eventually sent his colleagues
an article titled “Why I Just Dumped the iPad (Hint: Size Matters)”. Cue, and many others,
apparently felt that as long as competitors were successfully selling smaller tablets,
Apple could do the same thing with the iPad. While Jobs was hesitant, the potential to compete with
the Amazon Kindle and Barnes and Noble Nook for book sales was a compelling thought. Eventually,
Cue’s efforts paid off. And Cook, Apple’s acting CEO, agreed to develop a 7.9-inch iPad model. On
November 2, 2012, the first-generation iPad Mini was officially released for $329. That was $170
less than the standard iPad. It was an instant success. Outselling the iPad in its first year,
which came as a surprise to Apple, and solidifying the device’s lead in the tablet market.
But that wasn’t the only mistake Jobs made regarding screen size. He also felt larger
smartphone displays were unnecessary. In his opinion, a phone should be created to fit
beautifully in the hand. That meant every part of the screen being within reach of your thumb.
Otherwise, using the phone one-handed would be unwieldy and awkward. Which isn’t the type
of experience Jobs wanted customers to have with Apple products. Under his leadership, Jobs never
increased the iPhone’s 3.5 inch display, despite high demand from customers. It wasn’t until 2012,
when Tim Cook was CEO, that they released the iPhone 5, with a 4 inch display. And the iPhone
6 and 6 Plus in 2014, with even larger 4.7 and 5.5 inch displays. Those models proved to be
Apple’s most successful at that point, and allowed them to compete more effectively with Android.
Alright guys so that was five times when Steve Jobs was wrong. Thanks for watching till the end,
and don’t forget to subscribe to help decide which video topics I cover.