Apple: Press Needs to 'Get Over' Steve's Secrecy

I stopped getting free all-conference badges when my speaking gig ended in 1998, and I haven’t paid to see the keynote in a while. So the substitution of senior VP Phil Schiller for Steve Jobs in Tuesday’s intro didn’t directly impact on me. (The decision of Apple to pull out — likely dooming the Expo to die next week or in a year — will have a more direct impact, particularly now that Moscone Center is just a day trip.)

However, I think few people appreciate how big a deal the annual January show was for exhibitors. As an exhibitor from 1988-1993, preparing for the Expo always ruined the Xmas break. In only exception was in 1990, when Apple product delays forced the show from January to April, saving my company.

If there was pressure on third party Mac vendors, it was even greater for the star of the show. Within Apple, the pressure over the normally slow late December period was particular hard on those around Steve Jobs who helped prepare his legendary demos, and likely on Jobs himself. Largely unremarked in Jobs’ statement Monday was his opening sentence:

For the first time in a decade, I’m getting to spend the holiday season with my family, rather than intensely preparing for a Macworld keynote.

A column in the UK Guardian from three years ago really captures what it took for Jobs and his retinue to prepare such events. The author, onetime iTunes product manager Mike Evangelist, has shared other observations about Jobs’ preparation on his blog, which certainly jive with other stories I’ve heard.

But Jobs didn’t keynote Tuesday, and Apple (AAPL) says it won’t be back at the Expo again. Instead, it will do splashy intros at events that it controls at other times of the year. (One column that I read Monday noted that January is a terrible time for a consumer products company like Apple to introduce major new products).

I presume Jobs will do other elaborate keynotes this year, if for no other reason than to prove the naysayers wrong, something he’s enjoyed doing for 30 years. That is, assuming his health issues are as minor as he made them sound Monday.

The actual news of Jobs’ health could be told in 50 words or less — and, as always with Apple, nobody who knew anything was talking.

So instead, the press focused on the issue of full disclosure, rehashing the 35 year old mantra of “what did he know and when did he know it.” Of course if there’s anything the press doesn’t like, it’s public figures not telling them all the information they want (as they unilaterally define it) when they want to know it. (Been there, done that.)

As always, Apple’s timing was perfect. By releasing the announcement early in the morning — both on the first work day of 2009 and the day before the Expo — it guaranteed multi-day coverage of the Expo and advance publicity for Apple’s announcement by Schiller. In addition to raising the stock by 4%, the brief press releases garnered 100s (if not 1000s) of stories on the web plus coverage on TV.

In the Wall Street Journal, Jobs got a cover photo (above the fold) and a story on the second front that had 4 paragraphs of news and 12 paragraphs of reaction.

In San Jose, our local rag had two stories on the front page, plus a column. One story played it straight, while the other attacked Apple’s secretiveness by using experts to make the point. Meanwhile, the column by Chris O’Brien (who I usually agree with) lit into Jobs and Apple like a journalist scorned:

Can we trust Apple going forward? The company disclosed Jobs' original cancer diagnosis only after he had been treated and was on the road to recovery. Now the company is backpedaling and spinning in the hopes that we won't notice the latest inconsistencies.

To earn back the trust of investors and customers, Apple needs to come straight out and acknowledge that Jobs' health is a material issue. It needs to state publicly that it will provide timely disclosure of his condition.

If Jobs wants to keep his privacy, he's entitled to do that. But in that case, he should step aside, focus on getting better, and let someone else take the helm.

Yes, as throughout most of his life, Jobs has erred on the side of privacy over candor. And yes, he’s not been fully forthcoming about his health issues, pushing the envelope on withholding information that bears on the company’s future and its stock price.

At the same time, Jobs and his doctors don’t know how it’s going to turn out, so there’s nothing he can say that will tell investors what they really want to know: will he remain the company’s active and vibrant CEO throughout 2009 and into 2010? I imagine that wild speculation (and intentional rumors to manipulate the stock) have reinforced the views of those within Apple who believe in the Zen-like “less is more” philosophy about Steve Jobs the man.

Meanwhile, market feedback has worked just as we would hope that it would. Institutional investors and analysts were not happy about the vagueness of last month‘s announcement, and while Jobs joked about it, it was clear that Monday’s announcement — however delayed — was forced upon Apple.

So Apple (and Steve Jobs) will only share as much information as they want to share, when they want to share it. As with other business kerfuffles, I have one thought for the press: get over it!

Comments

[20smoney:]

Good article. I agree.

Jan 06 04:51 PM

[Roger Knights:]

Typo: "jive with" should be "jibe with." (This is a common error.)

Jan 06 05:26 PM

[techbull:]

Good article, hope you got the message across to all the obsessed journalists that have turned the subject of Steve's health into a morbid feeding frenzy. It's really sick and do they realize he has a wife and kids that have to hear this horrible stuff that is being said. What has become of this world when people feel it is their right to attack anyone regarding their health and put out fake rumors of death, heart attack and cancer.

Jan 06 05:37 PM

[RLLH:]

The problem is, once a company lies to you on one issue, how can you ever trust them again? If they cover up Job's illness, will they cover up post dating of stock options (again)? What will they not cover up?

Jan 06 05:41 PM

[techbull:]

I agree that if they lie once it's hard to trust again, but I just don't like the way the press has been so vicious and blood thirsty about handling this matter. They could handle it more appropriately. It's like watching a boxer who's been knock down and his opponent keeps punching him even though he's not fighting back, it's hard to watch after awhile.

Jan 06 05:48 PM

[jmmx:]

When did the company actually lie?

Let us examine 2 scenarios.

the first - what has happened:
1- jobs went for cancer surgery, the prognosis was good, they said nothing until it was over and all was well.
2 - Jobs is having some weight problems. They do not seems to be major. But as time goes on he finally decides not to ignore it any more and goes to have it checked. He tells no one in advance. The results are relatively benign. He says no more as he feels it is no one else's business.

Results: Crying and gnashing of teeth by pundits.
---

Option -2
#1 & #2 above are exactly the same except...
He tells the world in advance. So...
#1 - He goes for surgery, is in there for X number of days and only after some weeks/months are they sure it has been a success.
#2 - He finally realizes there really is some problem with his weight. He announces he is going in for tests. The tests take weeks to come back. But it is only a hormone balance and they begin treating it.

--Reactions:
In both cases the market over-reacts. In both cases there is no definitive news for several weeks. Stock price plunges. But in the end all is well.

However, many people lost mucho $$ in this "False scare."

The pundits scream "Why didn't he just wait until it was all over and we knew for sure?" Much gnashing of teeth.

Jan 06 06:48 PM

[Bill Youngs:]

"Get over it" is right! Few if any CEOs have brought such fabulous stock returns to their investors and such wonderful products to their consumers as Steve Jobs. And for many years Jobs has been billing the company (and us investors) only a dollar a year for his labors. He is giving his public life to his company to a degree few CEOs can match. Now he is asking us to respect his privacy when it comes to his health. Honoring that request is the only decent response.

Jan 06 06:57 PM

[jmmx:]

JIBE -

It is a somewhat elaborate sailing maneuver in which the boat is turned. When started the wind is coming from over one side of the stern (i.e. not directly behind, but close) After the maneuver, the wind is coming from over the OTHER SIDE of the stern.

Thus the meaning is similar to "to follow" except that it implies that the movement is done concurrently. This can either be done intentionally, via communication between the parties, or (perhaps in a race) because one party anticipates the strategy of the other.

Jan 06 07:04 PM

[Hayweed:]

How about the release by silicon alley insider today at 12:58 pm saying Jobs' cancer is back. Just look at the one day chart and you will see the stock go from positive to negative in a minute.

I remain amazed that Jobs health is such an issue. Meanwhile, the analysts and pundits remark that Apple blew it by not lowering prices, revamping the mac mini or making a netbook to stop the loss of share to lower price machines. Right. If Apple was suffering and sales were dropping then you would expect this. But apple is selling computers and iphones and touches. I get a call from a friend almost every week asking what mac should they buy since they are tired of windows. No one balks about the prices even when I tell them they could save a few dollars with last years model or a refurb. They all buy brand new and do not blink. Anyone out there buying a $1500 Dell. Doubt it.

Jan 06 07:12 PM

[techbull:]

The problem for Steve Jobs and Apple is they have been targeted for some reason and it's "Damned if they do and damned if they don't", no matter what they say, do, sell or create it's never enough. But a company like Miicrosoft that barely has anything new or innovative and when they finally come out with Vista years later after many problems and many postponements, that's O.K. have a glitch in all their Zunes due to "Leap Year" (nice excuse) and you barely hear about it. It's inexcusable.

Jan 06 07:55 PM

[KenC:]

Your best opinion piece yet.

Jan 07 01:41 AM

[mollytjm:]

thank you, thank you, thank you!! i was so happy to see this article! it's just amazing to me that this wonderful company and all it's attributes are ignored because it's CEO is private and human. This CEO has made Apple survivable no matter what and we owe him a huge amount of gratitude. He's sacrificed a lot, even though it's been a labor of love.

the fact is that Apple is the soundest company out there with so much $ on hand and such a brilliant array of employees and that IS because Jobs saved the company. But it's very secure now and not the fragile, on the brink of extinction company that it was before Jobs came back. It will never be there again. Jobs has made sure of that.

I was overjoyed when Apple announced its departure from Macworld. January...horrible time to bring out new products just after everyone went hog wild with holiday spending.

one interesting note: Apple owns property in Georgetown where it wants to build a store. at least 2 designs were turned down because the powers that be in Georgetown said they were too modern. Apple had this same problem in Boston and will eventually solve it... but it's hard to imagine Apple looking anything but futuristic. maybe it's time Georgetown moves into the the 21st century...or at least the 20th:)

again, wonderful article..thanks!

Jan 07 11:48 AM

[jenny:]

Apple is managing expectations with Jobs not speaking at the keynote. Despite his health, it was a good move. Consumers/Investors will now expect less in the keynotes to come. I feel they are sort of phasing out Jobs as the face of Apple so that the price isnt as manipulated by his every move. Leading up to the presentation investors were feeling extremely bullish. In the past, sentiment has drastically fallen with no introduction of new products. This January it fell only slightly (www.predictwallstreet....). The smaller swings in sentimint will mean smaller swings in price.
I do agree that Apple is not being straightforward with people about Job's health but perhaps Jobs and his doctors don't even know themselves what is going on.

Jan 07 01:53 PM

[ArtfulDodger:]

Jobs is perhaps the most underrated CEO in the world.

Jan 10 04:07 AM