Is the new Apple ruthless at its core? (Are they now just another corporate bully?)

Los Angeles Times ^ | 06/11/2010

[SeekAndFind]

The bare-knuckled competitiveness that helped it ascend may be a liability now that it's no longer a little tech company making beautiful but underappreciated devices.

Apple's success in the digital music and mobile phone markets has transformed the company from an underdog with a cult following to a leader in the mass market. Investors recently made this change in status official, pushing the total value of Apple's shares higher than any other technology company's. That success is driven in large part by good technology and relentless innovation, but also by the lingering notion that Apple is, well, different from the soulless corporate behemoths it competes with. Yet the bare-knuckled competitiveness that helped Apple get to this point may prove to be a liability now that it's no longer a little tech company making beautiful but underappreciated devices.

The company's sharp elbows were on display again this week when Apple issued new rules for developers making applications for iPhones and iPads. Many developers have given their applications away, seeking profits instead by selling space within the programs to advertisers. The rules essentially bar developers from using advertising networks linked to Google, Microsoft, Nokia or any of Apple's other rivals in the mobile phone market. Instead, developers who want to sell ads in their applications will have to use Apple's iAd network or one of its smaller competitors. The restriction recalls the company's move in April to require applications to be written with its software tools — a devastating blow to Adobe's efforts to get its popular Flash software onto the iPhone and iPad.

[SeekAndFind]

Apple contends that its efforts to control its software platforms are vital to delivering a better experience for consumers. But it's one thing to preempt offensive or clunky applications; it's another to require developers to use Apple's software or ad network to gain access to its customers.

Also, Apple has also been embarrassed lately by accusations of worker exploitation after a spate of suicides at factories operated by Foxconn, its main Chinese manufacturer. Apple Chief Executive Steve Jobs responded, characteristically, by claiming that his company is exceptionally rigorous when it comes to overseeing its suppliers. Yet worker activists say Apple bears some of the blame for Foxconn's subsistence-pay wages and long work shifts because it persuaded Foxconn to build devices for such a low price.

[Thurston_Howell_III]

Welcome to the big leagues Steve-o, hope you’re as smart as you think you are.

[sasquatch]

by claiming that his company is exceptionally rigorous when it comes to overseeing its suppliers

Yet he’s happy to have Algore on the board...

[Talisker]

Welcome to the big leagues Steve-o, hope you’re as smart as you think you are.

[qwertypie]

Is it only a matter of time before it’s cool to hack Big Bad Apple?

[getsoutalive]

Apple has become the Microsoft / IBM of the day.

[D-fendr]

You partner up with Apple when you do an iPhone app. Apple does the marketing, distribution and billing. I don’t see anything wrong with requiring the app to use Apples advertising distribution - provided the developer get a share of that as well.

[Oldpuppymax]

TRANSLATION: Does APPLE actually want to be successful and profitable?? Why those dirty, EEEEVIL thugs!!!

[Secret Agent Man]

SOunds like Apple’s “iDictator” app is working overtime.

Nothing like ‘loyalty through draconian mandates’. Works SUPER well.

[Secret Agent Man]

And you don’t see any problem with Apple telling other independent app developers who they can and cannot set up advertising arrangements with?

[CodeToad]

If Microsoft did this they would be screaming for blood.

[Secret Agent Man]

I would guess Microsoft has done this kind of thing - maybe not exactly this identical thing, but things along similar lines - and that people have screamed about it. For example, in the past forcing vendors to only have IE on the computer, no other browsers allowed? Most people who used Microsoft didn’t support this kind of crap from Microsquish.

[dangerdoc]

Various governments did not support that kind of crap either.

[D-fendr]

Apple telling other independent app developers who they can and cannot set up advertising arrangements with?

Not for ones they sell and distribute through their agreement with the App store and as long as they get a share of the advertising.

Yeah, it's a closed system, but it's been a great deal for developers.

[D-fendr]

If Microsoft did this

MIcrosoft broke competing applications or made them an offer they couldn't refuse.

[discostu]

Apple has ALWAYS been ruthless to their core, people just tend not to notice because they do such a good job of advertising themselves as the friendly happy granola computer company. But whether it’s absolute ownership of their platforms, absolute ownership of their distribution methods, or absolute ownership of their employees (I’ve known some 100 Hour Club survivors), Apple has always played for keeps.

[D-fendr]

I believe the Droid browser is google ads and I would be surprised if the applications don’t use google ads as well.

[CodeToad]

Bit a strawman argument.

[D-fendr]

Comparing relations with independent developers seems pretty close to me.

[Secret Agent Man]

Personally for a company to continue to change the rules on developers again and again, making it harder and more restrictive on them,

that’s not good business. How can anyone developing apps trust Apple from day to day? That isn’t how good business is done.