https://www.cnn.com/2019/06/28/investing/constellation-earnings-mexican-beer-corona-modelo/index.html
2019-06-28 13:34:00Z
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Tim Cook (left) and Jony Ive (right) look at Apple's new Mac Pro desktop computer announced in June.
James Martin/CNETWhen Steve Jobs stepped down as Apple's CEO in August 2011, people said it was the end of an era. The departure of Apple design chief Jony Ive, announced Thursday, is the latest sign of the new Apple.
For the past couple of decades, Apple has gone through one of the most dramatic resurgences in history. Its tale of dramatic rise under co-founder Jobs, its decline and near death after his ouster, and then its rebirth are the stuff of Silicon Valley legend.
Throughout that time, two names in particular have been credited with driving that success: Jobs, who returned to lead Apple again in 1997, and his right-hand man, Ive, whose design ethos has fueled a generation of sleek, minimalist products like the iPhone.

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Ive and Jobs were close friends, bonding over frequent lunches and a similar sensibility for design. "We on the first meeting, in a quite shocking way, really did click," Ive said in a rare interview in 2017. "We just established an immediate understanding." That partnership helped turn Apple from near bankruptcy into a behemoth of industry, even before Jobs passed away in 2011.
The departure of Ive, whose soft, British voice introduced Apple hardware in countless sizzle reels, is the latest sign of major shifts within Apple. The company grew to become one of the world's most profitable and highly valued companies, worth nearly $1 trillion, on the back of the iPhone. But sales of the device have begun to decline, and though anyone would love to have Apple's problems -- a mere $58 billion in sales and $11.5 billion in profits, counted in the quarter ended March 30 -- it appears the age when hardware ruled everything has passed.
Apple has begun openly discussing what's next.
The biggest sign of that change came at Apple's March event this year, when CEO Tim Cook discussed how the company was planning to launch a series of subscription services in the next year, including a magazine and news service (Apple News Plus), a TV and documentary service (Apple TV Plus) and a gaming service (Apple Arcade). Only Apple News Plus, at $9.99 per month, has been released, though the others are expected this fall. There was -- gasp! -- no hardware to be seen.
The new Apple under Cook hasn't always been received well, and fans would frequently fret over how much the company was changing. They criticized Apple's Maps fiasco in 2012, they decried the bending iPhone 6 in 2014, and they complained about the problematic new keyboards in Apple's laptops.
Jony Ive and Tim Cook looking at iPhones.
AppleBut Ive's departure will be different, since he's signaled he'll continue working with Apple for years to come. His new design firm will have Apple as a primary client. And the company plans devices years in advance, ensuring the next iPhone, iPad or headset we see on store shelves will still have his fingerprints on it, even if he no longer has an Apple employee badge.
"While we think this development is perceived as a negative, we think any potential impact from Mr. Ive's departure should be manageable," Evercore analyst Amit Daryanani wrote in a note to investors.
And all of this hullabaloo doesn't mean the iPhone is over or that Ive's legacy is sealed. After all, each of these services are so tied to the device that Oprah Winfrey, while on stage announcing her own offerings for Apple TV Plus, reminded viewers that the iPhone is "in billions of pockets, y'all." It does mean, however, that Apple is changing.
While Apple's push into services will be a high-profile bet for the company in the coming years, it's not the only one. Other projects Ive has likely already contributed to include forthcoming new iPhones, like the one expected later this year with a new third back camera, as well as a new Apple Watch.
Apple's also working on a powerful wireless headset, people familiar with the matter told CNET last year. The device, which is designed to straddle augmented reality and virtual reality and is powered by Apple's own chips, is slated for 2020.
The iPhone maker also just acquired Drive.ai, a self-driving car startup that at one point was worth $200 million. The company's been rumored to be working on self-driving car technology, though some rumors had said the size of the team working on the project was reduced earlier this year.
Where that all leaves Apple and Ive with his new one-foot-in-one-foot-out job is unclear. One thing for sure is that analysts and Apple watchers alike are treating Ive like a soon-to-be-former employee.
"This angle that he's still going to work with Apple as an independent design firm seems like pure spin," wrote longtime Apple commentator John Gruber. "You're either at Apple or you're not. Ive is out."
Wedbush analyst Daniel Ives agreed. "Ive is leaving a hole in the company and is clearly irreplaceable as he has been one of the most important figures at Apple throughout the past few decades," he wrote in a letter to investors. "His fingerprints are deeply woven within Apple's core DNA. The major question now going forward is around future product innovation with one of the key visionaries of the Apple brand gone."
As the news about Jony Ive leaving Apple sinks in, you’ll be seeing a lot of people weighing in on what the Ive era of Apple meant and what’s next. That’s all for the good, because Ive was remarkably influential — a singular person who drove the design not just for Apple’s products, but for the industry at large. The only person who could claim the same level of both fame and influence was Steve Jobs himself.
It’s annoying to keep using the word “era,” but that’s the word. It sounds unnecessarily portentous for talking about designing computers, but it’s appropriate to the scale of this turnover. So, with Ive leaving, I’ll join in and say this: the era of the singular genius at Apple is over.
The truth is, it’s been over for some time. I would like you to take a look at this remarkable quote Tim Cook gave to the Financial Times, meant to assuage those who will argue that Apple is in serious trouble without Ive:
“The company runs very much horizontally,” said Mr Cook. “The reason it’s probably not so clear about who [sets product strategy] is that the most important decisions, there are several people involved in it, by the nature of how we operate.”
There’s a much more pithy phrase for what Cook is talking about. It’s the phrase for when decisions are made by a consensus from a group instead of by one sole person. That phrase is, of course, “design by committee.”
It’s a damning phrase, so it’s no wonder that Cook avoided it. But make no mistake, that’s what he’s referring to here. It’s a scary thing to consider for Apple, because so much of our idea of what the company is and what it means has been tied up with the idea of a singular genius.
The singular genius is the mythos of how Apple was founded and how it became the global giant it is today. And I don’t mean “genius” just as “very smart,” but as the Romantic Genius — the person who is in touch with the sublime in a way the rest of us cannot understand. That version of “genius” still lives with us today and — like many potent concepts — turns out to be more of a social invention buttressed by technology (the need to assign value to copyrighted works) than some innate human divinity.
While Apple might have a good story about having been founded in a garage, the true founding myth of Apple is the myth of genius. You know the fable, which has the benefit of also being true. When Steve Jobs was in charge, Apple made amazing things: the Apple computer, the Mac. Jobs not in charge: the very bad ‘90s with Scully and the Newton. Jobs back in charge: the renaissance, the iPod, the iPhone.
After Steve Jobs, that mantle was passed to Jony Ive. And he quietly (quite literally) took it. It was important to our concept of Apple that there be a single, discerning decision maker. Somebody uncompromising about quality. Somebody with very good taste. A capital G Genius.
The genius is the opposite of the committee. John Gruber very correctly points out that it is deeply weird that the two people tapped as Ive’s successors report to the Chief Operating Officer. I agree, but mainly because it’s deeply weird at Apple.
There are two big changes to pick apart. First, there are two people replacing Ive, not one. And second: they report to the COO, not directly to Tim Cook. That is precisely the opposite of how Steve Jobs had set up Jony Ive at Apple. Here’s how Jobs himself described Ive’s role:
He’s not just a designer. That’s why he works directly for me. He has more operational power than anyone else at Apple except me. There’s no one who can tell him what to do, or to butt out. That’s the way I set it up.
Compare that quote about Ive to the earlier one from Cook about how product decisions are made. The difference is stark! Cook’s vision is not how we imagine Apple operates. As Gruber succinctly put it: “I don’t worry that Apple is in trouble because Jony Ive is leaving; I worry that Apple is in trouble because he’s not being replaced.”
It’s far too early to know whether that level of worry is warranted. I do know that it comes from a real place — it’s a place where I also sit. From here, it looks like Apple has lost a step when it comes to design leadership. There are the easy dunks you can make on some of Apple’s products like the first Apple Pencil, the iPhone battery case, and the iPad Smart Keyboard. But there are much more fundamental worries about the MacBook’s keyboard, the length of time it took to recover from the “trashcan” Mac Pro, and the weirdly unergonomic Apple TV remote.
The thing about those missteps is we don’t know their cause. One way of thinking about them is that they stem from a lack of product focus — there’s no genius sending things back to the drawing board when they’re not good enough. Another, though, is that they stem from too much focus — focus on form over function, on making things thin and beautiful instead of making things usable.
In that framework, the problem was either that Jony Ive wasn’t paying attention or that he had too much power and misused it. That’s how the thinking goes, because our thinking about Apple has been defined by trusting in the taste of a singular genius, because design by committee is obviously worse than that.
The reality is that boiling down Apple’s design to those two contradictory explanations is reductive. Apple’s product strategy is not dictated by a single person anymore — and I wonder just how much even Ive drove it, especially in the last couple of years. Multiple stories — including this one from Bloomberg — suggest Ive hasn’t been as engaged as he once was.
Even though Ive is leaving, he’s still going to be around. More importantly, the team he led isn’t going anywhere and isn’t suddenly going to change their entire design philosophy overnight. At the very least, Apple designs products years in advance, so Ive’s designs are going to be with us for a little bit longer.
Nevertheless, his departure will have real consequences. The first consequence isn’t Apple’s problem, it’s ours: we should stop thinking of Apple as the singular expression of one person’s genius. History has moved beyond the Great Man theory, and so too should our ideas about how Apple operates.
When I look at some of the design decisions Apple has been making in both its hardware and software, the only word that comes to mind is “uncompromising.” That’s a virtue when it applies to a leader who is paying attention to quality, but it can be a vice when it applies to products that need to be used by messy, messy humans.
Committees are a pain, they’re not as mythic as a singular genius, they’re often more timid than they should be. But maybe what Apple design needs right now is a little less mythos and a little more compromise.
Bloomberg's Mark Gurman reports that after the Apple Watch launched in 2015, Ive had already started relinquishing his responsibilities because of the strain it was putting on him personally.
Around the time, Ive told the New Yorker he'd become "deeply, deeply tired," and said the year leading up to the Apple Watch debut was "the most difficult" since he joined Apple.
To extend his time at the company, Apple subsequently agreed to change his official role to Chief Design Officer, which allowed day-to-day responsibility of the hardware and software design teams to shift to executives Alan Dye and Richard Howarth.
From then onward, Ive began coming to Apple headquarters "as little as twice a week," and many meetings with his design team reportedly took place in San Francisco so Ive could avoid the long commute from his home in the Pacific Heights district to Apple's HQ in Cupertino, California.
Ive sometimes even met with his team at the homes of his employees, at hotels, or other venues, according to people familiar with the matter, while the design executive did much of his work at a San Francisco office and studio, which has now become the base of his new LoveFrom business.
Ive also frequently travelled to London, near to where he was raised, according to Bloomberg's Gurman.
About two years into his new role, at the end of 2017, Apple said Ive had re-assumed some of the leadership responsibilities he had previously given up, and Howarth and Dye were removed from Apple's leadership page. But still Ive only came to the office a couple of days a week.
Some people familiar with Apple are worried about the new design leadership, reports Gurman. With Ive leaving, longtime Apple designer Evans Hankey will run the hardware design group. Hankey, who has more than 300 patents to her name, is described as a "great team leader", yet one person familiar with the design team told Gurman that Apple "now lacks a true design brain on its executive team, which is a concern."
Hankey and Dye will report to Chief Operating Officer Jeff Williams, who will likely gain more control over product direction, and some employees are also said to be concerned that the re-organization is another sign that Apple is less design-focused and becoming more of an operations company.
"The design team is made up of the most creative people, but now there is an operations barrier that wasn't there before," one former Apple executive said. "People are scared to be innovative."
Howarth is a designer at heart and didn’t want to manage. Hankey is known as a better manager, but isn’t a designer. The entire group of designers has reported to her and she to Ive after Howarth was demoted from VP a couple years ago. The org structure isn’t actually changing. https://t.co/oSxLRFUkkf
— Mark Gurman (@markgurman) June 28, 2019


According to reports in the crypto press Thursday, cryptocurrency exchange Binance is talking to Facebook about getting involved in the social media giant’s upcoming Libra project.
Finance Magnates says it spoke to Binance at the FinTech Junction event in Israel on Thursday, with the exchange’s CSO, Gin Chao, saying that early discussions have taken place with Facebook over a possible future listing of the libra token.
Chao said that as libra will be on a private blockchain initially, it won’t need external liquidity. However, Facebook may ultimately desire a secondary market, he said, adding:
“Currencies benefit from a secondary market, so it would be in their best interest to want to be listed.”
In another report from CryptoPotato, which also spoke to Chao at the Tel Aviv event, he further suggested that Binance may support the Libra blockchain by acting as a permissioned node that validates transactions.
Facebook has said that it will eventually have 100 nodes and has already named firms like Visa, Uber, eBay and Lyft as having already committed to the role (at the princely sum of roughly $10 million apiece).
Chao said that Binance is “definitely considering” the option, although a final decision is yet to be made.
Speaking generally about the Libra project, which was unveiled in mid-June, he said:
“It’s a good thing, for sure. Any time a company with the weight, size, resources, and impact of Facebook gets involved, it validates both blockchain and [cryptocurrencies]. So whether or not Libra becomes incredibly successful, it’s already a good thing.”
Binance image via Shutterstock

Apple announced the resignation of its famed design chief Jony Ive on Thursday after his near-30-year tenure at the company.
The news of came as a shock to many including analysts who described Ive as "irreplaceable" and said his departure would "leave a hole" in the company. On hearing the news, Apple's stock dropped -0.87%, wiping out $8 billion of Apple's market cap.
But Ive's departure had been a long time in the making, according to Business Insider's Troy Wolverton who said that there have been "rumblings for years" that he could leave after he shifted focus from the day-to-day business of designing Apple's products.
A new report from Bloomberg's Mark Gurman revealed that Ive had been "shedding responsibilities" since the launch of the Apple Watch in 2015 and he came into Apple's headquarters as little as twice a week.
Sources familiar with the matter told Bloomberg that many of Ive's meetings moved to San Francisco, where he lives and has an office and studio set up, to avoid him having to make the one hour commute to Apple's headquarters in Cupertino, California. Other meetings were reportedly held at the homes of his employees or at hotels.
"This has been a long time in the making," one person familiar with the matter told Bloomberg, who wished to remain anonymous as they were not authorized to discuss Ive's resignation. "He's been at Apple over 25 years, and it's a really taxing job."
Ive is considered to be the mastermind behind Apple's biggest products, including the iPhone, iPad, Apple Watch, Mac, and iPod. He joined the company when it was on the brink of bankruptcy in the late 1990s and help turn it into the trillion-dollar company that it is today.
He was also a close confidant of Steve Jobs, Apple's late cofounder and former CEO, and reported directly to him.
"Most of the greatest debates at Apple happened between those two as they walked together," Matt Rogers, cofounder of Nest Labs who worked on iPhone and iPod software from 2007 to 2010, told Bloomberg.
Jobs and Ive would lunch together regularly and walk around Apple's headquarters making design decisions together, according to Bloomberg. When Jobs died in 2011, Ive became the most important person at the company, it added.
But his intense stint at Apple had reportedly begun to wear him down. "It's been an extremely tense 25 years for him at Apple and there's a time for everyone to slow down," the person who wished to remain anonymous told Bloomberg.
Ive is now going on to set up his own design company, called LoveFrom. Apple will be one of his new clients.