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Apple Is Giving Away Its Secrets By Litigating

An anonymous reader writes "Apple, by going to a jury trial to defend the patents of its most prized products, is allowing competitors and the public to see inside one of the most secretive companies in the world. From the article: 'While in court on Friday, Philip W. Schiller, Apple's senior vice president for worldwide product marketing, pulled the curtain further back when he divulged the company's advertising budgets — often more than $100 million a year for the iPhone alone. Also at the hearing, Scott Forstall, senior vice president for iPhone software, explained that the early iPhone was called "Project Purple." Mr. Forstall said it was built in a highly secure building on Apple's campus. A sign on the back of the building read "Fight Club." Behind the security cameras and locked doors, most employees on the project did not even know what they were working on.'"

44 of 149 comments (clear)

  1. These are secrets? by vlm · · Score: 5, Insightful

    So the secret sauce I need to become a multibillion dollar multinational corporation is spend a lot on advertising, give my projects fabulous color names, hang up a fight club poster... Thats all it takes?

    --
    "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
    1. Re:These are secrets? by Anonymous Coward · · Score: 4, Funny

      Yes.

      I mean iYes.

    2. Re:These are secrets? by gmhowell · · Score: 5, Funny

      So the secret sauce I need to become a multibillion dollar multinational corporation is spend a lot on advertising, give my projects fabulous color names, hang up a fight club poster... Thats all it takes?

      It's so easy, a caveman could do it.

      --
      Jesus was all right but his disciples were thick and ordinary. -John Lennon
    3. Re:These are secrets? by JaredOfEuropa · · Score: 4, Informative

      I also recommend an ace team of lawyers, to defend yourself against other megacorps who do not appreciate new competition. Megacorporations like Apple...

      --
      If construction was anything like programming, an incorrectly fitted lock would bring down the entire building...
    4. Re:These are secrets? by Anonymous Coward · · Score: 5, Insightful

      Tell that to Microsoft. They spent half a billion marketing Windows Phone 7 when it launched, but that didn't seem to help. They spent a fortune marketing Bing, even paying people to use it, but that didn't help either.

      Marketing alone is never enough. You have to have the right product at the right time.

    5. Re:These are secrets? by Grave · · Score: 5, Insightful

      Marketing isn't just about how much money you throw at it - your ads have to actually be good. The WP7/Bing ads have been awful.

    6. Re:These are secrets? by supersat · · Score: 2

      Yes. This is why Project Pink (the Microsoft Kin) broke all sorts of sales records.

    7. Re:These are secrets? by turbidostato · · Score: 3, Funny

      "And if you were able to brand your product in such a way that peopleÂidentifyÂwith it to the point of making it an extension of their personality."

      You meant iDentify, don't you?

    8. Re:These are secrets? by russotto · · Score: 4, Insightful

      Which indicates another way to become a multibillion dollar multinational corporation: Sell advertising.

    9. Re:These are secrets? by Darkness404 · · Score: 5, Insightful

      Except for the fact that Microsoft's marketing has been routinely pathetic (anyone remember the Vista commercial with Jerry Seinfeld? http://www.youtube.com/watch?v=ImyK29QLs_A )

      On the other hand Apple's marketing has been rather catchy (I'm a Mac, I'm a PC and the MacBook Air commercial)

      The biggest problem with Microsoft is that it tries to come up with improvements after the product is already out in the hands of the masses and makes so little improvements that for most its not worth changing. Apple comes up with a product and makes it desirable, it creates a mass market where there only was a niche market before. Apple didn't invent the MP3 player, it invented the market for the MP3 player other than among geeks. Apple didn't invent the smartphone, it made the consumer smartphone market.

      Apple is brilliant in creating a market where there wasn't one before. That, is great marketing.

      --
      Taxation is legalized theft, no more, no less.
    10. Re:These are secrets? by zaphod777 · · Score: 3, Insightful

      Tell that to RIM and Nokia, money alone is not enough when you have incompetent leadership.

      --
      "Don't Panic!"
    11. Re:These are secrets? by b4dc0d3r · · Score: 5, Interesting

      You're almost there. Apple's initial designs have some fairly serious problems, and then they iron out the bugs. Microsoft on the other hand seems intent to rush something out and play catch-up, but they never spend the kind of effort needed to fine-tune the design. Apple, or at least Steve Jobs, wanted everything to be perfect for the user so they are willing to pay a premium. Microsoft is aiming at the general market, often balancing price vs. design.

      iPod was not well-received until the third generation (2003) when a few redesigns were made and iTunes took off.

      iPhone had (relatively) abysmal sales until the end of the second generation, after at least one OS upgrade, and the third generation was on the way (3GS), making second generation less expensive.

      iPad was done very well, mostly because they were in development, realized the same could be done in a phone, and shelved it while they worked out the iPhone. The market was already there, in the form of subnotebooks such as ASUS EEE. They applied what they learned from the iPod and iPhone and got this one right early.

      Apple's marketing is the same way - lots of attention spent on the end user's experience, rather than how much it costs. Just looking at what we've seen already from the trial, Apple continually gets feedback from focus groups, and from various sources it seems they start before the product is out the door. I wouldn't be surprised to see many revisions of advertising before it gets out the door as well, although those are easier to update if it's not hitting the right note.

      Apple: worry about design over price, change the product based on user feedback

      Microsoft: Know corporations will buy whatever you're selling, eventually, and people will buy consumer goods for compatibility

      Different markets, different tactics. It doesn't help that Microsoft's "lost decade" basically left them with barely anything to show for it - a new OS that finally caught up with OS X because it was make-or-break with Vista's debacle, XBOX 360, and advances in its development tools. Microsoft's focus is not on the consumer, and "good enough" is ready for a release. "Good enough" does not exist for Apple, it always needs refinement. Not the mindless UI changes Microsoft has been putting on Vista, Office, and the Xbox dashboard, but addressing actual usability issues.

    12. Re:These are secrets? by Anonymous Coward · · Score: 2, Interesting

      Apple: worry about design over price, change the product based on perceived user needs

      Fixed that for you. I never asked for them to take away the "save as" option. I never asked them to reverse the default mouse orientation in Lion. I never asked them to change the Safari icons to an asinine color combination where I can't tell the difference between enabled and disabled back buttons. I never asked them to take away functionality from my scrollbar. That is just their OS product.

    13. Re:These are secrets? by Mattcelt · · Score: 2

      The surest way to make a club desirable is to restrict its membership.

    14. Re:These are secrets? by Anonymous Coward · · Score: 2, Insightful

      On the other hand Apple's marketing has been rather catchy (I'm a Mac, I'm a PC and the MacBook Air commercial)

      Not any more.

    15. Re:These are secrets? by gmhowell · · Score: 2

      But all it takes is one monkey boy to drag it back to the stone age.

      Ballmer is busy at Microsoft right now.

      --
      Jesus was all right but his disciples were thick and ordinary. -John Lennon
    16. Re:These are secrets? by shentino · · Score: 4, Interesting

      It doesn't hurt to have a big enough legal budget to litigate the small fry out of the market.

    17. Re:These are secrets? by MrMarket · · Score: 4, Interesting

      Marketing isn't just about how much money you throw at it - your ads have to actually be good. The WP7/Bing ads have been awful.

      The product you're selling also has to be good. "Fool me once..."

    18. Re:These are secrets? by TheRaven64 · · Score: 5, Insightful

      It's also a matter of timing. NeXT was doing pretty much everything that the first OS X Macs did - in some cases better - up to a decade earlier. But back when NeXT was doing it you couldn't sell the machines at a profit for anything under $5000, $10000 for a decent one. A bit later, Apple was selling more powerful machines around the $1000 mark.

      The same thing happened with portable media players. The 1.8" hard drives made mass-market ones possible. Earlier ones had used 2.5" laptop drives (too bulky) or flash (64-128MB - enough for one or two albums) and weren't that appealing. The iPod would have been a disaster if it had been released any earlier, because the technology just wasn't there. If it had been released later, then it's possible that the Nomad would already have had enough mindshare that it would have been hard to compete. Apple entered the market at exactly the right time and advertised the hell out of their product so everyone knew about the iPod, whereas only people who read geek news knew about the Nomad.

      Their phones and tablets are a similar story. It's not surprising that everything looks like an iPhone now - the availability of cheap capacitive touchscreens make finger-based touch interfaces popular. We're around the 20th anniversary of Microsoft's first entry into the tablet market, but these machines were huge (remember the size of a battery on a 386 laptop?) and needed a stylus. Being able to interact with the system with your finger - or fingers - is a big shift. Apple jumped in right at the right moment, when a new technology made a new market possible. And, once again, they threw huge amounts of advertising money so people think iPhone-like phone instead of phone-with-capacitive-touchscreen.

      --
      I am TheRaven on Soylent News
    19. Re:These are secrets? by Eskarel · · Score: 2

      Microsoft also announced that WinPhone 7 was obsolete within 4 months of releasing the first decent phones for it, which is why when mine broke I bought an Android to replace it.

      Lovely phone, but the fact that it's never going to get any updates to give it the features it's missing is kind of a death knell.

    20. Re:These are secrets? by tehcyder · · Score: 2

      On the other hand Apple's marketing has been rather catchy

      One person's "catchy" is another person's "twee, smug, cloying, self-satisfied pseudo-hipster brainwank".

      --
      To have a right to do a thing is not at all the same as to be right in doing it
    21. Re:These are secrets? by MachineShedFred · · Score: 2

      Which "small fry" are you referring to? Samsung? HTC? Motorola? Nokia?

      Yeah, they're tiny shops.

      --
      Slashdot still doesnâ(TM)t support Unicode after it was added to the HTML standard in 1997.
  2. Patents by michael_rendier · · Score: 2

    Patents are publicly available documents...any way you go...there's no secrecy there at least...Thank you Google!

    --
    There are three kinds of people in the world. Those that can count, and those that can't.
    1. Re:Patents by LordLucless · · Score: 3, Insightful

      This story isn't about patents, even though the trials are. The things being exposed is exposing stuff like Apple's development methodology and advertising tactics. I guess it also goes to show that the secret to Apple's success isn't it's technological innovation, but it's marketing budget.

      --
      Just because you're paranoid doesn't mean there isn't an invisible demon about to eat your face
  3. Slow day? by gmhowell · · Score: 4, Insightful

    This a slow day samzenpus? This article is bad, and you should feel bad.

    Possibly the worst headline ever. I notice nowhere in the summary or the linked article where Mr. Schiller specifically avoided commenting on the new iPhone due this fall. Don't worry, I'm sure there will be plenty of back and forth between fanboys and fandroids. Slashdot will get pageviews, and my karma will end up in the terlet.

    --
    Jesus was all right but his disciples were thick and ordinary. -John Lennon
    1. Re:Slow day? by the_B0fh · · Score: 2

      I'm with you. I read through the article, and I want my 2 minutes back. Though, that link to the patent for sawing the woman in half might have been worth it.

      The things they "revealed" are just standard shit people do in development work. $100mil for iPhone marketing is chump change - J&J spends billions in marketing annually. Hell, AT&T spent $150mil in marketing the Lumia - so fucking what?

    2. Re:Slow day? by Zontar+The+Mindless · · Score: 2

      Johnson & Johnson would be my guess.

      --
      Il n'y a pas de Planet B.
  4. Now I know what purple means by Meatbucket · · Score: 4, Insightful

    So I guess when I code a url in my app to point to the app store for posting a review I finally know what the "purple" means "itms-apps://ax.itunes.apple.com/WebObjects/MZStore.woa/wa/viewContentsUserReviews?type=Purple+Software&id="

  5. Yes, it's all a great secret until... by Patent+Lover · · Score: 2

    ... someone inevitably leaves a prototype on a bar. No other company seems to have this problem. Yawn.

    1. Re:Yes, it's all a great secret until... by Sir_Sri · · Score: 2

      One of my friends used to work at Rogers. Rogers and RIM have a deal where any time and unrecognized* BB device ends up on Rogers RIM gets notified immediately. And that can go very badly for whomever has the device because it's almost certainly stolen.

      One of my students did a co-op at RIM before that was the case, and I guess this deal with rogers came into being about 3 years ago. He worked there during a transition, where they initially had 'security' that didn't actually care all that much if you walked out with phones that weren't for sale yet for a long time and then it changed, including with the staff getting a stern warning from the CEO that this would no longer be tolerated. I think this is because most of the other companies you mention, including RIM, announced products before selling them, so knowing that the next phone in the pipeline a month in advance wasn't really a problem. Engadget and a few other places actively hunt for these prototypes, but the phones are announced enough in advance of actual sales that it doesn't matter much, including through things like FCC filings.

      *unrecognized as in the device isn't on the list of known devices for sale. There are special SIMS that the big phone carriers give to RIM for development devices, so presumably those accounts don't have issues. But they do get some sort of device ID.

  6. Secrets? by whisper_jeff · · Score: 3, Insightful

    Uh, ok. I admit - I'm an Apple fanboy so I follow Apple news pretty closely but, thus far, nothing secret has been revealed. A large marketing budget for their key products? Uh, duh! A massive and secretive development process behind the iPhone? Seriously, duh! Literally, nothing at all that has been revealed thus far is anything remotely close to a "secret". The closest thing to a secret has been the revelation of specific prototypes but everyone knew there were prototype iPhone designs and most people already had a basic idea of what they looked like - now we have pictures. But the only people who consider any of this a secret are people who don't follow the tech industry at all and anyone who follows Apple surely finds nothing to be a shocking secret thus far.

  7. Re:What is this? by Anonymous Coward · · Score: 2, Funny

    A tour through Willy Wonka's chocolate factory? Where's the sweatshop full of Oompa Loompas?

    iOompa iLoompas you insensitive clod.

  8. Remember the old days ... by WankersRevenge · · Score: 2, Interesting

    <old man rant>
    When Slashdot didn't cover the smart phone wars and we conversed open source and linux, then did a healthy microsoft bashing for good measure. I miss those days.

    I get that the editors love the traffic from Apple stories but I find them so damn tiring. Yes, they are a tech leader but does the Slashdot community need to notified about every little quibble? (hey look, a slashdot headline!) If Tim Cook so much as farts, it makes frontpage news here, followed by some idiotic editorial that would be modded flamebait if posted to a story.

    Slashdot reminds me of this video ... with Slashdot playing the role of Paranoia. Now, if only we could successfully "stab em".

    http://www.youtube.com/watch?v=5bCD8M0EnxA
    </old man rant>

  9. Different market. Not scret sause. by Anonymous Coward · · Score: 2, Interesting

    Apple's not doing anything spectacular. The company is just creating a product design that differentiates themselves from the competition and marketing it. They have a lot of money to do that. It's not like they really have anything all that unique functionality wise. They are dependant on the same companies Dell, HP, and everybody else is. That is they are dependent on Samsung for hard drives, Atheros/Realtek/Intel/etc for wireless chipsets, Intel/AMD for CPUs, etc. If they actually were to create a new product it would be one thing. They aren't doing that though. They might be the first to market for some items although more frequently than not it seems they really aren't. They are just the first to mass market a particular product.

    The portable audio player is a perfect example of this. Apple didn't invent the portable mp3 player. These were around before Apple and another company fought the hard battle to 'legalise' the technology.

    They didn't invent the sleek design. There have been other products with few buttons. Palm had devices that were extremely sleek. Even to this day would be considered slim. Like the Palm M500 (though it did have a few buttons- which actually made it better than the crap Apple puts out).

    Apple just takes a product and mass markets it and then claims to own the technology/design. It's a load of crap. There are smaller players on the market like ThinkPenguin which have similar products. I'm not saying everything came before Apple. What I'm saying is that Apple's product line isn't that unique. It's not the only company which sells hardware with a non-Microsoft operating system or the only company capable of designing / releasing a sleek stylish design. Humorously there are a lot of "Apple" fanboys who like ThinkPenguin's stuff. Sadly they like it for all the wrong reasons. They should like it because it's freedom friendly. Not because it's stylish, slim, fast, etc.

  10. Re:Is Apple using undercover marketing? by DJCouchyCouch · · Score: 3, Informative

    Every new iPhone model sells more than all the previous models combined. That's a heck of a lot of people to pay off for standing in line. I want in.

  11. Re:Is Apple using undercover marketing? by perpenso · · Score: 2

    The amount of people in line is eerily similar with each product launch, how many of these people are the same and what is their association to Apple?

    Or maybe the same early adopters line up for upgrades each time. No conspiracy theory necessary.

    Much like the same people line up to buy [insert appropriate video game franchise name here] at midnight on launch day.

  12. Re:Is Apple using undercover marketing? by garcia · · Score: 2

    Yesterday I was at the Mall of America to let my kid ride some rides while it drizzled outside. I needed a new Invisible Shield for my phone (not realizing that the one that began to peel off, had I gone to a kiosk with it still on the phone, would have been covered by their lifetime warranty) and had one put on there for an additional $5 (saving me 20 minutes of utter frustration and sweat).

    After waiting the 30 seconds for the dude to do it for me, I was about to walk away when a young guy and his family came up to me and asked about the product. I told him I had it on my phone for nearly two years and never suffered a scratch--except in the material itself. Two days after peeling it off, I ended up with a scratch in the glass--and thus why I was more than happy to pay the $20 to get another (even though, if I had known better, I wouldn't have had to). He bought one himself right then and there.

    Could this have been interpreted as undercover marketing? Surely it could have. In fact, it probably would have looked just like that to anyone who walked by who is as paranoid as the typical Slashbot. However, I am genuinely impressed with the product (even though I was HIGHLY skeptical when my wife bought it for me the first time) and I have absolutely NOTHING to do w/the company.

  13. Seriously? by RetiredMidn · · Score: 2

    These are the important secrets?

    It's more likely that Apple's competitors are going to look at this thin slice of evidence and apply it badly, as has been done so frequently in the past.

    I'm more worried about Apple drifting away from its own successful values than I am about somebody else "discovering" them on the basis of this trial's discovery.

  14. Re:Is Apple using undercover marketing? by ToasterMonkey · · Score: 2

    How many of those Apple users lining up to buy the new Iphones are Apple employees or associates paid to stand in line? The amount of people in line is eerily similar with each product launch, how many of these people are the same and what is their association to Apple?

    Undercover marketing is real. For all who don't know what it is, here is a video http://www.youtube.com/watch?v=LcZkbUH-lOc

    The man in the video does not appear to be honest.

    Why would you pay kids to walk around and eat popcorn and cotton candy when you could just hand out a few free ones?

    Same with the "leaners", it sounds too contrived, a poster, coasters, or again, giving away free stuff would be cheaper.

    A huge line doesn't make people want to go stand in it. Disney puts a lot of work into hiding long lines to make the wait appear to be shorter.

    What is supposed point of secret marketing other than an explanation for the popularity of something you just don't like?

  15. Re:Is Apple using undercover marketing? by Man+On+Pink+Corner · · Score: 4, Funny

    Geeks can make serious money at suburban malls these days. Apple pays me to stand around in front of their store, and Abercrombie and Fitch pays me to stay away from theirs.

  16. Re:Is Apple using undercover marketing? by jbolden · · Score: 2

    Sorry I know too many regular people who get excited by Apple products and do that sort of things. On the annual WWDC when new hardware is often announced there a 1/2 dozen websites live blogging for the people who can't wait till the next day to watch the video.

  17. How much is paid to astroturfing? by miffo.swe · · Score: 2

    I find it curious Apple spends so much money on advertising yet its pretty seldom i have seen an Apple advert at all. Where does all that money go really? Since not much seems to end up in normal advertising one could suspect it was spent on guerilla marketing or astroturfing as i call it.

    --
    HTTP/1.1 400
    1. Re:How much is paid to astroturfing? by ks9208661 · · Score: 2

      The money Apple spends on suing Samsung and other companies comes out of the advertising budget.

  18. Re:It's a weird corollary of the Streisand Effect. by QilessQi · · Score: 2

    I would argue that the predominant perception of patents is that they exist to secure the privileges of the inventor. Nowadays they seem to serve as the fulcrum by which litigators pry large sums of money away from alleged violators of their clients' dubiously-granted rights. Whatever the original intent of patents, it was obscured by virtual mountains of cash a long time ago.