Haunted Empire: Apple After Steve Jobs
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200. For a long time, Ai had: Interview with Ai Qi. Exchange rates may vary because they are calculated based on the rate in the timeframe mentioned.
203. Foxconn did what it could: Interview with Ai Qi; Jason Dean, “The Forbidden City of Terry Gou,” Wall Street Journal, August 11, 2007; “Global 500,” Fortune, July 25, 2011; Frederik Balfour and Tim Culpan, “The Man Who Makes Your iPhone,” BloombergBusinessweek, September 9, 2010; Foxconn People newsletter, trans. by Violet Tian, June 7, 2012 issue; “Fair Labor Association Secures Commitment to Limit Workers’ Hours, Protect Pay at Apple’s Largest Supplier,” Fair Labor Association press release, March 29, 2012.
205. Around that time: Interview with Debby Sze Wan Chan, Geoffrey Crothall; “Apple’s CEO Discusses Q4 2011 Results—Earnings Transcript,” Seeking Alpha, October 18, 2011; “2012 National Economic and Social Development Report,” trans. by Violet Tian, National Bureau of Statistics of China, February 22, 2013, http://www.stats.gov.cn/tjgb/ndtjgb/qgndtjgb/t20130221_402874525.htm; “Income of Urban and Rural Residents in 2011,” National Bureau of Statistics of China press release, January 30, 2012; Lu Mai, “Poverty Eradication in China: A New Phase,” China Development Research Foundation, February 10, 2011, http://www.un.org/esa/socdev/csocd/2011/Lu.pdf; Foxconn salary data by Students and Scholars Against Corporate Misbehaviour; “Fair Labor Association Secures Commitment to Limit Workers’ Hours, Protect Pay at Apple’s Largest Supplier,” Fair Labor Association press release, March 29, 2012.
206. The average per capita income: Exchange rate is as of December 30, 2011.
206. What saved Ai from: Interview with Ai Qi; Beyond, “Boundless Oceans, Vast Skies”; Pun Ngai, Made in China (Durham: Duke University Press, 2005), 189–96; hardware engineer salary, Indeed, based on May 2013 data, http://www.indeed.com/salary/Hardware-Engineer.html.
Chapter 13: Fight Club
210. The trial between Apple and Samsung: Interviews with Florian Mueller, Lea Shaver, other patent experts; Dan Levine, “Apple and Samsung Execs in Talks on Patent Lawsuits,” Reuters, June 17, 2011; “Apple and Samsung Garner 50% of Global Smartphone Market and 90% of Its Profits,” ABI Research press release, June 15, 2012.
212. The public war raged on television: Interviews with sources with firsthand knowledge; “Next Big Thing,” Samsung 2012 Super Bowl ad, posted by Adweek, January 26, 2012, http://www.adweek.com/video/advertising-branding/samsung-next-big-thing-2012-super-bowl-teaser-137740; Sean Hollister, “Samsung Says Apple Lawsuit Didn’t Affect Its Smartphone Design,” The Verge, May 22, 2012; Miyoung Kim, “Insight: Samsung: ‘Fast Executioner’ Seeks Killer Design,” Reuters, May 23, 2012; Ina Fried, “Samsung, Apple Even at Odds Over Where They Will Sit at Trial,” All Things D, July 26, 2012, http://allthingsd.com/20120726/samsung-apple-even-at-odds-over-where-they-will-sit-at-trial/; Apple Inc. v. Samsung Electronics Co., No. 11-cv-01846, (Disputed) Joint Proposed Jury Instructions, July 24, 2012; Stephen Lawson, “Judge Again Orders Apple, Samsung to Streamline Claims in iPad Patent Case,” IDG News Service, May 2, 2012; Matt Macari, “Apple Gives Samsung Some Work-Around Options for its iPhone and iPad Design Patents,” The Verge, December 2, 2011.
215. On July 30, 2012: Author’s personal observations from attending the trial; interviews with sources with firsthand knowledge of the trial, including Reuters reporter Poornima Gupta; Apple Inc. v. Samsung Electronics Co., No. 11-cv-01846, transcript, July 30, 2012; Shannon Green, “Winning: Charles Verhoeven,” National Law Journal, June 21, 2010.
218. Opening arguments began: Interviews with people with firsthand knowledge of the trial as well as Manuel Ilagan; Apple Inc. v. Samsung Electronics Co., No. 11-cv-01846, transcripts, July 31, August 3, August 6, August 14, 2012; Rebecca English, “Elegant Kate goes for Dove Grey and a New Side Chignon Up-do as She Steps Out Solo for Cocktail Reception,” Daily Mail, July 30, 2012; “Samsung Calls BS on Apple’s Charges of Copying,” Conan, August 7, 2012, http://teamcoco.com/video/samsung-denies-apples-charges-copying.
224. Samsung was cornered: Apple Inc. v. Samsung Electronics Co., No. 11-cv-01846, transcripts, July 31, August 3, August 15, August 21, 2012.
227. In closing statements: Apple Inc. v. Samsung Electronics Co., No. 11-cv-01846, transcript, August 21, 2012.
228. In complex cases like this one: Interviews with Martyn Williams, Manuel Ilagan, other people with firsthand knowledge of the trial; Apple Inc. v. Samsung Electronics Co., No. 11-cv-01846, transcript, August 24, 2012; Howard Mintz, “Jury Foreman in Apple v. Samsung: Verdict a Message That Copying Is a Big Risk,” San Jose Mercury News, August 25, 2012; Jessica E. Vascellaro, “Inside the Apple-Samsung Jury Room,” Wall Street Journal, August 27, 2012; Mark Gurman, “Tim Cook Tells Apple Employees That Today’s Victory ‘Is About Values,’ ” 9to5Mac, August 24, 2012; Connie Guglielmo, “Apple Wins Over Jury in Samsung Patent Dispute, Awarded $1.05 Billion in Damages (Live Blog),” Forbes, August 24, 2012.
230. In Munich, the patent expert: Interview and email correspondence with Florian Mueller; Florian Mueller, “Apple’s Billion-Dollar Win over Samsung Is a Huge Breakthrough—but It’s Not Thermonuclear,” Foss Patents (blog), August 24, 2012; Florian Mueller, Twitter update, August 24, 2012, https://twitter.com/FOSSpatents/status/239181522761027584.
Chapter 14: Typhoon
232. Days after the verdict: Interview with Samsung executive; reporting by Kim Yoo-chul and Kim Hyung-eun; Kim Yoo-chul, “Samsung Scrambles to Recover after Uppercut,” Korea Times, August 26, 2012; “Choi Ji-sung, guteun pyojeongeuro chulgeun . . . Samsung gingeup daechaek heoieui” [Choi Ji-sung, coming to work with stiff look . . . Samsung to hold emergency meeting], trans. by MinSun Lee, Asia Gyeongje, August 26, 2012; “Lee Kun-hee heoijang ‘Apple teukhu sosong jal hara,’ ” [Chairman Lee Kun-hee “Do a Good Job with Patent Lawsuit Against Apple”], trans.by MinSun Lee, Newsis News Agency, August 29, 2012; Seongjin Cha and Rose Kim, “Typhoon Bolaven Capsizes Fishing Boats, Lashes Korea,” BloombergBusinessweek, August 28, 2012; “Bolaven Leaves at Least 16 Dead as It Plows Past Korean Peninsula,” CNN, August 29, 2012; Kim, Chang-woo, “Chuijae Ilgi: California basimwoneui ‘miguksik jungeui,’ ” [Reporter’s Note: California Jury’s “American Style Justice”], trans. by MinSun Lee, Joongang Ilbo, August 28, 2012.
233. Apple’s lawyers had no illusions: Interviews with sources with firsthand knowledge of post-trial details; Charles Duhigg and Steve Lohr, “The Patent, Used as a Sword,” New York Times, October 7, 2012; Steve Lohr, “Why Apple Might be Better Off Losing Its Patent Lawsuit,” New York Times, Bits blog, August 21, 2012, http://bits.blogs.nytimes.com/2012/08/21/why-apple-might-be-better-off-losing-its-patent-lawsuit/.
235. Apple was plotting: Interview with a source familiar with the situation; Mark Gurman, “Apple Acquired Mind-Blowing 3D Mapping Company C3 Technologies Looking to Take iOS Maps to the Next Level,” 9to5Mac, October 29, 2011, http://9to5mac.com/2011/10/29/apple-acquired-mind-blowing-3d-mapping-company-c3-technologies-looking-to-take-ios-maps-to-the-next-level/; “Apple Special Event,” Apple video, June 11, 2012, http://www.apple.com/apple-events/june-2012/; Jessica E. Vascellaro and Amir Efrati, “Apple and Google Expand Their Battle to Mobile Maps,” Wall Street Journal, June 4, 2012.
237. Apple’s growing defensiveness: Interviews with reporters who were present at the event including Ian Sherr and Nobuyuki Okada; “Apple Special Event,” Apple video, September 12, 2012, http://www.apple.com/apple-events/september-2012/; Dakster Sullivan, “iPhone 5 Review—What’s Up and What’s Not,” Wired, October 15, 2012, http://www.wired.com/geekmom/2012/10/iphone-5-review/; Juro Osawa, “Apple Cuts Orders for iPhone Parts,” Wall Street Journal, January 13, 2013.
240. Apple could not afford: Interview with Markus Thielking, people familiar with the situation; Mike Butcher, “Welcome to Apple’s iOS6 Map—Where Berlin Is Now Called ‘Schoeneiche,’ ” TechCrunch, September 20, 2012, http://techcrunch.com/2012/09/20/welcome-to-apples-ios6-map-where-berlin-is-now-called-schoeneiche/; Eric Mack, “Apple Maps Fiasco Makes Mad�
�s ’20 Dumbest’ List,” CNET, December 6, 2012; Josh Lowensohn, “Developers: We Warned Apple About iOS Maps Quality,” CNET, October 9, 2012; “Letter from Bob Mansfield,” Apple press release, July 13, 2012, http://www.apple.com/environment/letter-to-customers/; “A Letter to Our Customers Regarding Maps,” Apple press release, September 28, 2012, http://www.apple.com/letter-from-tim-cook-on-maps/; Isaacson, Steve Jobs, 522; Jessica E. Lessin, “An Apple Exit Over Maps,” Wall Street Journal, October 29, 2012; Josh Tyrangiel, “Tim Cook’s Freshman Year: The Apple CEO Speaks,” BloombergBusinessweek, December 6, 2012; background on user interface design by Ben Fullerton.
240. street matching: Also known as map matching.
244. John Browett was another: Interview with Gary Allen; Gary Allen, “Browett Leaves, Third Party Shelves Get Make Over,” ifo Apple Store (blog), November 4, 2012, http://www.ifoapplestore.com/2012/11/04/browett-leaves-third-party-shelves-get-make-over/; Ian Sherr, “Apple Retail Chief Admits Staffing Mistake,” Wall Street Journal, August 16, 2012; Ben Lovejoy, “John Browett Reflects on Lessons from Brief Stint as Apple Retail Chief,” MacRumors, March 15, 3013.
246. One of them was a Harvard professor: Interviews with Gautam Mukunda, former and current Apple executives; Lashinsky, Inside Apple, 161; Gautam Mukunda, Indispensable: When Leaders Really Matter (Boston: Harvard Business Review Press, 2012), 1–19.
Chapter 15: Revolt
250. Two days after the iPhone 5: Interviews with Foxconn workers, including Wang Sheng and others familiar with the situation; “Fu Shi Kang Taiyuan Yuan Gong Chong Tu Bei Hou: Yan Jun De Guan Li Tiao Zhan” [Behind Foxconn’s Taiyuan Strikes: Severe Management Challenges], trans. by Violet Tian, China Business News, September 25, 2012; “Foxconn Workers Labor Under Guard After Riot Shuts Plant,” Bloomberg, September 26, 2012; “3000 to 4000 Workers Strike at Foxconn’s China Factory,” China Labor Watch press release, October 5, 2012; “Foxconn Denies China iPhone Plant Hit by Strike,” Reuters, October 6, 2012; “Fu Shi Kang Gao Ceng Duan Xin Zhao Yuan Gong Fu Gong, Yuan Gong Mei Tian Zhan 11 Ge Xiao Shi” [Senior Foxconn Staff Texted Workers to Get Back to Work, Workers Kept Standing for as Long as 11 Hours Daily], trans. by Violet Tian, Securities Daily, October 8, 2012; Wang Sheng/yefudao’s Sina Weibo page, http://weibo.com/u/2175973444?topnav=1&wvr=5&topsug=1; Liu Yong, “Fu Shi Kang Zhengzhou Zhi Luan: Su Fang Guan Li Yin Fa Chong Tu” [The Chaos in Foxconn Zhengzhou: Extensive Management Gives Rise to Conflicts], China Business Journal, October 13, 2012.
253. The workers’ riot and the strike: Wang Yu Wen, “Guo Tai Ming Wangchao Quanbuxi,” [The Empire of Terry Gou, A Full Dissection], trans. by Kristen Choy, Shangye Zhoukan [Taiwan Business Weekly], January 16, 2013; “Fortune 500,” Fortune, http://money.cnn.com/magazines/fortune/fortune500/2012/full_list/.
255. Over the years: Interviews with Greg Petsch and others with firsthand knowledge of Foxconn’s inner workings, including former Foxconn/Hon Hai employees, partners, and consultants; journalist-consultant Tomorhiro Otsuki also provided background on Foxconn. Frederik Balfour and Tim Culpan, “The Man Who Makes Your iPhone,” BloombergBusinessweek, September 9, 2010; Naoyoshi Goto and Jun Morikawa, Apple Teikoku no Shotai [The Apple Empire’s True Self], (Tokyo: Bungeishunjyu, 2013); Ken Takeuchi, Sekai De Shobu Suru Shigotojutsu [Globally Competitive Work Strategies] (Japan: Gentosha, 2012), 81–82; Wang Yu Wen, “Guo Tai Ming Wangchao Quanbuxi” [The Empire of Terry Gou: A Full Dissection], trans. by Kristen Choy, Shangye Zhoukan [Taiwan Business Weekly], January 16, 2013; Lin Yang, “Foxconn Tries to Move Past the iPhone,” New York Times, May 6, 2013; Lorraine Luk, “As Apple Feels Bite, Hon Hai Looks to Diversify,” Wall Street Journal, May 27, 2013.
260. Apple recognized the danger: Interviews with people with firsthand knowledge of Apple’s partnership and others, including former Foxconn/Hon Hai employees, partners, and consultants; Monica Chen and Joseph Tsai, “Pegatron to See Strong 1Q13 Due to iPad mini Orders,” DigiTimes, December 17, 2012, http://www.digitimes.com/news/a20121217PD215.html; Goto and Morikawa, Apple Teikoku no Shotai, 26–28; Lan Guanming, “Bu Chi Ping Guo De Li You” [The Reasons Why We Don’t Eat Apple], trans. by Violet Tian, CTimes, April 5, 2012.
264. In the last weeks of 2012: Spencer E. Ante and Will Connors, “In the Smartphone Race, Money Talks for Samsung,” Wall Street Journal, March 12, 2013; Juro Osawa, “Apple Cuts Orders for iPhone Parts,” Wall Street Journal, January 14, 2013; Goto and Morikawa, Apple Teikoku no Shotai, 19; “Monozukuri Nihon ni hirogaru Apple shihai” [The Broadening Domination of Apple in Manufacturing Japan], Diamond Weekly, October 6, 2012; Lorraine Luk, “Hon Hai Plots Next Move,” Wall Street Journal (blog), June 27, 2013, http://blogs.wsj.com/digits/2013/06/27/hon-hai-plots-next-move/; reporting about Sharp provided by Naoyoshi Goto.
Chapter 16: Velvin
266. The jury foreman would not: Dan Levine, “Jury Didn’t Want to Let Samsung Off Easy in Apple Trial: Foreman,” Reuters, August 25, 2012; Howard Mintz, “Jury Foreman in Apple v. Samsung: Verdict a Message That Copying Is a Big Risk,” San Jose Mercury News, August 25, 2012; Bryan Bishop, “Apple v. Samsung Jury Foreman: Only the ‘Court of Popular Opinion’ Can Change the Patent System,” Verge, August 31, 2012; Mario Aguilar, “Ask Apple vs Samsung Jury Foreman Velvin Hogan Whatever You Want,” Gizmodo, September 4, 2012.
268. Venomous as the free-for-all: Interviews with people familiar with the situation and Florian Mueller; Velvin Hogan, interviewed by Emily Chang, Bloomberg Television, August 27, 2012; Joel Rosenblatt, “Samsung Claims Jury Foreman Misconduct Tainted Apple Case,” Bloomberg, October 3, 2012; Apple Inc. v. Samsung Electronics Co., No. 11-cv-01846, transcript, December 6, 2012; Apple Inc. v. Samsung Electronics Co., No. 11-cv-01846, Order Denying Motion for Permanent Injunction, December 17, 2012; Apple Inc. v. Samsung Electronics Co., No. 11-cv-01846, Order Re: Juror Misconduct, December 17, 2012; In the Matter of Certain Electronic Devices Including Wireless Communication Devices, Portable Music and Data Processing Devices, and Tablet Computers, No. 337-TA-794, U.S. International Trade Commission, July 5, 2013; Chetan Sharma, “Mobile Patents Landscape: An In-Depth Quantitative Analysis,” Chetan Sharma Consulting, 2013.
274. A few months later: “Judge Sets New Trial Dates in Apple vs. Samsung Patent Battle,” Reuters, April 30, 2013; “Strong Demand for Smartphones and Heated Vendor Competition Characterize the Worldwide Mobile Phone Market at the End of 2012, IDC Says,” IDC press release, January 24, 2013.
Chapter 17: Critical Mass
276. Outside the courts: “Obama’s Full 2013 State of the Union Address,” YouTube video, uploaded by WSJDigitalNetwork, February 12, 2013; John Nosta, “With Apple CEO in Attendance, Obama Addresses Jobs & Wages,” CNBC Storify page, http://storify.com/CNBC/with-apple-ceo-in-attendance-obama-to-talk-jobs-in; Josh Tyrangiel, “Tim Cook’s Freshman Year: The Apple CEO Speaks,” BloombergBusinessweek, December 6, 2012.
278. Despite the president’s stamp of approval: Interview with David Wolf; Laurie Burkitt, “China Broadcaster Shows Up Apple, VW,” Wall Street Journal, March 15, 2013; Philip Elmer-DeWitt, “Chinese TV Caught Asking Celebrities to Bash Apple,” Fortune, March 16, 2013; CCTV Channel 2 segment, uploaded by NetEase, trans. by Violet Tian, http://news.163.com/13/0329/20/8R5LD72S00011229.html; Laure He, “Tim Cook’s Apology Letter to Apple Customers in China,” Forbes, April 3, 2013; Melanie Lee, “Sorry Apple Gets Respect in China After Tabloid Trial,” Reuters, April 2, 2013; Li Hongbing, “Da Diao Ping Guo Wu Yu Lun Bi De Jiao Ao” [Defeat Apple’s “Incomparable” Arrogance], trans. by Violet Tian, People’s Daily, March 27, 2013.
283. Nowhere was Apple’s decline: Jason Gilbert, “The Last 6 Times Tim Cook Has Talked, Apple’s Stock Has Dropped,” Huffington Post, February 28, 2013; Phil Goldstein, “Apple’s Cook: Smartphone Market Is ‘a Wide-Open Field,’ ” FierceWireless, February 12, 2013.
286. But his oft-repeated line: Interviews with people familiar with the situation, including Greg Dudey and other current and former Apple employees; Brad Stone, Adam Sata
riano, and Peter Burrows, “Mapping a Path Out of Steve Jobs’s Shadow,” BloombergBusinessweek, October 3, 2012; Jonathan Ive photos, Getty Images, http://www.gettyimages.com/editorial/jonathan-ive-pictures; Josh Tyrangiel, “Tim Cook’s Freshman Year: The Apple CEO Speaks,” BloombergBusinessweek, December 6, 2012.
289. On a cold afternoon in March: Interview with person familiar with Wall Street Journal phone meeting with Schiller; “Samsung Unpacked 2013: Samsung Galaxy S 4 Launch,” YouTube video, uploaded by “lifechannelable,” March 14, 2013; Ina Fried and Lauren Goode, “Samsung Takes Its Flagship Smartphone into a New Galaxy,” All Things Digital (blog), March 14, 2013, http://allthingsd.com/20130314/samsung-launches-galaxy-s-4/.
Chapter 18: Holy Grail
292. In the end: “Samsung Unpacked 2013: Samsung Galaxy S4 Launch,” YouTube video, uploaded by “lifechannelable,” March 14, 2013; Molly Wood, “Samsung GS4 Launch: Tone-Deaf and Shockingly Sexist,” CNET, March 14, 2013; Nilay Patel, “Samsung Weird: How a Phone Launch Went from Broadway Glitz to Sexist Mess,” Verge, March 18, 2013.
293. Apple’s woes were deepening: Charles Duhigg and Keith Bradsher, “How the U.S. Lost Out on iPhone Work,” New York Times, January 21, 2012; Charles Duhigg and David Kocieniewski, “How Apple Sidesteps Billions in Taxes,” New York Times, April 28, 2012; Tyrangiel, “Tim Cook’s Freshman Year”; “Testimony of Apple Inc. Before the Permanent Subcommittee on Investigations U.S. Senate,” Apple, May 21, 2013; Permanent Subcommittee on Investigations, S. Rep, Memorandum on Offshore Profit Shifting and the U.S. Tax Code—Part 2 (Apple Inc.), May 21, 2013; Anna Palmer, “Apple Prepares for Washington Onslaught,” Politico, May 20, 2013; Cecilia Kang, “Apple CEO Tim Cook to Propose Tax Overhaul,” Washington Post, May 16, 2013; “Subcommittee to Examine Offshore Profit Shifting and Tax Avoidance by Apple Inc.,” Carl Levin press release, May 20, 2013; data on lobbying spending by Center for Responsive Politics, http://www.apple.com/pr/pdf/Apple_Testimony_to_PSI.pdf.