1. Customers cannot tell you what they need. “Apple market research” is an oxymoron. The Apple focus group was the right hemisphere of Steve’s brain talking to the left one. If you ask customers what they want, they will tell you, “Better, faster, and cheaper”—that is, better sameness, not revolutionary change. They can only describe their desires in terms of what they are already using—around the time of the introduction of Macintosh, all people said they wanted was better, faster, and cheaper MS-DOS machines. The richest vein for tech startups is creating the product that you want to use—that’s what Steve and Woz did.
2. Jump to the next curve. Big wins happen when you go beyond better sameness. The best daisy-wheel printer companies were introducing new fonts in more sizes. Apple introduced the next curve: laser printing. Think of ice harvesters, ice factories, and refrigerator companies. Ice 1.0, 2.0, and 3.0. Are you still harvesting ice during the winter from a frozen pond?
3. The biggest challenges beget best work.
4. Design counts. Steve drove people nuts with his design demands—some shades of black weren’t black enough. Mere mortals think that black is black, and that a trash can is a trash can. Steve was such a perfectionist—a perfectionist Beyond: Thunderdome—and lo and behold he was right: some people care about design and many people at least sense it. Maybe not everyone, but the important ones.
5. Changing your mind is a sign of intelligence. When Apple first shipped the iPhone there was no such thing as apps. Apps, Steve decreed, were a bad thing because you never know what they could be doing to your phone. Safari web apps were the way to go until six months later when Steve decided, or someone convinced Steve, that apps were the way to go—but of course. Duh! Apple came a long way in a short time from Safari web apps to “there’s an app for that.”
6. “Value” is different from “price.” Woe unto you if you decide everything based on price. Even more woe unto you if you compete solely on price. Price is not all that matters—what is important, at least to some people, is value. And value takes into account training, support, and the intrinsic joy of using the best tool that’s made. It’s pretty safe to say that no one buys Apple products because of their low price.
7. A players hire A+ players. Actually, Steve believed that A players hire A players—that is people who are as good as they are. I refined this slightly—my theory is that A players hire people even better than themselves. It’s clear, though, that B players hire C players so they can feel superior to them, and C players hire D players. If you start hiring B players, expect what Steve called “the bozo explosion” to happen in your organization.
8. Marketing boils down to providing unique value. Think of a 2 x 2 matrix. The vertical axis measures how your product differs from the competition. The horizontal axis measures the value of your product. Bottom right: valuable but not unique—you’ll have to compete on price. Top left: unique but not valuable—you’ll own a market that doesn’t exist. Bottom left: not unique and not value—you’re a bozo. Top right: unique and valuable—this is where you make margin, money, and history. For example, the iPod was unique and valuable because it was the only way to legally, inexpensively, and easily download music from the six biggest record labels.