"We screwed up": Tim Cook on Apple Maps

Apple CEO explains what went wrong there.

In order to drum up publicity for Apple's new range of US iMacs, Tim Cook gave a long interview for Bloomberg Businessweek, in which he explained how Apple "screwed up" over Apple Maps, and what they plan to do about it:

So what are we doing? We’re putting all of our energy into making it right. And we have already had several software updates. We’ve got a huge plan to make it even better. It will get better and better over time. But it wasn’t a matter that we … decided strategy over customers. We screwed up. That’s the fact.

What were they thinking in the first place, though?

The reason we did Maps is we looked at this, and we said, “What does the customer want? What would be great for the customer?” We wanted to provide the customer turn-by-turn directions. We wanted to provide the customer voice integration. We wanted to provide the customer flyover. And so we had a list of things that we thought would be a great customer experience, and we couldn’t do it any other way than to do it ourselves.

Scott Forstall, Apple's former mobile software head also gets a mention. What went wrong there? Cook is a little evasive:

The key in the change that you’re referencing is my deep belief that collaboration is essential for innovation—and I didn’t just start believing that. I’ve always believed that. It’s always been a core belief at Apple. Steve very deeply believed this.

So the changes—it’s not a matter of going from no collaboration to collaboration. We have an enormous level of collaboration in Apple, but it’s a matter of taking it to another level. You look at what we are great at. There are many things. But the one thing we do, which I think no one else does, is integrate hardware, software, and services in such a way that most consumers begin to not differentiate anymore. They just care that the experience is fantastic.

So how do we keep doing that and keep taking it to an even higher level? You have to be an A-plus at collaboration. And so the changes that we made get us to a whole new level of collaboration. We’ve got services all in one place, and the guy that’s running that has incredible skills in services, has an incredible track record, and I’m confident will do fantastic things.

Looks like Scott Forstall wasn't so great at collaboration then.

The company have invested over $100m in their new range of iMacs. Speaking to NBC's Brian Williams, Tim Cook said that the company had been aiming for the US for some time, and that several Apple components are already manufactured there:

"The engine in [the iPhone] is made in America... but engines are made in America and are exported. The glass on this phone is made in Kentucky. We've been working for years on doing more and more in the United States."

Tim Cook. Photograph: Getty Images
Photo: Getty Images
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Autumn Statement 2015: George Osborne abandons his target

How will George Osborne close the deficit after his U-Turns? Answer: he won't, of course. 

“Good governments U-Turn, and U-Turn frequently.” That’s Andrew Adonis’ maxim, and George Osborne borrowed heavily from him today, delivering two big U-Turns, on tax credits and on police funding. There will be no cuts to tax credits or to the police.

The Office for Budget Responsibility estimates that, in total, the government gave away £6.2 billion next year, more than half of which is the reverse to tax credits.

Osborne claims that he will still deliver his planned £12bn reduction in welfare. But, as I’ve written before, without cutting tax credits, it’s difficult to see how you can get £12bn out of the welfare bill. Here’s the OBR’s chart of welfare spending:

The government has already promised to protect child benefit and pension spending – in fact, it actually increased pensioner spending today. So all that’s left is tax credits. If the government is not going to cut them, where’s the £12bn come from?

A bit of clever accounting today got Osborne out of his hole. The Universal Credit, once it comes in in full, will replace tax credits anyway, allowing him to describe his U-Turn as a delay, not a full retreat. But the reality – as the Treasury has admitted privately for some time – is that the Universal Credit will never be wholly implemented. The pilot schemes – one of which, in Hammersmith, I have visited myself – are little more than Potemkin set-ups. Iain Duncan Smith’s Universal Credit will never be rolled out in full. The savings from switching from tax credits to Universal Credit will never materialise.

The £12bn is smaller, too, than it was this time last week. Instead of cutting £12bn from the welfare budget by 2017-8, the government will instead cut £12bn by the end of the parliament – a much smaller task.

That’s not to say that the cuts to departmental spending and welfare will be painless – far from it. Employment Support Allowance – what used to be called incapacity benefit and severe disablement benefit – will be cut down to the level of Jobseekers’ Allowance, while the government will erect further hurdles to claimants. Cuts to departmental spending will mean a further reduction in the numbers of public sector workers.  But it will be some way short of the reductions in welfare spending required to hit Osborne’s deficit reduction timetable.

So, where’s the money coming from? The answer is nowhere. What we'll instead get is five more years of the same: increasing household debt, austerity largely concentrated on the poorest, and yet more borrowing. As the last five years proved, the Conservatives don’t need to close the deficit to be re-elected. In fact, it may be that having the need to “finish the job” as a stick to beat Labour with actually helped the Tories in May. They have neither an economic imperative nor a political one to close the deficit. 

Stephen Bush is editor of the Staggers, the New Statesman’s political blog.