tim cook

Starbucks is not just in the business of coffee and real estate — they are moving into mobile payments and are Apple Pay’s real competitor.

Earlier this week, Starbucks dropped Square for mobile payment in its stores, unwinding the partnership the companies announced in 2012.

Square had made Square Wallet obsolete in favor of its newer Square Order, but Starbucks declined to support either. According to a spokesperson for Starbucks:

Starbucks is not adopting Square Order in our stores. We opted to build our own mobile ordering solution, leveraging our own mobile app and world-class loyalty program.

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When you are drinking at a bar or eating in a restaurant, what’s great service? What makes you loyal to a particular place? Is it not when they know who you are, what you like, and can therefore provide a level of service and intimacy that other places can’t match?

Why then is online, targeted advertising so different? Why do people get up-in-arms about companies getting to know you better, so they can show you ads you might actually like more?

That is probably what Mark Zuckerberg is thinking when he reacted to a comment Tim Cook once made:

When an online service is free, you’re not the customer. You’re the product.

And then Mark Zuckerberg in a recent Time Magazine article:

“A frustration I have,” Zuckerberg says, before a PR handler can change the subject, “is that a lot of people increasingly seem to equate an advertising business model with somehow being out of alignment with your customers. I think it’s the most ridiculous concept. What, you think because you’re paying Apple that you’re somehow in alignment with them? If you were in alignment with them, then they’d make their products a lot cheaper!”

I have to side with Zuckerberg here.

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Maybe even the most important. Re/code is reporting that Larry Paige is handing off the day-to-day management of Google’s major products:

It’s a very big portfolio for one of Page’s senior product lieutenants and a fast-rising company executive. The highly respected Pichai will now have purview over research, search, maps, Google+, commerce and ad products and infrastructure. And he will continue to keep his existing responsibility for Android, Chrome and Google Apps. The six executives in charge of newly added product areas, all of whom previously reported directly to Page, will now report to Pichai.

What a bold, audacious move. First, acknowledgement is required for Pichai’s rocket ship rise to the top. This guy is only 8 years older than me and is now the point person for much of $370 billion company. Absolutely amazing. Getting recognition as the leader in a sprawling organization like Google couldn’t have been easy.

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Didn’t know what to write today, and then @nilanp came to save the day:

My answer to that is great design is everywhere. Lots of tech companies have great design. The problem is not everyone cares.

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If a PC company had flat sales, you might think its CEO would go, “Phew, not bad when the overall market is declining.”

Not really though: Lenovo, HP, Dell Acer and ASUS all increased sales the past quarter even though the overall market declined. Apple too. It’s not clear which PC company is suffering, but the strong get stronger while the weak exit.

So flat iPad sales — despite whatever Tim Cook may say — is alarming to Apple and Apple watchers. Moreover, now that Apple is selling larger phone sizes, people are finally realizing that you don’t need a big phone and a small tablet. The bigger iPad will need to grow a lot faster for the overall business to grow.

The iPad may not be one of the weak, but it is not one of the strong either. What should Apple do? The company has two possibilities: 1) make the iPad more appealing to a new market segment, and/or 2) deliver the same proposition to the existing market segment better.

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This is the final post of a three part series on why the Apple Watch revealed earlier this week wouldn’t have been the one Steve Jobs made. Jobs would disapprove two buttons on the Apple Watch and he certainly would have made the software beautiful and cohesive.

Fortunately, it’s not all negative. Tim Cook and Jony Ive did do something right that Jobs probably wouldn’t have done: the seemingly endless amount of customization possible for the Apple Watch.

In this case, going against a Jobsian philosophy is a good thing.

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