Open letter to Steve Jobs: Retire now!

By | July 19, 2010, 7:39am PDT

Summary: Do you want to sell crappy phones and consumer electronics for the rest of your life, or do you want to leave Apple and change the world?

Dear Steve,

It’s been many years since you and I had a serious chat. We were both young men, almost kids, and we both looked at the world through much younger eyes. But now, buddy, we gotta talk, man-to-man.

Friday’s event was deeply disturbing. There you were, up there on stage, mocking genuinely valid concerns over the fundamental performance of your flagship product, arrogantly denying credible analysis by some of the most reputable product testers on the planet, telling members of the press that you love your users so much that you’ve built 300 Apple retail stores just for them.

The whole thing was embarrassing. It was beneath you.

You have been one the most transformative figures in the history of American business, up there with Thomas Edison, Andrew Carnegie, Henry Ford, and, yes, Bill Gates.

And now, this is how you’re spending your time? Complaining that everyone’s ganging up on you because you’re so special? Talking back to regular consumers at 3am? Chastising them because they’re holding their phones wrong?

You are an iconic American figure. You are an American strategic asset. Yet, here you are, arguing with people about whether you can make enough bumpers to fix the undeniable antenna problem you refuse to admit exists.

Bumpers? Is this what your reality has distorted into?

It certainly shouldn’t be how people think of you. Look at Bill Gates. Bill is out there helping to cure sickness and disease, poverty and hunger, working to find ways of producing alternative energy systems and trying the save the world from almost-certain darkness. Bill has become one of the world’s leading philanthropists, probably the most generous and effective in the history of the mankind.

By comparison, you’re spending your days (and, apparently, your nights) arguing with consumers who bought a $200 phone and complaining that Consumer Reports doesn’t know how to test consumer products.

Do you see a difference?

It’s time for you to step down, retire, and let others deal with the day-to-day challenges of running Apple. Phil Schiller is certainly a reasonable capable manager. Let him do it.

All this iPhone stuff can’t be healthy for you. It’s got to be stressful. You need to preserve your reputation and apply your leadership to things that matter.

Almost 30 years ago, John Scully was at Pepsi and you asked him, “Do you want to sell sugar water for the rest of your life, or do you want to come with me and change the world?”

So, Steve, here’s the question I ask you: “Do you want to sell crappy phones and consumer electronics for the rest of your life, or do you want to leave Apple and change the world?”

Think about it.

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Topics

David Gewirtz, Distinguished Lecturer at CBS Interactive, is an author, U.S. policy advisor, and computer scientist. He is featured in The History Channel special The President's Book of Secrets.

Disclosure

David Gewirtz

At various times during his adult life, David has voted for both Democrats and Republicans, and has been disappointed by both. He is deeply disturbed by how partisanship has come before patriotism in America, which gives him the freedom to pick on both sides.

David is a frequent guest on TV and radio stations across America and can usually be heard or seen on-the-air at least once a week. He writes weekly commentary and analysis for CNN’s Anderson Cooper 360 and has been interviewed by Fox News, CNN, various ABC and NBC affiliates, and Canada’s Global TV. He has been a featured guest on National Public Radio and has also been featured on Voice of America, Radio Free Europe, and Radio Liberty where his commentaries on technology, industry, and emerging nations have been broadcast into 46 countries (all in their own unique translations).

David is the executive director of U.S. Strategic Perspective Institute, a nonprofit research and policy organization. He is the Cyberterrorism Advisor for the International Association for Counterterrorism & Security Professionals, a columnist for The Journal of Counterterrorism and Homeland Security and a special contributor to Frontline Security Magazine. He is a member of the FBI’s InfraGard program, the security partnership between the FBI and industry. David is also a member of the U.S. Naval Institute and the National Defense Industrial Association, the leading defense industry association promoting national security.

David is an advisory board member for the Technical Communications and Management Certificate program at the University of California, Berkeley extension. He is also a member of the instructional faculty at the University of California, Berkeley extension.

David’s “day job” is as publisher and editor-in-chief of ZATZ publishing, an online publisher of technical magazines. Other than than his ownership stake in Component Enterprises, Inc. (the parent company of ZATZ), David has no additional industry investments.

ZATZ has many advertisers who do, in part, provide for David’s lush income and extravagant lifestyle. Most of them are IBM and Lotus aftermarket suppliers, some of them make goodies for Microsoft Outlook, and a few make all sorts of strange mobile devices and add-on products. David has been a regular judge of the IBM Awards, but has no formal financial interest in or with IBM.

Because the ZATZ online magazines often review products, David and ZATZ are sent an overwhelming stream of unsolicited, silly, and often useless products to review. Because they’re such a pain to track and ship back, these products often wind up in a dumpster or fill up the corner of a large closet. Although David has no plans to review products in connection to his ZDNet blog, if he does do a product review, he will disclose any relationship completely in that posting.

Both through ZATZ and independently, David derives a small income through various advertising and sales relationships with Amazon.com and Google. These are minor relationships and they will not impede his willingness or ability to chastise either company should they deserve it.

David has many other business relationships, but none of them relate to anything he covers in his ZDNet blog. David does have a bit of the sales-guy bug and if he’s not doing a sales deal with someone at least once a month, he goes through withdrawal. He has a number of consulting clients, but none of them relate to anything he covers for ZDNet (and if they ever do, he will either disclose that fact, or decline to write about them).

Back in the 1980s, David held the unusual title of “Godfather” at Apple. He has written and published 40 incredibly simplistic applications for Apple’s iPhone.

Although David is forbidden to disclose the terms of his iPhone developer agreement, he isn’t drinking the Apple Kool Aid, will never be confused with a metrosexual, and feels free to mock Apple, and Apple users, any time the occasion permits, on alternate Tuesdays, or if he’s bored.

Biography

David Gewirtz

In addition to hosting the ZDNet Government and ZDNet DIY-IT blogs, CBS Interactive's Distinguished Lecturer David Gewirtz is an author, U.S. policy advisor, and computer scientist. He is featured in The History Channel special The President's Book of Secrets, is one of America's foremost cyber-security experts, and is a top expert on saving and creating jobs. He is also director of the U.S. Strategic Perspective Institute as well as the founder of ZATZ Publishing.

David is a member of FBI InfraGard, the Cyberwarfare Advisor for the International Association for Counterterrorism & Security Professionals, a columnist for The Journal of Counterterrorism and Homeland Security, and has been a regular CNN contributor, and a guest commentator for the Nieman Watchdog of the Nieman Foundation for Journalism at Harvard University. He is the author of Where Have All the Emails Gone?, the definitive study of email in the White House, as well as How To Save Jobs and The Flexible Enterprise, the classic book that served as a foundation for today's agile business movement.

Talkback Most Recent of 335 Talkback(s)

  • RE: Open letter to Steve Jobs: Retire now!
    Nice this has to be one of the best articles. I have read in regards to Apple. I think stevey needs to pay attention to this one.
    ZDNet Gravatar
    MLHACK
    19th Jul 2010
  • Where are the lines of people returning iPhones?
    @MLHACK ... It's all well and good to have bloggers on ZDNet who are pro-Microsoft partisans criticizing this iPhone defect. How many of them bought iPhones? How many of them bought iPhones and then returned them?
    I saw somewhere a 2% return rate for the phones. Which means a 98% satisfaction rate.
    Jobs should retire because his "flagship" product (I dispute this) satisfies only 98% of customers?
    Whatever you're smoking, break me off some of that.
    ZDNet Gravatar
    HollywoodDog
    19th Jul 2010
  • NonZealot, I found some double standards...
    @HollywoodDog
    You presume a 98% satisfaction rate based on a 2% return rate?

    I hardly believe you'd apply the same logic to Windows' return rate... remember, EVERYONE hates Windows, but evidently they're also satisfied since it's rarely returned based on the merits of the OS itself.
    ZDNet Gravatar
    ericesque
    19th Jul 2010
  • Jobs
    @HollywoodDog ... was named by Harvard Business Review as CEO of the decade. At a time when Microsoft has floundered, it's stock has stagnated, and has been beset by a long series of failures, Apple stock price has soared and computer market share is now up to 10% from something like 2% when Jobs returned.
    Yes, if someone is dissatisfied with iPhone they can return it no questions asked. Try to return Windows to the store and see how far you get. But yeah, those who purchase windows and don't return it count as satisfied. I haven't purchased a copy of Windows in 10 years. I only use it because it's forced on me by the IT department at work.
    ZDNet Gravatar
    HollywoodDog
    19th Jul 2010
  • RE: Open letter to Steve Jobs: Retire now!
    @HollywoodDog - as you point out, Apple's % of the US PC market has finally reached 10%, from a mere 2% back in 1996. So, it took Jobs 14 years to gain 8% of the US PC marketplace - that's almost .6% a year . AWESOME! At that rate of increase, we should see Apple achieve 20% marketshare by around 2024 ... by that time, Jobs will be either retired or dead. Hopefully the former.

    The problem is that Apple exists on the cult of Jobs. If and when Jobs retires, Apple will begin a steady decline into oblivion once more.
    ZDNet Gravatar
    de-void-21165590650301806002836337787023
    19th Jul 2010
  • Have you ever tried to grow a place for your product
    @de-void
    when the competitor holds as much as 98% of the market? Its a world of difference when there are several out there each with shares amounting from as low as a couple to several with teen percentage number and a few with low 20's but to take on one giant with as high a number as 98% and claw your way to double digits is nothing short of a miracle. Especially when you consider the margins Apple makes they are not fighting on price or even features they are taking the most difficult route possible or imagined and they are doing it! Truly AMAZING!!!

    Here you are trying to belittle this miracle.

    Pagan jim
    ZDNet Gravatar
    James Quinn
    19th Jul 2010
  • RE: Open letter to Steve Jobs: Retire now!
    @James Quinn

    I don't know about any miracle. Apple had themselves to blame for not being the top dog in personal computing. They wanted both the hardware and software which was the cause of their downward spiral.

    History seems to be repeating itself, only this time with Google and it's android OS.
    ZDNet Gravatar
    Yax_to_the_Max
    19th Jul 2010
  • Investors want profits, not 'market share'
    @HollywoodDog ... growing the Mac business to 10% market share is no small feat, but keep in mind that what he's siphoning off is the cream of the crop. Not all customers are created equal. Most are "Lauren" stype cheapskates whose prime objective is to pay as little as possible. This is not the market Mac is after.
    Mac is after the creative class, the moneyed class, the people who have other concerns than price and are generally willing to pay a stiff premium for what they want.
    While Jobs deserves credit for taking 10% of the PC market, he deserves more credit for taking away the most desirable PC customers, and deserves even more credit for returning 1500-some-odd percent to shareholders.
    Ballmer has bumbled along without any stock price increase in a decade; returning a dividend but not building value and not building anything that could be a viable future business. He's just going to hang around as long as ego demands and then leave the bag of snakes for a younger generation to try to untangle.
    Anyone who pretends to know what will happen with Apple when Jobs leaves is blowing smoke.
    What Jobs has done for the world is demonstrate that contrary to Gates' assertions, the best platforms are not all software and commodity hardware from whatever manufacturer, but rather tightly integrated hardware and software that work better and constitute singular design.
    Microsoft's era was 1982-1999. It's over.
    ZDNet Gravatar
    HollywoodDog
    19th Jul 2010
  • Which is the better business model I wonder?
    @Yax_to_the_Max
    Apple has ALWAYS made with everything thing it has sold a good solid profit. Never given away things like the XBox and as I understand it XBox is still to this day a profit question for MS. Even when Apple was at it's worst it has BILLIONS in reserves. A reserve that keeps getting bigger and bigger I might add. Now they have gained market share but to be honest I think Apple has proven time and again that market share is not the end all to be all.

    As for Android that so remains to be seen. I suspect that if you are short sighted you will assume that Android has won because X amount of vendors sell in combination Y amount of phones with Android on it. However lets look at it this way and ask which would I rather have? Apple sells X amount of iPhones at Y amount of profit. Moto sells Z amount of Android phones and makes W amount of profit. Which would your rather have?

    Pagan jim
    ZDNet Gravatar
    James Quinn
    19th Jul 2010
  • Oh look, HolywoodDog had to bring up MS (Again)
    I guess he has no real response anymore, his only defense is to somehow bring MS in on it.
    HollywoodDog's era was 10:00am-12:47pm.

    It's over
    ZDNet Gravatar
    John Zern
    19th Jul 2010
    • Flagged
  • RE: Open letter to Steve Jobs: Retire now!
    @ John Zern

    Try actually reading. Ericesque brought up MS, not HD. You were saying?
    ZDNet Gravatar
    DeusExMachina
    19th Jul 2010
  • Master Joe Says...Nothing Given Away?
    To the comment below, suggesting Apple has never given anything away, are you sure? I happen to recall quite a few promotions where, if you bought a MacBook, they gave you a printer and an iPod for FREE. That isn't giving something away? You could suggest that it is built into the price, but so is just about anything considering the cost of the hardware vs. what you actually pay for taht hardware. Also, 10% of the market on HARDWARE, not software. There may be 10% market share of people who buy computers buying Apple (not because it's better, in most cases, mind you), but Windows is still the OS with over 90% of the market share. Mac has about, what now, 3%? Microsoft doesn't make computers. Don't combine the hardware and software to distort the figures. Call it the way it is.

    --Master Joe
    ZDNet Gravatar
    MasterJoe
    19th Jul 2010
  • Actually,
    @MasterJoe
    When it comes to inkjet printers I'm certain Apple looses not a thing. The printer itself makes no one money it's the ink cartridges that is where to money is and Apple represents a huge bundle market for a printer manufacturer especially during back to school days. So I'm SURE Apple likely gets them on the cheep perhaps even free. After all the bundles ink cartridges are often half empty already. Now not sure how Apple does it on the iPods but Apple makes money on song sales as well so that is a factor to consider.. in the case of the touch there is movie, apps, and TV shows as well. Now as for market share are we talking world wide or US. In the US it's around 10% for Apple now. World wide I think it's over 3 which is good considering a few years ago it was less than a full 2. So on both fronts Apple is doing well. Very well I'd say.

    Pagan jim
    ZDNet Gravatar
    James Quinn
    19th Jul 2010
  • RE: Open letter to Steve Jobs: Retire now!
    @HollywoodDog
    The answer is clear. The reason the return rate has been relativley low is that buyers of iPhone 4s were waiting for instructions from the anointed one and now he has spoken. If Jobs had said that the iPhone 4 is defective and that users should return them and that once Apple fixes the problem, they can get a special deal to buy them again, millions of iPhones would have been returned.

    But he didn't do the right thing. Instead he cotinued to spread the deception.

    David Gerwitz is rignt. Jobs needs to let a sane person run Apple. He can do better things for society. And his ego would be satisfied with that. It is time for him to retire.
    ZDNet Gravatar
    Rich_F
    19th Jul 2010
  • RE: Open letter to Steve Jobs: Retire now!
    @Rich_F

    Where did you get this ficticous 10 % share number. Try 4 %. Share is not the sales on any given day. Remember the installed base.
    ZDNet Gravatar
    Rich_F
    19th Jul 2010

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