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Why Has Apple Spawned So Few Startups?

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Re: Why Has Apple Spawned So Few Startups?

#61
post #42

Maybe another reason why Apple spawned comparatively few startups might be that some of the areas of expertise for Apple and their employees are harder to do in startup-sized companies; namely hardware engineering and mass manufacturing innovation. Apple does a lot of work in hardware and hardware manufacturing, both areas which are pretty capital-intensive and might not lead themselves as easily to the startup world…

> ...harder to do in startup-sized companies; namely hardware engineering and mass manufacturing innovation. Don't forget all the hardware companies you know today were once startups. Yes there's a current fashion to call companies that are basically small businesses "startups", but the term encompasses a far more profound class of enterprise. And Apple itself was founded by an engineer (Woz) who first got his start…

While true that hardware companies were also once start ups, they were also startups at a different time. Please correct me if I'm wrong, but weren't they start ups when there were no existing hardware companies that operate at the same scale the current big hardware companies do?

Re: Why Has Apple Spawned So Few Startups?

#62
post #42

Maybe another reason why Apple spawned comparatively few startups might be that some of the areas of expertise for Apple and their employees are harder to do in startup-sized companies; namely hardware engineering and mass manufacturing innovation. Apple does a lot of work in hardware and hardware manufacturing, both areas which are pretty capital-intensive and might not lead themselves as easily to the startup world…

> ...harder to do in startup-sized companies; namely hardware engineering and mass manufacturing innovation. Don't forget all the hardware companies you know today were once startups. Yes there's a current fashion to call companies that are basically small businesses "startups", but the term encompasses a far more profound class of enterprise. And Apple itself was founded by an engineer (Woz) who first got his start…

Clearly hardware start ups aren't impossible, but we are talking about relative difficulty. The article is only comparing them to software companies (Google, Yahoo, Paypal).

I also think its right to compare now with the 1980s when F500 companies didn't know how to compete in the new tech hardware space. Companies like Samsung rush into new product spaces very early in the adoption cycle.

Re: Why Has Apple Spawned So Few Startups?

#63
post #42

Earlier quoted context omitted.

> ...harder to do in startup-sized companies; namely hardware engineering and mass manufacturing innovation. Don't forget all the hardware companies you know today were once startups. Yes there's a current fashion to call companies that are basically small businesses "startups", but the term encompasses a far more profound class of enterprise. And Apple itself was founded by an engineer (Woz) who first got his start…

> Don't forget all the hardware companies you know today were once startups. Unfortunately the winds of VC have changed a lot since then. Originally, VCs were willing and eager to invest millions in a promising innovation. Now they expect you to demonstrate traction before any large investments—which is infinitely harder with hardware startups.

Not only that, but software startups used to not be so cheap either. 15 years ago you need to raise millions just to buy servers. Granted that wasn't the case in the early days of software (Microsoft didn't need servers when they were a startup), but it's an interesting dynamic in the internet age.

Re: Why Has Apple Spawned So Few Startups?

#64
post #57

Earlier quoted context omitted.

I've a number of friends on various teams, from WebKit, to iOS, to datacenter folks, to various app teams, and hardware teams and not one has ever consistently worked a 40hr work week. Most are easily averaging 50-60, with spurts close to or over 100 before launches. Consistently the message I've heard is people are expected to "work till its ready", so I'm not sure where you'd have heard this about Apple.

How do people do that? I'm fairly new in the game, but right after Christmas I had to work 3 weeks, about 70 hours each in a row. I was _exhausted_ after that. By the end of the third week, my head was just spinning and I went on a low morale and creative drought for 3 months... I could barely code deserialisation functions without losing focus.. So basically, how do you do it and keep sane?!

You don't, it's just that cuz EVERYONE is doing no one sees the insanity.

Re: Why Has Apple Spawned So Few Startups?

#65
post #29
post #6

Article doesn't seem to give any evidence of this. Apple's been around forever and former Apple (and NeXT, if you stick to the logic it's some sort of Jobsian startup-suppression field) employees have been involved in zillions of startups over the years. EA, Danger/Android, Nest, Flipboard come to mind.

Exactly. Though technically, NeXT is "a startup that Apple spawned", I think? Also: Be Inc., Palm/Handspring (Donna Dubinsky), General Magic, Eazel.

Claris? (FileMaker)

http://en.wikipedia.org/wiki/Claris

Re: Why Has Apple Spawned So Few Startups?

#66

Earlier quoted context omitted.

> Don't forget all the hardware companies you know today were once startups. Unfortunately the winds of VC have changed a lot since then. Originally, VCs were willing and eager to invest millions in a promising innovation. Now they expect you to demonstrate traction before any large investments—which is infinitely harder with hardware startups.

Really? I get the strong impression (what with people throwing the word bubble around and making regular comparisons to the dotcom era) that VC's are far less picky today then they were 10 years ago.

The hardware companies you know today weren't founded in the 2000s. The golden age of hardware startups was the 70s/80s.

Re: Why Has Apple Spawned So Few Startups?

#67

(I really hope I don’t offend any Apple people saying this) My impression, which comes from meeting a handful of Apple employees and several friends who took jobs and later left, is that the culture of Apple is that of “show up, do good work, cash the paycheck, and go home to your family.” It is not one of “Let’s conquer the world and become bazillionairres while we’re at it” — the Google culture — which is more pron…

the Google culture — which is more prone to eventually jumping ship and creating a startup. That's funny because I've always considered Google a place where great people disappear and never come out except for a small number who start a company only to be aquihired by Google. I could be wrong about that as well.

Apparently that's not true as their average tenure is only 1.1 years, at least according to

http://www.geekwire.com/2013/amazon-google-employees-ranked-...

Re: Why Has Apple Spawned So Few Startups?

#68

(I really hope I don’t offend any Apple people saying this) My impression, which comes from meeting a handful of Apple employees and several friends who took jobs and later left, is that the culture of Apple is that of “show up, do good work, cash the paycheck, and go home to your family.” It is not one of “Let’s conquer the world and become bazillionairres while we’re at it” — the Google culture — which is more pron…

The first one sounds like a very healthy attitude, or at least inoffensive. I’m not sure why you would think you would offend anyone with that?

That said, people actually working for Apple do seem to put in a lot of (and consequently inevitably) unhealthy and unproductive hours.

Re: Why Has Apple Spawned So Few Startups?

#69

Few compared to what? Microsoft? Google? Facebook? Oh, the article doesn't quantify what it means by "few." It just throws that idea out there for no reason and then pretends it's a thing.

IBM perhaps? Of course most everybody pales in comparison to IBM when it comes to startup children.

Re: Why Has Apple Spawned So Few Startups?

#70

Earlier quoted context omitted.

> Don't forget all the hardware companies you know today were once startups. Unfortunately the winds of VC have changed a lot since then. Originally, VCs were willing and eager to invest millions in a promising innovation. Now they expect you to demonstrate traction before any large investments—which is infinitely harder with hardware startups.

Not only that, but software startups used to not be so cheap either. 15 years ago you need to raise millions just to buy servers. Granted that wasn't the case in the early days of software (Microsoft didn't need servers when they were a startup), but it's an interesting dynamic in the internet age.

Indeed. As the cost of software startups has come down dramatically, hardware startups have become relatively more expensive.
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