Apple Fellow and former marketing chief Phil Schiller admitted in court his lack of knowledge regarding the profitability of Apple’s App Store. This surprising confession opened a new perspective on the tech giant’s operations, particularly shedding light on its focus on user experience rather than profit.
Despite his substantial involvement in shaping Apple’s image and being deeply connected with the App Store since its inception, Schiller disclosed his focus was not on profit. Schiller explained the primary goal of creating the best user experience through superior software. This dedication to quality over profit delineates Apple’s distinctive position in the tech industry. In Schiller’s words, Apple isn’t simply a profit-generator but a provider of a secure, reliable, and user-centric digital marketplace.
This emphasis on quality extends to a dedication to constant innovation and improvement of provided services. Schiller revealed during his cross-examination that he didn’t regularly assess profit reports but instead focused on cash flow analysis and risk assessment.
Schiller’s user-centric approach at Apple
This broader perspective of understanding financial management goes beyond the apparent profitability figures.
Substantial attention was brought to the company’s decision to levy a 30% fee on numerous app developers‘ revenue. Schiller maintained that financial metrics like cash flow projections and return on investment did not drive this decision. Instead, it was guided by the commitment to user experience, maintaining an equitable platform, and ensuring the trust of customers.
He underlined the necessity of these charges for maintaining high-quality applications and a secure marketplace. He believes the fee supported the company’s continuous improvement efforts and ecosystem sustainability, benefiting developers and users.
The Apple executive stated the primary factors in decision-making were not financial indicators but personal experiences, current circumstances, and intuition. He claimed that a financial-only focus often overlooked other important aspects, prompting a need for a more comprehensive view of decision-making.
Lastly, Schiller referred to Apple’s unique decision-making model, rooted in the Steve Jobs era, where decisions aren’t recorded. This distinctive management approach persists in Apple’s senior management, reflecting the continued influence of Jobs’ leadership style.
