Sunday, November 25, 2012

What is Apple's objective function?

Walter Isaacson's biography of Steve Jobs is a lot of fun--at least in part because it is not a hagiography.

One of the most striking things about the book is that Jobs never pushed profit maximization per se--he pushed "great products."  When John Scully pushed out Jobs and ran the company, he did push profit maximization--and Apple nearly went out of business.  Re-enter Jobs with his products-first philosophy, and Apple eventually becomes the most valuable company in history.

When economists model firms, we inevitably assume profit maximization, and then allow firms to compete either through price or quality.  The exception to this is a principal-agent set-up, where managers are seeking to maximize their own compensation.  But this doesn't really work for Apple, where Jobs was both a principal and an agent.

Maybe none of this matters--that making great products is a sufficiently strong proxy for profit maximization.  But Job's desire to make great products led him to care a lot less about cost minimization than, say, Dell--the chapter on how fanatical Jobs was about the plastic case molding for the original Macintosh underscores how Jobs tended not to think about marginal revenue and marginal cost when making decisions.

25 comments:

Turesta istanbul said...

It can be described more roughly by the number of rooms. A studio apartment has a single bedroom with no living room (possibly a separate kitchen istanbul real estate).
A one-bedroom apartment has a living or dining room istanbul property separate from the bedroom. Two bedroom, three bedroom, and larger units are common.
(A bedroom is defined istanbul properties as a room with a closet for clothes storage.)


The size of an apartment or house can be istanbul property described in square feet or meters. In the United States, this istanbul real estate includes the area of "living space",
excluding the garage and other non-living spaces. The "square meters" figure of a house in Europe istanbul properties may report the total area of the walls enclosing the home,
thus including any attached garage and non-living spaces, which makes it important to inquire what kind of surface definition has been used.


In recent years, istanbul real estate many economists have recognized that the lack of
effective real estate laws can be a significant istanbul properties barrier to investment in
many developing countries. In most societies, rich and poor, a significant fraction of the total wealth is in the form of istanbul property land and buildings.

In most advanced economies, the main source of capital istanbul real estate used by
individuals and small companies to purchase and improve land and buildings is mortgage loans (or other instruments). These are loans for which the real property
itself constitutes collateral. Banks are willing to make such loans at favorable rates in large part because,
istanbul property if the borrower does not make payments, the lender can foreclose by
filing a court action which allows them to take back the property and sell it to get their money back. For investors, profitability can be enhanced by using an off
plan or pre-construction strategy to purchase at a lower price which is often the case in the pre-construction istanbul properties phase of development.

davelindahl said...

hi,Nice posting.it would be more interesting and informative to us.we have news about
real estate investing.visit:dave lindahl

davelindahl said...

Hi,good post.i am satisfied.it will be very useful to us.we have news about real estate
investing.visit:dave lindahl

davelindahl said...
This comment has been removed by a blog administrator.
rajni sharma said...
This comment has been removed by the author.
pptiger tiger said...
This comment has been removed by the author.
pptiger tiger said...
This comment has been removed by the author.
pptiger tiger said...
This comment has been removed by the author.
pptiger tiger said...
This comment has been removed by the author.
PropTiger.com said...
This comment has been removed by the author.
davelindahl said...

More news about real estate investing.
visit:dave lindahl

Jitendra Kumar said...

Very very interesting blog. I read this blog. Thank you for making this blog...

Also see real estate companies in Chandigarh or real estate companies in ghaziabad

Jitendra Kumar said...

Very very interesting blog. I read this blog. Thank you for making this blog...
Also see Residential Property in Ghaziabad &
Residential Property in Chandigarh

Jitendra Kumar said...

Very very interesting blog. I read this blog. Thank you for making this blog....

Also see Greater Noida Real Estate & Real Estate Greater Noida

Prop Tiger said...
This comment has been removed by the author.
Prop Tiger said...
This comment has been removed by the author.
Prop Tiger said...
This comment has been removed by the author.
NaLimA KaPooR said...

I would like to tell you that you have given much knowledge about it.
also would recommend to choose residential property in
Aranya Homes Noida
for best deals,also recommends to invest inEldeco Property in Noida
for best return on investment.this is my personnel opinion and experience.

NaLimA KaPooR said...

I would like to tell you that you have given much knowledge about it.
also would recommend to choose residential property in
Aranya Homes Noida Extension
for best deals,also recommends to invest in Eldeco Group for best return on investment.this is my personnel opinion and experience.

davelindahl said...

Hi,post will be very nice.The information of your post will be very useful to us.
through your post i have learn many things about real estate investments.i have like
to follow your post daily.we have need essential news about real estate investments.
david lindahl scam will be not true.

deepu said...
This comment has been removed by the author.
deepu said...
This comment has been removed by the author.
deepu said...
This comment has been removed by the author.
deepu said...
This comment has been removed by the author.
Violet Jessy said...

Interesting real estate post. Thank you for the latest real estate scenario.