Under Tim Cook, Apple Vacillates

“It’s going to be an iPad Christmas.” That’s according to Tim Cook as Apple reported its latest earnings.

Summed up in that quote is a leading lifestyle company – and a leading tech company. Apple is able to vacillate between two worlds as no other company has done before.

It has been accomplished by creating a culture of world-class visionaries. The result -- experiences few of us can predict. This culture continues a relentless out-of-the-box driving vision and culture created by its founder, Steve Jobs. It is also continued under a cool steady, quiet hand of Tim Cook. Apple’s two most successful CEOs in its tenure also encompass leaders seemingly from two worlds.

But, where Jobs vision and Cook’s leadership converge is Apple’s ability to vacillate between “now” and “what’s next.” Notice I did not say “Now and Then.” Apple does not look back – it looks ahead.

As I write this, the company now, for example, has launched the iPad Air – “thinner, light, faster.” Coming is the iPad Mini with retina display. Apple has trained us to anticipate and ask, “What’s next?”

In Apple’s world of “what’s next” the truth is that we do not know. Think about it. We did not know that we wanted all our music stored in the cloud until the iPod was introduced. We did not believe that we could have one device that was a phone, all digital communications, and the Internet in the palm of our hands – until the iPhone. Nor did we know that we would prefer an iPad for reading a “newspaper.”

Finally, we did not know that the coolest, most fashionable store in the world would emerge as a glass box in front of the GM Building in NYC. It was a collision of the excitement of Bloomingdales’ merchandising and Best Buy gone right.

Through all this success – and vision, no company is more scrutinized.

The scrutiny was apparent when Apple reported profit of $7.5 billion for the fourth fiscal quarter, on revenue of $37.5 billion. These numbers are the envy of any company – but earnings in the same period last year were better: $8.2 billion on $36 billion in revenue. But Apple’s relentless focus on its business and dedication to developing incredible products with great user experiences trumps another age-old Wall Street balancing act of short- and long-term results. Apple is clearly in it for the long-term.

Also this quarter, iPhone sales were up, iPad sales were flat, and Mac sales slowed. Plus, there is margin pressure as the market is flooded with competition and choice in smart phone and tablets.

Regardless, Apple will stay ahead of the market as it is not a tech company, but a lifestyle company. Just in iPads, consumers can choose what fits their life: the new iPad Air, or the iPad Mini.

Apple’s visionary culture is driven by its people – a mosaic of extraordinary hires. Case in point: The recent hiring of Angela Ahrendts, the current CEO of Burberry – underscoring Apple’s commitment and vision as a leading lifestyle brand. Or, Paul Deneve, former CEO and Yves-Saint Laurent.

In fact, I have often talked about vision as a cornerstone of great leaders – Apple lives and breathes a vision.

For vision to become reality, great leaders anticipate. To anticipate is to be grounded in today’s reality, and look beyond the horizon to envision what is there.

Apple has created a culture of realizing a vision through anticipation. Even in the “now,” Apple operates a step ahead. And in the “what’s next,” it operates in a realm where the world anticipates what is next from Apple.

There is no other company I have witnessed that “anticipates” better. Apple has created its own world – where the world reacts to Apple – Apple does not react to the world. And, consumers around the world react by wanting an Apple device – or just hanging out in an Apple store.

If Tim Cook is right, “It’s going to be an iPad Christmas,” as Apple successfully vacillates between now and what’s next.

Photo: Bloomberg via Getty Images.