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Secrecy helps, hurts Apple

updated 10:35 am EDT, Wed June 28, 2006

Secrecy helps, hurts Apple

Although Apple says that the surprise factor in its product launches helps the company, its need to control information and keep secrets has forced some of its partners to reconsider their relationship with Apple. The Wall Street Journal reports that the intense secrecy culture, in part, caused HP to terminate its relationship with Apple and also discourages large customers from making commitments to buy Apple product, as the company does not provide a roadmap for its products. "Apple often didn't tell H-P about new iPod models until the day before they were introduced to the public, people familiar with the matter say. That left H-P scrambling to package and stamp its name on the jointly branded iPods for months after Apple put its version on sale.

"What's more, Apple insisted H-P work on iPods under tight security, even though Apple's versions in some cases were already sitting on store shelves," according to the report. "For reasons including the secrecy issue, H-P terminated its Apple deal last August."

The report notes that Apple provides different code names to different departments to help track down any leaks and that it also keeps disclosure lists about who is briefed on each product. The report also says that when employees receive documents containing sensitive information about unannounced products, the documents are often watermarked with the recipient's name--a practice that is meant to discourage carelessness.

 
Previous Comments

Very Interesting

06/28, 02:06pm reply

At the time, I wondered why HP would drop their iPod relationship. Their decision makes a lot of sense.

I completely understand Apple's predilection for secrecy. As opposed to the commoditized Windows PC industry, their innovation is what drives their sales and they have been burned many times by leaks that rob enthusiasm at best, and at worst lead to stolen ideas.

But I think it is a mistake if they are also using this to give their direct sales an advantage over their partners.

ADeweyan

Fresh-Faced Recruit

Joined: Mar 2004

0

well duh

06/28, 02:24pm reply

that's business. s**** the partner and take it all for yourself. look at who runs it and his history as a manger for christ's sake... geeze.

ibugv4

Fresh-Faced Recruit

Joined: Jun 2003

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reporter out of touch

06/29, 12:37am reply

Who is this old, out of touch reporter who wrote this article? He talks about security badges and and other precautions as though he's never set foot in a Fortune 500 company. Doesn't her report on those for the WSJ?!?

BigBwai

Fresh-Faced Recruit

Joined: Sep 2004

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