Tim Cook vs Steve Jobs: Andreessen Explains How They Differ

By Alexandra Burlacu | Dec 16, 2012 12:50 PM EST

Share This Story

  • Print
  • Email

Renowned Silicon Valley venture capitalist Marc Andreessen sees one major difference between Steve Jobs and Tim Cook: their desire for market share.

While many feared that Apple's fate will go down the drain without its iconic CEO and co-founder Steve Jobs, current chief executive Tim Cook has put up his own fight to prove them wrong.

Follow us

Speaking at an event in New York City, Andreessen explained how different the two Apple CEOs are, and how each has his strengths.

"The Apple playbook under Steve Jobs was a single playbook," said Andreessen. "He would invent a new product category, start with 100% market share, and then every day that goes by, lose market share until some terminal outcome."

To illustrate this theory, Andreessen pointed to the Macintosh computer, the iPhone, the iPod, and the iPad. According to him, the Cupertino giant may own a large chunk of a respective market soon after a product launch, but other companies tent to join the game and bite into its market share. In some cases, such as the iPod, Apple can still remain the biggest vendor. In other cases such as the PC market, however, the company's market share dropped to an inconsequential figure.

Andreessen claims that instead of caring about market share, Jobs focused on a "pricing umbrella" that kept the company's margins stable even as market share started to slide. Cook took over the reins at Apple last year and followed a seemingly different strategy, Andreessen explained.

The venture capitalist pointed to the new iPad Mini, which reportedly brings smaller margins than its full-size counterpart, as proof that Cook is willing to sacrifice big margins for market share. According to him, Cook adopted a different strategy for the sake of software.

"In the long run in these markets, if you're not the majority market share, you don't have the majority of the apps," said Andreessen, noting that the fewer apps available for OS X posed challenges for the platform over the years in its race against Windows.

Should this theory prove to be true, Apple may be headed to a bumpy ride in the smartphone market. According to research firm IDC, 75 percent of all smartphones shipped worldwide in the third quarter ran on Google's Android operating system. Android owned 57.5 percent of that market last year.  

 

Get the Most Popular Mobile&Apps Stories in a Weekly Newsletter

© 2014 Mobile & Apps All rights reserved. Do not reproduce without permission.

Join Our Conversation

Smartphones
T-Mobile Samsung Gear S Samsung Gear S 3G smartwatch gets wearable-specific data plan on T-Mobile – Prices & options
‘World’s narrowest’ FHD smartphone display from LG is virtually bezel-free
Samsung Galaxy A3, Galaxy A5 break cover with full-metal unibody designs & more (VIDEO)
Droid Turbo global version launching on Nov. 5 as Moto Maxx?
Tablet / Laptop / PC
Dell Venue 7 and Venue 8 Dell unveils Venue 7 and Venue 8 Android 4.3 Jelly Bean tablets
Retina iPad Mini facing delays, may not launch until early next year
Refurbished 128GB iPad with Retina Display now available on the Apple Online Store
Samsung Galaxy Note 10.1 – 2014 Edition: Pricing and availability now official
Gadgets
Amazon Logo Amazon reportedly to launch ‘Firetube’ set-top box before 2013 holidays
Samsung Galaxy Note 3 and Galaxy Gear India launch: Pricing and availability
Samsung Galaxy Gear Android smartwatch now up for pre-order in Canada
Samsung Galaxy Gear 2 reportedly in the works already, may debut at CES or MWC 2014
OS / Software
HTC Logo HTC reportedly considering Android/Windows Phone dual-booting smartphone as Microsoft pushes for deeper Windows mobile integration
iOS 7 Chrome Incognito mode leaks private searches due to bug
Sprint HTC One Android 4.3 Jelly Bean already rolling out, AT&T, T-Mobile & Verizon to follow
Microsoft Windows 8.1 now available for pre-order
Internet / Social Media
Google Downtime Google blacks out for two minutes, causes 40 percent drop in world’s Internet traffic
Xbox Music web player is live and ready for Xbox Music Pass subscribers
Facebook Android app collected phone numbers even if users never logged in
Firefox 22 brings support for web video calls, 3D gaming, and Unreal Engine 3
What's App
Flipboard for Windows Phone Flipboard for Windows Phone finally available, but requires 1GB of RAM (VIDEO)
Vine gets major update, lets you upload previously-shot videos & more (VIDEO)
BlackBerry Messenger (BBM) finally hits Windows Phone – Available as a free download now
Instagram releases Bolt ephemeral messaging app in select markets to challenge Snapchat
Copyright © 2014 Mobile & Apps All rights reserved. mobilenapps
Real Time Analytics