Secrecy is Paramount

Another argument Lashinsky gives for Apple’s successful business strategies is the choice to remain secret. Apple goes to ridiculous lengths to keep its secrets from the outside world and even its own employees. Apple employees live in constant fear of termination if they divulge anything about how the company works. A recent example of termination occurred when an iPhone 4 prototype was lost in a bar in April 2010. Tech media outlets offered thousands of dollars for the prototype. No one knows what happened to the intoxicated Apple employee, but he no longer works at Apple. Fortunately, sales of the iPhone 4 were not hurt by the leak.

Lashinsky goes into detail how secrecy works as a business strategy. First, Apple does not make products for its customers. Instead, it creates products its employees would want. Further, Apple says no to many suggestions given by consumers to improve its products. Next, Apple relies on consumer generated rumors to advertise future products. Everyone knows roughly when the next Apple release will take place on year length scales, but Lashinsky points out that the rumors related to product details only enhance the desire for consumers to purchase the Apple product. The only real analog to Apple’s secrecy tactic I can think of is the movie industry. Rumors about movie series drive consumers to theatres especially when the movie is based on a true story or book.