‘Apple Has A Real Problem’ – Supposedly, It’s Losing Talented Engineers

‘Apple Has A Real Problem’ – Supposedly, It’s Losing Talented Engineers

NICHOLAS CARLSON0DEC 9, 2013, 11.21 PM

AP

In the past few days, Apple spent hundreds of millions of dollars buying two startups – Topsy, a Twitter search engine, and PrimeSense, which the makes motion-sensing tech behind gadgets like Microsoft Kinect. On the most recent episode of Marco Arment’s Accidental Tech Podcast, close Apple watchers Casey Liss, and John Siracusa tried to figure out why Apple bought those startups.The best reason they came up with is a pretty damning, troublesome one for Apple.

Liss and Siracusa suppose that Apple bought both because it’s having a hard time hiring and retaining talented people.

At one point during the show, Liss goes off on a long riff about how “Apple has a real problem” with talent.

(At least, I think it’s Liss. The ATP hosts/guests don’t do a very good job of identifying themselves at the beginning of, or throughout, each episode.)

Here’s what Liss said next, (lightly edited for brevity and grammar):

Their hardware is better than it’s ever been right now.

But there services have never been great, and even their software is really starting to go into disrepair.

The OS level stuff is rock solid. Whomever they have working on OS stuff, they have great people and enough of them.

But the applications teams are really strained. That’s why you have all these years of iWork ’09, and then this new release of iWork that’s really obviously unfinished. Clearly Apple needs more people. They need more engineers.

From what I understand they lose a lot of people because there’s this whole world of apps and startups around the ecosystem they’ve created and their own employees can’t participate in that while they work for Apple.

So it’s very tempting for their employees to say, I’ve been supporting UIkit or apps, for all these years, maybe I want to go make my app. Apple has a good policy where if you want to leave and come back in a certain amount of time you can retain all your seniority. They have a problem getting people and retaining people.

Liss, Siracusa and Arment are pretty plugged into the Apple scene.

They don’t seem to have senior sources at Apple, but they do go to the company’s major conferences and meet a lot of mid-level Apple engineers.

If those people are telling them that Apple can’t hang on to good people anymore, than the company will eventually start producing flop products.

When that happens, this year’s shareholder worries about slowing iPhone and iPad growth will seem quaint.

The idea of Apple not being able to hang onto good people is not new.Another Apple blogger, John Gruber, started publicly worrying about it in March.

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Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (www.heroinnovator.com), the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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