Dogfight Summary

“What does it take for a company to turn friends into rivals and alter the course of an entire industry? Apple and Google's war over smartphones offers a fascinating answer.”

Steve Jobs’ Reluctance to Enter the Phone Business

Steve Jobs initially resisted the idea of Apple developing a phone. Back in the early 2000s, phone manufacturers were at the mercy of carriers, giving those carriers an outsized influence over hardware and software design. Jobs saw this lack of control as unacceptable and preferred focusing on expanding products like the iPod and the iTunes Store. iTunes, launched in 2003, allowed Mac and iPod users to legally download music, a unique service at the time.

Competition, however, was brewing. Phones from other manufacturers began incorporating music applications, making the standalone iPod seem redundant to consumers. Apple attempted to address this problem by collaborating with Motorola on the Rokr, a phone that ran iTunes. However, the Rokr failed due to its clunky design and limited storage, forcing Apple to reconsider its approach.

Ultimately, it was Apple’s surging iPod sales in 2004 that gave Jobs the confidence to reconsider an Apple phone. He realized that Apple would have to find a way to manage everything independently to ensure the quality and control he demanded.

Examples

• Apple's fear of relying on carriers like AT&T for design control.
• The Rokr failed because it could only hold 100 songs and had clunky hardware.
• 2004's soaring iPod sales reassured Jobs that Apple could take bigger risks.

Apple’s Vision of an Unprecedented Smartphone

When Apple finally committed to creating a phone, Jobs wasn’t satisfied with simply matching existing devices like the BlackBerry. He wanted features consumers had never experienced before, such as a multi-touch screen that supported two-fingered gestures like pinching and zooming. These ideas were ambitious in 2005 when hardware technology couldn’t readily support them.

One major breakthrough came when Apple decided to replace the fragile or easily scratched plexiglass screens of early prototypes with a new material called "gorilla glass". Jobs discovered this glass while meeting with Corning executives. Originally designed for fighter jets, its durability far exceeded existing materials, making it perfect for a smartphone’s touchscreen.

It took two and a half years to shrink the hardware enough to fit this technology into a compact, consumer-friendly phone. When the iPhone finally launched in 2007, it offered a truly revolutionary user experience.

Examples

• Apple’s efforts to innovate included multi-touch screens, which couldn’t initially be processed by available chips.
• Corning’s gorilla glass allowed the iPhone to survive durability tests like falling onto concrete.
• Engineers worked for over two years to fit critical elements into a sleek design.

Extreme Secrecy Surrounding iPhone Development

Apple’s development process for the iPhone involved secrecy so extreme that it disrupted day-to-day operations for employees. Certain office spaces were partitioned off, remaining accessible only to members of select teams. Over one weekend, even common areas were suddenly restricted to non-iPhone workers.

Employees involved in the development had to sign nondisclosure agreements and additional follow-up contracts ensuring they wouldn’t share information. Some developers didn’t even know how their piece of the project fit into the final product. Teams worked independently, often designing components they had no idea would ultimately go into a phone.

Jobs even extended this secrecy to Apple’s suppliers. For instance, Marvell Electronics unknowingly supplied a Wi-Fi chip for the iPhone under the false belief it was for a next-generation iPod. This secrecy ensured that competitors couldn’t catch wind of the revolutionary product they were creating.

Examples

• Apple divided buildings to keep teams in isolation.
• iPhone engineers didn't use actual devices but simulated ones to test software.
• Apple misled Marvell Electronics with fake diagrams to hide that their chip was for a phone.

Competition Between Apple’s Own Executives

The development of the iPhone wasn’t without internal power struggles. Two executives, Tony Fadell and Scott Forstall, competed for control over the iPhone project. Fadell, credited with leading the design of the iPod, initially spearheaded the device’s development. Jobs viewed Fadell as an invaluable asset.

However, Forstall offered an alternative vision, suggesting Apple adapt its superior OS X system (used in Macs) for the phone rather than relying on Fadell’s iPod software. Although considered technically impossible at the time, Forstall pulled it off by developing a scaled-down version of OS X that fit into a phone.

This success sharpened the rivalry between Fadell and Forstall. Jobs allowed their competition to continue, even encouraging Forstall to recruit engineers from Fadell’s team.

Examples

• Jobs favored Fadell initially, appointing him head engineer for the iPhone.
• Forstall’s version of the OS compressed OS X into a fraction of its size.
• Competitive frictions between Fadell’s and Forstall’s teams lasted years.

Google’s Secret Android Project During Partnership

Google had been a partner in the iPhone project with teams developing apps like Google Maps and YouTube for the device. This relationship gave Jobs the assumption that Google was aligned with Apple’s goals, but he had no idea that Google had been working on its own operating system, Android, as early as 2005.

By the mid-2000s, Google had acquired Android Inc. and was partnering with HTC to design smartphones using Android. Though their first effort, the HTC Sooner, failed due to its outdated design upon launch, Google quietly pivoted to other Android devices even as the Apple-Google collaboration continued.

Jobs famously felt betrayed when Google later became a direct competitor and launched Android with features eerily similar to those of the iPhone.

Examples

• Google formed a specialized iPhone app team to enhance the iPhone’s functions.
• The first Android phone (HTC Sooner) failed, trailing behind the iPhone.
• Google later reversed course, pushing the Android platform aggressively.

Engineers Overcame Major Flaws Right Before Launch

In preparation for the iPhone’s 2007 debut, engineers tackled daunting technical issues that posed risks to the product’s global reception. For instance, the phone’s virtual keyboard was erratic and delayed, and the fragile multi-touch sensors weren’t integrating seamlessly with its gorilla-glass display.

Although Jobs launched the iPhone with a flawless presentation at MacWorld, he swapped between phones during his demo because they kept crashing. He knew the devices weren’t market-ready but pressured his teams to fix the bugs before the June 29 release date.

Despite last-minute panic, Apple managed to deliver. On its first weekend, Apple sold 270,000 iPhones, securing record-breaking sales in the following months.

Examples

• The virtual keyboard’s lagging caused multiple letters to appear with one tap.
• Engineers had issues embedding touch sensors into the screens.
• The iPhone sold 3.4 million units in its first six months.

Jobs’ Reaction to Google’s Betrayal

When Google officially announced Android in 2007, Jobs was livid. He confronted Google executives, accusing them of copying the iPhone. They initially placated him by denying direct competition, but Jobs later learned they were pursuing iPhone-like features such as multi-touch navigation.

Jobs threatened lawsuits, vowing to go "thermonuclear" to defend Apple’s intellectual property. However, Google continued developing Android, partnering with Motorola to release the Droid in 2009. The Droid’s success, coupled with Android’s advanced features, stoked the rivalry further.

Examples

• Jobs believed Android was an iPhone imitation, calling it a “stolen product.”
• Google’s Droid outsold the iPhone in its first three months.
• Jobs accused Android leaders directly during heated private meetings.

The Legal War that Followed

As more Android phones adopted features patented by Apple, a series of lawsuits were filed in multiple countries. Instead of suing Google, Jobs targeted manufacturers like HTC and Samsung, whose devices ran Android. Apple successfully won significant settlements, such as a $1 billion victory against Samsung in the U.S.

The legal battles consumed massive resources. Apple hired 300 lawyers to handle lawsuits against Samsung alone. This strategy ultimately served not only to protect Apple’s patents but also to disrupt Android’s meteoric rise.

Examples

• Apple’s lawsuits emphasized multi-touch and swipe features.
• Samsung faced over 50 lawsuits from Apple globally by 2012.
• Apple secured a billion-dollar settlement against Samsung.

The Long-Term Battle Between Apple and Google

After Jobs’ passing in 2011, the rivalry continued. Apple launched services like iAd and its mapping software to cut into Google’s market strongholds. However, Apple Maps’ flawed release dented the company’s reputation, and the app quickly earned ridicule for glaring inaccuracies.

Meanwhile, Google pushed further into mobile markets with apps like Google Voice, which threatened to overshadow similar services on iPhones. Despite setbacks, Apple has remained adamant about limiting Google’s influence over its ecosystem.

Examples

• Apple’s iAd generated $200 million in just three years.
• Apple Maps struggled with inaccuracies, even mislocating landmarks like the Washington Monument.
• Google Voice allowed users to combine calls and emails under one identifier.

Takeaways

1. Keep disruptive innovations secret until they’re ready to launch by restricting internal and external leaks.
2. Take bold risks, but ensure a flawless execution plan to deliver groundbreaking products that set the standard.
3. Manage competition wisely by balancing collaboration and monitoring for potential threats, even from allies.