July 14, 2013 7:06 pm
Apple hires fresh talent for ‘iWatch’
By Tim Bradshaw in San Francisco
Apple has embarked on a hiring spree to tackle design
problems with its “iWatch” wrist computer, bringing in fresh expertise amid
concern that the launch of its first new product since the death of Steve Jobs
could be at least a year away.
The company has begun hiring “aggressively” for the
project in recent weeks, say people familiar with Apple’s plans for the
wearable device, a move that shows it has stepped up development but which
raises questions over the ability of its own engineers to develop wearable
technology.
As Apple moves from iPods, iPhones and iPads into an
entirely new category of product, it is looking beyond its existing staff in
Cupertino for the talent required to build it – an indication that the
endeavour involves “hard engineering problems that they’ve not been able to
solve”, according to one source.
Tim Cook, Apple’s chief executive, could still decide not
to launch the product, just as past ideas have been scrapped, these people
said. However, the iWatch – a brand for which Apple has made several
applications to trademark – has now progressed from an exploratory phase to
having several dozen employees dedicated to its development.
The timing of the hiring spree implied the iWatch would
not be ready for launch until the latter part of next year, said people
familiar with Apple’s thinking, a blow to some investors who have been eager to
see evidence that Apple’s innovators still have the ability to create or
redefine new product categories.
Apple declined to comment, but Mr Cook said in April’s
earnings call: “Our teams are hard at work on some amazing new hardware,
software and services that we can't wait to introduce this fall and throughout
2014.”
While that is expected to include a new lower-cost iPhone
with colourful plastic casing later this year, Mr Cook has recently expressed
enthusiasm for wearable technology. Speaking at an AllThingsD conference in
June, he said it was an area “ripe for exploration” and “incredibly
interesting”.
Earlier this month, Apple hired Paul Deneve, the outgoing
chief executive of fashion house Yves Saint Laurent, to work on undefined
“special projects”, reporting to Mr Cook. His experience in fashion and luxury
goods has been seen as potentially useful in a move into watches, as well as
branding.
Apple’s iWatch recruitment drive has included seeking out
acquisitions of early-stage start-ups working on connected devices. Making
so-called “acqui-hires” such as this has become common practice in Silicon
Valley, where engineering talent carries a high premium, even for top companies
such as Apple.
But with its stock price still far below its highs and
facing growing interest in hardware and mobile software from neighbours such as
Google and Facebook, retaining rank-and-file employees will be a challenge for
Apple, say former employees and those recruiting at other firms.
One senior member of the iWatch team, who had been
considering leaving the company, decided to stay after being awarded a
substantial pay increase, according to one source.
Apple is not the only company looking to recruit talent
for wearable technology in Silicon Valley. Almost all of Apple’s rivals,
including Google and Samsung, as well as start-ups such as Pebble and even PC
manufacturer Dell, are working on smart watches or similar devices.
Copyright The Financial Times Limited 2013.
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