since the iPhone launched Apple has created three (!) more innovative and category-defining products - the iPad, Watch and AirPods. The iPad is a little polarising amongst tech people (and it remains unfinished business, as Apple concedes in how often it fiddles with the keyboard and the multitasking) but after a rocky start it’s stabilised as roughly the same size as the Mac. The Watch and the Airpods, again, have both become $10bn+ businesses, but also seem to have stabilised. (The ‘Wearables, Home and Accessories’ category also includes the Apple TV, HomePods and Apple’s sizeable cable, dongle & case business.)

Meanwhile, since both the Watch and AirPods on one side and the services on the other are all essentially about the attach rate to iPhone users, you could group them together as one big upsell, which suggests a different chart: half of Apple’s revenue is the iPhone and another third is iPhone upsells - 80% in total.

I think the car project was the classic Apple of Steve Jobs. Apple spent a lot of time and money trying to work out whether it could bring something new, and said no. . The shift to electric is destabilising the car industry and creating lots of questions about who builds cars and how they build them, and that’s a situation that should attract Apple. However, I also think that Apple concluded that while there was scope to make a great car, and perhaps one that did a few things better, there wasn’t really scope to do something fundamentally different, and solve some problem that no-one else was solving. Apple would only be making another EV, not redefining what ‘car’ means, because EVs are still basically cars - which is Tesla’s problem. It looks like the EV market will play out not like smartphones, where Apple had something unique, but like Android, where there was frenzied competition in a low-margin commodity market. So, Apple walked away - it said no.

People often suggest that Apple should buy anything from Netflix to telcos to banks, and I used to make fun of this by suggesting that Apple should buy an airline ‘because it could make the seats and the screens better’. Yes, Apple could maybe make better seats than Collins Aerospace, but that’s not what it means to run an airline. Where can Apple change the fundamental questions?

It ships MVPs that get better later, sure, and the original iPhone and Watch were MVPs, but the original iPhone also was the best phone I’d ever owned even with no 3G and no App Store. It wasn’t a concept. it wasn’t a vision of the future- it was the future. The Vision Pro is a concept, or a demo, and Apple doesn’t ship demos. Why did it ship the Vision Pro? What did it achieve? It didn’t sell in meaningful volume, because it couldn’t, and it didn’t lead to much developer activity ether, because no-one bought it. A lot of people even at Apple are puzzled.

The new Siri that’s been delayed this week is the mirror image of this. Last summer Apple told a very clear, coherent, compelling story of how it would combine the software frameworks it’s already built with the personal data in apps spread across your phones and the capabilities of LLMs to produce a new kind of personal assistant. This was the eats of Apple - taking a new primary technology and proposing way to make it useful for everyone else

The lines between technology and culture are blurring. And so, it’s no longer enough to build great tech.

Whether in expressed via product design, brand, or user experience, taste now defines how a product is perceived and felt as well as how it is adopted, i.e. distributed — whether it’s software or hardware or both. Technology has become deeply intertwined with culture.3 People now engage with technology as part of their lives, no matter their location, career, or status.

founders are realizing they have to do more than code, than be technical. Utility is always key, but founders also need to calibrate design, brand, experience, storytelling, community — and cultural relevance. The likes of Steve Jobs and Elon Musk are admired not just for their technical innovations but for the way they turned their products, and themselves, into cultural icons.

The elevation of taste invites a melting pot of experiences and perspectives into the arena — challenging “legacy” Silicon Valley from inside and outside.

B2C sectors that once prioritized functionality and even B2B software now feel the pull of user experience, design, aesthetics, and storytelling.

Arc is taking on legacy web browsers with design and brand as core selling points. Tools like Linear, a project management tool for software teams, are just as known for their principled approach to company building and their heavily-copied landing page design as they are known for their product’s functionality.4 Companies like Arc and Linear build an entire aesthetic ecosystem that invites users and advocates to be part of their version of the world, and to generate massive digital and literal word-of-mouth. (Their stories are still unfinished but they stand out among this sector in Silicon Valley.)

Any attempt to give examples of taste will inevitably be controversial, since taste is hard to define and ever elusive. These examples are pointing at narratives around taste within a community.

So how do they compete? On how they look, feel, and how they make users feel.6 The subtleties of interaction (how intuitive, friendly, or seamless the interface feels) and the brand aesthetic (from playful websites to marketing messages) are now differentiators, where users favor tools aligned with their personal values. All of this should be intertwined in a product, yet it’s still a noteworthy distinction.

Investors can no longer just fund the best engineering teams and wait either. They’re looking for teams that can capture cultural relevance and reflect the values, aesthetics, and tastes of their increasingly diverse markets.

How do investors position themselves in this new landscape? They bet on taste-driven founders who can capture the cultural zeitgeist. They build their own personal and firm brands too. They redesign their websites, write manifestos, launch podcasts, and join forces with cultural juggernauts.

Code is cheap. Money now chases utility wrapped in taste, function sculpted with beautiful form, and technology framed in artistry.

The dictionary says it’s the ability to discern what is of good quality or of a high aesthetic standard. Taste bridges personal choice (identity), societal standards (culture), and the pursuit of validation (attention). But who sets that standard? Taste is subjective at an individual level — everyone has their own personal interpretation of taste — but it is calibrated from within a given culture and community.

Taste manifests as a combination of history, design, user experience, and embedded values that creates emotional resonance — that defines how a product connects with people as individuals and aligns with their identity. None of the tactical things alone are taste; they’re mere artifacts or effects of expressing one’s taste. At a minimum, taste isn’t bland — it’s opinionated.

The most compelling startups will be those that marry great tech with great taste. Even the pursuit of unlocking technological breakthroughs must be done with taste and cultural resonance in mind, not just for the sake of the technology itself. Taste alone won’t win, but you won’t win without taste playing a major role.

Founders must now master cultural resonance alongside technical innovation.

In some sectors—like frontier AI, deep tech, cybersecurity, industrial automation—taste is still less relevant, and technical innovation remains the main focus. But the footprint of sectors where taste doesn’t play a big role is shrinking. The most successful companies now blend both. Even companies aiming to be mainstream monopolies need to start with a novel opinionated approach.

I think we should leave it at “taste” which captures the artistic and cultural expressions that traditional business language can’t fully convey, reflecting the deep-rooted and intuitive aspects essential for product dev

Who decided these features should go in the WWDC keynote, with a promise they’d arrive in the coming year, when, at the time, they were in such an unfinished state they could not be demoed to the media even in a controlled environment? Three months later, who decided Apple should double down and advertise these features in a TV commercial, and promote them as a selling point of the iPhone 16 lineup — not just any products, but the very crown jewels of the company and the envy of the entire industry — when those features still remained in such an unfinished or perhaps even downright non-functional state that they still could not be demoed to the press? Not just couldn’t be shipped as beta software. Not just couldn’t be used by members of the press in a hands-on experience, but could not even be shown to work by Apple employees on Apple-controlled devices in an Apple-controlled environment? But yet they advertised them in a commercial for the iPhone 16, when it turns out they won’t ship, in the best case scenario, until months after the iPhone 17 lineup is unveiled?

“Can anyone tell me what MobileMe is supposed to do?” Having received a satisfactory answer, he continued, “So why the fuck doesn’t it do that?” For the next half-hour Jobs berated the group. “You’ve tarnished Apple’s reputation,” he told them. “You should hate each other for having let each other down.” The public humiliation particularly infuriated Jobs. Walt Mossberg, the influential Wall Street Journal gadget columnist, had panned MobileMe. “Mossberg, our friend, is no longer writing good things about us,” Jobs said. On the spot, Jobs named a new executive to run the group. Tim Cook should have already held a meeting like that to address and rectify this Siri and Apple Intelligence debacle. If such a meeting hasn’t yet occurred or doesn’t happen soon, then, I fear, that’s all she wrote. The ride is over. When mediocrity, excuses, and bullshit take root, they take over. A culture of excellence, accountability, and integrity cannot abide the acceptance of any of those things, and will quickly collapse upon itself with the acceptance of all three.

At Netflix, we have such a diverse population of shows in 183 countries around the world. We’re really trying to serve up lots of stories people haven’t heard before. When you go into our environment, you’re like, “Ooh, what is that?” You’re almost kind of afraid to touch it, because you’re like, “Well, I don’t want to waste my time.”That level of discovery is literally, I’m not bullshitting you, man, that’s the thing that keeps me up at night. How do I help figure out how to help people discover things, with enough evidence that they trust it? And when they click on it, they love it, and then they immediately ping their best friend, “Have you seen this documentary? It’s amazing.” And she tells her friends, and then that entire viral loop starts.

The discovery engine is very temporal. Member number 237308 could have been into [reality TV] because she or he just had a breakup. Now they just met somebody, so all of a sudden it shifts to rom-coms.Now that person that they met loves to travel. So [they might get into] travel documentaries. And now that person that they’re with, they may have a kid, so they might want more kids’ shows. So, it’s very dangerous for us to ever kind of say, “This is what you like. You have a cat. You must like cat documentaries.”

We don’t see each other, obviously, and I don’t want to social network on Netflix. But knowing other humans exist there is part of it.You answered the question absolutely perfectly. Not only because it’s your truth, but that’s what everyone says! That connection part. So another thing that goes back to your previous question, when you’re asking me what’s on my mind? It’s that. How do I help make sure that when you’re in that discovery loop, you still feel that you’re connected to others.I’m not trying to be the Goth kids on campus who are like, “I don’t care about what’s popular.” But I’m also not trying to be the super poppy kids who are always chasing trends. There’s something in between which is, “Oh, hey, I haven’t heard about that, and I kind of want to be up on it.”

I am looking forward to seeing what Apple does with this and then figuring out more, how are people going to use it? Then I think that we should have a real discussion about how Netflix does it.But to just port Netflix over? No. It’s got to make sure that it’s using the power of the system as much as humanly possible so that it’s really making that an immersive experience. I don’t want to put resources toward that right now.

The design team here at Netflix, we played a really big hand in how that worked because we had to design the back-end tool. What people don’t know about our team is 30% of our organization is actually designing and developing the software tools that we use to make the movies. We had to design a tool that allowed the teams to understand both what extra footage to shoot and how that might branch. When the Black Mirror team was trying to figure out how to make this narrative work, the software we provided really made that easier.

inside look at how Perplexity builds product—which to me feels like what the future of product development will look like for many companies:AI-first: They’ve been asking AI questions about every step of the company-building process, including “How do I launch a product?” Employees are encouraged to ask AI before bothering colleagues.Organized like slime mold: They optimize for minimizing coordination costs by parallelizing as much of each project as possible.Small teams: Their typical team is two to three people. Their AI-generated (highly rated) podcast was built and is run by just one person.Few managers: They hire self-driven ICs and actively avoid hiring people who are strongest at guiding other people’s work.A prediction for the future: Johnny said, “If I had to guess, technical PMs or engineers with product taste will become the most valuable people at a company over time.”

Typical projects we work on only have one or two people on it. The hardest projects have three or four people, max. For example, our podcast is built by one person end to end. He’s a brand designer, but he does audio engineering and he’s doing all kinds of research to figure out how to build the most interactive and interesting podcast. I don’t think a PM has stepped into that process at any point.

We leverage product management most when there’s a really difficult decision that branches into many directions, and for more involved projects.

The hardest, and most important, part of the PM’s job is having taste around use cases. With AI, there are way too many possible use cases that you could work on. So the PM has to step in and make a branching qualitative decision based on the data, user research, and so on.

a big problem with AI is how you prioritize between more productivity-based use cases versus the engaging chatbot-type use cases.

we look foremost for flexibility and initiative. The ability to build constructively in a limited-resource environment (potentially having to wear several hats) is the most important to us.

We look for strong ICs with clear quantitative impacts on users rather than within their company. If I see the terms “Agile expert” or “scrum master” in the resume, it’s probably not going to be a great fit.

My goal is to structure teams around minimizing “coordination headwind,” as described by Alex Komoroske in this deck on seeing organizations as slime mold. The rough idea is that coordination costs (caused by uncertainty and disagreements) increase with scale, and adding managers doesn’t improve things. People’s incentives become misaligned. People tend to lie to their manager, who lies to their manager. And if you want to talk to someone in another part of the org, you have to go up two levels and down two levels, asking everyone along the way.

Instead, what you want to do is keep the overall goals aligned, and parallelize projects that point toward this goal by sharing reusable guides and processes.

Perplexity has existed for less than two years, and things are changing so quickly in AI that it’s hard to commit beyond that. We create quarterly plans. Within quarters, we try to keep plans stable within a product roadmap. The roadmap has a few large projects that everyone is aware of, along with small tasks that we shift around as priorities change.

Each week we have a kickoff meeting where everyone sets high-level expectations for their week. We have a culture of setting 75% weekly goals: everyone identifies their top priority for the week and tries to hit 75% of that by the end of the week. Just a few bullet points to make sure priorities are clear during the week.

All objectives are measurable, either in terms of quantifiable thresholds or Boolean “was X completed or not.” Our objectives are very aggressive, and often at the end of the quarter we only end up completing 70% in one direction or another. The remaining 30% helps identify gaps in prioritization and staffing.

At the beginning of each project, there is a quick kickoff for alignment, and afterward, iteration occurs in an asynchronous fashion, without constraints or review processes. When individuals feel ready for feedback on designs, implementation, or final product, they share it in Slack, and other members of the team give honest and constructive feedback. Iteration happens organically as needed, and the product doesn’t get launched until it gains internal traction via dogfooding.

all teams share common top-level metrics while A/B testing within their layer of the stack. Because the product can shift so quickly, we want to avoid political issues where anyone’s identity is bound to any given component of the product.

We’ve found that when teams don’t have a PM, team members take on the PM responsibilities, like adjusting scope, making user-facing decisions, and trusting their own taste.

What’s your primary tool for task management, and bug tracking?Linear. For AI products, the line between tasks, bugs, and projects becomes blurred, but we’ve found many concepts in Linear, like Leads, Triage, Sizing, etc., to be extremely important. A favorite feature of mine is auto-archiving—if a task hasn’t been mentioned in a while, chances are it’s not actually important.The primary tool we use to store sources of truth like roadmaps and milestone planning is Notion. We use Notion during development for design docs and RFCs, and afterward for documentation, postmortems, and historical records. Putting thoughts on paper (documenting chain-of-thought) leads to much clearer decision-making, and makes it easier to align async and avoid meetings.Unwrap.ai is a tool we’ve also recently introduced to consolidate, document, and quantify qualitative feedback. Because of the nature of AI, many issues are not always deterministic enough to classify as bugs. Unwrap groups individual pieces of feedback into more concrete themes and areas of improvement.

High-level objectives and directions come top-down, but a large amount of new ideas are floated bottom-up. We believe strongly that engineering and design should have ownership over ideas and details, especially for an AI product where the constraints are not known until ideas are turned into code and mock-ups.

Big challenges today revolve around scaling from our current size to the next level, both on the hiring side and in execution and planning. We don’t want to lose our core identity of working in a very flat and collaborative environment. Even small decisions, like how to organize Slack and Linear, can be tough to scale. Trying to stay transparent and scale the number of channels and projects without causing notifications to explode is something we’re currently trying to figure out.

Some of the topics I touch on: Why I believe Vision Pro may be an over-engineered “devkit” The genius & audacity behind some of Apple’s hardware decisions Gaze & pinch is an incredible UI superpower and major industry ah-ha moment Why the Vision Pro software/content story is so dull and unimaginative Why most people won’t use Vision Pro for watching TV/movies Apple’s bet in immersive video is a total game-changer for live sports Why I returned my Vision Pro… and my Top 10 wishlist to reconsider Apple’s VR debut is the best thing that ever happened to Oculus/Meta My unsolicited product advice to Meta for Quest Pro 2 and beyond

Apple really played it safe in the design of this first VR product by over-engineering it. For starters, Vision Pro ships with more sensors than what’s likely necessary to deliver Apple’s intended experience. This is typical in a first-generation product that’s been under development for so many years. It makes Vision Pro start to feel like a devkit.

A sensor party: 6 tracking cameras, 2 passthrough cameras, 2 depth sensors(plus 4 eye-tracking cameras not shown)

it’s easy to understand two particularly important decisions Apple made for the Vision Pro launch: Designing an incredible in-store Vision Pro demo experience, with the primary goal of getting as many people as possible to experience the magic of VR through Apple’s lenses — most of whom have no intention to even consider a $4,000 purchase. The demo is only secondarily focused on actually selling Vision Pro headsets. Launching an iconic woven strap that photographs beautifully even though this strap simply isn’t comfortable enough for the vast majority of head shapes. It’s easy to conclude that this decision paid off because nearly every bit of media coverage (including and especially third-party reviews on YouTube) uses the woven strap despite the fact that it’s less comfortable than the dual loop strap that’s “hidden in the box”.

Apple’s relentless and uncompromising hardware insanity is largely what made it possible for such a high-res display to exist in a VR headset, and it’s clear that this product couldn’t possibly have launched much sooner than 2024 for one simple limiting factor — the maturity of micro-OLED displays plus the existence of power-efficient chipsets that can deliver the heavy compute required to drive this kind of display (i.e. the M2).

Meta, today, has roughly the right price and is working forward to the right device: Apple has started with the right device and will work back to the right price. Meta is trying to catalyse an ecosystem while we wait for the right hardware - Apple is trying to catalyse an ecosystem while we wait for the right price.

one of the things I wondered before the event was how Apple would show a 3D experience in 2D. Meta shows either screenshots from within the system (with the low visual quality inherent in the spec you can make and sell for $500) or shots of someone wearing the headset and grinning - neither are satisfactory. Apple shows the person in the room, with the virtual stuff as though it was really there, because it looks as though it is.

For Meta, the device places you in ‘the metaverse’ and there could be many experiences within that. For Apple, this device itself doesn’t take you anywhere - it’s a screen and there could be five different ‘metaverse’ apps. This iPhone was a piece of glass that could be anything - this is trying to be a piece of glass that can show anything.

A lot of what Apple shows is possibility and experiment - it could be this, this or that, just as when Apple launched the watch it suggested it as fitness, social or fashion, and it turn out to work best for fitness (and is now a huge business).

Mark Zuckerberg, speaking to a Meta all-hands after Apple’s event, made the perfectly reasonable point that Apple hasn’t shown much that no-one had thought of before - there’s no ‘magic’ invention. Everyone already knows we need better screens, eye-tracking and hand-tracking, in a thin and light device.

It’s worth remembering that Meta isn’t in this to make a games device, nor really to sell devices per se - rather, the thesis is that if VR is the next platform, Meta has to make sure it isn’t controlled by a platform owner who can screw them, as Apple did with IDFA in 2021.

On the other hand, the Vision Pro is an argument that current devices just aren’t good enough to break out of the enthusiast and gaming market, incremental improvement isn’t good enough either, and you need a step change in capability.

Apple’s privacy positioning, of course, has new strategic value now that it’s selling a device you wear that’s covered in cameras

the genesis of the current wave of VR was the realisation a decade ago that the VR concepts of the 1990s would work now, and with nothing more than off-the-shelf smartphone components and gaming PCs, plus a bit more work. But ‘a bit more work’ turned out to be thirty or forty billion dollars from Meta and God only knows how much more from Apple - something over $100bn combined, almost certainly.

So it might be that a wearable screen of any kind, no matter how good, is just a staging post - the summit of a foothill on the way to the top of Everest. Maybe the real Reality device is glasses, or contact lenses projecting onto your retina, or some kind of neural connection, all of which might be a decade or decades away again, and the piece of glass in our pocket remains the right device all the way through.

I think the price and the challenge of category creation are tightly connected. Apple has decided that the capabilities of the Vision Pro are the minimum viable product - that it just isn’t worth making or selling a device without a screen so good you can’t see the pixels, pass-through where you can’t see any lag, perfect eye-tracking and perfect hand-tracking. Of course the rest of the industry would like to do that, and will in due course, but Apple has decided you must do that.

For VR, better screens are merely better, but for AR Apple thinks this this level of display system is a base below which you don’t have a product at all.

For Meta, the device places you in ‘the metaverse’ and there could be many experiences within that. For Apple, this device itself doesn’t take you anywhere - it’s a screen and there could be five different ‘metaverse’ apps. The iPhone was a piece of glass that could be anything - this is trying to be a piece of glass that can show anything.

This reminds me a little of when Meta tried to make a phone, and then a Home Screen for a phone, and Mark Zuckerberg said “your phone should be about people.” I thought “no, this is a computer, and there are many apps, some of which are about people and some of which are not.” Indeed there’s also an echo of telco thinking: on a feature phone, ‘internet stuff’ was one or two icons on your portable telephone, but on the iPhone the entire telephone was just one icon on your computer. On a Vision Pro, the ‘Meta Metaverse’ is one app amongst many. You have many apps and panels, which could be 2D or 3D, or could be spaces.

It’s no surprise that Apple considered holding off on announcing the price until months after WWDC to avoid the negative headlines. In the end, the company decided the price would become an even larger target if it wasn’t revealed at the event. Consumers now have nine months to digest it before the Vision Pro goes on sale.

Betting against a first-generation Apple product is a bad trade — from infamous dismissals of the iPhone to disappointment with the original iPad. In fact, this is a reflection of Apple’s strategy: Start with a product that’s more an elegant proof-of-concept than a prime-time hit; rely on early adopters to provide enough runway for its engineers to keep iterating; and trust in unmatched capital, talent, brand equity, and staying power to morph a first-gen toy into a third-gen triumph

We are a long way from making three screens, a glass shield, and an array of supporting hardware light enough to wear for an extended period. Reviewers were (purposefully) allowed to wear the Vision Pro for less than half an hour, and nearly every one said comfort was declining even then. Avatar: The Way of Water is 3 hours and 12 minutes.

Meta’s singular strategic objective is to escape second-tier status and, like Apple and Alphabet, control its distribution. And its path to independence runs through Apple Park. Zuckerberg is spending the GDP of a small country to invent a new world, the metaverse, where Apple doesn’t own the roads or power stations. Vision Pro is insurance against the metaverse evolving into anything more than an incel panic room.

The only product category where VR makes difference is good VR games. Price is not limiting factor, the quality of VR experience is. Beat Saber is good and fun and physical exercise. Half Life: Alyx, is amazing. VR completely supercharges horror games, and scary stalking shooters. Want to fear of your life and get PTSD in the comfort of your home? You can do it. Games can connect people and provide physical exercise. If the 3rd iteration of Vision Pro is good for 2 hours of playing for $2000 Apple will kill the console market. Playstations no more. Apple is not a gaming company, but if Vision Pro becomes better and slightly cheaper, Apple becomes gaming company against its will.

Of course, you shouldn’t discriminate, but when we say belonging, it has to be more than just inclusion. It has to actually be the proactive manifestation of meeting people, creating connections in friendships. And Jony Ive said, “Well, you need to reframe it. It’s not just about belonging, it’s about human connection and belonging.”And that was, I think, a really big unlock. The next thing Jony Ive said is he created this book for me, a book of his ideas, and the book was called “Beyond Where and When,” and he basically said that Airbnb should shift from beyond where and when to who and what?Who are you and what do you want in your life? And that was a part of the inspiration behind Airbnb categories, that we wanted people to come to Airbnb without a destination in mind and that we could categorize properties not just by location but by what makes them unique, and that really influenced Airbnb categories and some of the stuff we’re doing now.

Rather than debate the merits of these “let’s bring back some ports from five years ago” decisions piecemeal, I think they’re best explained by Apple revisiting what the pro in “MacBook Pro” means. What it stands for. Apple uses the word pro in so many products. Sometimes they really do mean it as professional. Logic Pro and Final Cut Pro, for example, truly are tools for professionals. With something like AirPods Pro, though, the word pro really just means something more like nicer or deluxe. A couth euphemism for premium.

Something with no visual interface sounds amazing until you realize it is impossible to know its boundaries. You can ask for a translation to one language and it will work perfectly, but a different language is not translatable. A command that activates some smart home gadget may not work the same way for a different device.