Corning CEO “Nobody Calls Apple Apple”
In Silicon Valley, it is also called a’fruit company’
Photo = REUTERS
A week has passed since the report that Hyundai Motor Company and Apple are discussing cooperation in electric vehicle production on the 8th, but no additional news has been delivered. It is analyzed that it is due to Apple’s unique principle of extreme emphasis on confidentiality.
US CNBC reported on the 14th (local time), saying, “A company that does business with Apple should not let anyone know about it.” CNBC cited Hyundai Motor and Apple’s discussion of electric car production as an example. Initially, Hyundai Motor Company explained, “I know that Apple is having related discussions with several global automakers.”
However, the explanation of Hyundai Motor Company, which was publicly disclosed in the Financial Supervisory Service Electronic Disclosure System (DART), changed slightly. “We are receiving requests for cooperation in joint development related to self-driving electric vehicles from a number of companies, but this has not been decided as an early stage.” The mission of’Apple’ was omitted from the description.
In response, CNBC estimated that “it will be the result of reflecting Apple’s strong emphasis on confidentiality to partners.” Companies doing business with Apple usually adhere to strict nondisclosure agreements. Public corporations and Apple’s major customers are no exceptions.
While non-disclosure agreements are common among tech companies, industry insiders agree that Apple demands more serious confidentiality. According to sources familiar with Apple’s circumstances, CNBC said partners should not mention Apple in the media or publicly. An industry insider who has experience working with Apple described the demand for confidentiality as “a mountain that you must overcome to work with Apple.”
CNBC cited the case of GT Advance, which supplied sapphire glass to Apple. The company went bankrupt in October 2014 due to excessive debt, and in the process, the confidentiality agreement with Apple was disclosed. There was a provision that GT Advance would pay Apple $50 million per case if it violated the confidentiality agreement.
Corning, a supplier of tempered glass for iPhone, is also mentioned as a representative example. Earlier this year, Corning CEO Wendell Weeks said it was uncomfortable to comment on Corning’s new tempered glass until the iPhone 12 launch event. In October, he said, “It’s burdensome to say the name of Apple out loud,” he said. “No one in the company calls Apple Apple, but a separate code name.”
Apple’s secrecy is well known in Silicon Valley. Some people say that Apple is called a’fruit company’.
Many analyzes say that Apple’s insistence on strong secrecy policy is due to the influence of founder Steve Jobs. Whenever Jobs announces a new product, it is said to have always surprised consumers. Even today, Apple has a marketing strategy focused on’surprise and fun’.
That’s why Apple considers the details of a product it hasn’t released as one of its biggest assets. Apple educates its employees to be very selective when revealing business information to suppliers. It is a policy that it must be disclosed after a non-disclosure agreement is reached.
Reporter Park Sang-yong [email protected]
Ⓒ Hankyung.com prohibits unauthorized reproduction and redistribution