Tech

On The Eve Of What Was Supposed To Be Tim Cook's Greatest Triumph, Apple Is In Disarray

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Tim Cook, Apple's CEO.  REUTERS/Rick Wilking

Tim Cook must be furious.

The word "outraged" — not a term normally seen in an Apple press release — was notable for its presence in the company's statement on the iCloud naked-celebrity photo hack.

The launch of Apple's iPhone 6, set for Tuesday, is now less than a week away.

It's Apple's most important event of the year — the entire company depends on the success of the three new products Cook is going to unveil there (two iPhone 6 models and a smartwatch).

Instead of quiet excitement, Apple is in disarray because hackers have been successfully trawling iCloud for photos of naked celebrities.

Instead of savoring the first all-new product from Apple since the death of company founder Steve Jobs, Cook is watching his brand take a beating.

Instead of putting the finishing touches on his script for the big media even next week, Cook has found himself dealing with a crisis:

Trust is a huge part of the Apple brand.

People use Apple because its products "just work" and because hackers and malware tend to operate on Windows and Android systems, not Apple's OS and iOS platforms. Cook actually mentioned this specifically at Apple's previous major product event, WWDC.

Now, Cook is in danger of seeing that trust slip away. He was just about to ask consumers to place even more faith in iCloud, which will sit at the center of ambitious plans to extend Apple's mobile payments capabilities (through NFC and Touch ID), its online e-commerce strategy (through iTunes, the App Store, and Beats), through improvements to its Mac operating system (OS X Yosemite will have an iCloud Drive storage system), and through Handoff, a new system that lets you switch your work between your Mac and an iPad seamlessly.

Instead of the tech media being filled with stories about how exciting this is all going to be, blogs are running "how-to" guides for people who want to switch off iCloud.

Cook can fix this, of course.

Two-step verification for password usage will most likely be introduced to all Apple products, and Touch ID's fingerprint technology will most likely go a long way to reassuring users that only they have access to their own stuff in the cloud.

But it will take time.

Cook doesn't have that time. He's got to walk on stage on Tuesday and either not make any mention of iCloud — which would itself be news — or mention iCloud in a way that reassures Apple customers that it's not a total disaster area.

Cook seems suited for the job. He radiates calm and reassurance. He's not a polarizing jerk. (Steve Jobs and his famous temper would be as likely to make things worse as make them better.)

In the long run, Apple will figure this out. This is not directly Apple's fault after all — the hackers are the culprits, not the technology. The Apple ecosystem is so good at locking in customers that even those people whose iCloud storage consists entirely of naked selfies will think twice about ditching their iPhones. Apple will be fine — it's a glitch in an underlying business that is ludicrously healthy.

But in the short term, it's about as bad as it can possibly be.

It will be an incredible high-wire act. Let's hope he pulls it off.


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Jim is the former editor-in-chief of Insider's news division.Previously he was the founding editor of Business Insider UK.He has also been managing editor at Adweek, an advertising columnist at CBS Interactive, and a Knight-Bagehot Fellow at Columbia Business School. His work has appeared in Slate, Salon, The Independent, MTV, The Nation and AOL.His investigative journalism changed the law in the US First Circuit Court of Appeals (U.S. v. Kravetz), the Third Circuit Court of Appeals (North Jersey Media v. Ashcroft), New Jersey (In Re El-Atriss), and New York State (Mosallem v. Berenson).The US Supreme Court cited his work on the death penalty in the concurrence to Baze v. Rees, on the issue of whether lethal injection is cruel or unusual.He won the Neal award for business journalism in 2005 for a series investigating bribes and kickbacks in the advertising business.Here's a selection of his past stories:   • The alleged betrayal in these photos, texts, and emails cost Snapchat $158 million   • Inside the conspiracy that forced Dov Charney out of American Apparel   • The Evolution of Ev: The creator of Twitter, Blogger, and Medium has a plan to fix the mess he made of the internet   • THE "KNOCK-IN SHORT": Nigel Farage and the massive bet against the pound on the night of the Brexit vote   • eBay worked with the FBI to put its top affiliate marketer in prison   • How Dunkin Donuts ended up hiring a psychotic credit card thief as director of communications   • BEJEWELED: The definitive, illustrated history of the most underrated game ever   • The CEO of Publicis told us how he stared down a furious internal rebellion to bet the future of his $11 billion company on artificial intelligence   • FBX: The billion-dollar Facebook business that never happened   • The €150 million check-kiting scam that bankrupted Leo Burnett in Greece   • My Polaroids of the September 11 attacks led me into America's secret court system for terrorist suspects   • YouTube deleted 130 rap videos to help police fight street gangs responsible for thousands of stabbingsDisclosure: I own shares of Twitter (TWTR).