• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

FedEx CEO says we are in the middle of the biggest supply chain shift he’s seen in 35 years: ‘We are the referendum’

2

26 Meta employees accuse Mark Zuckerberg of using AI to target 8,000 layoffs against workers on medical, parental or family leave

3

He sold his last company to Palantir. Now he's betting $32 million that robots can fix construction's labor crisis

1

FedEx CEO says we are in the middle of the biggest supply chain shift he’s seen in 35 years: ‘We are the referendum’

2

26 Meta employees accuse Mark Zuckerberg of using AI to target 8,000 layoffs against workers on medical, parental or family leave

3

He sold his last company to Palantir. Now he's betting $32 million that robots can fix construction's labor crisis
Apple

The day Apple’s Steve Jobs called IBM’s best customers an ‘orifice’

By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
By
Philip Elmer-DeWitt
Philip Elmer-DeWitt
Down Arrow Button Icon
July 16, 2014, 8:44 AM ET
Add Fortune on Google for similar content.

Pat Gelsinger, then a senior vice president at Intel (INTC), now CEO of VMWare (VMW), tells the story:

“I went with (former Intel CEO Paul) Otellini to meet with [Steve] Jobs and his lieutenants. We go into this meeting and say Steve, let’s work together to make your Macs better for enterprise customers. Jobs looks at us and says ‘why would I do anything for that orifice called the CIO?’” said Gelsinger. “At Intel we’re aghast; two-thirds of our business is that orifice called the CIO.”

The anecdote, relayed by Jeff Jedras in Computer Dealer News, says a lot about why Apple needs IBM (IBM) to crack the so-called “enterprise market” — those corporate and government IT departments rich and powerful enough to require a chief information officer.

Under Jobs, Apple stayed focused on the far larger consumer market. Unlike the enterprise, where CIOs decide what equipment to buy, purchase decisions in the consumer market are made by the people who actually use the devices — a dynamic that plays into Apple’s strengths in design and ease of use.

In Gelsinger’s anecdote, Jobs goes on to say: “I’m going to build devices that are irresistible for consumers, and CIOs will just have to deal with it.”

That attitude is one of the things that has changed under Tim Cook, whose career before Apple included six months at Compaq and 12 years at IBM.

With Cook at the helm, Apple has worked hard to make its system software more enterprise friendly. At WWDC in June it highlighted a series of new security, productivity and device management features in the language that CIOs speak. (See iOS 8 makes a more powerful business partner.)

When he talks to the press, Cook regularly trots out the percentage of enterprises in which iOS devices are deployed: 98% of the Fortune 500, 92% of the Global 500.

But it wasn’t until Tuesday, in his joint CNBC interview with IBM CEO Ginni Rometty, that Cook added a telling detail: “The penetration [in the enterprise market] is low.”

In other words, nearly every IT department in the world may allow employees to bring their iPads and iPhones — or for that matter Macs — to work, but relatively few enterprises have issued them as standard equipment.

That’s where IBM comes in.

“The big knock on Apple is they were not seen as being serious about the enterprise,” writes Creative Strategies‘ Tim Bajarin. “Now they have a worldwide sales force and support organization to take the iPad and iPhones directly to the [business] customer as well as provide the tools, back end integration, security and support.”

“This,” he adds, “is not good news for the Android crowd.”

It’s not great for Microsoft (MSFT) either.

Follow Philip Elmer-DeWitt on Twitter at @philiped. Read his Apple (AAPL) coverage at fortune.com/ped or subscribe (free!) via his RSS feed.

About the Author
By Philip Elmer-DeWitt
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Airbnb CEO Brian Chesky’s X account was hijacked in an AI slop hack pushing crypto tokenization
CybersecurityTech
Airbnb CEO Brian Chesky’s X account was hijacked in an AI slop hack pushing crypto tokenization
By Rachel VentrescaJuly 16, 2026
2 hours ago
tillis
PoliticsCongress
Epstein survivors say Todd Blanche ignored them. Now one Republican senator is making him listen
By Alanna Durkin Richer, Joey Cappelletti and The Associated PressJuly 16, 2026
4 hours ago
merck
HealthDrugs
The cholesterol shot you couldn’t afford is now a pill
By Matthew Perrone and The Associated PressJuly 16, 2026
4 hours ago
t
North AmericaTariffs
Tariff Man’s money machine broke. Now he’s trying to fix it with a forced‑labor crusade
By Paul Wiseman and The Associated PressJuly 16, 2026
4 hours ago
tesla
Big TechTesla
Runaway Tesla that crashed into a grandmother’s living room was actually being steered by a human, investigators find
By Bernard Condon and The Associated PressJuly 16, 2026
4 hours ago
cars
EnvironmentAutos
Over 120 million car trips, study finds speeding only saved drivers 54 seconds on average
By Alexa St. John and The Associated PressJuly 16, 2026
5 hours ago

Most Popular

FedEx CEO says we are in the middle of the biggest supply chain shift he’s seen in 35 years: ‘We are the referendum’
C-Suite
FedEx CEO says we are in the middle of the biggest supply chain shift he’s seen in 35 years: ‘We are the referendum’
By Fortune EditorsJuly 15, 2026
1 day ago
26 Meta employees accuse Mark Zuckerberg of using AI to target 8,000 layoffs against workers on medical, parental or family leave
Law
26 Meta employees accuse Mark Zuckerberg of using AI to target 8,000 layoffs against workers on medical, parental or family leave
By Barbara Ortutay, Alexandra Olson and The Associated PressJuly 15, 2026
1 day ago
He sold his last company to Palantir. Now he's betting $32 million that robots can fix construction's labor crisis
Innovation
He sold his last company to Palantir. Now he's betting $32 million that robots can fix construction's labor crisis
By Lily Mae LazarusJuly 15, 2026
1 day ago
Trump's 'American Flag Blue' in the Lincoln Memorial pool is already gray — and the Olympic canoer 'vandal' is fighting his arrest
Politics
Trump's 'American Flag Blue' in the Lincoln Memorial pool is already gray — and the Olympic canoer 'vandal' is fighting his arrest
By Matthew Daly and The Associated PressJuly 16, 2026
11 hours ago
MacKenzie Scott, Melinda French Gates, and Lauren Sánchez Bezos are rewriting the rules of billionaire giving—one quietly, one strategically, one very publicly
Newsletters
MacKenzie Scott, Melinda French Gates, and Lauren Sánchez Bezos are rewriting the rules of billionaire giving—one quietly, one strategically, one very publicly
By Sydney LakeJuly 14, 2026
2 days ago
After donating $48 billion to the Gates Foundation, Warren Buffett is quietly ending one of the biggest philanthropic relationships in history
North America
After donating $48 billion to the Gates Foundation, Warren Buffett is quietly ending one of the biggest philanthropic relationships in history
By Marco Quiroz-GutierrezJuly 14, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.