This is a still from video of an advertisement by Apple Computers. From the original MacIntosh series of ads known often referenced as "Hello" EDS NOTE: Small file size - use in attic only.
This is a still from video of an advertisement by Apple Computers. From the original MacIntosh series of ads known often referenced as "Hello" EDS NOTE: Small file size - use in attic only.
This is a still from video of an advertisement by Apple Computers. From the original MacIntosh series of ads known often referenced as "Hello" EDS NOTE: Small file size - use in attic only.
This is a still from video of an advertisement by Apple Computers. From the original MacIntosh series of ads known often referenced as "Hello" EDS NOTE: Small file size - use in attic only.

Loss of visionary leaves hole at Apple's core


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Steve Jobs started off building a home-made computer in his parents's garage, and ended up running a US$350 billion (Dh1.28 trillion) business that redefined the global electronics industry.

A man who changed the digital world: Steve Jobs, 1955 to 2011

What next for Apple? Is there life after Steve Jobs for the tech giant. Watch full screen video

A life in pictures Co-founder of Apple Inc. Steve Jobs passed away October 5, 2011 from cancer. He changed the way humans will forever interact with technology. View picture gallery

What next for Apple in the Middle East? Read all The National's coverage. Learn More

Yet with the death of Mr Jobs on Wednesday evening, the big question for Apple now is where does the company go from here?

"Steve Jobs was so intrinsic to the huge changes that Apple was able to make in the consumer electronics and telecommunications markets," says Matthew Reed, an analyst based in Dubai for Informa Telecoms & Media's Middle East and Africa regions.

"But in the longer term, will they be able to come up with the same kinds of massive innovations they did under Steve Jobs?"

As condolences from influential players in the tech industry poured in yesterday for Mr Jobs, some took a moment to reflect on how the 56-year-old had an impact on their own rival businesses.

"Everything he did really kept us moving forward, driving us to innovate more," says Jack Lee, the general manager for the Middle East and Africa region at Lenovo, the world's third-largest computer maker. "He really drove the PC industry to be closer to the consumer."

A major inspiration for Tom Farrell, the general manager of Nokia's Lower Gulf region, was "the whole package of [Mr Jobs'] vision and his attention to simplicity. He had a massive passion for elegance and beauty that resonates with people".

That focus to detail started when Mr Jobs dropped out of college and took up a calligraphy course.

The experience helped him design "the first computer with beautiful typography", Mr Jobs said in a commencement address to Stanford University students in 2005.

That computer became Apple's first Macintosh.

Mr Jobs became well known for helping to shape influential advertisements that enticed millions of people to buy Apple products. One famous campaign included a dark silhouette highlighting a white iPod in the middle of a body.

"He revolutionised the colour white," says Mr Lee.

But to keep revolutionising the industry Apple must now do everything it can to stay ahead of its pack of rivals.

It has already been expanding into emerging markets such as China and, last month, the company launched an online store in the UAE. Yet to continue to grow, analysts say Apple must also expand a pipeline of new and, most importantly, innovative, products.

If the lacklustre news about Apple's latest iPhone is any indication of what is to come, the company has quite a task at hand.

In what many observers saw as a crucial test, this week's announcement was the first major product launch spearheaded by Tim Cook, the company's new chief executive and former chief operating officer. Mr Cook stepped in after Mr Jobs resigned six weeks ago and became Apple's board chairman.

Besides a few novel features, and a sharper camera, the new iPhone 4S lacked the innovative leap Mr Jobs helped introduce in most preceding models. Following the announcement on Tuesday, Apple's shares fell 5 per cent at one point as Wall Street was left underwhelmed.

Rival smartphone makers have also been making deeper inroads in Apple's prized markets.

Samsung's latest smartphone, which relies on Google's Android software, has been benefiting from faster adoption rates than Apple's iPhone in some regions.

Other phones using the Android programme have also been gaining market share. This is in part due to Google's "enormous financial capacity to just fight until the end", says Thomas Kuruvilla, the managing director of Arthur D Little Middle East, a telecommunications consultancy in Dubai.

"In the medium-term, Google will give them [Apple] a fight," he says.

But then, it was only a decade ago when Mr Jobs rocked the music industry into the digital age, by walking on stage in his now signature jeans and black polo-neck and introducing the iPod. The digital music player has since gone on to sell more than 300 million units globally, although its hot-streak has cooled in recent times.

In its latest quarter, Apple sold 20 per cent fewer iPods than it did during the same period last year. Analysts expect this trend to continue given the plethora of low-cost alternatives now available from rivals.

Competitors in the fast-growing tablet market are also stepping up their game with both more affordable options, and a wider selection of devices.

Mr Lee acknowledges the popularity of Apple's iPad "drives us to do better".

"It drives us to create a better product," he says.

His solution to taking on Apple's iPad is not to focus on creating different sizes of the same tablet. Rather, says Mr Lee, the company is now launching a full family of tablets to market to academics and commercial clients as well as regular consumers.

"With all these categories of products, although [Apple] set the new standard, after a while others do begin to catch up," says Mr Reed.

"If you just try to maintain position, and make gradual advances in established categories, others will begin to catch up.

"And they are catching up."

yallacompare profile

Date of launch: 2014

Founder: Jon Richards, founder and chief executive; Samer Chebab, co-founder and chief operating officer, and Jonathan Rawlings, co-founder and chief financial officer

Based: Media City, Dubai 

Sector: Financial services

Size: 120 employees

Investors: 2014: $500,000 in a seed round led by Mulverhill Associates; 2015: $3m in Series A funding led by STC Ventures (managed by Iris Capital), Wamda and Dubai Silicon Oasis Authority; 2019: $8m in Series B funding with the same investors as Series A along with Precinct Partners, Saned and Argo Ventures (the VC arm of multinational insurer Argo Group)

Last-16 Europa League fixtures

Wednesday (Kick-offs UAE)

FC Copenhagen (0) v Istanbul Basaksehir (1) 8.55pm

Shakhtar Donetsk (2) v Wolfsburg (1) 8.55pm

Inter Milan v Getafe (one leg only) 11pm

Manchester United (5) v LASK (0) 11pm 

Thursday

Bayer Leverkusen (3) v Rangers (1) 8.55pm

Sevilla v Roma  (one leg only)  8.55pm

FC Basel (3) v Eintracht Frankfurt (0) 11pm 

Wolves (1) Olympiakos (1) 11pm 

The stats

Ship name: MSC Bellissima

Ship class: Meraviglia Class

Delivery date: February 27, 2019

Gross tonnage: 171,598 GT

Passenger capacity: 5,686

Crew members: 1,536

Number of cabins: 2,217

Length: 315.3 metres

Maximum speed: 22.7 knots (42kph)

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Heather, the Totality
Matthew Weiner,
Canongate 

Name: Peter Dicce

Title: Assistant dean of students and director of athletics

Favourite sport: soccer

Favourite team: Bayern Munich

Favourite player: Franz Beckenbauer

Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates