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Apple's iPhone and iPad Chief Departs Suddenly
By Jennifer LeClaire
Posted: August 9, 2010 10:58am PDT

Apple's iPhone and iPad chief Mark Papermaster has left suddenly after 15 months. Reports say Papermaster clashed with Apple CEO Steve Jobs, but Apple's culture was also very different than Papermaster was used to at IBM. The iPhone 4 problems might not be the cause of Papermaster's departure. IBM isn't likely to welcome back Papermaster.

Mark Papermaster has left Apple. He was the senior vice president of mobile devices at the Cupertino, Calif., company, overseeing the iPhone and iPad businesses, but departed suddenly and without details.

According to a report in The Wall Street Journal, Papermaster had a falling-out with Apple CEO Steve Jobs. He came to Apple 15 months ago from IBM, but reportedly failed to gain Jobs' confidence. What caused that falling-out is not yet known.

Some are speculating that Papermaster's departure comes in the wake of iPhone stumbles, most notably iPhone 4 antenna problems that plagued the company and could lead to potentially millions in lost revenue.

Costly Mistakes?

Apple will give away free cases to anyone who buys an iPhone 4 before Sept. 30. Apple set aside $175 million to cover the so-called Antennagate problem. But Apple isn't just spending money to cover the problem, it's also losing profits. The cases retail for $29.99 at the Apple Store.

Apple also had to offer a software update to fix the way signal-meter bars appear and other bugs, and the company had to delay the launch of a white iPhone 4. There have also been shortages of the device that have frustrated consumers.

"There has been a lot of speculation that somehow Papermaster's departure was related to the negative press around the iPhone and the antenna issue. I think that's probably unlikely," said Michael Gartenberg, a partner at Altimeter Group. "Just because one thing follows another doesn't mean one thing causes another. Breakfast doesn't cause lunch. When the iPhone 4 was introduced, Papermaster wasn't in the introduction video, whereas other iPhone executives were."

iPolitics?

The Journal cited people familiar with the matter who said Papermaster "didn't appear to have the type of creative thinking excepted at Apple and wasn't used to Apple's corporate culture, where even senior executives are expected to keep on top of the smallest details" of their divisions and perform rather than delegate many tasks.

"Papermaster came to Apple and a very different culture than he was used to at IBM. He also came to Apple when Jobs was out on medical leave," Gartenberg said. "It's just possible that at the end of the day he didn't mesh with the rest of the Apple culture. Apple has a unique culture. Some outsiders have done well there. Others have not."

Papermaster's Fate

Apple declined to offer any details about Papermaster's departure, nor has the 49-year-old executive offered any insight. He may not be welcome back at IBM -- the company filed a lawsuit against Apple when he switched allegiances -- but Gartenberg is sure this "talented individual" will land well somewhere else.

What about the implications for Apple? "My grandfather used to say that the cemetery is full of people who couldn't be replaced," Gartenberg said. "There are plenty of talented people in Apple and there are other places that Apple can tap into to fill the hole that Papermaster left."

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