Things are looking pretty good in the orchards of Cupertino, CA. Apple just announced its quarterly results, demolishing analyst estimates. The best part about this is that one of the main drivers of this performance was Mac sales, which topped 2 million units in the quarter.
This is the first time Mac sales have ever reached this level and it really validates Apple's strategy, which I will hereby dub "brand resonance". The strategy was to use the iPod and the iPhone to expose a wider range of consumers to the whole Apple "experience". This is the elegant melding of form, function and user experience that is at the core of Apple's brand. The theory (now proven) was that this little taste of Apple would leave consumers hungry for more, and drive some portion of them to abandon their Windows and jump into a Mac. Of course, that will make them more likely to stick with Apple's other media devices, and so the consumer's attachment to the brand will resonate and become stronger and stronger.
As a longtime Mac fan, and someone who loudly protested more than a decade of prophesies of Apple's demise, I guess I'd just say.... I TOLD YOU SO!
Showing posts with label Apple. Show all posts
Showing posts with label Apple. Show all posts
Monday, October 22, 2007
Monday, October 1, 2007
Frozen Apples: The Unlocked iPhone Dilemma
In an effort to combat the "unlocking" of iPhones, Apple has made its latest iPhone software update into an assassin, capable of permanently freezing iPhones that have been illegally unlocked to work on networks other than AT&T, or that have been hacked to load unsanctioned third-party applications. This essentially turns the iPhone into a sleek, sexy, $500 brick, perfectly suited for holding down a pile of papers or being used for lively games of spin-the-iPhone.
Hardware makers have always struggled with cracks that allowed consumers to get around their licensed content or use their products in ways unintended by the manufacturers, and any consumer who tries to skirt the rules should be prepared for the potential consequences. The question is whether the punishment fits the crime, and what implications can this have for Apple's brand.
It is widely known that Apple is not profiting from the iPhone itself, but from the business relationship with phone providers like AT&T, who get to be the exclusive providers of the iPhone in their respective countries. Apple's position, and profit potential, would be severely impacted if people can just unlock an iPhone and use it with other carriers. This relationship is definitely something Apple must defend. The issue of third-party software installations is a murkier one. Is an attempt to improve your iPhone really an offense that should be punishable by death?
In my own opinion, Apple needs to tread carefully here. Those who unlock their iPhones to try to get around Apple's licensing deals should pay a price for it, although Apple's response of "buy another iPhone" may be a bit extreme. On the other hand, those who "mod" their phones to add new functionality are not trying to erode Apple's business model. On the contrary, they are the company's true fanatics. By permanently freezing those iPhones, apple risks alienating this group of rabid fans. Brian Lam, editor of Gizmodo, called this move "uncharacteristically evil". That is NOT something Apple wants associated with its smiling, happy, groovy brand.
Hardware makers have always struggled with cracks that allowed consumers to get around their licensed content or use their products in ways unintended by the manufacturers, and any consumer who tries to skirt the rules should be prepared for the potential consequences. The question is whether the punishment fits the crime, and what implications can this have for Apple's brand.
It is widely known that Apple is not profiting from the iPhone itself, but from the business relationship with phone providers like AT&T, who get to be the exclusive providers of the iPhone in their respective countries. Apple's position, and profit potential, would be severely impacted if people can just unlock an iPhone and use it with other carriers. This relationship is definitely something Apple must defend. The issue of third-party software installations is a murkier one. Is an attempt to improve your iPhone really an offense that should be punishable by death?
In my own opinion, Apple needs to tread carefully here. Those who unlock their iPhones to try to get around Apple's licensing deals should pay a price for it, although Apple's response of "buy another iPhone" may be a bit extreme. On the other hand, those who "mod" their phones to add new functionality are not trying to erode Apple's business model. On the contrary, they are the company's true fanatics. By permanently freezing those iPhones, apple risks alienating this group of rabid fans. Brian Lam, editor of Gizmodo, called this move "uncharacteristically evil". That is NOT something Apple wants associated with its smiling, happy, groovy brand.
Thursday, May 24, 2007
iPhone Killers: Brand Prophecy and Aspiring Challengers
Ahhh, the Apple iPhone. While this is an offshoot of the overall Apple brand, it is also certainly a power unto itself. The story could easily be the fodder for a Hollywood movie.
For years there were whispers, rumours and secretive stories told around the light of a flickering LCD screen. One day, they said, Apple would create a cellphone and a new age of mobile communications would dawn. Old empires would be toppled and new creativity would flood the earth.
When Apple finally announced the imminent arrival of the cellphone-messiah on January 9th , the media coverage was absolutely deafening. The day of reckoning was officially on its way and, as far as the media was concerned, the iPhone's dominance was already set in stone.
Of course, as soon as you have one person saying something is a "sure thing" (much less millions of people), it's only a matter of time before challengers arise. In this case, the rumblings started in a mere 9 days, when Engadget reported rumors of a supposed Google phone as a possible "iPhone Killer".
The parade of would-be iPhone assassins has continued all spring. Here's a timeline:
January 18 Engadget reports on the rumored "Google Switch"
February 15 LinuxDevices.com talks up the Neo1973 from FIC
March 28 Switched.com reports on the Helio Ocean
May 9 Gizmodo hypes up the forthcoming "Media Monster" from Motorola
May 21 Cool Tech Zone reports on the ultra-pricey LG Prada
Whew... that's a LOT of killers for a device that hasn't had a single unit sold and delivered yet. That's the amazing thing about this brand. It's so powerful that the entire industry is treating it as if its been on the market for years with a big chunk of market-share. In the process, they continue to feed and magnify the hype.
And so we find ourselves walking those last few miles to the great event. Will the iPhone's actual arrival be like the Big Bang? or like a wet match? Will any of these supposed challengers steal its thunder or knock it off the top spot? Who knows, but it'll be a great show to watch!
For years there were whispers, rumours and secretive stories told around the light of a flickering LCD screen. One day, they said, Apple would create a cellphone and a new age of mobile communications would dawn. Old empires would be toppled and new creativity would flood the earth.
When Apple finally announced the imminent arrival of the cellphone-messiah on January 9th , the media coverage was absolutely deafening. The day of reckoning was officially on its way and, as far as the media was concerned, the iPhone's dominance was already set in stone.
Of course, as soon as you have one person saying something is a "sure thing" (much less millions of people), it's only a matter of time before challengers arise. In this case, the rumblings started in a mere 9 days, when Engadget reported rumors of a supposed Google phone as a possible "iPhone Killer".
The parade of would-be iPhone assassins has continued all spring. Here's a timeline:
January 18 Engadget reports on the rumored "Google Switch"
February 15 LinuxDevices.com talks up the Neo1973 from FIC
March 28 Switched.com reports on the Helio Ocean
May 9 Gizmodo hypes up the forthcoming "Media Monster" from Motorola
May 21 Cool Tech Zone reports on the ultra-pricey LG Prada
Whew... that's a LOT of killers for a device that hasn't had a single unit sold and delivered yet. That's the amazing thing about this brand. It's so powerful that the entire industry is treating it as if its been on the market for years with a big chunk of market-share. In the process, they continue to feed and magnify the hype.
And so we find ourselves walking those last few miles to the great event. Will the iPhone's actual arrival be like the Big Bang? or like a wet match? Will any of these supposed challengers steal its thunder or knock it off the top spot? Who knows, but it'll be a great show to watch!
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