Is Apple Screwing Up?
Apple - everyone’s favorite company - seems to have garnered a slight amount of unwarranted, negative press recently - take this Fortune piece that calls Apple TV a “dud” and this one about Apple’s “engage and contain” strategy. It seems what started all this speculation was the iPhone pricing “mistake” that made Apple suddenly fallible. Now we have the “iBrick” - and once an opening is created, the nay-sayers pile in.
Whatever.
But I do think about Apple way too much (obviously) and have been contemplating a few hypothetical situations regarding past year - things that haven’t gone as perfectly as they could have. The result is this list of “what ifs”:
What if Apple had announced the iPod Touch before the iPhone?
For “upgrade” reasons I think this would have made more sense. Today, the iPod Touch looks like a toy for people who can’t afford the iPhone. But imagine if Jobs had announced the iPod Touch at MacWorld instead of the iPhone, gotten that out in early summer and then announced the iPhone? Would people love the iPod Touch more and still love the iPhone?
What if Apple merged the Apple TV with the Mac Mini?
There is speculation that the Mac Mini is dead and the Apple TV isn’t gaining enough traction. A combination of the two products might be a solution. Keep Front Row, add a TiVO, use HDMI, plus everything else OS X has to offer on your home television.
What if Apple sold its DRM free music for the same price as the regular downloads?
Steve Jobs with his nice letter to the music industry had everyone believing that he was really on the side of the music customer here. He got great press and it seemed like the doors would finally be thrown open and Apple would give the music industry the middle finger. The truth is somewhat less revolutionary. And now Amazon has a DRM free store.
What if Apple had released a movie rental service - say $3 for a movie download?
I’ve always thought spending ten bucks for a movie download was a bit unappealing when a DVD is within reach. Also, most movies are consumed as rentals (I’d be pissed if I paid for Click!). Maybe instead of an expiration date you could only have two movies existing on your hard drive at at time (NetFlix style).
What if Apple had released Leopard on time?
Leopard was supposed to have been released at summer’s end. Apple missed an opportunity to shame Vista. It was said that part of the reason for the Leopard delay was to work on the iPhone which while understandable, is definitely annoying to all us Mac users that have computers waiting for their upgrade.
What if Apple hadn’t gone solely with AT&T with the iPhone?
I know this is quibbling, but I don’t like AT&T. Personally, it’s a negative against the iPhone, and all the cool features of the iPhone aren’t enough to overcome my annoyance of entering another 2 year contract and breaking one with another. I loathe monthly bills and cell phone companies in general.
And now this “iBrick” situation - while I can understand why Apple wants to maintain a closed environment, it’s also the type of move I’d expect coming from Microsoft (with their XBOX) or AT&T. I was hoping the Apple way of doing things would rub off on AT&T - not the other way around.
I think Apple could revolutionize the cellphone industry - not only through the hardware, but how the cellphone industry handles bills - including the initial contract where you can’t change providers before two years without paying a fee. Yes, I know this is asking for a lot, but I’m willing to wait until Apple moves to other service providers (largely because I’m a cheap bastard).
Ultimately, I think the recent criticism of Apple is annoying but healthy. The bigger and more successful a company gets, it’s inevitable that they garner more attention and hence critics. However, the iPhone customer service angle is a little worrisome. I can’t really tell if it’s mostly Apple fan boys whining. If mainstream customers get the idea that Apple products aren’t worth the price premium, Apple’s brand could ultimately suffer.
I still believe most companies live and die by their customers - but there are some companies that prosper only because their customers have no other choice. I don’t want Apple to turn into that kind of company (again). I’ve volutnarialy locked myself into the Apple way of doing things (iPod, iTunes Music Store, MacBook, MacMini, iLife) and while this is undoubtedly an advantage today - I dread a repeat of 1996 where I was “stuck” feeling like there was no good reason to stick with the Mac other than loyalty.
Us die-hard Apple users have a long way to fall until that point - but it’s certainly possible.
Disclosure: I own a tiny amount of Apple stock.
Front Page
The Apple TV doesn’t need a TiVo any more than the iPod needs an FM transmitter. The purpose of Apple TV is to give users a way to watch the TV shows and movies they purchase at iTunes on their TV sets. And it’s very good at that one task. Adding the complexity of a TV receiver would only confuse users and compete unnecessarily with products such as the TiVo, which Apple isn’t prepared to do. I think of my Apple TV as a supplement to my entertainment system, not a catch-all replacement unit, as the Media PC attempts to be.
The last thing Apple wants the Apple TV to do is encourage users to get their content elsewhere. They need to increase iTunes video sales to convince more studios to offer their shows and movies. It’s a bit of a chicken and egg situation, which is why it’s still a “hobby”, but in the long run, I believe that downloads will replace the DVD, rather than HD or Blu-Ray to the mass market.
On the music side, I do think that iTunes Plus tracks should be the same price as Fairplay tracks. That may end up happening, now that Amazon has its new music service out. I think the main problem with Amazon’s service is that they’re obviously baiting customers with initial cheap pricing that they intend to raise over time. (This is the very thing that Jobs refuses to do, which is what makes the labels so mad at him.) The sad part is that people will probably fall for it, and the press will continue to praise Amazon for offering an alternative to the “evil” iTunes empire, when in fact customers are going to get screwed by the labels once again.
Apple may not be flawless, but it still has a ways to go up before it starts falling down. We’re a long way from 1996. Microsoft is the company on a slow fade into history. Few people seem to realize this.
What the Apple TV really needs now is the WiFi iTunes Store. With TV shows and Movies in addition to music. Now THAT would be a nice addition.
Apple TV - I agree that the key is the iTunes Store video sales. There has to be enough content that a user has purchased until they say, well I should get an Apple TV so I’m not watching all this stuff on the computer or the iPod.
I think the movies and videos in the iTunes Store need some help. I really hope a rental option comes along because as mentioned above, I consume most movies via rentals. The TV shows may be coming under more competition from the network’s own streaming options.
I just watched some season premieres via the ABC streaming client. While it wasn’t ideal, and there were commercials, it also wasn’t half bad. Hard to argue with free.
Jason,
As a core Apple fan (Apple core, get it..?) it may be that your frustration is with the “new” customers, and the expectations and demands they are making upon Apple. The price a niche player pays to go mainstream.
I wrote about it today on my site.