Apple
Apple Dissed Early Adopters
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Written By Sepideh Saremi | September 7, 2007 | Share This
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Now that the dust has settled somewhat after the Apple event earlier this week, the news with the longest-lasting reverberations arguably has been the iPhone’s $200 price cut.
Not only did the move anger the iPhone’s early adopters, who’d shelled out $600 for theirs, it made Wall Street nervous, too. The AP reports:
Apple Inc.’s price cut of its iPhone and the new lineup of iPod players are expected to ring in healthy holiday sales, but Wall Street investors accustomed to Apple’s meaty profit margins appear a bit disappointed.
Apple stock fell $1.75, or 1.3 percent, to $135.01 Thursday. On Wednesday, after the price cut was announced, shares had fallen 5 percent.
Apple’s refund policy allowed those who purchased iPhones within 14 days before the announcement to get a $200 refund, but that left out their most loyal customers: those die-hard Apple-ites who stood in line to get their iPhones and then hyped it all over their blogs and to their friends. So yesterday, Jobs wrote an open letter promising a $100 store credit to the iPhone’s earliest and most eager customers:
[E]ven though we are making the right decision to lower the price of iPhone, and even though the technology road is bumpy, we need to do a better job taking care of our early iPhone customers as we aggressively go after new ones with a lower price. Our early customers trusted us, and we must live up to that trust with our actions in moments like these.
Therefore, we have decided to offer every iPhone customer who purchased an iPhone from either Apple or AT&T, and who is not receiving a rebate or any other consideration, a $100 store credit towards the purchase of any product at an Apple Retail Store or the Apple Online Store.
But in my opinion, the letter was a day late and that makes it $100 short. Granted, customers that can afford a $600 phone aren’t exactly hurting for cash (or rather, store credit), and price cuts happen all the time. Most early adopters know this, and being the first to own product X is worth it to them. But by cutting the prices so soon, and by being reactive about store credit instead of proactive, Apple allowed the attention to go from the shiny new gadgets they’d just introduced to the price tags on them, making it seem they don’t really care about their best customers. Not a great branding move. As if to drive this point home, Steve Jobs simply said, “That’s technology,” in a Q&A with USAToday (which happened before the letter went up).
Beyond the letter, the Wired Epicenter blog nicely summed up Apple’s mistakes with the price drop in the first place, chief among them “lack of tact”:
Most consumers are aware of how a product’s life cycle works–but let’s face it, few want to be openly reminded of it. It’s a harsh reality, but the fact of the matter is that businesses essentially view consumers as people whose passions, interests, and material needs can be forecasted, quantified, and exploited for maximum profit. It’s not unfair that Apple views its most loyal customers in the same fashion, but it’s incredibly tacky that the company made that fact so palpable with its price drop.
Nokia took advantage of Apple’s gaffe with a clever search marketing campaign, which Apple then countered with one of their own, though the messaging was purely a sales pitch and ignored their existing customers.
What Apple should have done is make an exception of their refund policy for all iPhone owners, giving them the $200 price difference. Or they should up the store credit to $200. Or Steve Jobs shouldn’t have been so blasé about the price cut.
Ultimately, what Apple really should have thought more carefully about is the original pricing of the iPhone, knowing that the iPod Touch was just around the corner anyway. Their sales will be through the roof this year, but still, it’ll be interesting to see if their next brand-new product gets a more tepid welcome from their burned fan base.
iPod Touch, Apple’s “The Beat Goes On” Digest
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Written By Sepideh Saremi | September 5, 2007 | Share This
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In his trademark dad jeans and black mock turtleneck, Steve Jobs delivered Apple’s “the beat goes on” announcements in San Francisco today. The biggest news was the new iPod Touch, with smatterings of other iTunes- and iPhone-related information. Here’s a roundup of the announcements.
Ringtones
iPhone owners will be able to create custom ringtones with select iTunes songs. A new version of iTunes launches tonight, and a little bell icon will tell you which songs you can turn into ringtones for an additional $0.99.
Shuffles
There’s some change to the colors and the addition of a red Shuffle, as part of the (product) red line. That’s pretty much it.
iPod Nanos
The rumors were true, and “fat Nano” lives. The new Nanos are squatter and thinner, with a bigger screen to enable video-watching and game-playing (three games will come bundled with them) and a better interface.
iPod Touch
This rumor was also true and this thing looks pretty awesome: Apple’s basically taken everything in the iPhone besides the “phone” part to make the iPod Touch: touchpad interface, Wi-Fi, etc.
iTunes Wi-Fi Music Store
Just what it sounds like: a Wi-Fi iTunes store so you can buy music on your iPod Touch or iPhone. Also, iTunes is partnering with Starbucks, so users can buy what’s playing in Starbucks stores while at Starbucks stores, via Starbucks’ wi-fi, for free. As Jason Chen wrote in the live coverage on Gizmodo, “Wow, free access to a STORE? thanks!”
iPhone
The 8 GB iPhone went from $599 to $399, making it slightly more affordable, and the 4 GB iPhone is being dropped entirely.
The Beatles
To my dismay, there was no Beatles announcement, no Sir Paul McCartney appearance, nothing. Just a KT Tunstall show to close things out, apropos of none of the Beatles rumors.
Apple to Announce “the Beat” Today
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Written By Sepideh Saremi | September 5, 2007 | Share This
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In just a few minutes, at 10 am Pacific/1 pm Eastern, Steve Jobs will be announcing something at Apple’s live “the beat goes on” event.
Mac Rumors has a roundup of rumors that have circulated about what Steve Jobs is expected to announce. Throwing in their two cents, yesterday Microsoft also announced a drop in Zune’s sticker price, effective today. Perhaps, like many, they’re also anticipating an iPod with touchpad. That’s what my money’s on, though secretly I’m hoping it’s Beatles-related.
Both Mac Daily News and Endgadget are among the sites covering the event live, and check back here soon for what was announced.
Googlephone a Reality, According to Sources
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Written By Drupad Sil | August 29, 2007 | Share This
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As announced by Ryan Block at Engadget, various ‘very trustworthy’ sources have confirmed a Google mobile device platform, or OS, to be revealed in the near future. The new Google offering, christened by various blogs as the ‘Gphone OS’, is expected to hit handhelds in 1Q 2008, if not earlier.
The new OS apparently began development after Google’s 2005 acquisition of Android, a mobile software company. The Android team is currently shopping around a Linux-based mobile device OS that provides a customizable system, ostensibly with great Google integration. Some people have put the announcement date as early as immediately after Labor Day, though at this point the major suspense is whether the online giant will be offering hardware developed in-house as well (most observers agree that no hardware will probably be offered). There have been many clues in recent months to suggest that Google was planning a big mobile move in the near future. From Danny Sullivan at Search Engine Land:
“We’ve seen that they are bundling software on phones. We know they hired mobile phone operating system developers, so releasing something like that wouldn’t be too surprising. We know they want wireless bandwidth and are going after it in at least two different ways, which will likely involve two different types of devices. And they’re still working with the carriers, as well — through multiyear deals that aren’t going to just disappear. And did I mention that free WiFi thing they do in Mountain View?”
So what exactly can we expect in the near future? Details are understandably a little sketchy, but the common consensus on the web is that a launch will occur in Taiwan during Q1 2008. Google is supposedly checking out over twenty different HTC models and refining its final handset design. Users should expect a special version of Google Maps compatible with built-in GPS, as well as compatibility with GMail and Google Calendar. Google Talk will also become part of the phone, adding VoIP technology to whatever hardware Google selects. We carried a story on Google’s acquisition of GrandCentral back in June - ostensibly they’ve been working on this aspect of the gPhone.
Google and Apple have had a great working relationship, so why would Google look to launch a product that may threaten the iPhone? Well, most everyone agrees that the effort, products, and target audience for the two products are very different. From Michael Arrington at TechCrunch:
“Google’s effort is different than the iPhone. They look to be focused mostly on the OS and layering Google applications like Maps and Gmail on top of that, while simultaneously talking to device manufacturers about a number of devices. Apple, instead, took a much more holistic approach in creating the iPhone. Google’s product likely won’t appeal to the mainstream audience that the iPhone attracts…but it probably won’t have a $500 price tag, either.”
Jacqui Cheng at ars technica reaches the same conclusion through different reasoning:
“Unlike many others, we believe that when the gPhone (or gPhones, as the case may be) finally do come out, they won’t be facing Apple as a competitor. The iPhone occupies a mobile market that is far separate from what Google will be targeting with its series of lower-end, consumer-level devices. Google wants as many regular people using its mobile apps as possible, which won’t happen while confined to the iPhone, which is at the very top end of the mobile market. The two aren’t likely to compete in the same space… unless Apple decides to go for the lower-end mobile segment with its rumored iPhone nano.”
We’ll have to wait and see what exactly Google rolls out in the next couple weeks. Suffice to say, it’ll be huge news. Adding to the whirlwind are rumors that Yahoo has actually been developing a mobile device for longer than Google and may be considering an upcoming launch. It seems the next level of the portal wars has arrived.
iPhone Story
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Written By Kate Zimmermann | July 5, 2007 | Share This
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On Friday June 29th, Apple’s iPhone went on sale. “iCultists”, as dubbed by the New York Times, lined up for days outside of Apple stores around the United States to purchase arguably “the most hyped gadget in tech history.”
Upon it’s release, I invited a guest blogger to give us her first-hand account of her experience buying an iPhone - First time blogger, long-time “iCultist”, and the only person I know who actually bought an iPhone - my seventeen year old sister Betsy:
“On January 9th, I watched the Macworld keynote address in its entirety - twice. I absorbed every piece of information (sparing as it was) about Apple’s “iPhone” that could be found on the website, in blogs, or in the keynote video. I immediately grasped how important it would be for me to have this product, and starting that day, I bragged to as many people as I could that I was getting an iPhone. Five months and t-minus 2 days.
I waited and waited, frustrated as the release date was pushed back. June 11th. June 29th. 6 pm on June 29th. Apple remained elusive about the purchasing process; should I go to an Apple store or an AT&T store? Come 6 pm on June 29th, I set out to the AT&T store for the coveted iPhone. I figured waiting in line early would be a waste of time, since I would undoubtedly have to wait whenever I got there. I arrived around 6:30 pm, and stood in line for an hour to even get inside the store. As I approached the doors, however, an AT&T employee announced to our disgruntled crowd that they had sold out of iPhones and that our best bet was to order one online.
(more…)
EMI and Apple to Offer DRM-Free Music
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Written By Kate Zimmermann | April 2, 2007 | Share This
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Today EMI and Apple announced a breakthrough decision to release EMI’s entire music catalog DRM-free via iTunes. Selling at a $0.30 premium, EMI songs will play on any digital music device and will come with enhanced sound quality.
Steve Jobs first promoted a DRM-free iTunes this past February in an open letter to the music industry. His rant against DRM attracted lots of attention and criticism from the press. During the EMI/Apple press conference, Jobs responded to his earlier critics,
“Some doubted our sincerity to break the iTunes bond between the store and iPod player. Hopefully, people can see that Apple is only concerned with doing the right thing for the customer.” (via IP Democracy)
Apple and EMI are both confident that consumers will be willing to pay higher prices for DRM-free music. Jobs said he expects 50% of all iTunes music to be DRM-free by the end of 2007, while EMI anticipated that digital music will grow to 1/4 of all sales by 2010.
CrunchGear has full coverage of the press call.
Further Reading
- Speculation is in the Air over EMI and Apple (NYTimes.com)
- Steve Jobs Calculus: Dealmaking, dollars means DRM is dead (Between the Lines)
- The Empire of DRM is Falling, EMI First Soldier Down (Startup Meme)
Apple TV Available Today
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Written By Kate Zimmermann | March 21, 2007 | Share This
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Apple TV is available for shipping today, and will hit stores this weekend. Initial reviewers have called it “simple and elegant” and “very well designed.” AppleTV was revealed in January as an afterthought to the iPhone, but has since gained traction following the explosion of online digital video. Bloomberg predicts that […]
Apple TV is available for shipping today, and will hit stores this weekend. Initial reviewers have called it “simple and elegant” and “very well designed.” AppleTV was revealed in January as an afterthought to the iPhone, but has since gained traction following the explosion of online digital video. Bloomberg predicts that Apple may sell 2 million devices this year.
At $299, Apple TV can store up to 50 hours of video, 9,000 songs or 25,000 photos, or a combination of the three formats. Apple is currently offering free shipping for online orders.
Ad-Supported Video Loses, Apple TV Wins
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Written By Kate Zimmermann | February 22, 2007 | Share This
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A report by Adams Media Research says that by 2011, the pay-to-download model will dominate online video distribution. Whereas ad-supported streaming will likely see revenues of $1.7 billion annually, paid downloads are expected to generate $4.1 billion a year in revenues. Tom Adams, president and senior analyst for Adams Media Research tells the Financial Times,
“The real issue becomes the connection to the TV…Given all the [recent] excitement about product launches, there is a general feeling that the market is bigger than it is, and that boom times are just around the corner.”
Though Apple TV was announced as more of an afterthought to the iPhone, thanks to high demand for download-to-own online TV shows and movies, it might end up as Apple’s Next Big Thing. MovieWeb questions whether Apple TV will kill DVDs, while The Apple Core calls it the “Trojan Horse of the Living Room.” The Apple Recon blog even rumors that Apple TV sales have already blown away expectations by more than double initial estimates.
Cliff’s Notes on the DRM Debate
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Written By Kate Zimmermann | February 9, 2007 | Share This
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Following Steve Jobs’ anti-DRM diatribe on Tuesday, I think literally every blogger on the Internet has put in his or her two cents on the matter (this one included). For the sake of lazy bloggers everywhere who don’t feel like reading all 1 billion posts, I put together a little cheat sheet essay, from which you may all quote liberally:
The DRM DEBATE in 300 Words or Less
Once upon a time, Norway decided that DRM was a crime against music-loving humanity. They insisted that Apple un-encrypt iTunes, or face the wrath of “legal consequences”. Apple took a few days to mull over their attack, then spun the issue on its head with Steve Jobs’ message to the music labels. “it’s not us, its them,” Jobs protested, in his heroic appeal to rid the world of DRM. “Perhaps those unhappy with the current situation should redirect their energies towards persuading the music companies to sell their music DRM-free,” he wrote. The music companies, in response, called Jobs’ proposal “completely without logic or merit“, suggesting that Apple instead license its FairPlay system to competitors. “We have no doubt that a technology company as sophisticated and smart as Apple could work with the music community to make that happen”, stated the RIAA. “Did you hear nothing he just said?”, responded the Economist and remaining population of the world. While the RIAA scrambled for a comeback, “Big 4″ music label EMI hinted that maybe, just maybe, they’d open a portion of their catalog DRM-free (in exchange for hefty advance payments, of course). Many cheered (none of them from Norway), wrote eulogies for the imminent death of DRM, and had the great satisfaction of saying, “I told you so“.
The end. (or, should we say, the Beginning?)
The extended version of this essay is currently being written by This Guy
Super Jobs to Rescue Music Lovers from Evil DR.M
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Written By Kate Zimmermann | February 6, 2007 | Share This
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The valiant Steve Jobs is sticking up for the little people once again - today he called on the music labels to abandon their anti-piracy software and join hands to promote a DRM-free world. Says Jobs, “In such a world, any player can play music purchased from any store, and any store can sell music which is playable on all players.” And the flowers all bloom, and the clouds taste like marshmallows and everyone hums along to Kum Ba Ya. okay okay… Here’s more of what Jobs wrote,
“In 2006, under 2 billion DRM-protected songs were sold worldwide by online stores, while over 20 billion songs were sold completely DRM-free and unprotected on CDs by the music companies themselves. The music companies sell the vast majority of their music DRM-free, and show no signs of changing this behavior, since the overwhelming majority of their revenues depend on selling CDs which must play in CD players that support no DRM system.
“So if the music companies are selling over 90 percent of their music DRM-free, what benefits do they get from selling the remaining small percentage of their music encumbered with a DRM system? There appear to be none…If such requirements were removed, the music industry might experience an influx of new companies willing to invest in innovative new stores and players. This can only be seen as a positive by the music companies.”
His post is a response to the recent protests in Europe against iTunes. Though a bit strange coming from the head of a company notorious for their DRM-encrypted music, at least he’s campaigning for the right side.
Discussion:
- Jobs Endorses Unchained Melodies (Silicon Valley)
- Hail to the Steve (View from the Valley)
- Steve Jobs Asks Music Labels to Abandon DRM (Read/Write Web)