Apple (AAPL) iPhone4 Conference Coming Friday
by Jared Levy on July 16, 2010
Apple (NASADQ:AAPL) is doing the unthinkable today; they plan to publicly address the issues with their newest device. The company is under extreme pressure and has even been sued over the “external antenna” design flaws with the iPhone 4.
Apple has a history of saying practically nothing in between its earnings reports and product launches. Even in the forward-looking statements provided on earnings calls, extreme lack of detail is the norm, leaving us (the general public) to really wonder what is going on in the “Wonka Chocolate Factory.” Heck, the iPhone doesn’t even come with a complete user manual; you have to dig through the web for that one. (My grandfather still can’t get past making a call and texting).
That strategy has worked thus far. The Apple mystique and magic marketing machine has pushed product sales to record levels and in turn AAPL stock, which is up $42.00 or 20% year to date (it got as high as $279.00 on June 21). But Apple now faces a serious challenge with this iPhone 4 “problem.” Of course there may be potential costs associated with repairing/recalling the hundreds of thousands of iPhone 4s produced. But the bigger issue may be the firm’s reputation and whether the “Kool-Aid” they have so far been able to get just about everyone to drink is in unlimited supply after all.
A repair solution might be to give users a free case, which could cost Apple a few dollars per phone. Jobs might also offer a big cash rebate to really make everyone happy, but I believe that this weakness has the potential to really affect iPhone sales moving forward.
You see, it’s not just an antenna issue the iPhone has had; the battery life and dropped calls (on the older phones) are reported problems as well, along with some other small quirks. How many people do you know who have broken or cracked their iPhone screen?
One Response to “Apple (AAPL) iPhone4 Conference Coming Friday”
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DID YOU KNOW? 70-90% OF THE PEOPLE THAT I’VE TALKED TO INC CO WORKERS (MEDIA INDUSTRY) HAVE OUTRIGHT SAID THAT THEY USE THEIR IPHONES FOR EVERYTHING BUT TO MAKE CALLS. BEST PART IN YOUR BLOG ‘MAGICAL MARKETING’- PRICELESS. THERE ARE TOO MANY OTHER COMPONENTS BESIDES JUST THE PHONE ITSELF THAT THE PUBLIC IS ‘ADDICTED TO’ FOR EXAMPLE: WORDS WITH FRIENDS, THE EASY TO NAVIGATE FACEBOOK AND MANY OTHERS. NEW APPLICATIONS COME OUT EVERYDAY FOR FREE. IF YOU ASK A PERSON IF THEY HAVE AN IPHONE AND THEY DON’T, THEY’RE ALMOST EMBARRASSED ABOUT IT. NOTICE THEIR REACTION NEXT TIME. THEIR GENIUS MARKETING MAKE IT LOOK LIKE YOU ARE NOT “COOL” AND IN A WAY DISPLAYS YOUR SOCIAL STATUS. SAD BUT TRUE. PERSONALLY I AM ONLY ABLE TO DO SO MUCH WORK ON IT. I USE TO NOT BE ABLE TO VIEW EXCEL OR ADOBE FILES IN THE EARLIER VERSIONS YET THAT WAS NOT A GOOD ENOUGH REASON FOR ME TO SWITCH & NEITHER IS DROPPED CALLS. THAT’S THE LEAST OF MY WORRIES. I LOVE MY IPHONE. I AM NOT SURE THOUGH IF I WOULD BUT THE NEW ONE. I’M GLAD THEY ARE COMING OUT AND ADDRESSING IT. ONCE AGAIN GREAT MARKETING STRATEGY. IT’S ALWAYS EASY TO FORGIVE AN HONEST MISTAKE THAN TO BELIEVE A BEAUTIFUL LIFE.
PS. THEY WOULD HAVE TO COMPENSATE MORE THAN A CASE FOR THEIR MISTAKE. MAYBE A COUPLE MONTHS OFF YOUR BILL ? YEAH RIGHT. AT&T WOULD NEVER AGREE TO THAT! AND EW! WHO WOULD WANT TO CARRY AN IPHONE WITH DUCT TAPE? IT’S WAY COOLER TO CARRY IT WITH A CRACKED SCREEN THOUGH =]
GREAT BLOG. THANKS J!
-RA!