No More Freebies

Previously, Genius Bar staff had some flexibility in waiving the $199 out-of-warranty replacement fee as a “one-time exception”, giving customers a free replacement for a damaged phone. With the shift to AppleCare+, Genius Bar staff will no longer have the option of offering free replacements, so customers who have been aware of Apple’s informal replacement policy should be mindful of the change.

I had a feeling this would be the case. It doesn’t make sense for Apple to have an inconsistent customer service message that depends on how good your story is when you walk up to the genius bar.

MacRumors Article

Who Would Want an iPhone 4S?

Want a new iPhone 4S in your hands at the earliest possible date? You’ve missed it. Take a look at the U.S. Apple Online Store and you’ll see that shipping estimates are now listed as “1 to 2 weeks.” Before the pre-order stock for launch day delivery was sold out, the site stated that iPhones would be delivered on launch day, Friday, October 14.

So, Apple has sold out all its available preorder stock for October 14th delivery. Now, I don’t know how many units that was, but I think a more than reasonable guess would be as many as Apple could make and have ready.

“Apple no longer has a leading edge, its cloud service is even behind Android; it can only sell on brand loyalty now,” Gartner analyst C.K. Lu told Reuters on Wednesday. “Users may wait to buy the next iPhone; if they can’t wait, they may shift to brands with more advanced specs.”

I guess the iPhone 4S doesn’t suck after all.

Mashable Article

It Took Less Than 48 Hours

I’ve read a couple of very negative commentaries about Steve Jobs, published in light of his recent death. I’m not going to quote them. I’m not going to link to them. The websites in question don’t deserve the traffic, and their blog posts are a waste of bandwidth. But I do have a couple of comments.

This is a free country and Steve Jobs was a very public and yet ironically private figure. At the current speed of information, it was almost respectful to wait two days before publishing articles bashing the man. Trash talk sells, generates clicks, and traffic. There is no moral compass that governs the modern journalist in the blogosphere.

Was Steve Jobs a jerk? Sometimes. Perhaps a lot of the time. Does it make any difference? Not really. He was who he was. He’s not celebrated for his altruism or his philanthropy. He was a brilliant businessman, inventor, designer, and innovator. That is his most important legacy.

Did he build his company on the backs of the poor in countries like China? Not exactly. Apple doesn’t own a factory in China. They contract work out to the same manufacturers that are used by Microsoft, Dell, Nintendo, Intel, and many others. Are there crappy working conditions and child labor at these 3rd party manufacturers. Yes. But in reality, corporations are amoral entities whose main obligation is to provide value to shareholders. Consumers bring morals to the transaction and frankly, they’ve voted for cheaper products and rose colored glasses. And ultimately, it’s up to the Chinese government and Chinese people to affect change in their labor market. Remember that it wasn’t that long ago that Henry Ford was ordering his thugs to break employee kneecaps. You can’t force societal and cultural change on another country easily. Just look at Vietnam, Afghanistan, Iran, Iraq, etc. If Jobs is an evil man for abusing poor foreign workers, we’re all accomplices.

Was Steve Jobs a control freak? Hell yes. About everything and especially when it came to apps in the app store. Certain types of apps will likely never be allowed in the app store. Apple isn’t a democracy. Each app approved is about creating a carefully curated space that adds value and appeals to as wide an audience as possible without insulting them. I know you’ll counter that the app store approved multiple fart apps and the like. The thing is, kids love that crap, and their parents are pretty much okay with it. Pornography on the other hand? Why waste time whining about what Apple won’t let you do? Buy another product. This one isn’t for you.

On Jobs and philanthropy, it’s not clear where he stood. If he did make contributions, they weren’t publicized. But it doesn’t really matter. There’s no requirement that the value of a man’s life should be measured by his charitable giving. You don’t see articles suggesting that the latest Medal of Honor winner would have been a great guy, but he never donated to the local food pantry so he must be a douche. Sure, Warren Buffett and Bill Gates are in the giving game, but they’re playing it the way they did in enterprise, building charitable empires. There’s nothing wrong with that. But there’s not necessarily anything right about it either.

History has been kind to its great figures, because their flaws have been forgotten in a time when they weren’t recorded in minute detail. I can acknowledge that Steve Jobs was a flawed mortal, who did amazing things.

An Excellent Review of the Recent Apple Event

I always enjoy reading John Gruber’s thoughts over at Daring Fireball. I don’t think I could have summed it up better, and I don’t have the time in any case. I highly recommend his summary of the iPhone event from October 4th, 2011.

Overshadowed

Color us a disappointed shade of blue, but it appears that Samsung and Google have decided not to launch the Galaxy Nexus (or Nexus Prime, or whatever it’s called) and Ice Cream Sandwich at their October 11th Unpacked event. The two companies sent out a joint announcement reading:
Samsung and Google decide to postpone the new product announcement at CTIA Fall. We agree that it is just not the right time to announce a new product. New date and venue will be shortly announced.

Good publicity for non-Apple products will be hard to come by for the next few weeks.

Engadget Article

Goodbye Steve

My wife always makes fun of me because I often refer to people in the public sphere by their first name as if I know them personally. And I’ve had many conversations with her that started with a “Steve did it again”, and sometimes “I don’t know what Steve is thinking”. Of course, I’m speaking of Steve Jobs, the technology industry icon and a brilliant man. His death yesterday was striking, not because it was unexpected, but because of the unexpected effect it had on me. I cried. I felt the loss. And I’ve never met the man. Now I’ll never have the chance, but his influence will continue, long after his company and his name are forgotten. He was a pioneer, who has laid the foundation for the future of the human race. Rest in peace Steve.

20111006-074354.jpg

I Call Bullshit

“Apple no longer has a leading edge, its cloud service is even behind Android; it can only sell on brand loyalty now,” Gartner analyst C.K. Lu told Reuters on Wednesday. “Users may wait to buy the next iPhone; if they can’t wait, they may shift to brands with more advanced specs.”

“We had expected the company to announce two new devices, an iPhone 5 and a 4-plus,” JP Morgan analyst Mark Moskowitz wrote in a note to investors. “We are disappointed that Apple did not introduce a thinner form factor, but we see the feature set improvements in the iPhone 4S and the broader pricing strategy as positives.”

I love analysts. Such stupidity and yet so many attentive ears. People wanted thinner Apple, you fucking idiots! Your doomed, doomed I say!

And the headline of this article is so trollish BGR.

BGR Article

Rumor Insanity!

Only one day until the Apple iPhone event. The rumors are flying fast and furious. But most of what’s out there is likely to be a pile of crap.

Cult of Mac

A new iPhone is the star of Apple’s Tuesday event, but at this point, it looks like we’ll be seeing more than one new phone. In fact, we may see as many as three.

I don’t know how to make this more clear: the chance of Apple announcing three iPhone models tomorrow are the same as Steve Job showing up at my house with a complimentary iPhone 5. Zilch. Zero. Not going to happen. Apple doesn’t like having a gagillion SKUs. And the idea that they will introduce a cheap, scaled down iPhone is just as ludicrous. Here’s what will happen. Apple will introduce a new iPhone model. They’ll call it something different than the iPhone 4 and it won’t matter if it’s iPhone 5 or iPhone 4s. And then Cupertino will drop the iPhone 4 price and sell that version as the entry level model.

Amazon vs. Apple in the Tablet Space

On the Amazon Kindle Fire

Research firm IHS offers a rundown of the device’s components on its site. Materials for the Kindle Fire, which retails for $199, cost $191.65, but with factory expenses, that comes to $209.63. However, despite the apparent loss, IHS estimates that Amazon is “likely to generate a marginal profit of $10″ on each Kindle Fire sold, when you take into account sales of digital content with the device.

Why this has to be repeated ad naseum I don’t know, but Amazon is a retailer. They sell stuff. Lots of stuff. They aren’t in the high margin game. Even if they do have an iPad level competitor in the pipeline, their strategy will diverge. Besides, there is room for more than one major tablet offering.

According to a bill of materials (BOM) analysis by Brian Marshall of BroadPoint AmTech, the cost of goods inside Apple ‘s 16GB WiFi-only iPad totals $270.50. That figure includes a $10 line item dedicated to manufacturing, but doesn’t include another $20 set aside for under-warranty service costs. Adding the latter makes Marshall’s bottom-line total $290.50.

That’s for the entry level WiFi only iPad. It’s a 42% margin. Apple makes its money on hardware and offers content as an incentive. Amazon makes its money on volume sales and offers cheap hardware as an incentive.

Mashable Article

PC World Article

Is This Why Apple is So Secretive?

Steve Jobs considers extreme secrecy a core principle of both Apple’s business and marketing strategy: The more the public is kept in the dark, feeding off the seemingly limitless Apple-rumor blogs and rags, the more consumers are likely to lust after Apple’s gizmos.

I don’t like to pick on the same organization twice in one day, but they just don’t get it. The secrecy feeds a small part of a much larger marketing strategy. Apple operates in a very competitive market and their specialty is design. Why would they want to give the competition a headstart copying Apple products? Or let the media tear them apart before they have a chance to tell consumers a compelling use and lifestyle story?

Recycling the same tired “get the fans in a frenzy with secrecy” story doesn’t make it any more true today than it did 5 years ago.

Fast Company Article