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iPhucked: Apple advocates face an angry god

Not so Precious? Apple fanboys feel the pain.

In the world of marketing, the most valuable customer — the holy grail — is the customer who becomes an advocate for the brand. They are literally worth their weight in gold or, to be more accurate, saved marketing costs. Not only are they locked into your product(s), saving costs that might have been spent on retention programs, but they do the heavy lifting of brand building by energetically recommending your wares to their friends via face-to-face and, in an ever more connected world, online interactions. Apple has been masterful at turning legions of their customers into advocates by creating an aesthetic ecosystem that their customers move into and inhabit. Part of the appeal of that aesthetic has been its adherence to design integrity — to the point of accepting niche status in a market of commoditized digital products in order to maintain total control of quality. Purchase of an Apple product bought one admission into a walled garden. As with any exclusive club, one couldn’t enjoy every benefit available to the throngs outside the enclave. No matter — choice is, by its nature, deeply antithetical to a rigorous adherence to design. Everything was going fine until the unheard of happened: Apple products became popular…

“Repeat after me: Freedom is Slavery.”

Part of the appeal of breakout products like the iPod, iTunes and, to a lesser extent, the iPhone has been a promise of reciprocal advocacy from Apple and its guru-like leader, Steve Jobs. At the famous product launches — that resemble nothing so much as tent revival meetings — Jobs has said that tools like the iPod and iPhone empower their owners, making it easier for them to manage their music and communications needs. But implicit in that message is that exercise of that empowerment will happen within the confines of the Apple garden, using features that Jobs & Co. decide upon. The problem for Apple is that over the past few years a competing zeitgeist has developed advocating that information — and the hardware that stores and conveys it — should be “open”. According to this competing philosophy, beauty inheres in the opportunity a product offers for hacking and customization. Many customers, and among the most influential in the online world, have prior allegiance to this cause and have chafed at the limitations built into their shiny new toys — including inability to add unsanctioned applications and carrier lock-in. It all came to a head last week when Apple released an update to the iPhone firmware that turned their modified $600 phones into worthless paperweights. The severity of the public relations disaster for Apple was symbolized by an extraordinary posting on the influential tech news blog Gizmodo — wherein the editors [rescinded their previous advocacy] of the iPhone and now recommend that the product be avoided. Reading the message thread on the posting is a telling view into the nature of the problem for Apple: some of the commentors think it’s much ado about nothing since relatively few customers will want to hack their phones and, anyway, if you violate the Terms of Service you get what you deserve. These are traditional Apple customers who are happy to use their products as Apple intends. But the majority of comments are from people furious that they are asked to shell out top dollar for a product that, in its restrictions on use, seems to belong to another era.

That is the problem Apple faces as they attempt to achieve or maintain dominance in the digital media and communications arenas. They must adapt to the world in which they hope to lead and adjust their values without seeing it as a compromise. Steve Jobs, of course, has to take the lead on such a change in course and who knows if that is likely. The problem with a cult of personality, such as that at Apple, is that it can hamper reaction time for an organization if the leader is late to see the value of a change in direction.

There is an irony here — do you see it? Back in 1984, an upstart computer company made a big splash with an ad that suggested that the only adequate response to a restrictive technological culture that denied people choice was resistance and insurrection. How’s that for irony?

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5 Comments

  1. Hmmm. Yes I think I’m seeing your point, also in how Apple is morphing from a computer company to one more like Nintendo or Sony. Now I would say Apple is still “open” in the sense of what kinds of files can you put on their closed systems, but increasingly the OS and the applications, definitely less so - especially when it comes to iPod and iPhone.

    I would hate to think all that “open source” stuff back in the beginning days of OS X was just a ploy - but maybe it was. Seems like Apple Stores are just iPod stores?

    Comment by Webomatica — October 1, 2007 @ 9:00 am

  2. Clever use of their own iconic ad against them, but the types of products that Apple continues to produce and innovate are still light years ahead of any competition, so I suspect that Jobs can continue to be a control freak for a bit longer. The argument still holds that there is a trade-off between flexibility and security with their products, and as long as they remain just flexible enough within their cloistered walls, I think people will still choose security in fairly large numbers. I suspect there is a large swath of consumers that are actually somewhat relieved that they don’t have infinite choices to make within the Apple universe. And you simply can’t underestimate the draw of great tech design. Even in NY, I still see people turn their heads and ooh and aah when they see an iPhone walk by, as if it is a celebrity in its own right.

    Comment by Aatom — October 1, 2007 @ 2:45 pm

  3. Jason,

    I think these are growing pains for Apple. They have decided to become a major player in the consumer electronics space and must find a way to marry their obsession with control to a public desire for interoperability and “freedom”. I’m not religious when it comes to these things — if they can make the transition more power to them.

    Aatom, security is yet another aspect of the same challenge. As they step out of the “walled garden” to increase marketshare they are bound to incur increasing threats. It is, as always, a trade-off.

    Comment by SD — October 1, 2007 @ 7:50 pm

  4. Excellent article. I’m a recent convert to Apple products and whilst I still thrill at their elegant design and intuitive functionality, the overt fascism which Apple insist on is grating to say the least. They seem to have entirely missed the evolution of 2.0 principles and open-source thinking.

    Comment by Damien — October 5, 2007 @ 4:48 am

  5. Damien,

    Thanks for the compliment. As for Apple missing the 2.0 boat — that’s a ship they certainly don’t want to sail on. Their business model is the oldest in the book: lock in users and maintain total control on how other businesses interact with their platform. They got a PR pass from users (particularly younger users) because they were able to convince the record companies to practically give away their products on iTunes so that Apple could build their huge marketshare.

    It’s pretty clear now that their content partners hoped that — one day — after they had helped make the iPod the dominant music platform, Jobs & Co. would share the wealth and loosen price controls. When that didn’t happen, they started evacuating iTunes. They won’t be fooled again.

    Comment by SD — October 5, 2007 @ 11:47 am

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