“Apple Computer has developed and introduced an entirely new marketing innovation called the iPology that turns customer complaints into free publicity,” Tom Bemis writes for MarketWatch.
“The iPology is so new a concept that some media and industry analysts mistook it for an actual apology and suggested that Apple might have somehow made a mistake,” Bemis writes.
“But a quick glance at the number of front page stories Friday makes clear that Apple has generated tens of millions of dollars worth of publicity through the scheme, contributing to the nearly continuous branding of the gadget into the public consciousness,” Bemis writes.
Full article here.
hey look at that, not everyone is stupid….
MW: “think”
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Ok, then where is my iPology for iMovie 08?
The rebate was classic damage control. Wonderfully executed, and smart leadership. But the people like JACK, Cringley, and Steve Jack who are saying that it was pre-planned frankly are just spouting fanboi nonsense.
St. Steven make a mistake?
Surely you jest!!
Uh…you can download the old iMovie for free….iPologized
The “iPology” for iMovie’08 would be a free download of iMovie’06. You want the “better program”? You get to choose which is “better” – for your use. Are you a serious newbie looking to clean up your “Vacation to Cleveland” footage? Go with ’08 to edit out the least exciting footage. You a budding but penniless producer of “home movies”? Stay with ’06. Remember … ’09 is just a year and change away and should contain the best of both programs in one.
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“turns customer complaints into free publicity”
Exactly!!! While I don’t think Apple had this planned, they have created a win-win situation for themselves, again.
And who said Uncle Steve wasn’t shrewd.
“You want the ‘better program’?”
Or, http://www.apple.com/finalcutexpress/.
Worth every penny.
Don’t Believe It For A Minute,
You want $15.80 back from Apple for iMovie ’08??? A little picayune, don’t you think?
Like it was said before
(($100 – Apple market = $40) * (10% of iPhone buyers = whiners) = $3,600,000) = (X millions in free advertising + limited negative advertising) = PROFIT FOR APPLE.
Apple doesn’t lose and this was a PR Campaign.
Of course there is the extra benefit of getting the whining iPhone users back in the Apple Store to buy more stuff.
So this thing was a loss leader, without the loss.
“A little picayune, don’t you think?”
It’s a sign of the Times, unfortunately.
NSFY,
I guess this guy expects Apple to Buy You (and everyone else) Final Cut Express.
Don’t forget, this so called “publicity stunt” likely cost Apple $50,000,000 in store coupons. Not exactly free even if it was really planned.
There will always be those who will think that this was a last-minute damage control (much like those who believe there was never a moon landing).
The apology letter was issued sometime around 11:00AM Pacific time. If this was really spontaneous damage-control reaction to angry e-mails and letters, it would mean that Apple senior management (and Steve Jobs) have been able to go through all the steps, from acknowledging the situation as a possible problem (although it wasn’t much different from the release of iMovie 08); brainstorm the problem and figure out how to address it; analyse and project financial impact on the quarterly report, bottom line, as well as share holders, have someone draft the response, have it reviewed, edited and approved by SJ and actually notify the press, all in under two hours???
If anyone was paying close attention to the last quarterly report conference call, they announced reduced margins later in the following quarter, as well as some new products. It is clear that the plan was all along to drop the prices, attract publicity for the new pricing, then issue store credits the next day (or two) and get even more publicity.
The whole thing was executed so well that a lot of people still belive it was spontaneous.
Store credit of $100 will cost apple much less than the value of it; if customers use it to buy any of Apple’s hardware (not to mention software), it would cost Apple no more than $70. In addition, more than likely, vast majority of those who actually decide to take advantage of this store credit and buy something, will be using it towards the purchase of something more expensive (another iPhone for a spouse/girlfriend/child/grandparent, or an iPod, or Final Cut Express), in which case Apple is making a sale (and profits) it wouldn’t otherwise have.
Publicity alone is probably worth tens of millions of dollars they didn’t have to spend.
This move is a significant net profit, there is no doubt about that.
Pregdrag – you’re dead on. No company moves that swiftly unless something has been in the works for a while. It’s not like Apple’s a one-man shop that can do things on a whim.
Tom Bemis is a chump
Even if it was all planned out- I’m happy. I have my iPhone and 100 bucks at the Apple Store (hello, Leopard!). My cell phone died and I needed a new one. No question I was going to get an iPhone to replace it.
And the most amusing part of the article is the last paragraph:
…”Apple is expected to make strategic use of the iPology in future marketing campaigns but is unlikely to license the concept to other companies because of the complex technical requirements needed for successful implementation of the strategy.”
Apple can turn on a dime, but a move this quick was too quick for a company this huge. Every aspect has been planned for a long time. Apple seem to premeditate a “if this happens, then we do this” policy upon each release. Next up…Leopard. This quarter will not be as huge, as told by Apple already…but, next quarter will be a new definition of tremendous and will be announced not far after Jan’s keynote. I am wondering what Apple has left for the keynote…hmm.
Update, my buddy here at work just got in a new ’20 iMac and MAN, that thing is alot thinner and pro looking than what the pictures tell…WOW…that keyboard is incredibly thin!!! I recommend people see this thing in person! In this case…pictures don’t tell a thousand words.
In my opinion this was a brilliant contingency plan. If the outcry had been minimal, there would have been no reason to execute the $100 credit. As Georgy said the policy “if this happens, then we do this” is exactly what Apple does. In fact I’m sure there was also a plan for the the initial roll-out of the iPhone that was never enacted because sales and customer satisfaction were both so high.
While I agree that the results from the price-cut, the reaction, the $100 credit, and the re-reaction ultimately helps Apple, the real question is whether it helps Apple more than not issuing the credit.
If so, then I would agree that this was THE plan, and if not it must have been pre-planned (and not spontaneous, that’s absurd!) as a contingency.
Even Rush Limbaugh is talking about the iPhone situation and how he is gonna use the store credit to buy more iPhones. He originally bought 40 for his staff.
Cry cry cry!! When you bought the phone you decided it was worth the price now its not?? You flashed it around and enjoyed it. If you needed it, it should have made you the $200 in the last month. If not then go flip burgers for a couple of days. How about those of us who bought a $3500 cinema display that now sells for $1200, Hey Steve where is my $1150 in store certificate?
Cubert: “I guess this guy expects Apple to Buy You (and everyone else) Final Cut Express.”
HA ! ! Funny!
But if I needed it, I’ll get a $100 Apple Store discount!
I think I’ll use it for a $29 copy of Leopard though.
“It’s not like Apple’s a one-man shop that can do things on a whim.”
Good point.
Ive and Cook pitch in some too.
The iPology…
“i” this that is so in our dna now… so apart of DAIL CULTURE now… it wasn’t that APPLE came up with something new… it is only that the APPLE branding is so so powerful. Good or Bad – however you look at all the reviews is a bonus to Apple. Apple made no mistake… they are just doing good buisness. All companies should WAKE-UP.
Apple deserves the future – they have earned it.