It’s what’s inside Apple’s iPhone 4S that counts

“There was clearly some disappointment after Apple’s iPhone 4S announcement Tuesday,” Nick Bilton reports for The New York Times. “Twitter was awash with despondent Apple fans who had expected an iPhone 5. Investors seemed just as crestfallen. Apple’s stock fell sharply during the speech. (It bounced back a bit by the close of trading.)”

“Many people had hoped the company would showcase a new phone, specifically called the iPhone 5, that would come with newly designed hardware,” Bilton reports. “It was like the child who convinces himself there will be a pony waiting for him under the Christmas tree even though no one promised one or even suggested such a gift existed.”

“Instead, Apple announced a device that on the outside, looks exactly like the iPhone 4,” Bilton reports. “Although it would have been nice to see some new iPhone design, just for the sake of metamorphosis, it’s what’s inside that counts.”

Read more in the full article here.

MacDailyNews Take: By SteveJack

Why Apple didn’t leak “there will be no iPhone 5″ – strongly enough to seriously dent the rumors – to The Journal or some other credible outlets last week is beyond us. Leaks to convey important information to trusted journalists is nothing unusual and Apple’s done it many times before. Tamping down overwrought expectations should be standard operating procedure for Apple Inc. And it’s so easy! Under-promise (this includes not only saying little, but also managing out-of-control expectations) and over-deliver. So simple.

And, it obviously doesn’t matter if Apple said anything about an iPhone 5 or not, it’s the perception that’s the problem. In general, too many people expected an “iPhone 5.” That is clearly a problem for iPhone 4S. That the overly-inflated expectations were not caused by Apple is meaningless. It’s Apple’s job to manage hyped up expectations that will negatively impact the reception of their products – especially with a new CEO trying to do the impossible and stand up there in Steve Jobs shoes. Why is Apple so tone deaf? Have they become too insular?

The same sort of media mismanagement happened with “AntennaGate,” too. Apple was maddeningly slow to react, lost control of the narrative early on, and then had to resort to trotting out no less than Steve Jobs – along with videos of competitors’ phones attenuating all over the place – for a way-late dog and pony show just to regain some vague semblance of the control they never should have relinquished in the first place! Apple seemingly manages everything well, except for the media sometimes. Ignoring the media and letting hype spiral out of control is not a valid strategy for managing your message, Apple; it’s incompetence.

All that said, even without properly managing the hype, Apple could have solved much of iPhone 4S’s problem if only they hadn’t forgotten to make a silver one!

SteveJack is a pen name used by a long-time Macintosh user, web designer, multimedia producer and, when he feels like it, a contributor to both MacDailyNews Takes and the Opinion section.

68 Comments

  1. My humble take on Apple’s strategy:

    — Apple could easily have called it a 5 and gave it a cosmetic rebuild but didn’t.
    Why?

    — Apple is trying to get all the price segments. Android survives on the bargain hunters.
    A lot of bargain hunters instead of going for a cheapo Android will look at the $99 iPhone 4 now (hey it’s still cool right as it’s RELATED to the top of the line 4s?) Calling the new phone 5 would have made the 4 look old — and bargain hunters won’t buy the more expensive ‘5’. This way it’ll help sell a ton of $99 iPhone 4s.

    Remember the $49 3GS — an old phone — was in the last few quarters the second best selling smartphone in the U.S after the iP4.
    Now apple has a complete line up from 0 for the 3GS to the top end 4GS with the $99 4 at the bargain sweet spot. (I tell you the android OEMs are not happy this morning).

    The 4 at $99 might actually be quite profitable for apple as it has lower specs.

    — Having a case redesign two years apart (like many cars now) means: people are happy buying an iPhone as it doesn’t get dated too quickly. Two years is the length of most contracts.

    Because iPhone is sold in such vast quantities around the world two years eases the complex control supply and manufacturing chain Already Apple is having trouble getting enough screens etc. Ramping up every year to a different spec might be hard.

    Controlling this build and supply chain issues is one of the reasons why apple with a small phone market share controls 66% of the profits (and I’m counting Dumb phones as well). The other guys although selling their top end at iPhone prices have whacked their margins by building bonks of models with frequent changes etc.

    Yes the techy fans are disappointed (I’m somewhat disappointed) but looking at rationally (and as a aapl investor) I can see where Tim Cook is coming from. Tim the brilliant manager is training people to the 2 year case upgrade cycle and leaving no gaps in the price line.

    Yet there is enough sizzle (way faster, SIRI etc) in the new 4S that people will still buy tons of them.

    AND
    apple STILL has the 5 Card to play next year…

    Apple was lambasted streamlining the Mac line, going intel, not going into net-books etc but Apple walks to its own drum and to its own (usually winning) logic.

  2. @Bizlaw – I agree completely with you regarding the size of the iPhone 4S the same as the iPhone 4. For everyone who was disappointed that the iPhone wasn’t larger there would have be 10x that number that would have disappointed that the iPhone 4S would have been larger and heavier.

    As far as the complaint that the design was not different, you may have to accept the theory that it may never be substantially different. The reason is that the antennae system (that metal band) would have to be redesigned entirely at great expense. This would cause delays due to retooling. Apple has been having trouble in supplying the iPhone 4 as it is, so why do something superficial that would harm your ability to meet consumer demand? As an Apple stockholder, I would rather see them keep the cost down to the consumer and Apple’s profit margins up.

  3. I think Apple don’t give a hoot about the occasional disappointed response to their product announcements. In fact, I believe the company anticipates it. It keeps Apple on the front pages and it all adds to ratcheting up expectations for the next event – when a product launch will likely have a genuine ‘wow!’ factor.

    As any psychologist will tell you – the occasional ‘down’ only intensifies the ‘ups’.

  4. The iPhone is 960×640 resolution – the web is engineered for 960×640 – not for 800×480 – who wants a low resolution 4.5 inch screen that cuts off 99% of websites. I’m pretty impressed to be getting the A5 and a gig of RAM 1080p video camera with image stabilization and 9 hours of talk time. If can sell my iPhone 4 online for more than the 64GB iPhone 4s – try that with a POS android. A measure of how well engineered the iPhone is, is that it holds resale value whereas Android phones do not.

  5. I wish people would get real. The evidence was all there to see before the event: Apple was not offering a live video stream of the event.

    If there was a new design, the event would have been streamed live as has happened with all other new design launches. This time however no stream = no new design.

    Everybody knew the next iPhone was going to house the A5 from iPad 2. We all pretty much new the 8MP camera from Sony was going into it (I think I’m right in saying Sony confirmed the 8MP sensor for Apple some time ago).

    The iPhone 4 as SJ said on launch is like an old Leica, beautifully made. Leica has changed the design of every version of it’s rangefinder, yet at first glance, all Leica’s look the same until you stop and look carefully for the subtle design changes.

    iPhone 4 is no different. It is a beautiful piece of design and build quality, so why not keep it around a bit longer? The 3Gs is still a current model and still selling well.

    iPhone 4s is just like the 3Gs, a speed bump internally, just like Nikon do with their cameras (think D3 to D3s or D300 to D300s – same exterior but faster more capable internals). Apple did the right thing here. I don’t care if people notice my iPhone and go ‘WOW’, I’d rather they didn’t notice at all, less chance of being mugged and having the phone stolen.

    iPhone 5 will come next year, it will be true 4G LTE once the networks have established a 4G network with decent coverage. It will be a new design, with a larger more impressive screen.

    Get real people, I don’t hear you complaining the MacBook Air is basically the same design as the first model or the MacBook Pro has been around for too many years without a major design change. Don’t even get me started on the Mac pro which is basically in the same box as the PowerMac G5, with only an extra drive bay door to tell them apart externally.

    The iPhone 4s is a significant and welcome upgrade to the iPhone. Like it or lump it, it’s all that’s on offer from Apple at present. If you don’t like it, don’t buy it (smaller queues for me to deal with on launch day!!!)

  6. There was no need for an event. So much was a rehash of June’s WWDC announcements. It was a dead bore.

    In fact, Apple’s entire line-up is now a bore. Either Apple is unable to get over their one trick pony or, they’re taking a breather because the economy is poor and they’re going to reinvent their line-up starting in 2012.

    The iPod, iPhone and iPad are from the one well of innovation. Steve Jobs made that clear that the iPad was actually first and then put on the back burner to start with the iPhone. That’s why the iPad’s look didn’t change, really. It was just a big iPhone. Apple thinning their product line is no big deal really. They just had stupid competitors which will rectify that in 2012-2014 with the Ultrabook. And with the Ultrabook to be both notebook and tablet on a thin MacBook Air design, it will pound away at the underwhelming iPad 3. Throw in the fact that prices will be about 50% cheaper than the MacBook Air, Apple’s growth in notebooks will recede very, very quickly.

    I’m one that isn’t thrilled with my iPhone’s cell phone quality. My old ugly moto flip phone was 3x better in sound quality and reception. But, there’s hope for 2012-2013 I suppose.

    It’s just the whole Apple movement that was once exciting is so boring now. iTunes really sucks and only hope that someone in the universe could challenge Apple next year. It might push Apple to wake up.

    We may just have to get used to boring and Apple playing it safe like large companies do over time. Because one goof will have their sky-high stock cut by 30-40% in a heartbeat. And with Samsung rolling up their sleeves and Wintel waking up, Apple’s incredible rise to glory will begin their long slide down.

    Apple didn’t license Mac OS and paid the price in the 90’s and Steve did it again with iOS. Excuses, excuses, excuses. It’s the very same mistake and history is about to repeat itself.

  7. Where is unlocked phone, 4G and/or LTE. Without these this is just an overpriced iPhone 4 that no one will buy. Everyone will wait for more features (iPhone 5) that justify the higher price.
    “World Phone”; you cannot put in a pay-as-you-go SIM card, you must use the phone in roaming with your AT&T SIM card which ends costing a lot of money and by the way if you have a CDMA phone you will be calling on 3G in countries that are GSM only. If you travel a lot around the world and have a friend or relative in countries that only allow iPhone to be sold unlocked, have them buy one and then send it to you. All you have to do is slip in your micro SIM from your iPhone 4.

  8. Folks set themselves up…Apple cares about you, but not about what you think…they are in a position to not care what anyone thinks. Common sense says that iPhone 6 and 7 can’t have the same Wow factor that 5 will have…LTE/4G has some growing to do…and competition doesn’t require an iPhone 5 in October.
    Also, Apple wants you people to buy an iPad before Christmas and then an iPhone 5 in June and an iPad 3 before next Christmas…few will do both before Christmas, but many in the upgrade window will upgrade to the 4S…pretty easy to be common sense…so holler all you people want. Development cycle wow factor has to be stretched at this point, just like the OS, and competition is not creating any rush to push it. June is iPhone 5, and the hype will be even greater…and Apple will have time to make the device even greater….so there! Keep on listening to yourself holler!

  9. How typical…
    We judge phones just we judge people…
    Looking at the outside… not on the inside.

    This whole disappointment thing just demonstrates how ‘shallow’ we are with our ‘perspective.’ The new Siri ability and the other enhancements have turned this into a SUPER 4… or a 4S!

    Count your blessings as Apple and their stock holders will count their profits!

    1. Hurry up and count because by 2015 Apple will be number 3 on Phones and number 6 or 7 on computers. The countdown begins in Q4 2012. Cook couldn’t inspire a chip monk. The cult is dead, long live the cult. Ah, screw the cult.

  10. Steve Jobs: A class act, second to none.

    The brightest light on earth just went out.

    Thank you Steve for lighting the world in every respect and measure.

    Privileged we were to have shared you, your vision and the journey, privileged we are to have your achievements, exemplary human contribution and inspiration with us forever.

    What a loss.

    Shine on you crazy diamond.

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