April 3, 2008

Beneath Apple’s ‘good guy’ image is a corporation that takes advantage of its customers.

- Brian Kabateck, Managing Partner of Kabateck Brown Kellner

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Comments | 12 Total

April 3, 2008 at 10:27am

Josh Holm

Define advantage - Isn't the quote just a definition of capitalism?

advantage - can have positive and negative meanings. Though this sounds like a negative comment. Apple doesn't strike me as a non-profit or charity organization. So I wouldn't expect less of them if they didn't take advantage of a market thats insanely loyal, some for good reasons.

April 3, 2008 at 10:41am

Hunter Willis

Agreed. Apple is a solid company and a leader in innovation. Those of us who are early adopters know that we pay a premium on products so when the price drops a few months later it is my own fault for buyer's remorse. Apple's obligation is to maximize the value of the company for the shareholders, not to hold the hands of its customers and give all of them a big, warm hug.

April 3, 2008 at 11:47am

Johnny Makkar

They have built a brand with products that people are willing to pay a premium for – that’s quite obvious. I wouldn’t consider that taking advantage of their customers because it is the customer’s decision to pay that premium. They are not forcing anyone to buy anything. But, there have been a few recent instances when it was quite obvious they were out to squeeze some more money out of already loyal customers i.e. when they decided to charge iPod Touch customers to upgrade to the new iTunes software and how they suddenly stopped including the Apple Remote with new laptops to sell it separately as an accessory.

April 3, 2008 at 12:52pm

nando p

No big news, ah? Show one company who doesn't.

p.s.: Costumers also take advantage of Apple.

April 3, 2008 at 1:26pm

Stephen Shea

Sorry, I'm an Apple fan with limited disposable income (after house & kids, that is, which seems to account for most of the disposal), and I can't see how Apple is doing as much to squeeze customers as, say, oil companies, telecom companies, or agribusiness firms.

April 3, 2008 at 1:44pm

Greg Palusa

Well, we have to be balanced here. Apple has been developing great products - iPod, iPhone, iTunes, Leopard, etc. - and this is an advantage for costumers.

And of course it is a great advantage for Apple, too, thanks to remarkable results in sales and profits. And huge growth in share value. Apple shares increased 2400% in the last 4 years. (Advantage for shareholders ...)
I would say it is an advantage for all sides. And that's fair.
I think Apple made a big, big marketing mistake by reducing the iPhone retail price by $200 - 33% less - after only 3 months from the initial launch.
This makes me think Apple is becoming too greedy, lately.
And this isn't good at all for the brand image.
Besides, Apple has done big mistakes in marketing in the European markets. It has overlooked the European markets, and missing big numbers in unexploited potential sales. They could have made 300% more revenues in Europe in the last 4 years. Check how many Apple Stores are in the US and how many in Europe. 150 Apple Stores in the US, 15 in the UK, 0 in France, 0 in Germany, 0 in Switzerland, 1 in Italy, 0 in the Netherlands, 0 in Spain.

http://www.apple.com/retail/storelist/

I have been talking on the marketing and distribution issues with Erik Stannow, VP Marketing, Europe & EMEA. Apple lacks management and strategy in these important markets (350 million inhabitants). Perhaps in Cupertino they don't even know that Europe exists.

April 3, 2008 at 4:36pm

Jonathan Bruck

I'd like more explanation of how Apple takes advantage of its customers. As an owner of Apple's hardware and software, I think my Powerbook and ipod have been great buys, and I've been well supported with product updates and backwards compatibility.

April 3, 2008 at 4:50pm

Greg Palusa

I've just read the article on PRNewswire about the iMac lawsuit - filed by Kabateck Brown Kellner - http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=109&STORY=/www/story/0...
Well, my comment is: Apple is definitely become too greedy. Very bad. This way Apple will undermine their own reputation.

April 3, 2008 at 9:55pm

Carl Lacey

Any corporation’s primary objective is to be profitable to its share holders, and Apple is no different. The difference with Apple is that they continue to bring out innovative products and services. Apple also seems to resist the typical complacency that lands so many former heavy weights a knock out blow. Apple has demonstrated a proficiency in building partnerships that, up to this point has improved the user experience. If you are looking for an example of an industry taking advantage of customers, you need only examine the music industry before Apple’s involvement. It was not that long ago that customers everywhere were strong armed into buying entire albums, even though in reality they only wanted one or two of the songs at best. In addition, the labels turned a deaf ear to the way people were choosing to consume music. Instead they decided to describe their customers, as "criminals" in place of their correct classification, fans! Then to make things worse they threatened to file lawsuits against their customers, instead of developing a viable solution for what the rest of the world not only knew, but was actively engage in,“The Digital Revolution!”

April 3, 2008 at 10:22pm

Jack Browning

I was told by a very wise businessman that if you want to go out of business; hire an attorney and an accountant to run your business. I personally have witnessed this axiom come true on at least three times. The point is, I take what a lawyer says about business matters and go in the opposite direction and it has worked perfectly (get a clue about real business)!

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