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Holtz Communications + Technology

Shel Holtz
Communicating at the Intersection of Business and Technology
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Liar, liar

The next time Apple CEO Steve Jobs says, “No, we’re not working on anything like that,” expect to hear laughter. Nothing Jobs says about product development will ever have any credibility since Wednesday when Jobs proudly unveiled the video iPod.

For months, Jobs has been more than dismissive of the idea of a video iPod; he has been contemptuously dismissive. On Business 2.0’s B2Day blog, you can read many of his comments indicating Apple would not release such a product. For example: “We don’t think people have a burning desire to watch video on tiny little screens.” Maybe he had his fingers crossed behind his back.

According to Stephen Baker at Blogspotting, Jobs has also rankled a lot of Apple fans by holding back on the video iPod in order to boost sales of the Nano. Now a bunch of consumers are stuck with tiny music players when they’d rather have the video version. Nanos are cropping up all over eBay, many presumably offered by those who would like to recoup their investment so they can afford the more desirable video player. Leading the charge is A-list blogger Jeff Jarvis, who suggests that Apple “screwed” its community.

Apple innovates some fine products, but it’s also a case study in throwback communications. Consider its approach to employees who leaked product information: Sue the bloggers who published the information to reveal the employees’ names. Now compare that to Sun’s approach: Get your highest ranking executive blogger, Jonathan Schwartz, to publish a public appeal to employees to stop leaking information and explain the reason why. Sun is progressive and transparent and treats employees like adults. Apple gets mad and sues.

Even Todd Cochrane at Geek News Central has taken Apple to task for its practices, dubbing it a “communications black hole:”

Apple does not communicate, Apple does not have a person that publishes their cell phone number on their blog that I can call and get clarifications on or bitch about something that has made me mad. Guess what Microsoft does!...Black Hole communicating is what I am going to start referring to Apple’s development and support teams. Comments and e-mails go in nothing comes out.

Does financial success mean a company has no need to communicate effectively? Does being the darling of the technology sector excuse arrogance and a one-way, top-down, secretive communication philosophy in an era of transparency and conversation? Or is the day coming when Apple will reap what it has sown?

10/18/05 | 6 Comments | Liar, liar

Comments
  • 1.Part of me agrees, but another part disagrees. What, next time a best selling author starts to write a novel, he should give away the plot to placate his die-hard fans? I think not.

    With regards to the disgruntled Nano owners, did they just have money to burn? I've been having trouble with my iPod of late and been looking for an excuse to buy a new one, but I still didn't splash out for a Nano. Just as much as I want a video iPod I'll still hold off until I get to hear a bit of feedback and check out accessories.

    Finally, as with any new tech product, the first batch always seem a bit crumby. As modern consumers we should always hold off. Come on, we're describing ourselves as intelligent and some of us are purporting that Apple will suffer in the long run. Yet we don't wait for initial feedback, the possibility of a price drop, etc. Just look at the last round of consoles releases. The first batch of PS2 and Xbox owners were kicking themselves.

    In some respects I would say that this is fanboy terrirtory. Release the product when it's ready. I for one prefered the teasing. A sense of anticipation had built up perfectly in my mind by the time it landed.

    The real reason Apple will suffer is if they don't realise that they're going to have to combine the iPod and cell/mobile phone properly at some point.

    Piaras Kelly | October 2005 | Ireland

  • 2.I appreciate your comment, Piaras. I think there's a difference between not saying anything and utterly dismissing the idea. As an author, I might be quiet about the book I'm working on, but I wouldn't say, "No, absolutely not, I'm not working on a book like that."

    Shel Holtz | October 2005 | Concord, CA

  • 3.On the other hand, what a great gimmick. As the word of Steve Jobs can no longer be trusted and the "shut up or get sued" attitude to employee tongues at Apple, how will the competition ever work out what is in the development labs or what is filling up the warehouses?

    That's one problem solved but using mistrust is a double edged weapon. Customers have got to see this guise for the competition for what it is, if not you're opening yourself to a whole world of trouble.

    From going through the link trail of the Stephen Baker story I couldn't actually find a Nano purchaser who was *geniunely* disgruntled.
    The statements were more: "Doh! I'm only I had been a more shrewd consumer." opposed to "Apple really shafted me! I'm very upset."

    Apple are the sweethearts of the market at the moment and people seem to be very quick to defend them still. The honeymoon period will be over soon enough, by that stage Apple will really need to know what direction it is heading.
    The problem they have at the moment the way I see it is that they currently possess a stranglehold over a new and lucrative market. It is a relatively new thing to them and as such they are guarding it fiercely with their cards close to their chest.

    Whether this old model will work with the new media is something only time will tell. Those dodgy first batch of Nanos may have been a blessing in disguise for them in that they now know exactly how fast the consumers and media will react to them putting a foot wrong. At the moment, Apple are working from a grace period...

    Dan Hill | October 2005 | Hampshire, England

  • 4.Ben Hamilton pointed to an interesting post from my blog on apple's ipod with video -- Apple could indeed be upsetting quite a few apple carts with this new gadget...

    http://www.socialcustomer.com/2005/10/video_ipod_rele.html

    Lee Hopkins | October 2005 | Adelaide Hills

  • 5.I saw that too (from you're blog Lee). Again, it shows that it is Apple's competitors that are (going to be) rattled by the introduction/timing/nature of this product, not its customer/fan base.

    Dan Hill | October 2005 | Hampshire, England

  • 6.Marketing classes have been teaching us about this type of planned obsolescence. I don't see the problem with Apple's technique of holding their cards close to the vest. Dan made a great point though in saying that customers don't know about this business practice, and Apple could alienate people who have already bought their products.

    It is unrealistic to expect Jobs and Apple to reveal their new projects at any time before the release date. That would open them up to competitors wanting to steal their idea, and sales would drop on products already on the market. What this points out is how little we think about the next step when purchasing a hot new item. It has been common practice, especially in technology markets, to introduce a new item with the next generation waiting in the wings. Most consumers know what is out there, and buy for what would still be worth its microchip in a year.

    ErinM | October 2005

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