Apple Earnings = Style Over Substance?
6:25 am, April 23rd, 2009, Nicole Martinelli
In a gloves-off analysis of Apple’s unexpectedly good earnings report yesterday ($1.2 billion in profits, up 20 percent from 2008), Time attributes the uptick to brand cachet, not the products.
“Apple and RIMM results are an example of why brands matter and why companies are willing to work to develop them by making huge investments which can stretch over decades.”
Writer Douglas McIntyre falls back on a number of generalizations “a lot of people” “a lot of experts” “a lot like the iPhone” “a lot of cheap phones” and then pulls a few punches took a few cheap shots at people who buy Apple products.
“A lot of people think that consumers who buy brand are suckers, the kind people WC Field used to mock in old movies. Samsung builds a smartphone that looks and works a lot like the iPhone. It is called the Instinct and Apple owners think it is junk.”
“A lot of experts claim to know why people buy branded products, but there are probably as many reasons as there are people. All Apple cares about is that their customers have enough money to buy an iPhone, iPod, or Mac. Suckers have money, too.”
Via Time
Image of Apple logo out of iPhone covers by Incase designs, used with a CC license.
Posted by Nicole Martinelli in Apple, Cult of Mac | Comment on this article
wasn’t Apple awarded like Best Smartphone in 2008 by a highly reputable company? given that award over RIM’s Blackberry?
hardly a case of ’suckers’ being duped.
luke Lucas, on April 23rd, 2009 at 6:47 am
Not a big deal obviously, but to “pull a punch” has the opposite meaning of what I assume you intended. It means to not hit as hard as you could have.
Mark, on April 23rd, 2009 at 6:56 am
You call that “pulling punches”? Man… remind me not to join your Fight Club.
Jeremy, on April 23rd, 2009 at 8:15 am
I tend to believe that the cachet of a brand comes from its products or service — not from how cool its logo is or its cultural implications. I purchase Apple products because they have consistently provided high quality and innovation, not because “they’re cool.” They’re cool because they’re good — not the other way around.
After one has built up good experiences with a brand, loyalty is a given. I automatically prefer an Apple product to their competition not because of the coolness factor but because of my prior experience with their products.
ItsGene, on April 23rd, 2009 at 8:35 am
^that’s my shoe!!!
nic, on April 23rd, 2009 at 8:42 am
A lot of people wonder how writers like Douglas McIntyre have a job.
lonbud, on April 23rd, 2009 at 9:59 am
I’m sure that there are people that just buy Apple products because of the brand, but really – this is a complete generalisation and I’m disappointed that an august publication such as Time has gone for such lazy journalism. I have been a Mac user for twenty years and my primary motivation for buying Apple is because I genuinely believe that their computers are better than the competition – the levels of usability, stability, integration and asthetics provides me the best value for money, in my mind. I use competing products in a professional capacity and I find I am more productive using Mac OS than with the competition. The fact that the brand has cachet and is designed in a desirable way is a bonus, but does not influence my purchasing decision. When Apple had beige boxes in the early 90s, I still preferred them over the beige boxes of Compaq or Dell- there was no contest.
Mark, on April 23rd, 2009 at 10:06 am
McIntyre hates Apple, so he has to find an excuse for why Apple is successful, that isn’t based upon merit. To him, it’s all marketing and mirrors. And, he constantly ridicules people who actually buy Apple products.
I once sent him an email, and believe me, he’s even ruder.
KenC, on April 23rd, 2009 at 10:18 pm
Hey, Dougie,
The reason “many people” buy branded products is the confidence engendered by that brand name. I don’t know about you, but when I spend more than about a hundred bucks, I’m making sure I get something I can depend on. I won’t spend $1K on a “Wakasone” computer. I’m not forking over $200 on a “TopWire” mobile phone. I’m not even likely to spend 50 bucks on a no-brand 1TB hard drive. Based on experience, I won’t ever spend just 20 bucks on a generic disk enclosure (again).
I won’t spend an extra 40 bucks for a set of Snap-On wrenches, I’m not a pro. But I will spend an extra 15 for Craftsman, because I know their quality and I know Sears stands behind them, no questions asked. Brand confidence is part of what’s tanking the US auto makers. Instead of loaning them cash to ensure they stay in business, Treasury is fiddling while Rome burns. No one is willing to buy even a GM pickup without any confidence in their viability (As goes GM, so goes the country?)
Sure, “some people” buy crap just for the label, but not that many to sell 11 million iPhones/iPods in 91 days. When it comes to serious expenses, who people buy from is more important than any cachet.
imajoebob, on April 24th, 2009 at 12:06 pm
Like Ionbud, I agree.
How does this douchebag pull a check for his “journalism”?
And what the fuck is this imbecile blathering about, anyway?
Time & time again Apple’s been shown to put out Q U A L I T Y products.
Disinterested party recognized quality products.
Apple *invented* the fucking personal computer.
Doesn’t FuckFace McGee *get* that ?
The only downtime Apple’s had is when Steve *wasn’t* there.
A period best relagated to the dustbin of history.
Apple is the kind of company we *dream* of.
That ya only see in movies.
A company that’s cool & puts out cool things that NO ONE ELSE does & actually has a community around it.
CaryMG, on April 25th, 2009 at 8:39 am
Apple has a lot of style and a lot of substance. It’s a tough combination for the competition.
Partners in Grime, on April 25th, 2009 at 8:38 pm
I’ve ALWAYS been an apple guy — that’s going on seventeen years since my first Mac Classic. I started with Apple because the way their products worked made sense to me, and that’s been the case ever since.
The Idiot, on April 26th, 2009 at 7:44 pm
Wow, the anger in the comments! CaryMG, you need to get out more. I’ve been an Apple user since the 80s, and love Apple products, but come on!
Next, why are any of you surprised? This article is written in “standard magazine journalism” style circa 2009. Full of generalizations, unnamed sources, and hackery. Time’s been doing this for years, as have other “august” publications like Newsweek, USN&WR, etc. Then they all wonder why their circulation keeps dropping and their online traffic ain’t paying the bills.
Ferd, on April 27th, 2009 at 9:17 am