You’ve got to hand it to Apple. No other company in history has been able to consistently alienate its customers with questionable marketing decisions and at the same time inspire such a fervid use of its products. What is Apple’s secret? Why is it seemingly exempt from the laws of modern business? How can Apple continue to grow amid marketing blunders and customer relations problems?
The Fiascos.
Before I delve into the reasons for Apple’s success, let me first substantiate the assertion that Apple’s marketing history has been problematic:
The Macintosh IIvx and IIvi. At five months, these underpowered and overpriced Macs were yanked from the product line and replaced with the much faster and comparably priced Centris 650. Owners of Mac IIvxs were not impressed.
Supply and demand. Except for the March 14th Power Macintosh introduction, Apple has almost never had sufficient stock of its products available for distribution at the time of the product announcement. This was a persistent problem with each introduction of PowerBooks, and it continues today; PowerBook 150’s are difficult to find and PowerBook 500’s are equally scarce. It is horribly frustrating for customers to have to wait weeks and months simply to buy a product and give a company their hard earned money.
Technology, in theory. Originally branded as a consumer product, John Sculley promoted the Newton as the Star Trek communicator of the 90’s: it could read your handwriting, send e-mail and faxes, store all your important files, hook up to your computer, dial the phone, schedule your appointments, and more. On the basis of this created expectation, the original Newton MessagePad was a marketing disaster. It certainly did a lot of what it promised to do––but it just didn’t do any of it very well. Customers who thought they could buy a MessagePad and take notes in a meeting were shocked by the reality of the Newton’s ‘advanced’ handwriting recognition. In addition, to use many of the promoted features of the Newton, you needed to buy more: a modem, a connection kit, a RAM card, etc.; a rather disheartening prospect to those on a limited budget.
Buh bye! It's been nice selling you! In recent months, Apple has quietly discontinued many high-quality products: the Apple Extended Keyboard II, the Apple Keyboard II, the Apple Adjustable Keyboard, the Macintosh Color Display (based on the Sony Trinitron picture tube), and the Color StyleWriter Pro. Without going into great detail, the logic of these decisions escape me. Many have been replaced by cheaper––and inferior––products. While I can support cost cutting measures for competitive reasons, where will the line be drawn? Will quality continue to be sacrificed the name of the bottom line?
Recipe for success.
Given the above examples of Apple's past marketing fiascos, why does it continue to be successful?
The Product. Success in manufacturing begins with the product. And those of you reading this document on your Macintoshes know well what I am talking about. The Macintosh and its operating system are Apple’s flagship products. Because of their singular difference from any other computer throughout history, they have inspired a devout following. Most people with Macs see their machines as much more than just “computers”. Indeed, the Macintosh is a companion who stays up late at night with you, lets you have fun and helps you with your work. Pioneering the concept of “ease of use”, the Macintosh and its operating system continue today to be the benchmark against which all graphical user interfaces are measured.
Research and Development. Apple’s track record speaks for itself: The Quadras. The PowerBooks. QuickTime 2.0. The AV Macintoshes. The Power Macintoshes. The LaserWriters. System 7.5. Even the Newton (you must admit...the Newton does possess some pretty cool technology, if not yet cost-effective). Apple’s unwavering commitment to the development and marketing of new technology have kept it ahead of the competition for years, and will continue to do so for the foreseeable future. The astonishingly successful implementation of the PowerPC in its computer systems sets Apple apart from any other computer company. The Power Macintosh heralded the dawn of a new decade for Apple––a decade in which Apple’s software advances promise to overshadow the success of its new hardware.
The Monopoly. Apple may appropriately be viewed as a competitor within a vicious market, but it is perhaps best regarded as the monopolistic producer of its own technology. Until very recently, Apple has permitted no competition within the “Macintosh market”. This can explain much of the emphasis on marketing blunders and customer outrage: unlike the PC market, Apple is singularly responsible for the advancement of the technology. When a PC manufacturer announces a new faster version of an existing computer system, there is hardly any customer backlash. It is simply understood that PC companies must progress with the prevailing technology in order to survive. Apple is not afforded such a luxury. When Apple announces a new configuration of a Macintosh, customers are ready to roll heads. “My computer system is now obsolete,” cry many owners of previous versions of that Macintosh; “If only I had waited two more months...I could have got so much more for my money. Apple ripped me off.”
Apple monopoly in its own market is a double-edged sword, however. Regardless of how mad a customer is at Apple, they have had no viable alternatives to vent their displeasure at Apple, save jumping ship and buying a Windows-based PC compatible. Such political decisions are a rarity in Mac users, however. As discontent as they may be, they love their Macintoshes. Jumping ship is an daunting task, in terms of the time required to learn another operating system, applications and (gasp!) configuring a PC system. As such, these customers often quietly accept the reality of their predicament, and vow to be more knowledgeable with their next Apple purchase.
Of course, this is about to change soon. Apple has opened the licensing flood gates, and there will soon be Mac compatibles on the market. This may help remedy the frustrating predicament of many would-be PowerBook owners–there will be another choice. If Apple doesn’t have product available, it will lose a sale.
Seeing the forest for the trees.
Like any company, Apple has made mistakes. The people who make the major decisions at Apple are certainly not infallible, and are doing their very best to address and correct past wrongs. Apple continues to grow because of its excellent products and commitment to future technology. The fruition of the PowerPC project and other recent deals with IBM and Motorola have strengthened the perception of Apple as a major player in the computer market. With each passing day, more and more people become Apple customers because they believe in Apple. And more and more, they are not being let down.
 
Chris McVeigh has owned nine different Apple computers: the Apple IIc, Apple IIgs, Macintosh IIsi, Quadra 700, Duo 230 with DuoDock, Centris 610, PowerBook 160, Centris 660av and his current trusty LC 575, and likes to think he knows something about Apple and its products. He also gets a kick out of previously enraged Mac IIvi owners who are now happily speeding along with their 7100/66 upgrades…
