I’m at an IBM event this week, and at dinner I had what has been an increasingly frequent experience.
It used to be that attendees at these events gushed about the new Apple gadget they were carrying, and anyone who expressed reservations seemed out of touch with the group. Much like talking about religion or politics from the minority position at the dinner table, bashing Apple was one sure way to ensure everyone thought you were an idiot.
But last night, instead of showing off an Apple device, another guest showed off his new Samsung Galaxy S III phone, which led to more chatter about my new Microsoft Surface tablet. It spiraled into an “everyone dump on Apple” event, and by the end of the evening, Cupertino’s sole defender seemed to be considering other options.
This may be anecdotal, but I’ve seen the same event played out several times recently among analysts and other influencers in the tech space. It makes me think Apple’s image is changing, and the firm’s products are losing their magical edge.
Samsung’s anti-Apple marketing
The blemish on Apple’s spotless image didn’t just appear there; Samsung helped etch it into the glossy white plastic quite intentionally. Its excellent marketing campaign has attacked Apple’s image on three vectors.
The first is questioning Apple’s leadership. Samsung’s ads paint Apple’s “upgrades” as features the company accidentally or intentionally left out of prior products (larger screens, 4G radios), or obvious improvements (headphone jacks on the bottom). In some cases, they also point out where Apple still lags behind the curve after launching a new device, like the lack of NFC in the iPhone 5. Samsung wants to depict itself as the innovator Apple is struggling to match.
Second, the campaign raises the idea that Apple fans aren’t smart consumers. They’re depicted slogging through long lines waiting for their technology, and getting unreasonably excited about aspects of the product that aren’t exciting. In fact, the not-so-subtle message is that Apple buyers are kind of dense.
Finally the ads build on this dense concept by showcasing Apple users as people you wouldn’t want to emulate: Your parents. Dorks. Clueless hipsters. This is designed to strip away the prestige that Apple products typically carry.
For all its mocking, Samsung actually copied Apple with its first smartphones, but has since diverged, trying to drag away the perceived market leadership with it. The Korean company waged a similar type of warfare on Sony in the television space, which was once the clear leader. Samsung first emulated Sony, then partnered with the company, then took the market away. Sony has never recovered. Granted, Sony had additional issues that complicated things, but the plan worked, and Samsung appears to be following the same playbook with Apple.
Microsoft Surface
Samsung isn’t the only company slinging mud on Apple’s image. The Microsoft Surface tablet is doing relatively well, and Apple’s efforts to disparage it have largely been ineffective (at least so far). It appears to have been designed specifically to make the iPad look wanting in comparison.
As I write this, the Surface is still generating lines, but the important part is it looks both more advanced and more unique than Apple’s offerings. This impression dovetails nicely with Samsung’s efforts, because while the two companies aren’t aligned on products, they are aligned on a common message: Apple’s offerings don’t convey status anymore because they appear to be bought by stupid people.
The too-soon iPad 4 and too-expensive iPad mini
The third leg on this this ugly three-legged stool comes from Apple itself. Its latest launch even showcased an array of different products under one roof, a “big bang” event that trivializes individual products. Firms like Compaq were famous for this approach, but Apple has avoided them like the plague since Steve Jobs returned in the late 90s. Worse, the new iPad made buyers of the old version – launched only back in March – look stupid.
Meanwhile, the iPad mini was priced well out of line with competing models, with inferior specs. When Steve Jobs launched the iPad, it was the lowest priced tablet from a major vendor in its class, and since then, it has remained price competitive against the alternatives. The iPad mini is priced at a 65 percent premium, but lacks the same high-quality displays found on far cheaper competitors. Smart people would probably not buy it as a result. I wouldn’t be surprised to see Apple discount it significantly once initial demand falls off, leaving early buyers upset and looking stupid yet again.
Destroying Apple’s brand
Apple’s strongest asset is the power of its brand, and the historically valid belief that Apple products are purchased by smart people who are well regarded. This asset is being systematically destroyed, overtly by Samsung, covertly by Microsoft, and stupidly by Apple. Apple is not effectively defending this incredibly valuable asset, and the end result will likely resemble the company that existed before Steve Jobs’ return. That also means a market less dominated by Apple. Since I’m writing this on my Surface Tablet, I’m thinking this may turn out to be a good thing.
I’ll tell you what’s “stupid”: This self-serving article with its now-generic pile-on herd-like anti-Apple sentiment. It’s tiring to read so much un-realistic FUD on Apple topics. I have a GS3, and it’s nowhere near as refined and resolved as iPhone, and don’t get me started on how cheap it feels, especially vs iPhone’s industry-leading industrial design.
If Apple’s popularity was waning, they wouldn’t be drastically increasing in brand value every year (do your research), and I wouldn’t be waiting months for iPhone 5 since Apple is selling products at rates never experienced before (they can’t keep products on shelves).
Samsung’s generating a following of Apple hating zombies with their pathetically jealous ads. These ads lack class, and lack anything that shows merit to Samsung, rather shows them as being snarky, shameless, ruthless, and desperate to have Apple’s culture and following. These ads paint a picture of a Samsung who can’t sell their products on their own, so they use Apple to go viral (the only reason these ads are talked about is because Apple is “in” them), and they showcase Apple as the one to be, the one in the spotlight, the one Samsung just can’t stand. APPLE doesn’t look unintelligent, this “hater” formula makes Samsung look angry, unintelligent, and envious. All it is is more press for Apple, while making it extra apparent that Apple would never do Samsung the favor of uttering their names in any of Apple’s ads. Finally, these ads further show how obsessed Samsung truly is with Apple, which is just icing on the cake after how Samsung’s entire gadget line is born from Apple knockoffs and IP violations.
Spoken like a true Apple fanboy.
You do realize that the Samsung Galaxy S3 is the best selling phone right now? Apple is falling fast.
Spoken like a true jealous vitriolic anti-Apple Fandroid.
I have a GS3. It sucks. iPhone 5 is crushing it in sales. Big whoop, GS3 outsold iPhone 4S during GS3′s first few months and the 4S’s final few months.
You have a SGS3, lol
I do believe you
Yeah, it’s a POS. Samsung bloatware, keyboard is HORRIBLE, crappy plastic rear casing isn’t biting on one of the ends, so it’s slightly sticking out, Apps aren’t as quality as iOS’s iterations, screen flickers when typing and making quick hand gestures. Fragmentation is killing Android, and making for a horrible user experience, in comparison with iOS to iPhone’s fluidity.
Also, battery drains insanely fast, and I don’t even have a 4G network yet.
@XXX44: You’re faking up impressions that this news doesn’t give. Nobody’s calling Apple stupid, neither is it a lie that some people see those that spend lots buying a single Apple device that you can usually get something comparable for half the price. Neither is anyone denying the fact that Apple is a leader in technology here, the point is that there performance is reducing and other companies are catching up fast… If you’ve used Surface, you will attest to this. I’ve used an iPhone and I agree with you on it’s finesse, but right now I use a Nokia 701 (1.3GHz, 512MBram, 8GB, 8MP, 2MP front, 1GBROM, Symbian Belle 2), I can run more than 28 apps concurrently with no really noticeable performance lag, record HD videos and play Asphalt 6 HD on it and any other thing I ever dreamed of on a cool device. Not that I have mentioned the Swype Technology. In fact, I’ve not seen phones easier to use (for a power user) than a nokia phone, yet I got it for 1/3 the price of an iPhone4! Not to mention that I am not an Apple fanatic, so I don’t have iTunes or have a good internet to download big apps from the iStore, etc. These issues limit the Apple Market. I’m pretty sure that Apple will leap far beyond others once they adjust their prices and everyone who’s not gotten a hand yet would want to get a hand on their devices, but for this strategy to really work out, they need to advance like 2 times the rate they are advancing now. AFAIK, there are two many technologies out there that are not yet available in any devices….
Uhhh, I think part of being COOL is not worrying about what others think (by definition). Perhaps you are one of the people who bought Apple products to BE cool. Then, you should probably be off chasing the next great thing.
Aww, aren’t you the cutest little Apple fanboy?
Are you saying that the coolest kids in school don’t worry about what others think? You’ve obviously never been popular.
You sound like the fanboy, PDTS. Clearly you’ve never been either.
Wow, there’s just too many of you now!.. So.. unique.. and cool
You really believe that Samsung’s ill-conceived and laughable (for the wrong reason) ads somehow “stain” Apple’s image?
Or that the Microsoft Surface is anything more than the next Zune?
We live in strange times, when Apple pulls off record-breaking revenues and income in the recent quarter, and some analysts call it “disappointing” because it was “only” 124% YOY.
Yet the same “analysts” go gaga over Microsoft, completely blind to the fact of how poorly that company is doing, and how it is now less than half the value that it was 10 years ago.
Strange times indeed… but not if this was Bizarro World where everything is the reverse of the logical. ;-)
You have to understand that analysts look at trends not current numbers. They are worried about the future the present is the past for them. The Apple miss was a problem because Apple uses a sandbag strategy. They set targets they know they can beat, and they missed one. That’s a problem and a bit one. They are also trading at a global high which means they don’t have to be good, they have to be extraordinary. They are drifting to good. Surface is no Zune, that comment means you never really understood Zune, it may still fail, though my two weeks with it suggest this is one hell of a first attempt. I don’t think anyone is going gaga over Microsoft in my community, they are simply looking better than bland at the moment but they are held to different standard. Improvement for them is far easier, because they are so low, than it is for Apple. Learn the word “relative”.
Rob, you clearly wouldn’t know a trend if it was staring you right in the eyes, because YOUR ARTICLE HAS NO SUBSTANTIAL FACTS AND ALL YOUR INFORMATION IS SKEWED. It should be illegal to write such garbage that misleads readers for all the wrong reasons.
Apple missed THEIR OWN GUIDANCE?! REALLY?! You may want to do research (again), because as always, Apple BLEW AWAY their own guidance. It’s the ANALYSTS guidance which they “missed”. Apple posted the second best 2012 in the HISTORY OF U.S COMPANIES, and outgrew ALL OF THEIR COMPETITORS, STILL. And that’s an upset.
This is a witch hunt, but people who can’t stand success and the happiness a company brings its users.
You need a fact checker.
ouch, you’re CAPSLOCKING him. That probably hurts. :/
Go do something better than just religiously defending a brand! You’re not Apple man, don’t take the opinions of someone who doesn’t like a company as personal offenses. You’re being so dumb I just felt I had to waste two minutes writing this.
Cheers! :)
Though I appreciate your 124% YOY comment, Rob is right. It’s a trend issue. Go back and look at the YOY numbers since the iPhone launched.
1) 24% growth with the launch of the 1st significant iPhone change since the original, launch of the iPad mini (OMG stupid move in lieu of an iPhoneXL), launch of the iPad 3, and launch of the iPad 4, isn’t really very impressive.
2) Dec. Gross:Net
2007: 27.07B: 4.072B – Sep. iPhone launched
2008: 39.76B: 6.793B – 66.82%
2009: 46.71B: 9.358B – 37.76%
2010: 76.28B: 16.64B – 77.82% April. iPad launched; purchased Siri inc., to launch Oct 2011
2011: 127.84B: 32.98B – 98.2%
2012(Sep): 156.51B: 41.73B – 26.53% iPad mini launched (There’s only 1Q left to make roughly 74% net in order to continue a trend of YOY growth growth. It’s not going to happen. In fact, they’re not even going to come remotely close.)
3) in the last 30 days, AAPL is down 13%. In perspective, the market is down less than 3% and Google is down around 10%. That’s just in the last 30 days. I assure you, it’s time to sell, before everyone else figures it out.
Nicely said!