Apple’s Free Engraving…Good for Business…Bad for You?

Posted by eric on November 2, 2010 No comments | 535 views

Apple has long been known as a ‘premium products for a premium price’ electronics maker. Along with others such as Bose, Lutron, and more, the quality and customer satisfaction for all of these brands is well established. Another quality these labels share is they are not known for exceptional giveaways, deep discounts or super savings package deals.

So, that being said, why does Apple give “Free Engraving” with the purchase of iPods and now their famed tablet, the iPad?Knowing how business savvy this company is how can this free service, which many customers would likely pay for, be worth giving away? Many “giveaways” are used to incent someone to make a larger purchase. But when someone makes the decision to buy an iPod, iPhone or iPad, there are no real competiors for these products as they are at a premium and the customer has already decided to go with a unique product and experience so the decision to purchase has already been made hasn’t it? So why add this free service?

It’s relatively simple…it hinders you from being able to resell the device later. If you add a message “For Sue on her 16th Birthday” it will make the item very personal (for you, not someone on Craigslist looking for a bright, shiny, gently used iPod). So when the new model comes out, you will likely hang on to the old one and still make the new purchase. And it devalues the device for the buyer as it’s not desirable to own an iPod and every time you use it see “Love Always, Tom.” Who’s Tom?

So, essentially, Apple is helping you “deface” your little Christmas gift, in the name of sentimentality, only to lower its resale-ability thus keeping the market demand up for more new products. In the long run, it’s worth every penny. Of course, the used iPods and iPads that are sold and transferred still have a secondary potential revenue stream through the iTunes store, app and music purchases, etc.

Don’t get me wrong, taking advantage of a free engraving to send someone special a birthday message, or a message of love is a great thing. It will also guarantee the item is not “re-gifted.”

Apple iPhone 4 cases shipping…early!

Posted by eric on July 27, 2010 1 comment | 1,335 views

During Apple’s press conference on July 16th about the iPhone 4′s exposed antenna weakness, Steve Jobs offered all iPhone 4 customers a free case to remedy the problem. During the conference he expressed that there would be a way to place orders for the case “by the end of next week.” Which was last Friday. I received an email requesting that I download the iPhone 4 case app to place my order…

After going online to view the details of all the case options available, some from Belkin and other 3rd party manufacturers. The ordering process only took a minute. It was quick and simple. So far all seemed fair and good. Then, as I completed the order, the ship date on the product appears on the screen nearly 5 weeks into the future. This didn’t sit well with me but Apple had expired their inventories. I wanted a free case but I didn’t want to have to worry about my shiny, brand new iPhone 4 getting scratched up. I had already ordered and received a Zagg invisibleShield screen protector, now I just need the Apple Bumper case to completely protect the device. Needless to say, I’m a little anxious to get my new baby fully covered and waiting over a month will not be easy.

Then, yesterday happens, I receive an email from Apple Shipping Notification telling me my black iPhone 4 bumper has shipped and will be here within a week! Yay! Not sure how many people out there also received a happy notification like this about their cases, I also would like to know if the 3rd party cases offered are shipping now as well.

Anyway, thank you Apple, and thank you Steve Jobs for doing the right thing.

UPDATE! 2010-07-28 – It’s arrived! EVEN EARLIER!

Guess what showed up in the mail today? Estimated delivery date showed Aug. 3rd, but here it is, almost a week early! Thanks Apple. Unfortunately my Griffin iPod USB cable doesn’t plug in all the way when the bumper is on, eeks. Otherwise, I’m completely covered now :)

Apple's free iPhone 4 Bumper Arrived

Apple iPhone 4 bumper

Google’s Mobile Maneuvering

Posted by eric on July 19, 2010 No comments | 306 views

Not so fast Google! Why are you trying to secretly discontinue one of your mobile phone ventures? Yes, the once purported “iPhone Killer” has itself died. Or at least put out of its misery by it’s creator. Google is discontinuing it’s Nexus One smart phone, the latest death, in what I believe will be a series of tragic, albeit, silent deaths of the many smartphones that just can’t hack it in the mobile jungle. Many will try, many will fail.

So why is Google trying to keep this one under wraps? Mostly because of one thing…they don’t want to stoke the successful fires of the iPhone. While Apple recently released the iPhone 4 to sell 3 million devices in as many weeks, breaking all records, RIM is seeing their market share shrink by the day. Google has seen some success with Android, although it was also just discovered that a recent estimate of Apps in Google’s App Store was over exaggerated. That kind of shady news as well as the discontinuation of the Nexus One can’t feel good to the search giant.

Although Android phones are quite functional, reports from the field indicate the customer satisfaction is quite a bit lower than that of iPhone users. Even with this latest iPhone 4 antenna debacle, Apple and AT&T are seeing HALF the return rate with the iPhone 4 as with the previous generation iPhone 3GS which had no purported antenna problem.

So, it’s no secret why Google must try and keep this secret. Goodbye Nexus One…thank you for trying.

Apple iPhone 4 Conference

Posted by eric on July 16, 2010 No comments | 1,886 views

Apple held their long anticipated (2 days) iPhone 4 “antenna problem” conference just moments ago. Opening the conference with a video poking fun at the media for over-hyping the whole thing to begin with. Wait, the media over-hyping something!? NOOOooooo!!! As Steve Jobs emerges to present this morning, he indicates that this will be a brief 15 minute announcement.

With a history of world class customer service, and lately, unprecedented transparency and communication from CEO Steve Jobs on every issue from no Flash support on their mobile devices to this antenna issue. We’ve seen open letters and open emails on every subject. This conference is the latest in what seems to be an emerging culture of openness.

The conference started out by showing how gripping almost any mobile, wireless device in the “wrong way” can cause signal loss. The first example being quite dramatic as they show a RIM Blackberry Bold 9700 dropping from 5 bars down to 1 bar when gripped the wrong way. Other popular smartphone platforms and manufacturers were mentioned, Android, Samsung, etc etc.

Jobs goes on by showing and explaining how the way antenna signals work, that all of these phones, any wireless device, will have this bad grip problem. It’s the laws of physics. Wait! You mean Apple hasn’t innovated enough to the point of defying the laws of physics!?!? I want my money back! He then explains how the iPhone 4 also went through shielded room tests etc.

Support issues…if this is such a big deal, as the media likes to portray, then out of the 3 million devices sold since it’s launch, there must be a ridiculous number of support calls about this problem. Actually, Steve reveals, that only .55% of all iPhone 4 owners have called about this problem. A little over half of one percent. While that’s probably higher than it should be, this is not the epidemic the media and class-action legal teams would have you believe.

Return rates…Wow, the previous generation iPhone 3GS averaged a 6% return rate with AT&T stores. Jobs indicates that this is below industry average. However, with the iPhone 4 and all of its supposed ‘issues’ the return rate is at a mere 1.7%. What’s going on here?

Jobs then goes on to reveal that the iPhone 4 actually does drop calls slightly more than the 3GS, however, it’s only 1 call per 100 more than the 3GS which is an ever so slim difference. He then theorizes, that because the previous generation iPhone 3GS is the same shape as its predecessor the 3G, that people could continue to use their old cases or even go to the store to buy one of many available cases for the existing shape. The case, thus shielding the 3GS from a percentage of dropped calls. Many iPhone 4′s are still ‘naked’ due to the fact that the case manufacturers are still getting the cases out to the retailers with the new form factor products…interesting theory.

And to help us all test his theory, Steve is putting his money where his mouth is and buying everyone a free bumper who buys their iPhone 4 up until September 30th. You’ll be able to apply for the free case late next week at the Apple Store online.

Well, I think this was yet another good communication from Apple. Another successful exercise at openness and transparency. All of the information given was logical and now the media must move on to another topic…oil spill? Haiti? War? Yeah, those are definitely bigger than cell phone reception stories. What do you think?

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