Travel Technology - Is Apple's brand loyalty getting tarnished?

Do you think Apple's brand loyalty getting tarnished?

1 million new iPhone 3G buyers don't agree with you.

I do think though, that they need to be careful they don't start taking this success for granted. People will put up with a lot from them, but there is a limit.

But they clearly still have the key to successful products, and are without a doubt the slickest marketeers the gadget world has ever seen.

So no. I don't think it's tarnished (yet).

I think that it remarkable that the went from a computer company that focused on education markets to a hipster computer company to lifestyle brand via iTunes, iPod and now iPhone. The Apple fanatics will always be "marks" for their new products because it is Apple (I own a Mac and iPod, but won't change carriers for iPhone). Some of their issues will be due to agreements with AT&T regarding services as opposed to the specific Apple product and that may hurt their image, but not that much.

I think the biggest issue with Apple now is the huge black market for iphones due to the rollout to other countries.

Aside from that I don't see many issues. I think Nintendo is having more problems with the Wii and Wii Fit's black markets

Do you mean to say that Apple's brand image is being tarnished or that the brand loyalty of it's customers is being tested?

In either case, it's not obvious to me what you're asserting is causing the problem. Is it some product that's bad? Is it a customer service issue?

People were waiting over 3 hours at the Apple Store in Charlotte for the 3G iphone. Sometimes the associate said the line was 5 hours.

there was a hiccup initially with the activations, but people obviously stood it out. Everyone in the ATT store on Saturday was more interested in the iphones on demo than anything else in the store.

Do you think Apple's brand loyalty getting tarnished?Tarnished why?

Do you think Apple's brand loyalty getting tarnished?

Anything specifically prompting this? With the new products, great publicity, and long lines for new products, I'd think the question is exactly the opposite - is Apple moving out of its somewhat niche status.

Or are they moving to the "too popular" category, where the "cool" folks have to start dis'ing them for "selling out". Like "U2 used to be cool..."

1 million new iPhone 3G buyers don't agree with you.

Which 1 million customers?

According to Fortune there aren't 1 million.

Fortune (http://www.informationweek.com/blog/main/archives/2008/07/did_apple_reall.html)

Did Apple Really 'Sell' 1 Million iPhones To End Users? Nope.

Posted by Eric Zeman, Jul 15, 2008 08:58 AM


That nice, shiny press release that Apple issued yesterday failed to point out one important fact. Apple counts "sales" as any device it has sold to wireless network operators such as AT&T (NYSE: T). The network operators then re-sell the devices to actual end users. According to analysts, only 425,000 end users bought iPhones over the weekend.

Yeah, how about them apples, Apple? Piper Jaffray analyst Gene Munster had calculated the actual number of 3G iPhone sales to be less than half a million. He came to that number by surveying stores on Friday, July 11, and figuring out how many new iPhones were being activated each hour.

His initial projections on Friday came to 28 new iPhones per hour per store. Based on the number of stores and the number of hours they were open, he estimated 425,000 units sold to end users over the weekend. He also suggested that it would take Apple a full 17 days to reach the 1 million mark. So why the discrepancy?

Fortune reports, "One explanation for the discrepancy may have to do with how Apple counts sales. Sales at Apple Stores are recorded at the register. But sales to its partners -- in this case, AT&T and the overseas carriers -- are recorded when the devices leave the loading docks in Asia. In other words, some of those 1 million iPhones recorded as sold by Apple may still be in transit."

Apple has sold one million iPhones to its customers. Some of its customers, such as anyone who bought an iPhone at an Apple Store, are actual end users. But many are not. Some customers are network operators, and Apple would be bulk-shipping hundreds if not thousands of devices to them. Apple may not have explicitly stated who it sold 1 million 3G iPhones to, but the implication was that one million people bought iPhones.

So thanks, Apple spin machine, for your interesting statistics and take on what a "sale" actually is.

I'm a 16-year Apple customer whose loyalty is being severely tested over issues with MobileMe, their info-synching web-based service. I have been contemplating getting an iPhone but haven't made the move, and with the customer service non-help I've been getting I'm having second, third and fourth thoughts. Apple Support's discussion boards are boiling over with customer frustration.

Which 1 million customers?

According to Fortune there aren't 1 million.
I read that article. I say the phones are as good as sold. AT&T is basically sold out of their initial allotment. Does it make a difference if it's 1 million in 3 days or 17 days, as the article states? The first iPhone took 70+ days to sell 1 million. Even at 17 days that is still 4 times faster. It is also estimated that APPL makes more money on the new version.

I'm a 16-year Apple customer whose loyalty is being severely tested over issues with MobileMe, their info-synching web-based service. I have been contemplating getting an iPhone but haven't made the move, and with the customer service non-help I've been getting I'm having second, third and fourth thoughts. Apple Support's discussion boards are boiling over with customer frustration.

They extended your membership for 30 days as compensation for the problems. As with any major site change, there are bound to be problems. Apple was stupid to do it at the same time as the iPhone launch, IMO.

I am also a .Mac / Mobile me member, and don't rely on it for business so don't care that much that it was up and down for a week. I consider it a nice to have, but not essential.

1 million new iPhone 3G buyers don't agree with you.

Huh? The op asked a "yes" or "no" question viz, "Do you think Apple's brand loyalty getting tarnished?"

no apples loyalty not getting tarnished, the droids are out in force and will buy up anything that the god in a tutrtleneck offers up

According to Gartner Dataquest, Apple's share of the U.S. computer market was 8.5 percent in the second quarter (just ended), up from 6.4 percent in 2Q07. IDC had the figures at 7.8 and 6.2 percent, respectively. This came from 38 percent shipment growth while the overall U.S. computer market grew at 4.2 percent year-to-year.

When you consider that Apple has less than one percent of the corporate market outside niches such as graphic arts, that supports the 20+ percent figure for its share of the consumer market that these companies estimated a few months ago.

If Apple's brand is tarnished, its competitors would probably like to know what brand of tarnish they use so they can get a few barrels too.

(This is not to say their recent roll-outs of iPhone 3G and MobileMe went without a hitch. Obviously, they didn't. However, it takes more than that sort of glitch to affect a brand.)

I read that article. I say the phones are as good as sold. AT&T is basically sold out of their initial allotment. Does it make a difference if it's 1 million in 3 days or 17 days, as the article states? The first iPhone took 70+ days to sell 1 million. Even at 17 days that is still 4 times faster. It is also estimated that APPL makes more money on the new version.

I agree. If they had properly stocked the AT&T stores, they would have sold 2MM. I still can't find one, and the AT&T people just keep quoting "7-10 days". :td:

to put the apple 1mm in context, nokia sells over 1bn a year............

to put the apple 1mm in context, nokia sells over 1bn a year............

Yeah, but I bet the average American mobile phone owner couldn't name a single Nokia model.

to put the apple 1mm in context, nokia sells over 1bn a year............

How many smartphones? Quick google shows Nokia sold 38 million smartphones in 2006. Apple is projected to sell 45 million in 2009. I say that's pretty good since they will have only been at it for 3 years and Nokia will have been at it for 15 years, by 2009.

How many smartphones? Quick google shows Nokia sold 38 million smartphones in 2006. Apple is projected to sell 45 million in 2009. I say that's pretty good since they will have only been at it for 3 years and Nokia will have been at it for 15 years, by 2009.

And exactly whose projection is that?

And exactly whose projection is that?

Piper Jaffray analyst Gene Munster

But that was back in March. I'm not sure if they have a revised estimate.

Here's an article about it:

http://blogs.zdnet.com/BTL/?p=8336

Piper Jaffray analyst Gene Munster

But that was back in March. I'm not sure if they have a revised estimate.


Thats just an analyst prediction, why do you compare it to real world numbers?

Thats just an analyst prediction, why do you compare it to real world numbers?

I don't understand your point? What is the estimate for Nokia smartphone sales in 2009 to compare with?

In the past, this particular analysts has been very close to the actual numbers for Apple. Apple themselves estimated 10 million phones this year, and other analysts have expected phone sales to quadruple due to the lower price. So I would say 45 million in 2009 is reasonable.

The facts are that Nokia has had 13 years since they first introduced a smart phone and Apple is expected to, at least be close to, overtaking them in only 3 years. To me, that shows a definite lack of marketing skills, and maybe lack of innovation, at least in the HCI components, which would help drive general acceptance.

I don't think the recent events have tarnished the brand enough to make any difference in sales. If anything, the constant news of lines and long wait times often drive up the desirability.

Apple in general, or just the iPhone? I don't know much about the iPhone, but we have a PC, and it will be a cold day in he!! before I buy another one of those. We will be visiting our local Apple store for our next computer.

Mike

I don't understand your point? What is the estimate for Nokia smartphone sales in 2009 to compare with?

In the past, this particular analysts has been very close to the actual numbers for Apple. Apple themselves estimated 10 million phones this year, and other analysts have expected phone sales to quadruple due to the lower price. So I would say 45 million in 2009 is reasonable.

My point is, it's not fair to compare real world number from three years behind to imaginative numbers that might be tue if some provided conditions are met.


The facts are that Nokia has had 13 years since they first introduced a smart phone and Apple is expected to, at least be close to, overtaking them in only 3 years. To me, that shows a definite lack of marketing skills, and maybe lack of innovation, at least in the HCI components, which would help drive general acceptance.

Well, the worldwide smartphone market in real world was around 115 million in 2007. Nokia grabbed 52.9% of it - making it 61 million devices.
The market grew 60% year to year, if the momentum is sustained and Nokia doesn't flip-a-Motorola then it will ship around 100 million devices in '08. Thats a wide spread from 10 million iPhones Apple is projecting.

Aside, I think that the iPhone sales volume will increase as they cannibalize iPod sales (and thats a big and loyal customer installed base).

http://www.nytimes.com/2008/07/24/technology/personaltech/24pogue-email.html?_r=1&8cir&emc=cira1&oref=slogin

I had a few issues on Wednesday. Seems like other people had it way, way worse.

The facts are that Nokia has had 13 years since they first introduced a smart phone and Apple is expected to, at least be close to, overtaking them in only 3 years. To me, that shows a definite lack of marketing skills, and maybe lack of innovation, at least in the HCI components, which would help drive general acceptance.

Where do you come up with these Apple overtaking Nokia numbers?

to put the apple 1mm in context, nokia sells over 1bn a year............

Yes, but how many computers do they sell? Laptops? Digital music players? Software? Yeah, I thought so.

No,

mobileme was a bit of a wreck, but it will get worked out in a month. Most users who had TRIALS for 60 days, now have TRIALS for 120 days. They tacked four months on to my account as well (paid user 49$ a year) at least I have an email to that effect.

MM shouldn't have been rolled out at the same time, but I can see why they did it. Inside word is that it was fully baked, but they've been doing a bit of that lately.

I think the iphone customer satisfaction rates were still in the 90's. I think they will stay very high indeed.

For a question that didn't make any sense, this thread has quite a lot of life in it.

Do you think Apple's brand loyalty getting tarnished?

no. never. those who like Apple products will continue to buy them no matter what they have to put up with. If you try to analyze Apple loyalty through price/performance you will dumbfound yourself.
There will continue to be a market for products perceived as a status symbol.
Apple is gaining some crossover sales, in fact, but is unlikely to ever become a mainstream (ie dominant) product. The day that happens their "hip" status is gone and with it a major reason for loyalty.