Buying into plotlines
Your brand is your user experience
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The iPhone 4 has a major problem. And therefore Apple has a major problem. As many people are already aware, the iPhone 4’s revolutionary dual-antenna fails if you hold the phone in your left hand. The obvious problem being that most right-handed people hold their phone in their left.
Apple’s response to this engineering mishap has been comical at best. First they said consumers were holding it wrong. Next they said there actually is no reception problem, and they were just fabricating signal strength on the phone. (Though I’m not entirely sure why that is less of an issue.) Now it has gotten past the point of funny to downright aggravating.
Recently, consumer reports gave the iPhone 4 a “not recommended” rating after testing the reception issue. The not-funny part isn’t necessarily Apple’s lack of response. The not-funny part is Apple actively censoring its customers from discussing the validity of the report.
Because of the antenna issue, a looming recall, and consumer censorship, Apple stocks are starting to dip. Apple, if they do not right this course, will soon learn what other companies that don’t own up to their mistakes learn: Consumers want accountability.
Now we could pick at the low-hanging brand accountability fruit – whether its BP passing blame on the worst man-made ecological disaster in American history, or Toyota with its flip-floppy response to its various recall woes – in not being open or honest about the extent of a problem.
Perhaps they all need to take a lesson from Google. Here’s a company that knows how to screw up gracefully. First Google’s invasion of privacy by spying on the mass public during its street view expansion. And let’s not forget the very invasive initial launch of Buzz.
In both instances Google immediately took responsibility, gave no excuses, and worked to correct the issues they caused. The result is a virtually unscathed reputation, and no loss of company value. As I have written before, “One would be surprised how forgiving consumers can and will be . . .”
But then the question becomes: Is it better to ask for forgiveness rather than permission?
Stuart Thursby
July 15, 2010 @ 10:24 am
Apple has proven that, if nothing else, it’s still possible to run a highly successful and profitable company creating great products while keeping any inside information as tightly sealed as Fort Knox, chucking the philosophy of “open” to the wind.
Where social media and frankness can and has really made an impact is in “damage control conversation,” pushing the mentality of openness and honesty towards recovering when something goes awry rather than integrating into the whole process. Your examples of Google (and BP’s complete and utter mishandling) prove this.
Having a completely open process from start to finish can work for some companies, and not for others, and that’s fine. But completely shutting yourself in from the world at all costs and at all stages is a tremendously Luddite-esque philosophy to hold in today’s world.
Smarten up, Apple.
Tweets that mention Branding mistakes « Big Orange Slide -- Topsy.com
July 15, 2010 @ 10:43 am
[...] This post was mentioned on Twitter by Kyle Gallant, Ian Mackenzie, Lilli Keifer, Grip Limited, miranda and others. miranda said: RT @bigorangeslide: Today on the Slide: @jbondre talks about Branding Mistakes. The iPhone4 has a major problem, therefor Apple has one http://bit.ly/dunZFj [...]
Adam Gordon
July 15, 2010 @ 1:46 pm
Even iOS4 software on my 3gs killed my ability to play music from my car’s USB port. Somehow this isn’t mentioned very often when people talk about the new OS, despite the fact that everyone with a new Ford or Nissan will be having the same problem.
Jason Theodor
July 15, 2010 @ 2:09 pm
This will blow over as quickly as the Facebook privacy frenzy. I think it’s a non-issue in as so much as Apple’s brand has never been about openness, as you stated, so people expect this arrogance. It won’t hurt the brand. Also, Apple is notorious for ‘beta testing’ on their fanbase. They revise and iterate and improve as they go. Every product has had issues that were eventually resolved. Remember the scratchable nano screens?
Yes, Apple has to realize that their fanbase is no longer niche evangelists, that they have gone mainstream (they are the largest tech company in North America!). They have to do something to stem this frenzy. And they will. And people will calm down and forget about it and go on to the next thing.
I’m still going to buy an iPhone 4 as soon as it’s available in Canada. And I’m going to get a rubber cover and then not worry about the reception. I barely talk on these smart devices anyway. ;-)
[I know I know. Spoken like a true delusional Apple fanboy. But it's still true.]
Dave Hamilton
July 15, 2010 @ 2:15 pm
Kevin Turner, Microsoft’s COO, is calling iPhone 4 Apple’s Vista. http://www.digitaltrends.com/mobile/microsoft-exec-says-the-iphone-4-is-apples-vista/
Which is a little funny, but a lot more broken handled pot commenting on the leaky kettle’s shortcomings.
I’d like to propose a tall glass of shut up for Mr. Turner.
Jacoub Bondre
July 15, 2010 @ 4:03 pm
@ Jason Theodor You may be right, or you may be very wrong. Rumors are swirling that a iPhone4 recall is imminent. All it will take is several weeks to a couple of months of “You can’t buy it cause it is broke”. And Android based phones will see a surge in market-share.
Should that happen, there is a chance that Google will gain a longer term edge over the iPhone. Which is connected to other technology battles that are happening right now. ( *cough* adobe v apple )
Kyle Shay
July 18, 2010 @ 8:39 am
Interesting article Jacoub. Though I would’ve thought one would’ve waited for the Apple Press Conference before publishing.
Apple seems like they are listening to the criticisms, working on the issues and providing a solution for users.
As I have used an iPhone 4 recently (I will buy one when they come out on the 30th if I can) I tried to hold it in my left hand and lo and be hold… No signal loss. I thought, according to your article, the phone would be unusable in my left hand. I also tbought that you must have tried it yourself before posting before posting such a story.
So as I was using it and made a few calls, in my left hand, I gave the death grip a try. Sure enough I lost 2 bars… But not the call I was on.
No matter, yes, there is a problem with the iPhone 4. We all know that if you bridge the antennas you define the antenna. Only problem is that in normal use, at least for me, it was a non-issue.
When I buy my iphone I will get my free bumper or other case but I’m sure they will have the same fate as any other case I’ve bought for previous iPhones…
They’ll live in the Junk Drawer.
Rock. On.
Jacoub Bondre
July 18, 2010 @ 10:06 am
@ Kyle
This article is more about the need for accountability for brands overall rather than focusing on iPhone issues. And really my opinion stands. I knew Apple was not going to fully own up to the issue, it is not in Jobs’ nature. “Free bumper case for all!” and “All smart phones have this issue”.
Someone on twitter said it best. “What if I wanted to use my phone without an ugly case.”
The issue with the phone I agree for most people likely isn’t a massive issue. But it becomes an issue if you are in a situation where the call you are on is very important, or an emergency. Your not thinking about your finger position, and the call drops.
This is the reason consumer reports couldn’t recommend the phone.
The best thing Apple could have done is issue a voluntary recall, apologize, and fix the problem in a way its consumers feel is fair and sufficient. Time will tell if the bumper case is that solution, or if consumers start veering away from this generation of phone.
Jim Monteath
July 18, 2010 @ 10:15 am
EDIT: Jacoub posted while I was composing the message below.
Jacoub, now that Apple has conducted a press conference responding to this issue, what’s your follow-up?
For anyone who hasn’t seen it, Apple published the video.
That video doesn’t cover the long Q&A afterwards, but there are rough transcripts here and here.
Jim Monteath
July 18, 2010 @ 12:07 pm
@ Jacoub – It won’t come as any surprise to you that I disagree with almost everything you wrote above.
The way that Apple reacted to this situation was entirely consistent with their past behaviour. Whether one likes that behaviour or not, they are being true to their brand.
Despite the wailing of the commentators, Apple customers and shareholders generally remain happy. I do wish that Apple had come out earlier with a statement like “we’ve seen a few reports, this can happen on any phone, our metrics indicate that it is rare, but we’re looking into it”; if only to reduce the wailing.
We have been told that a very small number of people are affected, signal attenuation is not unique to the iPhone 4 (although the external antenna makes this easier to trigger) and that it’s only a problem in areas of poor tower signal. I think that Apple’s offer of a free case for all, full refunds for anybody and a commitment to resolve the higher incidence of dropped calls is entirely appropriate. Demands for a recall are completely unjustifiable.
As for the important/emergency call being dropped: with a different phone you probably wouldn’t even be getting a signal in the first place. Initial reviews of the iPhone 4 praised it for the ability to hold on to calls in areas where other phones couldn’t. That’s one benefit of the antenna design. Just hold it correctly ;-)
I do agree with you that the biggest issue here isn’t the iPhone 4 or Apple, but is accountability. I’d like to see much more accountability for the press and blogs that published so much breathless, one-sided, hyperbolic and sloppy writing on this issue. Blog comments are one way to achieve this.
Dondy Razon
July 18, 2010 @ 1:10 pm
I’m in team Jim here!
It’s really so easy to write something that sound controversial to get people to read your blog. I’m not saying Jacob did this but I would much rather have experienced it myself before ranting about it!
Do you really think that an investment this important to Apple, that they would overlook an issue “the press and bloggers has made it to be” big? Didn’t your mom tell you not to believe everything you see on TV… Now I say don’t believe everything you read on blogs/internet. :)
It’s easy to pick teams or speak on a point of view that people can get attracted to. After all we are still in advertising! :)
Jacoub Bondre
July 18, 2010 @ 8:23 pm
@ Jim and Dondy
All I can say is REALLY?!? Do you really think that the press and blogs are “out to get” Apple? And not that a number of consumers experienced a problem and were upset, and the blogs and press are reporting it?
The full refunds are kind of like a voluntary recall, and in this regards, I believe it to be sufficient. But what about the emails to consumers saying there was no issue. Were those forgeries? And consumer reports, are they now bias?
The iPhone4’s reception issues is a REAL issue. And Apple still hasn’t said mea culpa.
I love Apple and Apple products. But I still believe in accountability. Perhaps I should have used another brand as an example, as to not start another polarizing flame war between Joe Consumer, Apple detractors, and fan boys.
@Dondy Although I do write in the hopes that someone reads our blog, it is not the primary intension, nor a driving factor in choosing the topics I write about. For me there is only one driving factor in topic selection. Passion. If I feel passionate about something I write about it. No conspiracy, no hidden agenda.
(Written from my Mac Book Pro tethered to my iPhone.)
Jacoub Bondre
July 19, 2010 @ 11:59 am
I have just had a spirited debate upstairs with Jim. And I thought I would share some points that came out of it.
1) I feel the press conference response was close to sufficient. The full refund / outs from contracts is close enough to a voluntary recall. I did not appreciate the deflections however.
2) Apple has a ton of brand equity. It is unlikely that this issue will hurt them in a significantly measurable way. Part of that brand image is being a little . . . snooty. I do not feel this exempts them from the reality that consumers want to see more accountability from the companies they deal with.
Lastly some full-disclosure. This article was written before the announcement of the press conference. But regardless of that. Apples initial denial of the issue, combined with the censorship of its own customers still talks to a lack of accountability that I believe could hurt them in the long run.
Ean
July 19, 2010 @ 12:19 pm
@Dave Hamilton : It’s true. Any WinMo phone I’ve seen, and my friends have owned a few, crashed several times a day due to memory leaks or other issues in the OS.
While the phones WinMo gets sold on are sometimes spectacular, that software is shoddy as hell.
Pot calling the kettle black indeed.
And I don’t even own or plan to own a Jesus phone, it’s just fact. WinMo is balls.
Ean
July 19, 2010 @ 12:23 pm
@Kyle Shay : Reports of call-loss are mostly because of AT&T’s network not being consistent in some areas. So in areas where people might have had enough bars to make a call, now they had none. I can see how that’d be an issue.
And Apple’s apology was a bit of a non-apology. They tried to deflect and say that all smart phones had the issue, which one CNN reporter tried to reproduce without success on his Blackberries and older iPhones.
Not sure what to say about that one. The article may have been before the press conference, but I don’t think it loses legitimacy based on the actions since then.
Kyle Shay
July 19, 2010 @ 1:00 pm
@ Jacoub : Glad to hear you went and had it out with Jim… he is a wise Kiwi.
I can’t help but feel this blog posting is just someone else ‘piling on’ so to speak… but, like Jobs said… its good to have a story.
@ Ean : You are correct in the call loss claim. My cousins iPhone 4 I was using was a US friend’s who was visiting my home. 3 bar Rogers 3G reception unless the wind kicks up and the leaves in the trees do their worst.
So, in this average coverage area the iPhone 4 worked, didn’t drop a call even after Death Gripping it and as I said, I will purchase one if I can on the 30th and get my case and hope that I don’t have to use it.
BTW, I am able to detune my iPhone 3Gs by gripping it in such a way that you would when txting horizontally… 3 bars down to none.
Fanboi? yep…
Dondy Razon
July 19, 2010 @ 4:48 pm
REALLY! I personally think that they are out to get readership and it just so happen that Apple is what people want to read! And the number of people upset are relevant and they have been given the option to return the device. AT&T has had a long track record for not having such good receiption. Perhaps Apple should also take responsibility for AT&T’s short-comings since they picked them!
I’m not saying that Consumer Report is bias but when was the last time did you heard about them talking bad or good about a product?! They haven’t had this much mindshare since the Toyota stuff. All I’m asking is for everyone to put things in context and not to contribute to the already big media hype!
And as a response to the title of your article. I would have to disagree about this being a branding mistake. First of all this isn’t really a branding campaign or exercise. Also as @Jim already stated they acted entirely consistent to their brand.
To put things into prospective.
1. Fact, not everyone experience’s this problem
2. Fact, consumers experiencing the problem can try using a bumper provided for free or return the product for a full refund
3. Fact, you can’t make everyone happy! :)
Really, all you need to know as a consumer is fact #2!
Jacoub Bondre
July 19, 2010 @ 5:16 pm
@dondy I blame the editor. I titled the article. “the importance of accountability “
Jim Monteath
July 19, 2010 @ 10:15 pm
@Jacoub – you asked up-thread if I really think that the press and blogs are “out to get” Apple. What I actually said was that there was a lot of breathless, one-sided, hyperbolic and sloppy writing on this issue. Sadly, some of it also came from otherwise respectable outlets.
First, there’s the Bloomberg story that Steve Jobs called “a total crock”. Jobs asked the Apple engineer they named about it and the guy said “it’s total bullshit”.
The New York Times story cited an unnamed source claiming “a longstanding weakness in the basic communications software inside Apple’s phones”. Scott Forstall of Apple called this “patently false”.
The infamous Consumer Reports announcements are also curious. The iPhone 4 info is available publicly while the test results for other recommended phones that also have signal attenuation issues are behind their pay-wall.
Publishing a controversial story about Apple is a pathetically cheap way to get website hits.
Of course, there are some bloggers who are notoriously anti-Apple, but I wasn’t including them.
Regarding Apple being accountable: they already are. Customers hold them accountable buy buying, not buying or returning products and ranking them on customer service. Apple is doing extremely well here. By the way, e-mail conversations with Steve Jobs are not an acceptable customer support process. You bother the busy & famously snarky CEO, you might get a brutally honest reply. Apple are also accountable to shareholders and are doing very well here too. No company should be accountable to sloppy reporting and every schmuck with a blog.
If Apple’s sales, profits and customer service ratings slip, then they might change their practices. Until then, they won’t. Someone who doesn’t like the way Apple does business should take their money elsewhere. That’s how this system works. Whining about it just irritates the people nearby.
Jacoub Bondre
July 21, 2010 @ 8:10 am
UPDATE: talked to the editor. The title is to have a double meaning. In that Apple is branding a mistake. Not that it made a mistake branding. Wrodsmiths … Sheesh.
Jacoub Bondre
July 22, 2010 @ 3:46 pm
I am not alone! http://www.thestar.com/business/companies/apple/article/838519–olive-jobs-is-both-a-genius-and-a-jerk
Kyle Shay
July 30, 2010 @ 11:28 am
So I’m back… I’ve got my brand new shiny iPhone 4 after my ‘guy’ held one for me. (why wait in line if you don’t have to right?)
I’ve made calls on it… I’ve actually called a couple people while holding it in the aforementioned death grip. Do you know how uncomfortable it is to actually hold it that way? Very.
I can certainly make the device lose all but one bar within 15 seconds. Didn’t lose a call but I could see that it would certainly be possible to lose one holding it that way.
The short of it is… I spent my money knowing it had the antenna issue, I will get a bumper and like I said before, probably not use it… but its free so I’ll get it anyway.
… and BTW… its soooo shiny.