Disservice: Ignoring Apple’s efforts


You know, the Macalope often wonders if Apple suddenly ceased to exist, would the Internet deflate like a balloon without the need for pundits to give it advice anymore?

And if that happened would it make a giant squeaking sound or would it be more of a “PPPPPBBBBBLLLLLLPPPP” as it flew around the room?

So many things to think about. Apple analysis isn’t as easy as it looks.

Writing for Seeking Alpha, BayesianLearner tells us about “Apple's Fundamental Problem.”

Today’s the day we finally clear that up.

The author devotes several paragraph to explaining how people bought a lot of things in the 20th century for those who just arrived on this planet.

After a while (and this can take decades), something else happens: a device becomes so commoditized that it is no longer associated to status.

Status-based purchasing does not exist in developed markets! Why, look at your clothes, your car, your beer or your cream rinse conditioner. All Kirkland brand, right? Of course! Because we all now make decisions based solely on utility.

We now return you to Our Reality, already in progress.

How do the pundits who constantly push the “Apple will collapse when market X commoditizes!” argument think the company makes any money at all? And if they can’t continue to make money at the top end of the market, Neil Cybart notes:

Select any product from Apple's lineup.

Apple is most likely selling the item that will eventually cannibalize that product.

Also, despite BayesianLearner’s contentions, Apple isn’t just a status-based company. It’s a premium company. And, of course, people still buy premium products in plenty of supposedly commoditized markets.

What Apple needs to decide is whether it wants to sell accessories or devices that perform useful services.

When will the largest technology company in the world finally grow up and move out of its parents’ basement?

The Apple Watch does not do any of that unless you count saving a second to pull out your phone to check a notification.

You will not be surprised to note that the author does not mention Apple Pay. Or HomeKit. Or HealthKit. Or, really, anything other than Siri. In other words, you will not be surprised to note that the author throws out things that do not agree with the author’s thesis.

Look, it just makes the word-writin’ so much easier.

This means electronic devices are turning into mere interfaces for remote services. I think Google and Facebook and Microsoft understand this aspect.

Google, Facebook, Microsoft, Mattel, Nabisco, Ronco… Basically everyone other than Apple. See how easy it is to construct an argument when you just throw out some facts? It’s very easy.

For example, if you ignore how they’re smelly, wild animals whose first line of defense is biting with their massive, gnawing front teeth, capybaras make excellent pets for people with small children! Just look how cute they are! What else do you need to know?

Apple devoted more than 15 minutes at the start of its most recent event to security and services, which it apparently doesn’t understand. The company isn’t necessarily number one in every service area, but when you flat-out ignore some things it’s spending a lot of time on, that’s the real disservice.

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