Re: [Fed-Talk] Re: Consumer Reports Calling for Iphone 4 Restitution
Re: [Fed-Talk] Re: Consumer Reports Calling for Iphone 4 Restitution
- Subject: Re: [Fed-Talk] Re: Consumer Reports Calling for Iphone 4 Restitution
- From: Todd Heberlein <email@hidden>
- Date: Thu, 15 Jul 2010 12:41:32 -0700
> The logical thing to do, acting as protectorate for the stock holders, would be for Apple to give customers the least amount of remuneration requisite to impel them to sign agreements not to sue Apple while fixing the perceived problem as expeditiously as possible and causing the iPhone 4 to be as successful a product line as it can be in pursuit of generating profits.
While I don't support the $50 renumeration (I think it would cost apple just a few dollars to give away a bumper), Apple needs to be concerned about its long-term reputation not just the short-term bottom line. Millions of people stand in line for hours or place orders online for new Apple products they have never seen or touched. That is about faith -- faith that whatever it is, it will be insanely great. And all those news stories showing the giant lines outside the stores are fantastic free advertising for Apple.
What Apple doesn't want to have happen is that for the next product release there are no lines as people take a "wait and see" attitude. That would be incredibly negative advertising for Apple, and you know people will jump on the "no lines" story.
To maximize the profit for this one product at the expense of dampening fans' expectations for future products is, IMHO, penny wise but pound foolish.
Todd
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