Will The Real Steve Jobs Please Stand Up?

Social media has changed the game of public relations. It has given everyone a voice; companies and their CEOs, loyal supporters, critics, activists and the like.  It has created two-way symmetrical communication between organizations and their publics which allows messages to be sent and received in a matter of seconds.  While companies and organizations welcome the positive feedback from their constituents, will the adverse blogs, Facebook pages, YouTube videos, and Twitter accounts damage the organization's image?

  
Apple is one of the most talked about companies in the industry.  There are a multitude of blogs, fan pages, news articles and twitter accounts dedicated to Apple.  I was originally going to discuss the content of these sites and articles and how they are providing free public relations and advertising to the brand.  So as a good, little, grad student, I did my research and became fans of these sites on Facebook and began following the fans on Twitter.  I also decided that I would follow Apple CEO, Steve Jobs, to review the messages he was sending to his fans. What I discovered blew my mind.  "The BlackBerry tablet is going to fail. Mark my words."  "We've got better moves in our playbook, BlackBerry" I was floored that Jobs would speak about his competitors in such a demeaning way.   I was even more appalled that Jobs spoke condescendingly to his 241,612 Twitter followers: "Dear Mac fans, please don't ask for a photo with me. It cheapens my brand value." 

This made me rethink about my feelings towards the brand and my next Apple purchase and then my instincts kicked in.  How can I be sure that this is really Steve Jobs' Twitter account? Social networking sites do not verify your identity or care who you are or what you say. It turns out that CeoSteveJobs on Twitter is a parody account. I was duped and for a brief moment I was ready to boycott Apple products.

As it turns out, I was not the only one.  On June 27, 2010, The Daily Mail, a UK newspaper, picked up a story from this very Twitter account and relayed the false message that the iPhone 4 was being recalled. The story was immediately retracted once the paper was notified that the information was untrue but it just proves that you cannot believe everything you read.

Did this effect Apple's bottom line or fan base? No, Apple’s ingenious products speak for themselves.  Negative blogs and fake Twitter accounts cannot change the fact that Apple products are well made, cutting edge, and superior to their competition.  

iOS4.1 Upgrade has been a Downgrade for most

On June 21, 2010, Apple released iOS 4 to update the 2008's iPhone 3G and second-generation iPod Touch, and 2009's 3GS and third-generation iPod Touch. It was a free download that upgrades the iOS 3.1.3 operating system and  provide better security and support and allows users to multitask and  manage applications better among many other enhancements such as new camera fuctions, on-the-go playlist creation; and support for external bluetooth keyboard, iCal and iBooks.

Almost immediately after the upgrade was released to users, the Apple Support forum began buzzing with complaints that the upgrade left the iPhone 3G and 3GS slower and that calls were being dropped and muted because the proximity sensors did not turn off when the phones were placed to the ear to make a call.

In response, Apple announced at the beginning of September that the iSO4.1 will alleviate these delays. Apple CEO, Steve Jobs stated "First of all, a lot of bugs have been fixed," said Jobs on Wednesday. Proximity sensor bugs, Bluetooth bugs, iPhone 3G performance bugs. All the bugs that we've been nailed on. We think we've nailed a lot of them."

The iOS 4.1 was released within a week of Jobs addressing the problem. But it seems as though the upgrade has caused the same delays for users and one California woman, Bianca Wofford, is taking Apple to court over it! Wofford feels that Apple knowingly released the iOS 4  with bugs so that users would abandon their older iPhones and purchase an iPhone 4. Wofford is upset because there is no remedy that will allow her to revert back to her previous operating system besides jailbreaking.

Wofford wrote in her claim "Even though Apple has actual knowledge of thousands of complaints from iPhone 3G/3GS consumers, Apple does not allow for those same users/consumers of third generation devices to download and re-install earlier and optimized iOS3.x operating system without resorting to 'hacker' tactics that will void Apple warranties and violate iPhone user agreements."

Wofford's lawsuit claimed that Apple broke various CA consumer rights and business practices laws and intentionally duped loyal users. If Apple is found guilty, Wofford  requested that $5,000 is granted to each customer with similar problems.

I am curious how Apple will respond to these allegations. Stay tuned.

Is the White iPhone, the Black Sheep of the Apple Family?

The release date of the white Apple iPhone has been delayed again until Spring 2011. Apple spokesperson, Trudy Muller, stated "We're sorry to disappoint customers waiting for the white iPhone again" . Unfortunately, this is the third time that Apple has pushed back the release date of the white phone.  It was originally to be released with the black iPhone 4 in June 2010.  Apple first extended the release date to July,  then to the end of the year and finally on Tuesday, Apple announced the news that it would not be available until 2011. 

Apple has admitted that the white smart phone has been more difficult to produce but has not commented on the specifics. Bloggers are speculating that there are problems with reaching an identical color match between the frame and the home key. Another rumor is that the white iPhone's  back light screen transmits light throughout the painted white areas which are more translucent than some parts of the body.

The most disappointing piece of the story is that after Apple announced the new release date of Spring 2011, the white iPhone disappeared from the site's order screen.  This has prompted rumors that Apple may not release the white iPhone 4  at all.  Because Apple releases a new iPhone every June, there is speculation that Apple will hold off on the release of white iPhone 4 all together and release a white iPhone 5 next spring.

An Apple From the Teacher?

     Apple Inc. really seems to provide added value to each and every sale.  This is a best practice for public relations. It creates new customers, maintains current customers and develops brand loyalty.  Apple not only makes an exceptional product but they care about the customer long after the purchase. 

      One of the values that Apple adds is post sale satisfaction.  Apple offers exceptional support and even 'how-to' sessions.  Apple offers free workshops and tutorials at the Apple retail locations that demonstrate how to use the iPad, Mac Book, and iPhone, how to use the software such as iPhoto, iTunes and iLife, how to run a business on Snow Leopard and they will even sit down for a one on one if you have questions regarding a personal project.

iPad Strengthens Relationships in the Business World

For years, we have been hearing how advances in technology are slowly destroying interpersonal communications and well as our relationships.  Individuals are overwhelmed with television, Internet and social networking sites, cell phones, laptops and mp3 players. These innovative devices have provided information and entertainment at the tips of our fingers while simultaneously eradicated our face-to-face communication.  We are more likely to text or email a friend to catch up rather then meet for a cup of coffee.  This is apparent in our careers as well.  A business meeting can take place through video conferencing rather than a face-to-face meeting. We can now telecommute to work as opposed to going into the office. Technology has changed the way in which we exchange messages. While these messages are delivered more quickly, we lose face-to-face cues, gestures and often emotions are monitored or all together invisible.


This applies to all technologies but Apple products, of course!

Apple has changed the game and has used its latest gadget, the iPad, to increase interpersonal relationships in the business world through a program with a luxury car company!  This summer, Mercedes Benz employed an iPad program, where 40 US dealerships used iPads to close deals.  The purpose of the program was to alleviate the anxiety that ensues when a potential customer walks from the showroom to the daunting back office.  This is typically the time where customers change their minds and walk away from the deal.  The iPad has allowed salesmen to close the deal and run credit checks right from the showroom floor. The customer feels more at ease and less intimidated by the purchase and it has boosted Mercedes Benz bottom line. The program was so successful that it will be expanded worldwide to a total of 355 dealerships.

With the expansion of the program, Mercedes will also increase the use of iPads into the car-leasing process. When lease customers return their cars, they will be able to watch the post lease inspection and complete all paperwork from right next to the car, through the iPad.  The financial VP for Mercedes Benz  Andreas Hinrichs stated “This creates a lot of transparency for the dealership, a lot of flexibility for the dealer.”

So while the rest of the technology world is destroying relationships, Apple is making them stronger!

I Sue, You Sue, We All Sue Apple

Apple has been under attack for various patent infringement lawsuits.  The NY Daily News reported that Yale professor and Unabomber victim, David Gelernter filed a lawsuit in 2001 which claims that Apple encroached on his 'flip through' design similar to Cover Flow, the 'hard drive search' function almost identical to Spotlight and  'automatic save function' comparable to Time Machine.  On October 1, 2010, Gelertner was awarded $625.5 million in restitution.  Apple Inc. challenged the payout and the judge has agreed to defer it until he hears arguments from both sides.

CNET reported on October 6, 2010, that Motorola has also accused Apple with 18 patent infringements. Motorola believes that Apple has used Motorola's wireless communication technologies such as "...antenna design, and key smartphone technologies including wireless email, proximity sensing, software application management, location-based services and multi-device synchronization" in Apple's iPod Touch, iPad, iPhone and Mac products. 

What has Apple said about the lawsuits?  Nothing, to date, they have refused to comment.  What message does this relay to it's public?  Will the public think Apple's silence mean they are guilty? Is Apple waiting for the legal outcomes before addressing the issues to its constituents?  Is Apple trying fly under the radar and not draw attention these issues? 

Do users care if Steve Jobs and Apple stole ideas and patents from others? Probably not, however, excellent public relations practice includes transparency or disclosure to its publics. As noted in my other posts, Apple doesn't disclose or admit much and its users still wait in line for the newest release.

Apple's Customer Satisfaction: How Do They Do It?

      Apple did it once again! They have excelled over their PC competition for the seventh consecutive year in the American Customer Satisfaction Index, a customer satisfaction survey conducted by the University of Michigan.  Apple received an 86 % which is the highest score they have received to date. Although all the PC scores have improved since last year's survey, the Mac still scored  9 points higher than its closest competition.

     So what sets Apple apart from the rest? Apple is committed to creating products that adhere to a standard of excellence that their customers have grown to expect. The iPhone and iPod Touch are perfect examples of products that display Apple’s commitment to quality.  Apple could have simply made these gadgets out of low grade plastic to lower production costs and release them at a high price point.  This would have initially increased Apple's gross margin but would have also simultaneously decreased their customer satisfaction.  Apple, instead chose to create the iPhone and iPod Touch out of  glass and stainless steel to provide its customers with high quality products and maintain superior customer satisfaction.

     Besides an extensive, well built product line, Apple also offers customers online and interpersonal support and service that surpasses its competitors. Most Apple software and hardware products include unlimited complimentary support within the first 90 days of product ownership. Each Mac and Apple display includes a one year warranty plan with the recommended option to upgrade to a three year warranty plan.

     Many Apple users agree that the most valued aspect Apple's customer service is their repair and replacement plan.  If for example, while under warranty, a customer brings their malfuctioning iPhone to an Apple retail location, Apple will access the error and either fix it on the spot, provide the customer with a brand new phone or provide a loaner phone while the malfuctioning phone is sent out to be corrected. This is not standard practice for most cell phone or PC providers. Typically, in the same situation, the customer will be without a phone for up to five days while the problem is being fixed.

    Apple has created a family of products that are well built, cutting edge and better than the competition. Apple could have easily focused all their attention on the product line and neglected their customers' expectations.  Apple was able to not only surpass industry standards but also provide excellent customer care which in turn resulted in high customer satisfation and loyalty.


   

The iPhone 4 Crisis

Does one bad Apple spoil the bunch? Not to loyal Apple users.

     Apple presented the new  iPhone 4 on June 7, 2010.  The new iPhone 4 was said to feature FaceTime, or video calling, a 5 megapixel camera with LED flash, High Definition video recording, 40% longer talk time and a new design of glass and stainless steel that makes the iPhone the thinnest smartphone in the world.  Apple praised the design and functionality of the new phone, boasting that the iPhone would run on an advanced mobile operating system that featured 100 new functions and would allow users to instantly switch between these many different functions which would save battery life.1 

     On June 15, the iPhone was made available for preorder and 60,000 preorders were made in just one day.  This was the largest amount of activity Apple had ever received in this short time frame which resulted in site malfunctions and errors. Apple apologized to the the public for this in a press release posted to their website and advised customers to simply try again or wait until the phone is in stock.2 

     On July 2, 2010, Consumer Reports released its review on the iPhone 4 claiming that there were antenna problems and advised consumers to stick with the older version of the phone.3 That same day, Apple released a statement to address these issues, but in my opinion dodged responsibility. They claimed that the phone may not be working properly and placed the blame on holding the phone incorrectly.  Apple addressed reception issues and described the dramatic drop  in signal bars on a calculation error that Apple found surprising. They explained that they would provide an update not to fix the reception problem, but to ensure that the signal bars accurately represent the service level. 4

      It has been speculated that Apple CEO, Steve Jobs, was aware of these issues for two years and pushed the launch of the iPhone 4 anyways because he admired the design so much.5  However on July 16, 2010, Apple held a press conference to address the antenna issues and Jobs claims  that Apple was only aware of the problem  for 22 days. He claimed that Apple wanted to determine what the real problem is before coming up with premature solutions. Throughout the conference, Jobs minimized the issues and mentioned that Apple is not perfect and neither are phones.  Jobs stated that all  phones have weak spots that will cause reception drops due to the way a user grips the phone. He repeats that it is a problem not unique to the iPhone 4 and presented three examples; Blackberry Bold, Droid Eris, Samsung Omnia to display this point. Jobs boasted that even with the malfunctions, Apple had sold well over 3 million iPhone 4s in 3 weeks and that the phone has the highest satisfaction rating among all smart phones.

http://www.youtube.com/watch?v=e3Hy1cXwGhI

     Apple seemed to dodge responsibility by claiming that all phones don't work properly, instead of taking accountability, apologizing to its users and employing a recall.  Rather, Apple stated on their website "We now know that the iPhone 4 antenna attenuation issue is even smaller than we originally thought. A small percentage of iPhone 4 users need a case, and we want to continue providing them a Bumper case for free. For everyone else, we are discontinuing the free case program on all iPhone 4s sold after September 30, 2010."  6

     This nonchalant statement and bumper case solution was adequate for loyal Apple users and seemed to appease any unhappy customers.  Apple claims that sales have not affected. "My phone is ringing off the hook [from] people that want more supply," Apple Chief Operating Officer Tim Cook said during a July 20 earnings call. " 7   According to Apple's Third Quarter Earning Report, "The company sold 8.4 million iPhones in the quarter, representing 61 percent unit growth over the year-ago quarter."  Steve Jobs boasted that “It was a phenomenal quarter that exceeded our expectations all around, including the most successful product launch in Apple’s history with iPhone 4." 8



1 http://www.apple.com/pr/library/2010/06/07iphone.html
2 http://www.apple.com/pr/library/2010/06/16iphone.html
3 http://blogs.consumerreports.org/electronics/2010/07/apple-iphone-4-antenna-issue-iphone4-problems-dropped-calls-lab-test-confirmed-problem-issues-signal-strength-att-network-gsm.html
4 http://www.apple.com/pr/library/2010/07/02appleletter.html
5 http://nexus404.com/Blog/2010/08/09/iphone-4-antennagate-update-apple-knew-about-it-for-two-years-this-changes-everything-again-apple-now-said-to-have-been-aware-of-the-iphone-4-antenna-design-two-years-before-launch/
6 http://www.apple.com/iphone/case-program/
7 http://www.eweek.com/c/a/Mobile-and-Wireless/Apple-iPhone-4-Antenna-Issues-Deemed-Resolved-217413/
8 http://www.apple.com/pr/library/2010/07/20results.html

An Apple a Week: An Introduction to my Blog

     My name is Jaime and I am a graduate student at Quinnipiac University, studying Public Relations. I am currently taking a PR Research Methods class and have been assigned to write a weekly blog on a topic of my choice.
     I have chosen to blog about Apple Inc. because I am fascinated by the strong loyalty that its users have for the company and its products. Apple has a cult following and sales steadily increase with each newly released gadget. It seems as if Apple can do no wrong in the eyes of its consumers, despite damaging reviews and news media. I am interested in how Apple's public relations team create and maintain this positive reputation, address potential issues and handle negative feedback and press.
     I hope to address and answer the following questions in my blog, using various research methods. How does Apple's PR team manage and maintain their positive image? What PR methods do they use? Are these methods ethical? What can they do better? How do they respond to crisis?  What are their crisis communication methods? Why are their users so loyal? How can we generalize their users to better study them?
     I will often cite the following link to Apple's press release library to provide case studies and example of Apple's PR techniques. http://www.apple.com/pr/library/