Apple might not be meeting your expectations in 2021
So for the longest time, Apple has had a reputation for being different. Like when you think of Apple, you think of this secretive organization who just keeps quiet and does their own thing, who doesn’t really care or respond to the competition who doesn’t post a thing while their competitors are dropping 20 updates a day, this elite club who if almost exists in their own parallel universe, separated from every other.
Have you noticed that just in the last few years, Apple has gone from being ultra selective for making just one or two exclusive high-end phones to well, building a phone for almost everyone. Apple released five different models. Just this year ranging from $1,099. To just three 99 from one of the biggest phones you can buy to one of the smallest from a film with cutting-edge design to a phone that looks like something out of 2015.
Now isn’t that kind of a strange move from a company who used to pride themselves on creating only the finest luxury products. Okay, another example. Do you remember when I-phones were considered the smartphone for rich people? I do, but I mean, if you look at the iPhone 12 pro max, the most expensive one they’ve ever released, it’s now appraised by Samsung, APO Huawei, even Sony, and probably some more too.
In fact, while almost every other company has added at least a hundred dollars onto the prices of their phones this year. Thanks in part to 5g Apple didn’t. In fact, the average price of I-phones is falling in 2018. It was $950. In 2019, it was $933 in 2020. It was 800, like who would have thought a few years ago that Apple would be the one winning awards for the best budget phone.
Something’s going on and it’s not just the number of models and the pricing. Apple has transitioned from a company who basically pretended that others don’t exist to a company who now actively draws comparisons at every possible opportunity. Oh, and if you’re enjoying this video, by the way, a sub to the channel would be magical.
So right at the start, given that Apple made the first smartphone it’s fair enough. They didn’t compare it. To anybody else. But then even as Android phones started catching up for the longest time, Apple had this strange insistence on barely even acknowledging them. Every time they launched a new chip, it would just be compared to their last chip.
Every time the nostril phone, they would just say it takes better photos. And the last iPhone, and this is clever, this concept of existing in your own little world, it generally means that your existing customers. Follow suit, they watch your events and they become so caught up in how one iPhone compares to the last that they also stopped considering outside options, but Apple’s not like this anymore.
Now Apple compares more than they’ve ever compared before. Like they had this new eight, 14 bionic chips there. Right. But in the event for that, they didn’t just say that, Oh, it’s faster than our last iPhone, but also very clearly that this is 50% faster than any other smartphone chip. When they announced the iPhone 12, they didn’t just say that this is the best iPhone camera we’ve ever made.
They said this takes the highest quality video of any smartphone. The new Apple has no chill. Couple of years ago, they announced an entire campaign titled switch to iPhone where they basically just open, fired on Android. I’ve never seen the company, this aggressive in their marketing before and on top of it that, you know, Apple is building their own chip sets now, right?
What’s going on with the new Apple Macbooks in 2021?
For their upcoming Mac books. Well, for the entirety of the launch event of those chips, it was basically just Apple saying, look, our software is better than windows and our hardware. It’s better than Intel’s everything they said was backed up with some sort of graph or comparison that admittedly not very useful graphs or comparisons, but the point is Apple isn’t sitting in their own bubble anymore.
Apple is competing. I couldn’t believe it. They even finished off this presentation with a throwback to the old days. They brought up this guy who was meant to represent windows, PCs, and. Just proceeded to tear Microsoft a new one fast I’m fast. I’m still fast. Check it out. Got it. PC. Still go. I can go on about this for a long time, but probably my favorite example of the new Apple is their approach to social media.
So up until about three years ago, Atlas kept social media at arms length because fundamentally. They didn’t need it. And I think the way that Apple saw social media getting involved with it, just risked creating negative impressions. Like let’s say Apple did post a tweet, but then the top comment to that tweet became someone complaining about one of their customer service experiences, how Dave and the Apple store just accidentally bricked their laptop that was going to create negative impressions.
For other people. So given that Apple was already so popular, I think they just decided, well, we’d rather have a bit less reach if it means we can control the impression people have of us, but this is changing too slowly, but surely Apple is transitioning from that to more, how do we get as much conversation and as much engagement as well?
For example, they started working with influencers with the iPhone 10 in 2017. The first people allowed to publish videos about their new phone before even traditional media were allowed. Well, YouTube is I follow uses carefully selected tags and keywords in their YouTube videos. So they can get views from search compared to before when they would just use the tag Apple or nothing at all.
And they do no actually post proper content. The first four years of Apple’s YouTube channel was pretty much just keynotes, but then I use it from everything from camera tests to testimonials, to behind the scenes videos. They work with Twitter to integrate special animations. When you like Apple themed tweets to boost engagement, and they now even tell people to retweet their event posts.
To get updates about upcoming products and speaking of events, does it all feel like all we’ve heard about in the tech world for the last few months? Is Apple. And that’s because even the attitude towards announcements seems to have shifted instead of keeping things simple and elegant and just having one announcement every three months or so this year we’ve had three consecutive events in three consecutive months.
They have the time flies event in September, where they announced the latest watch and the iPad, the high-speed event, which was the new I-phones. And then they had that one more thing event, which was Apple’s new max powered by their own chipsets. And like, even within these events, there were multiple products coming out at multiple dates, like for the iPhone, the iPhone 12 and 12 pro came out a month, apart from the 12 mini and the 12 pro max, why is Apple spreading everything out like this?
Does Apple misrepresent itself to its customers?
Well, I think more than ever, they’re hungry for coverage. I think they’re trying to occupy the news cycle as much as possible to drown out the noise, the competitors. There’s probably no better example of this. Then the one more thing event, see, one more thing is one of Apple’s iconic phrases. It’s always reserved for the end of a reveal event.
When you think it’s all done. But it’s not a sort of, here’s something extra for you. But this year, instead of being a 15 minutes announcement attached onto the end of another event, Apple made one more thing, an entirely different event in its own. Right, right. Because why not higher volume of coverage.
Okay. You got the idea, the Apple that you probably knew it was this silent corporation, creating luxury products for the elite. But they seem to be transitioning to a scrappy, a company who’s making noise, who’s fighting to beat their competitors to deliver better value. So why? Well, there’s two big things happening in the smartphone market right now.
And the first one is that more and more people are buying their phones online. This is a transition that was already kind of happening over the last few years, but the virus. It has catapulted it because for a lot of people, you can’t go to a store now and see online is an arena in which Apple’s traditional advantages.
These beautiful storefronts packed with friendly well-trained staff and really spaced out expensive looking products. Don’t really help them. In fact, one of Apple’s strongest sales channels was word of mouth. This aspirational effect, this kind of, Oh, I see my friends using iPhones. I want an iPhone. This doesn’t really work as well online.
When you’re online, you can’t just welcome people into your store and then act like competitors don’t exist. Competitors are now a single click away. And so while pasta, Apple could get away with comparing eat by phone, just to the last iPhone, current Apple is having to shout about their advantages over Samsung and overshadow me and online is also an area where.
Apple doesn’t care about its customers anymore
Luxury doesn’t sell as well because you can’t create that whole end to end in-person luxury experience. And so online, what matters more is showing that you look good on paper to try and prove that you have the most powerful phone. And that is actually good value for money. You can even tell that their latest iOS 14 software was just built to fill in the gaps to offer a lot of the features that I phones were previously lacking versus Android, like homescreen customization, pick, trim, picture mood to sort of multitask.
It’s saying to customers, Hey. Don’t dismiss us because we can not do those things too. So this online transition is, is a part of it. But the second big thing is that people are now upgrading their phones less. This is the single biggest catalyst to the change that you see in Apple, because if users are swapping their phones less, that also means that those users are stickier.
Or in other words, any user you can convince to buy an iPhone will now most likely be an iPhone user. For at least three to four years before they consider buying another phone compared to the two years you might’ve had with them before. And so, as this transition happens, Apple is now making more money than ever of subscription based services like Apple music and iCloud and proportionately, less from selling.
Physical devices. The goal now is less about making sure that you buy the latest and greatest iPhone and more about making sure that you’re just using an iPhone and consuming these Apple services, like who would have thought five years ago that Apple would be effectively baking ads and offers into their software, pushing users towards them.
And if we assume that in the future, Upgrade window is going to get even larger. Let’s say people start upgrading once every five years, then it becomes more important than ever to get those users on Apple platforms. Now, before it’s too late, while consumers are still somewhat open to switching platforms.
So this is why Apple is now trying to be price competitive. This is why Apple is now offering a product for every type of user, even if it does somewhat impact their reputation as a company who only makes top class product. This is why Apple just announced a MacBook, which they’re saying as a 3.5 times, faster CPU or five times faster GPU, nine times faster machine learning all the twice the battery for the same price.
This is why Apple is on the offensive. Why they’re literally taking other companies now and trying to pull their pants down, make fun of them. Their past strategy of pretending other companies didn’t exist. It was great in terms of building loyalty with existing customers, but Apple is changing because they realize now. They want to build that base.
My final thoughts
Apple wants new customers, and once they get those customers, they have a pretty good way of keeping them. You’ve probably heard of Apple’s walled garden, this idea that when you get into the Apple ecosystem, it’s beautiful. It’s stunning on the inside, but that the walls are so high.
It’s really hard to climb your way out. Well, I would describe what Apple has done this year is basically handing people a ladder. To get in really easily. You seen this new home pod mini, right? It’s their latest smart speaker. And it’s a third of the price of their last home pod. This new Apple watch series six is faster and brighten the series five, but cheaper.
Why? Well, fundamentally it’s the fact that these products work terribly with Android phones. So, if you want to buy a HomePod mini, or you want to buy an Apple watch series six, you kind of need to also buy an iPhone. And then when you do eventually buy a home pod or an Apple watch you pretty much can’t switch away from that iPhone because you know, you’d have to ditch them.