Posted on 11/07/2009 8:03:51 PM PST by Swordmaker
Apple, once untouchable in terms of marketing, has gotten a little roughed up lately.
For much of the decade, Apple got away with bashing longtime adversary Microsoft without repercussions. Apple also dominated the MP3 player category without a serious rival. But now, as Microsoft has reinvigorated its marketing and it navigates into the phone handset category, suddenly everyone is bashing Apple.
First there was the Microsoft “I’m a PC” TV spot from Crispin, Porter + Bogusky featuring a send-up of the dorky “PC” caricature in Apple’s “Get A Mac” campaign. Then, three weeks ago Verizon launched a teaser pitch from mcgarrybowen for its new Droid, a phone based on Google’s Android operating system. The commercial, which opens with a white background reminiscent of Apple advertising, runs a litany of “iDon’t have” features offered on Droid and unavailable on the iPhone. Verizon didn’t stop there, though. The company is also running ads that lampoon the iPhone’s “There’s an app for that” with the line “There’s a map for that,” which points out iPhone partner AT&T’s alleged gaps in coverage. (AT&T is suing Verizon over that ad.)
Apple, at the moment, may have little to worry about. It sold more Macs and iPhones in the fiscal fourth quarter, ended Sept. 26, than ever before and fans are buzzing about a rumored tablet PC, which could be another game changer. (Both Apple and Microsoft declined to participate in this story.) But industry watchers say there’s a sense that the company’s marketing momentum is stalling as it faces tougher new competition.
The Droid, which went on sale last week, is supported by Verizon Wireless’ largest marketing budget ever for a phone. More critically in the computer marketing wars, with last month’s release of Microsoft’s well-reviewed Windows 7, Apple doesn’t have the problem-plagued Vista operating system to kick around anymore.
“Apple is under threat on the brand front in a way they haven’t been in recent years,” said Forrester Research analyst James McQuivey. “You have a situation where the quality is no longer significantly different. Windows 7 is much more Mac-like and it’s harder to compete against that. The iPhone is going to find it harder to compete against Android phones, which are positioning themselves by saying ‘Everything the iPhone doesn’t do, we can do.’” Some observers think Apple’s feeling the heat and detect a biting tone in Apple’s current ads that is a departure from previous work. A new ad called “Broken Promises,” for instance, from TBWA\Chiat\Day, shows the PC guy over the years averring that each iteration of Windows would be different this time. That’s just the latest defensive ad, said Apple observer and former company exec, Steve Chazin, CMO at software start-up, Dimdim. “Even before the launch of Windows 7, Apple uncharacteristically went negative pretty early on,” Chazin said. “That doesn’t seem like Apple because its advertising isn’t focusing on Apple’s strengths but on Microsoft’s flaws. It’s a bit defensive.”
Microsoft has had success portraying Apple as too cool and out of touch with mainstream consumers. In addition to its “Laptop Hunter” ads, which showed consumers dismissing the more expensive Macs for Windows PCs, there was Sean Siler who introduced himself as “I’m a PC. And I’ve been made into a stereotype” in an ad that became a popular You Tube post.
After that spot broke last September, Apple responded with a new Mac ad that criticized Microsoft for spending on advertising rather than fixing Vista. That’s more than a little ironic, given that Apple has hugely outspent its PC rival. As recently as 2007, Apple’s outlay behind measured media was 71 percent more than Microsoft’s, $401 million to $234 million, per Nielsen. Through August of this year, however, the two companies have spent the same amount, $240 million.
Microsoft is getting more bang for that buck. According to BrandIndex, in the beginning of the year consumers thought Apple provided more value than Microsoft. In the March-April time period, that began to change after Microsoft ran its “Laptop Hunters” pitch. “The two brands have been neck and neck ever since,” said Ted Marzilli, BrandIndex’s managing director, who added the value metrics were based on what consumers got for what they paid, not whether the computers were expensive or inexpensive.
Another challenge on the marketing front is erosion of iPod sales—they fell 8 percent last quarter. That’s due in part to cannibalization from the iPhone, but still spells change, said Danielle Levitas, a senior analyst with IDC. “iPods pulled people into the Mac ecosystem and then the iPhones pulled people into it,” she said. “Those products may have pulled more people than Apple’s advertising--of course, it does become circular: People bought them after seeing ads for the simple, beautifully designed products.”
It has???
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More whistling past the graveyard. All I do is ask the PCers, “How many operating systems?”..
I notice that the article seemed to have omitted the fact that the iPhone now has 33% of the American smart phone market...
This should push iphone sales a little bit
http://www.appleinsider.com/articles/09/11/06/report_apple_to_launch_verizon_iphone_in_q3_2010.html
Apple to launch Verizon iPhone in Q3 2010
A new report citing sources in the Taiwan handset supply chain says Apple has contracted to produce a UMTS/CDMA hybrid iPhone due in the third quarter of next year that will enable the company to sell a single global handset to all carriers, and specifically to Verizon Wireless in the US.
The report by OTR Global, provided to AppleInsider by an industry analyst, says the new “worldmode” iPhone will gain compatibility with CDMA2000 networks (including Verizon's US network, which is currently incompatible with existing iPhone models) while retaining compatibility with UMTS 3G networks globally using a new hybrid chip produced by Qualcomm.
According to OTR’s sources, Asustek subsidiary Pegatron will build the new hybrid phone devices for Apple rather than Hon Hai, the iPhone’s current manufacturer. This decision was reportedly made to prevent the company from being “constrained by a single-source assembler.”
A smaller body
The research note also identified the new phone as having a 2.8” screen, which is significantly smaller than the current iPhone’s 3.5” display.
Last summer, component pictures indicating the development of a smaller 2.8” iPhone model appeared on the web next to the standard 3.5” parts currently in production, and a Chinese-language newspaper reported that an upcoming model of the iPhone would be smaller and lighter.
Without any mention of both larger and smaller versions in OTR’s report, it appears but has not yet been confirmed that next year's iPhone will scale down in size while also gaining compatibility with all major mobile networks.
One killer problem. If you are surfing the internet on the Droid, the phone won't ring! Calls are diverted to voice mail.
Apparently, the same problem occurs if you are using any apps that require internet access. The phone won’t ring. This may be a Verizon issue only because their network does not allow both voice communications and data at the same time.
Nothing to see in this article, IMO. OS X still out rocks Win7. It’s not even close.
Okay, show of hands: Who knows these “I’m a PC” commercials vs. who knows the dorky PC guy commercials? (And I'm not a Mac weenie.)
Broke down and got a 64GB 3rd Gen iPod Touch last month. So far it hasn't disappointed.
I was going to say I think this is a CDMA issue. Apparently OTA updates are a problem too from what I have heard about Sprint updating the Hero.
Don’t have the ringer/internet browsing problem with a Hero on Sprint(CDMA). Over the air updates a problem for Sprint? I’ll let you know when the first one hits. The only “problem” I’ve heard of is just the fact that Android 2.0 needs HTC’s Sense UI added to it before it is released for the Hero.
It has???Apple, once untouchable in terms of marketing, has gotten a little roughed up lately.
At least in terms of the iDon't ads, certainly.'Course until they get their own product into the marketplace it seems sort of "paper tigerish," but certainly there is now an attack on Apple from a features perspective which hadn't been an issue before.
OTOH, Apple is not noted as a stationary target:
Apple, at the moment, may have little to worry about. It sold more Macs and iPhones in the fiscal fourth quarter, ended Sept. 26, than ever before and fans are buzzing about a rumored tablet PC, which could be another game changer.Tho (as someone who had to switch to printing in order to make lecture notes in college which I could subsequently actually read) I cringe at the idea that anyone could prefer writing on a tablet to typing . . .
2.8"? Ouch! That would be a deal breaker for me. If I were to get an iPhone I would want video on the larger 3.5" screen.
My stock broker says that increases in AAPL revenue are expected from overseas, including China.
I made the same cursive-to-printing change, yet, I did get along with the "handwriting" input of the Newton fairly well. Of course, the Newton (and, I anticipate, any new Apple "tablet" device) featured/could feature a small on-screen keyboard that works amazingly well with the included stylus.
With Apple's experience with the iPhone's virtual keyboard, I would expect any "writing" input would not be the only choice. Vice versa, I would not be surprised to see Apple come out with a much better "handwriting recognition" alternative on devices with virtual keyboards.
Remember, Apple has always been 'way out in front on human interface know-how...
From what I have read OTA updates keep the user from even being able to make 911 calls while updating the phone. This isn’t a huge deal as they are supposed to make it available as a wired update, but it does mean probably fewer people update.
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