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« on: July 16, 2010, 03:00:05 am »

Why Apple has a split personality when it comes to keeping iPhone owners happy

Filed under: Apple, iPhone, Apple History
After shelling out top dollar, the customers felt betrayed and angry. The shine on the company's new flagship product was tarnished. The remedy wasn't cheap... and the CEO stepped up and spoke to those irate early adopters. "We want to do the right thing for our valued customers. We apologize for disappointing some of you, and we are doing our best to live up to your high expectations of us," he said, responding quickly after the first complaints came in. Within a few weeks, the PR hiccup was calmed, and the new product went on to glory and success.
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No, it's not a crystal ball reading for tomorrow's press conference agenda -- it's history, and relatively recent history at that. In 2007, after the original iPhone pricecut that drove owners batty, Apple jumped all over the situation with an alacrity that's almost stunning to contemplate now. Within hours, the Apple site featured a new Stevenote musing on the pace of innovation and cost savings in the technology sector; even though the $200 price cut was the right thing to do for the company and for the product, Apple was still going to soothe ruffled feathers by offering a $100 store credit to all iPhone owners who paid the original price.
With an estimated 600,000 iPhones sold, the maximum exposure to the company's revenue number would have been $60 million (although not all buyers claimed or used their credit). That's not pocket change, even for Apple; however, when compared with the guesstimated 2x sales increase that the price cut triggered for the iPhone, it was a small price to pay.
Looking back on that experience is illuminating. With the rapid response, the willingness to pay for customer happiness, and the frank handling of the situation, it's a bit surprising to be in the midst of the current stressfest and see how things have deteriorated. Where's the corporate responsibility and the can-do attitude of 2007 when we need it? Let's take a look at how the two scenarios diverge, and why Apple didn't -- or couldn't -- step up to the plate now like it did then.TUAWWhy Apple has a split personality when it comes to keeping iPhone owners happy originally appeared on The Unofficial Apple Weblog (TUAW) on Thu, 15 Jul 2010 22:30:00 EST.  Please see our terms for use of feeds.Read | Permalink | Email this | Comments

http://www.tuaw.com/2010/07/15/why-apple-has-a-split-personality-when-it-comes-to-keeping-iphon/
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