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Apple's Crack

October 4th 2010 15:00
The iPhone has emerged as a transformative product. Lying somewhere between the ultimate smart phone and the slimmest, most portable notebook, the iPhone represents an entirely new computing platform- a platform that just so happens to offer powerful novel and endless opportunities for handheld mobile computing. It’s already a fashion statement. Thing were looking good before then suddenly news broke out; iPhone has a very serious problem, so serious that it could damage the company’s image. The company’s reputation is at stake. Since the iPhone 4 launch, Apple has faced, heard considerable criticism, questions regarding an issue with the devices new external antenna design, the issue is so replicated by this point that Consumer Report was unable to recommend the device because of its reception problem. The news sends Apple’s stocks falling 3%. Apple immediately rushed to address the issue; they immediately call a press conference. The company initial response was to down play the issue, then it went on to apologize for the antenna problem. The company announced that it will launch a software update to fix the reception bar problem. The iPhone has a very serious problem, its reception bars were not being displaced correctly, and it’s a nasty thing! Can you imagine a company like Apple having a gadget that won’t display the correct reception bar or signal strength. There’s another one its all about hardware design flaw, users keep complaining about losing calls, by simply touching the lower-left portion of the metal antenna bar can cause he phone to drastically lose reception, that’s was outrageous and pathetic. What kind of phone is this? You will lose your call if you don’t hold the phone a certain way. Apple responded to this hardware issue by given a free rubber bumper case to each person who buys a phone. According to Apple the rubber bumper will prevent a person hand from coming in contact with the phone’s antenna, which is build into the metal siding on the phone. Now we are going to see a great sample of a flaw gadget courtesy of Apple. For me it’s a strange thing to see a company like Apple having a problem like this-hardware design flaw and antenna issue. Is the company spinning out of control? Who’s running Apple? Who’s in charge? It’s a very rare for Apple to call a last minute press conference. But it remains to be seen if the company can mollify the critics by issuing free rubber bumper for the phone.
Apple is more than a company that makes computers, gadgets, and software- it’s a game changing free radical that manifest in multiple dimensions. Its elegant products cocoon customers from the chaos of the information age. And almost everything Apple makes transcends greater geography, race, and even culture. Apple not only has upstaged the likes of Nokia, Microsoft or Sony but has set the gold standard for the tech world. The iPhone series is a good example of Apple’s engineering genius. We think that its newest version iPhone 4 could potential be a big hit. It will make big tech companies like Microsoft, Sony, Samsung, Nokia and Google sit up and take notice of iPhone 4. Unfortunately things don’t works the Apple way- Apple’s iPhone 4 is showing major crack on its foundation and its fatal, it could drag the company into abyss. I wonder how Apple is going to deal with their first serious virus. Microsoft, when they had to deal with malware, was in denial for years. The reality is the bubble is about to burst. Their run as the digital media master is about to end. And they're going to be the last ones to figure it out. And it's going to be the ugliest shitstorm I ever seen. The company is in chaos.
At Apple every endeavor is a moon shot. Sometimes the company misses, but the success is huge. Right now the iPhone 4 misses (and it’s huge), it failed to disrupt the market. It just put the entire Apple’s consumer business strategy in jeopardy. A recall was suggested by some experts, a recall is the best exit strategy and the most favorable solution for Apple. But the recall of all iPhone 4 could costs Apple close to $1.5 Billion on the hardware alone adding to those huge costs is the iPhone 4 development and marketing muscles. Some critics preferred the recall option as the most favorable solutions to clean the “the whole iPhone 4 flaws”, the hardware design is pure engineering topic, the iPhone need to undergo rigid testing, and review. Despite huge losses in phone recall, Apple surely could be able to withstand the financial beating (its going to hurt Apple, I’m sure)it do have the cash hoard to cover the recall costs and Apple could still win big here, it’s a drastic measures for the company but it makes sense. The iPhone’s antenna flaw that added to apple’s woes was an even bigger headache for the struggling company like Apple. The damage will instead be financial (a free rubber will also costs the company). But it’s already stained company’s reputation, and we all know that a damaged reputation is not good in business, it can do serious financial harm; it can put the company out of business. Reputation is truly intangible, and the company’s brand always counts for the biggest part of its market value. Reputation distinguishes itself by being cumulative; it is built over time based on the company’s own experience and market performance. And reputation can be a strong competitive advantage by stabilizing the company’s market position. In particular, when competing against new market entrants, reputation can be an invaluable asset. But at the same time, reputation can be damaged with a single event or tech flaw just like the Apple’s antenna issue- in a very short time, I hope Apple knows this.
This has been a wake up call for Apple. I’ll been using this whole period as a time to reexamine every part of the company and keep asking myself. Is Apple in the penalty box? What exactly going on at Apple? Yes, Apple is in the penalty box. The lynch mob is out there, its nut and totally unacceptable. Apple must find a ways to fix this problem’ “it needs to drill holes in the crust”. At the special conference Apple hasn’t addressed the issue head on. It never actually admitted the reception issue, instead the company said that the real problem was that the phone’s reception bars was not being displayed correctly. Well the company’s software update (iPhone OS 4.1 software) will fix the reception bar problem or the signal strength indicator but it does not fix the antenna issue, which is a hardware design flaw. The reality we got a lot of serious problem here in iPhone 4, the software side and hardware part. It’s really a big problem for the company and its getting worse. Apple has committed mistakes, and they’re trying to deal with the problem in a piecemeal fashion. You know what! They are not solving the problem. Apple’s engineer were not doing their homework, the iPhone 4 was supposed to be the most successful and coolest iPhone to have ever hit store shelves. It’s a portable, state of the art computing platform, a major upgrade of its predecessor. Its supposed to be a “killer device” that will allows the user to stay connected 24/7. After all, the device is well built, runs iOS 4, and includes a very nice front facing camera that allows users to have video chat over Wi-Fi with other iPhone 4 owners. There only one major problem: its antenna. And Apple still wouldn’t admit that there is a design flaw in the device. The issues continued to plague the hardware company and it’s making the company look bad. Apple need to go back to its drawing board to figure out a more effective ways of solving the problem and to find out what wrong with the phone. The iPhone antenna issue would cause a huge upheaval, potential leading the stocks skidding and hurting iPhone demand. The iPhone 4 is becoming a major headache for the hardware company. It’s also becoming increasingly clear to us that a recall is what it really needs. The sooner Apple fixes the problem, the sooner it will put this customer relations disaster behind it.
The company is entering a major challenge, a downturn. This is the single most serious threat to Apple since the company went IPO (initial public offering). It’s could be bigger than Google or Nokia, it could ruin the whole iPhone business. For Apple the iPhone 4 is more than just the next generation of smartphone. It also the centerpiece of Apple’s plan to own the global standard for wireless devices and to create a platform that will enable Apple products to share music, video and data seamlessly, thus becoming the master controller of the wireless ecosystem and the digital media.
The “crack in the iPhone 4 foundation” would be the Achilles Heels of the company, now Apple’s rivals knows that despite of its ( Apple) enormous market share its still vulnerable and that’ s what they are waiting for. Apple was caught off guard; the company is completely surrounded by powerful rivals, these rivals are look like pack of hungry wolves waiting, watching closely, trying to steal Apple’s market share. War is coming for Apple and it’s a much brutal one. Competitors are back and they are much powerful and better, an unexpected guest is about to rise: the rise of the fallen- Motorola and its Droid, Apple has already felt Motorola presence.
Will iPhone withstand the brutal competition? The Apple‘s iPhone 4 flaws will test the power and tenacity of Apple United. I described the new iPhone 4 as Apple’s Vista. It’s really a big problem for the company.


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