Just over a month ago, Apple surpassed Microsoft to become the world’s largest technology company in terms of stock market value. Today marks the end of the honeymoon period. At 6pm this evening, the $150 billion technology giant will stage an emergency press conference in an attempt to halt plummeting shares, as well as a widespread public backlash from its ordinarily devoted followers.
The ostensible reason is the iPhone 4 and the poor reception that the device receives: apparently it can lose up to a full four bars of signal strength depending on how it is held.
What perhaps poses a bigger threat to the company’s market value though, is the manner in which it has responded to its customers’ complaints; firstly, by patronising them that they were holding it the wrong way, then by making false claims that it was simply a software problem, and releasing an update that fails to address the inherent flaws within the hardware. Bloomberg claims that Chief executive Officer Steve Jobs was warned about the phone’s antenna during early design stages, and writing in today’s Independent, Stephen Foley explores the perceived hubris that might “wreck the public’s love affair with the company”
Apple has long held the status of outsider when it comes to commercial technology, and that has only attributed to its success. It established a loyal fan-base amongst consumers looking for something alternative to what the mainstream had to offer; something unique and more personable. Now it finds itself in the unlikely position of top dog, criticism of domineering market strategies and heavy-handedness against smaller developers are only likely to increase. Arrogance is a trait that it cannot afford. When Steve Jobs addresses the crisis tonight, he will be hoping for a good reception. So will his customers.
John Gibb
