cookiemonster's Profile

When last I posted in 2003, I was concerned that what Herbie Hancock so beautifully refers to as Apple's "philosophy and spirit" was beginning to change. Apple has certainly turned itself around financially since then. In fact, if stock price means anything, it has tripled over the last 12 months. While some here desire a separation between iTunes and Apple, the whole iPod revolution has brought Apple tremendous exposure to the general public and money to its ever increasing coffers. Curiously, though, the sale of CPUs hasn't changed much, if at all, during this same period. I wonder why that is? Is it because the quality of the product is less than before? Perhaps. There have been recalls of iBook logic boards, for one, and, most recently, Powerbooks are being pulled from the shelves for alledged problems with its tracking pad. Apple, as any other computer manufacturer, always faces the challenges of hardware difficulties. It really boils down to how the company deals with those problems, particularly in terms of customer satisfaction. In the past, Apple has busted its butt to help out their devoted users. Is that still the case? The reseller issue has also heated up as another class action suit was filed this February. This one also includes consumers, alledging warranty fraud, and sales of used equipment as new, among other complaints. Is Apple starting to interact with their consumers as they seem to have been doing with their loyal resellers? Yikes, if this is the new direction Apple is taking, what happens if Apple is successful in eliminating all third party availabilty of products and service? The argument has been made that Apple cannot become a monopoly because it is just one computer company among many others. However, there are no other computer companies that manufacture Apples BUT Apple. If Apple gets the monopoly on sales and distribution of its hardware and software, what will keep them from doing things like jacking up prices or restricting warranties, if they are the only game in town? Their new and 'improved' philosophy and spirit? If this is the way the worm is turning, then all we can hope for is that the power of the almighty buck can be ameliorated by either good sense or successful litigation. Cookiemonster

Herbie Hancock says Apple is "an oasis in this sea of money-grabbing, money-getting, money-focused businesses in the technology world". I wish I could hold Apple in such high regard, but I no longer can. As a musician myself, I respect Herbie Hancock and his opinions on other matters beside music. What he and most other Apple enthusiasts may not be aware of is how Apple has been engaging in behavior that can only be described as "money-grabbing and money-focused" without regard for the human cost involved. Apple's second largest expenditure behind R&D has been the establishment of their own retail stores. Apple plans on having 73 stores open by November 27th of this year, with their first foreign store opening in the posh Ginza section of Tokyo. Apple has strategically placed their stores in high profile, high rent areas throughout the U.S. and now Tokyo. CFO Fred Anderson has stated that Apple will not open a store that they don't know will be profitable within a year's time. This past quarter marks the first time, since the inception of the Apple retail program in the first quarter of 2001, that they have realized a profit. How have they been able to do this? Here comes the disturbing part--by systematically raping their loyal resellers of their employess and customers. There are currently 10 lawsuits pending in California, the state where the first Apple stores were opened, that elucidate the immoral and potentially illegal practices Apple has engaged in to destroy their competition. I have done my own investigation and found that Apple has lied to both their resellers as well as customers in order to discredit the former and get the business of the latter. I can understand Apple moving towards getting rid of their channel middlemen and selling their own products themselves. It is the manner in which they are CURRENTLY going about it that makes me both sad and angry. There is a better way to deal with people--the loyal independent vendors--that have been the backbone of this company for over 20 years than to stab them in the back and not look back. It also may not be good business, but I am not a businessman. Herbie, I wish I could share your sentiment, but until Apple changes its policies towards their resellers, I have to put them in that very same "business as usual" sea.