Linked by Thom Holwerda on Mon 19th Oct 2009 21:43 UTC
Apple It's getting a little bit predictable, but Apple has reported yet another stellar set of quarterly financial results. The company has sold more Macs and iPhones than the same quarter last year, but sales of the iPod were down compared to the same quarter last year. Profits and gross-margins were also up.
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RE[3]: Comment by Tony Swash
by Tony Swash on Tue 20th Oct 2009 09:08 UTC in reply to "RE[2]: Comment by Tony Swash"
Tony Swash
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The trick is, to do cult marketing, and use that to sell people something different from and usually more expensive than they really need for the job, in order to raise margins.

This cuts to the heart of the important question. The question is not "is Apple kit more expensive than equivalent PC kit". The questions are why does Apple kit, consisting of stuff at the higher price range, sell so unbelievably well at the hight of a recession when so many people are so cash strapped?. Why have Apple products across the board been selling above market trend for so long?

One answer I have seen on many occasions, and your comment is an example of it, is that it is essentially all just a marketing trick. That Apple somehow hypnotises enough people into buying stuff they don't really want or need and that there are plenty of superior non-Apple alternatives that if only people weren't hypnotised by the marketing they would be buying instead. My answer to that is that its rubbish.

I think the answer is not marketing (although very clever marketing is a part of the equation) but rather the total experience that people get from using Apple kit. Its to do with the way that Apple kit looks and feels, its to do with the way in which Apple kit is designed and works, its to do with the integration of hardware and software, its to do with the pleasure of the Apple Store retail experience, its to do with all the added value and cleverness of the bundled iLife suit and of the App store. etc etc

The fact of the matter is that lots of techy and non-techy consumers purr with pleasure when exposed to the experience of using Apple kit. It makes them feel good, and clever and creative and safe in a way that Windows/Rim/Nokia/ stuff just doesn't.

I have lost count of the times that friends (most of whom are not Mac users) have come up to me to gush about their iPhone and how wonderful it is. I lent my neighbour (who is totally inexperienced and fearful of computers) my spare MacBook Pro when her newly purchased and cheap netbook running Visa started to malfunction. She now stops me in the street to gush at me about how much fun she is having using the mac, how she editing photos and movies using the ILife suit, how she feels so good. She looks and is empowered by her use of Apple kit. And its that experience which has powered Apples sensational success in the last decade.

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