10 Things Apple Won't Tell You

From Marketwatch.com  {Excerpt} 

From customer service to app safety and even how its devices affect our relationships, here are 10 things Apple won’t likely tell you about its products and its business.

1. “Our customers are worn out.”

All that initial excitement over the first iPhone or iPad has quickly given way to what analysts are dubbing “upgrade fatigue”—with even Apple’s most loyal customers upset about the steady stream of newer models. In fact, when people buy Apple’s latest product, the company is usually already preparing its replacement, said technology consultant Patchen Barrs, who has owned 25 Apple products over the past 20 years. “Everything we buy from them is already out of date,” he says....

It doesn’t stop with devices, said experts: Software upgrades also gently nudge people to buy new hardware. ....

2. “Be careful of that app.”......

3. “We’re getting in the way.Checking an occasional Facebook update via iPhone during dinner is the least of some couple’s worries. One in five people reach for their phone as a 21st Century replacement for the post-coital cigarette....”Personal responsibility and manners aside, there are other theories about why people can’t put their iPhone down. “Apple’s products are addictive,” says Larry Rosen, author of “iDisorder: Understanding Our Obsession with Technology and Overcoming Its Hold on Us.” 

4. “You may spend more with our devices.”

Not only do Apple’s products tend to be pricier than those of competitors, people spend more using them. .....

5. “We need another game-changing gadget.”

Upgrade fatigue isn’t the only thing critics dislike about Apple’s product rollouts; some say the new products aren’t new enough. Investors are growing impatient with Apple’s pipeline and calling for another tech revolution..... 

6. “The iPhone is overpriced—even compared to the iPad.”

The iPhone costs hundreds of dollars less than the iPad, but Apple has much higher profit margins for the phone than the tablet, experts say. Here’s how it breaks down: Apple earned gross margins of up to 58% on its United States iPhone sales between April 2010 and March 2012 and margins of just 23% to 32% on the iPad, according to a statement filed by Apple earlier this month as part of its patent battle with Samsung Electronics Co. ....Consumers think they pay a cheaper price for iPhones as wireless carriers absorb two-thirds of the original retail price, he says. However, customers who keep their iPhone and renew their contract after the initial two-year contract expires are paying a premium for using an old phone, he says.

7. “Don’t be fooled by our soft sell.”

...These two stories illustrate two things, experts say: Apple’s staff knows if children want Apple’s products their parents will want them too—and they never bombard customers with tech-talk. “They always start off by asking you about your lifestyle and your needs,” says Martin Lindstrom, author of “Brandwashed.” “They emotionally engage you so it’s harder to say no to their products.” Other electronic stores focus on price and technical specifications, but are slowly taking a cue from Apple Stores, he says....

8. “Our features are falling behind.”

......Five years after its launch and several upgrades later, some analysts say the iPhone is starting to feel dated. iPhone users can often be found trying to recharge their batteries in Starbucks, says Yung Trang, president of TechBargains.com. Samsung’s new SIII has a removable battery, allowing consumers to carry a replacement. What’s more, fans point out that the SIII battery has more power than the iPhone—more than 10 hours talk time versus eight hours for the iPhone on 3G. “The Samsung SIII is the best iPhone competitor in the space today,” says technology analyst Kagan. In many respects, it’s even better than the iPhone.” For big talkers, the Razr has 21.5 hours of talk time.

9. “We’ll hook you for life.”

Storing digital content like movies, music and books on Apple’s “ecosystem”—the company’s compatible suite of hardware and software—may lock in customers for life. There’s good reason Apple offers 5GB of memory free on its iCloud virtual storage system , analysts say. “Once you’re in, it’s a one-stop shop,” Fino’s Eisenberg says...... 

10. “Our fans don’t care if we screw up.”

.... Apple’s marketing also encourages this tribal following, industry pros say. The company’s borderline “fairytale” or “religious” language also helps stir up passionate support for the brand and upsets people when apple is criticized, says Lindstrom, the branding expert and author, who adds, “Apple knows how to inspire its customers.” Case in point: the company’s website contains this statement about the third incarnation of its tablet computer: “The iPad is a magical window where nothing comes between you and what you love.”

Quentin Fottrell writes for SmartMoney.com.

Link:  Marketwatch.com-Apple 10 Things.

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