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  • Apple Cries Itself a River Over iPhone Leak



    If you haven't already determined from the fallout from the 4th gen iPhone leak and subsequent legal fiasco, Apple is more than just angry about "Gizmodo-gate." Apple is also "injured" and still reeling from "huge" losses incurred from the iPhone debacle. As my MMI colleague Paul covered in great detail on Friday, a San Mateo judge has unsealed documents connected to the lost/stolen prototype iPhone. And apart from the case details chronicled in the documents, many noticed something else in the papers and discussed it widely across the blogosphere this weekend: Apple complains a lot.

    "Whine, whine, whine" is what some perceive Apple to be doing on a perpetual basis in the wake of the leak. In the documents, Apple uses strong language to assert how "immensely damaging" the fiasco proved to be for the company. A representative for Apple was quoted saying the following:

    "By publishing details about the phone and its features, sales of current Apple products are hurt wherein people that [sic] would have otherwise purchased a currently existing Apple product would wait for the next item to be released, thereby hurting overall sales and negatively effecting [sic] Apple's earnings."
    Hurt Apple's earnings? It's an argument that's difficult for some to swallow, particularly given the daily barrage of headlines in recent days about how the iPhone has steadily overtaken the great majority of its competitors and effectively squashed their chances of becoming the "iPhone killer." In fact, a great many industry analysts even argue that the scandal was "helpful" to Apple because of the awareness and hype it has generated in current and future iPhone models. And if you've read anything about Apple's earnings in recent quarters, does it look like Cupertino is poised to suffer any real damages to the runaway train that is Apple's revenue express?

    Strangely enough, of all the things Apple has done that could understandably rub people the wrong way, these "complaints" have apparently done more to annoy some Apple fans than just about anything else Cupertino has done lately.

    Even when it comes to the tech giants among us, nobody likes a whiner.
    This article was originally published in forum thread: Apple Cries Itself a River Over iPhone Leak started by Michael Essany View original post
    Comments 92 Comments
    1. mortopher's Avatar
      mortopher -
      Quote Originally Posted by jimmydee View Post
      I have to agree with various things said here. Steve Jobs complains more then anyone I have ever seen. He gives a little more each version Iphone he puts out. There are things on the new version that are not available on any of the older phones. It is a good practice for making a lot of money. The thing is there hasn't been any serious competition from any other smartphone so he has been able to pretty much do what he wants to at least up to this point. I am really tired of his complaining and propriatery equipment. He sues everybody that in his mind is stealing his techology. He reminds me of a little child that has never grown up. Because of all his ridiculous antics I am changing to the HTC droid incredible from verizon. It has a lot of great features which at this point in time surpass the 3GS iphone. There is something that is competing against the iphone so watch out STeve Jobs your not the only smartphone out there.
      You do understand that Apple is comprised of more than just Steve Jobs and Asian production factories, right?

      Quote Originally Posted by ExileTEAM View Post
      so its there own fault they lost the device and now they complain that they are loosing, next time put your dumb *** employees on a tighter leash.(no offense to those that do abide by the rules at Apple inc. or w/e. But i mean, now they know not to trust drunk *** alcoholics with their prototypes.
      Do you have some info about Powell that we (or at least I) are not privy to? Let's not go around calling people alcoholics because of one mistake.

      By the way, THEIR and THERE are not interchangeable.
    1. Comedy's Avatar
      Comedy -
      At the end of a day apple is a business that recycles the same ideas and occasionally adds/removes ideas to this lifecycle. If the first iPhone had 3G there would be no need to make the 3G revision, if it also had more ram and a better camera there would be no need for the 3GS, if it had a front facing camera and loads of flash memory there would be no need for the '4G'. If your business model is based on people continually buying the same products then it makes complete sense to make them gradually better.

      When the 4G comes out apple will have collected a tidy $2,800 from me alone in phone sales. If the first iPhone had all the features of the 4G this would be just $700 still.

      Now on to the point about it hurting profits. It doesn't take someone with a masters in economics to realize that this news has and will hurt profits. Each person that is holding off on upgrading their contract will be costing apple probably $200 to $300. My mum is even waiting now. Apple has likely stopped manufacturing the 3GS and is looking to sell off what it has left. They will have carefully planned production to meet demand up until the announcement of the 4G and now since so many people are aware of it, those already made 3GS models will sit in warehouses not being sold. As soon as the 4G is announced those older models will drop in price by about $200 and will likely be sold as 'phone-only' so not only are they losing out on the value but also losing out on the lucrative contract kickback they get per phone.

      Simple really.
    1. jimmydee's Avatar
      jimmydee -
      paganizonda83 I do understand that Apple is made up of more then Steve Jobs and Asian production factories. To be honest with you I have been around longer then Apple has been around whats your point?
    1. confucious's Avatar
      confucious -
      Quote Originally Posted by jimmydee View Post
      paganizonda83 I do understand that Apple is made up of more then Steve Jobs and Asian production factories.
      It is?
    1. chazzzzy's Avatar
      chazzzzy -
      Companies do not release specs on upcoming hardware too far in advance as it DOES tend to stop people from buying their stuff until the new models come out. Apple is not whining, they are simply stating a simple fact that these leaks could have cost them billions of dollars in sales.
    1. mortopher's Avatar
      mortopher -
      Quote Originally Posted by jimmydee View Post
      paganizonda83 I do understand that Apple is made up of more then Steve Jobs and Asian production factories. To be honest with you I have been around longer then Apple has been around whats your point?
      You (and for that matter a large amount of other people) sure seem to act like Jobs is the only contributing force in the actions of Apple.

      I'm glad you were able to be honest (what does that even mean here?) with me and clarify that your parents bumped uglies prior to Apple being established. Now how is that relevant to any of this?
    1. Happy Noodle Boy's Avatar
      Happy Noodle Boy -
      And let's be honest here, even if you get "ripped" by getting a 3GS, that phone is a beast and it's getting all of 4.0 features so it's not like you'll be hurting. The EOL for each phone appears to be 3 years (with the 1st gen dying this summer), so even if you get the 3GS when the 4th Gen comes out you'll have a good 2 years of use out of it.
    1. mortopher's Avatar
      mortopher -
      Quote Originally Posted by Comedy View Post
      Now on to the point about it hurting profits. It doesn't take someone with a masters in economics to realize that this news has and will hurt profits. Each person that is holding off on upgrading their contract will be costing apple probably $200 to $300. My mum is even waiting now. Apple has likely stopped manufacturing the 3GS and is looking to sell off what it has left. They will have carefully planned production to meet demand up until the announcement of the 4G and now since so many people are aware of it, those already made 3GS models will sit in warehouses not being sold. As soon as the 4G is announced those older models will drop in price by about $200 and will likely be sold as 'phone-only' so not only are they losing out on the value but also losing out on the lucrative contract kickback they get per phone.

      Simple really.
      You would have to determine how many of those people decided to hold off on upgrading only after hearing about the leak. I've been telling friends and family members to hold back on upgrading or finally getting an iPhone for months now ever since the rumors were coming out that most of the "in the know" employees up in Cupertino were more excited about the 4G than the soon to be release (at the time) iPad. Also, the price will drop, sure, but they won't be selling them as "phone-only" or they'd be changing their entire gameplan up to this point. The 3G is only $99 now but even it still requires the same 2 year contract.

      As I said earlier in the thread, you would also have to determine how the leak effected potential buyers of competitors phones. Did a number of people hold off on upgrading those phones in order to see what Apple has in store for this summer after hearing about the leak?

      Not as simple as you want to make it.

      (That being said, my mom wound up calling me last week to ask if she sounds any different calling me from a 3GS, of course my first response was "Go return it today!" She didn't care, as she put it it the change going from a old crappy samsung she's had for a few years to a 3GS is a much greater upgrade than she would need to be satisfied anyways)

      Quote Originally Posted by chazzzzy View Post
      Companies do not release specs on upcoming hardware too far in advance as it DOES tend to stop people from buying their stuff until the new models come out. Apple is not whining, they are simply stating a simple fact that these leaks could have cost them billions of dollars in sales.
      Billions of dollars? Let's be realistic here. Even if the leak did cost them, I do not see it causing MILLIONS to hold off on their upgrades.
    1. jefryson's Avatar
      jefryson -
      Thank you for the post!
    1. jimmydee's Avatar
      jimmydee -
      No matter what is said you have come to certain conclusions as to what you believe. My point is I know what apple is about and the various people that make up the company. I have seen Apple since there infancy all the way up to know. Through out the years of there existance there have always been complaints that someone is ripping them off including Bill Gates. They are whiners since there early days and it has nothing to do with my parents bumping uglies as you rudely imply. Is that honest enough for you.
    1. iPhoneThereforeIAm's Avatar
      iPhoneThereforeIAm -
      Quote Originally Posted by Messany View Post



      If you haven't already determined from the fallout from the 4th gen iPhone leak and subsequent legal fiasco, Apple is more than just angry about "Gizmodo-gate." Apple is also "injured" and still reeling from "huge" losses incurred from the iPhone debacle. As my MMI colleague Paul covered in great detail on Friday, a San Mateo judge has unsealed documents connected to the lost/stolen prototype iPhone. And apart from the case details chronicled in the documents, many noticed something else in the papers and discussed it widely across the blogosphere this weekend: Apple complains a lot.

      "Whine, whine, whine" is what some perceive Apple to be doing on a perpetual basis in the wake of the leak. In the documents, Apple uses strong language to assert how "immensely damaging" the fiasco proved to be for the company. A representative for Apple was quoted saying the following:


      Hurt Apple's earnings? It's an argument that's difficult for some to swallow, particularly given the daily barrage of headlines in recent days about how the iPhone has steadily overtaken the great majority of its competitors and effectively squashed their chances of becoming the "iPhone killer." In fact, a great many industry analysts even argue that the scandal was "helpful" to Apple because of the awareness and hype it has generated in current and future iPhone models. And if you've read anything about Apple's earnings in recent quarters, does it look like Cupertino is poised to suffer any real damages to the runaway train that is Apple's revenue express?

      Strangely enough, of all the things Apple has done that could understandably rub people the wrong way, these "complaints" have apparently done more to annoy some Apple fans than just about anything else Cupertino has done lately.

      Even when it comes to the tech giants among us, nobody likes a whiner.
      It's less whining than throwing fuel on the flames of the "accidental" leak publicity.

      Given that there will necessarily be lost 3GS sales, you'd be surprised if they didn't ramp up publicity for the new one as far as they possibly could .... wouldn't you ?
    1. TheDirtyDiddler's Avatar
      TheDirtyDiddler -
      Kool Aid man Apple?