Just a few months ago, we put Apple in the Top 10 High Tech/Web Stocks of Past, Present and Future. Today we’re asking, could Apple’s golden era be over?
Let’s see.
Apple’s iPhone lasts a mere 40 minutes?
Apple TV loses out to XBOX 360?
Apple customer service reminiscent of Dell, Seagate, HP customer service? Yep, maybe even worst.
If there’s one thing I know, it’s service. I spent 18 months (and one day!) doing customer service at the nation’s largest credit card issuer. I’ll spare you the war stories, but when I left, my index score was 149. You can always measure a company’s success in the marketplace by how on or off the ball their service is, and how their employees handle themselves.
I’ve never been a Mac guy. I’ve used a PC for basic office use, our editors at WatchMojo.com use Macs, “naturally.” I am even toying with the notion of “upgrading” to a Mac soon. Not so, not anymore.
While Dell and HP know that they create and ship boxes and don’t kid themselves, Apple tries to sell an image, a brand, a feeling, so when their CSRs drop the ball and the company fumbles, it hurts them twice as much, shattering the facade.
It’s one thing for John Dvorak to say that someone told him the iPhone lasts a mere 40 minutes, it’s another thing for an AP writer to say that the Apple TV is no XBOX 360 (Bill Gates just named his next son Sven, so he can shout “Sven, son”). All right, that was lame.
But not as lame as Apple’s CSR.
We ordered an Apple Airport Extreme Base Station. Extremely crap, I might add. When we wanted a more robust router, my colleague - the Mac fiend - suggested Apple’s product.
Frankly, my initial thought was: music players? Ok. Phones? Maybe. TVs? Sure, why not.
But routers that double up as hard drives and quasi-servers? Give me a break. Isn’t Apple stretching itself a little too thin? What happened to Steve Jobs’ razor-sharp focus? Did greed and hubris soften that edge?
I indulged him, we got one, it was a disaster. Judging by the feedback on the Apple site, it’s a hit or miss: people love it or hate it. Judging by the ultimate feedback, I think Apple had some quality issues with a batch, because eventually when I gave my serial number to someone, they acknowledged it was, well, crappy. But more on that later…
After spending some time setting it up, the thing would crash, and when it would not crash, the laptops (PC or Macs) could not read the hard drive. But everyone could print. Yippie!
I’d spare Apple, frankly, but then today came the last straw. A call to customer service to a) replace or b) get a refund.
I made the mistake of calling the number provided on Apple’s invoice. I spoke to &$%^#$%#%^*&. No, that’s not a swear word, I could not make out the agent’s name. I figured, no worry, I am sure Apple will leave me happy as a clam.
But &$%^#$%#%^*& needed a case number, so I was referred to another line. Note that everytime I was transferred, I felt deeper into a shell and the voice on the other line grew weaker and weaker (does something really grow weaker? Yes, Apple, like all companies that suffer from hubris as they expand, but more on that).
From &$%^#$%#%^*& I was transferred to Andrew. Andrew was kind enough to forward me to someone else: Rebecca, who then sent me to Jerri. From Jerri it was Wendy. Wendy sent me to Steven. Steven, or Stephen, or St&$%^#$%#%^*&en told me that I needed a case number… and to get one he would have to - “STOP!” I shouted, adding: “I know, I need a case number, but the good news is that &$%^#$%#%^*& referred me to Andrew, who in turn referred me to Rebecca, who then sent me to see Jerri, then Wendy, now you, so let’s try to make this the last phase of this circus of disservice insanity.”
Steven, to his credit, finally spoke to a member of management, came back to tell me I’d have to wait some more, and then managed to come back telling me that indeed, based on the serial number, they had sold me a crapbox, and that I could send it back in the next couple of days for a refund.
It’s a good thing, cause I would hate to have to say negative things about Apple. Of course, between now and the next 48 hours, a lot of things can happen before they send me an email. Who knows. Hopefully nothing bad will happen.
But what’s the lesson here?
1. When I called, I have every intention of asking for a replacement. But the fact that I was a hot potato and Apple failed at First Call Problem Resolution (something, by the way, I pitched to my bosses in 1998 as a lowly CSR at the nation’s largest financial institution) means that I never want to have anything to do with them. We’ll keep the Macs for editors, but trust me, I’ll find something other than a HP or Dell or Apple to buy next for myself, and for our growing company.
2. Apple has begun its long delayed descent. It’s nothing personal. It’s just the way that it is. Apple’s stock says a lot:
December, 2000: $8.50
April, 2003: $7.10
February, 2005: $45
April, 2007: $94
In other words, in 7 years, the company’s stock has grown tenfold on the strength of their computer sales and their digital music players, the wildly successful iPods. But much the same way that MSFT had Windows and Office (two trick pony), Google had search and advertising (two trick pony) I think that deep down inside, the real and fake Steve Jobs know full well that it will take a massive hit to keep that stock rolling.
MSFT could not do it. Google, it does not look like, could do it. Both are monopolies to varying degrees (let’s toss in “allegedly” to make our lawyers happy).
I don’t think Apple will be able to do it. John Dvorak and Peter Svensson say that they won’t do it. I don’t really know or care if they are right, but what I do know is that due to Apple’s hubris and thinking that they can launch any product in any market and win any client, they put out a clunker and then added insult to injury by refusing to help me ship back their crapbox… translation: no Apple TV or iPhone for me, and going forward, no Mac or iPod.
Judging by the tone and handling by their service team, I’d assume I’m not alone. The shield has been broken. Apple is on the descent.
How you like them Apples, Steve?
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April 6th, 2007 at 10:02 am
Unfortunately customer service seems now to be hit and miss at Apple. I’ve never had a problem but I know others that have.
As for Sven if he had his his Apple TV at the 1080I setting he would have seen much better picture quality.
April 6th, 2007 at 10:16 am
Er.. Froosh, would you like to put this rant into a coherent string of sentences? I can’t get my head around just what exactly your complaint is - you’re all over the place man.!!
April 6th, 2007 at 11:46 am
Consumer Reports top rated customer service in electronics & top rated customer service in computers - both categories three years in a row.
Apple gear breaks LESS, but it still breaks.
Apple service mucks up LESS, but it still is run by humans.
No one claimed “perfect”, except Artie McStrawman.
April 6th, 2007 at 12:44 pm
Not being an external apologist for Apple, we do learn something revealing here. When you call Apple numbers, you actually get to talk to a person. Too bad they didn’t perform. Or at least quickly enough to satisfy our friend here.
I must admit I have never been impressed with Apple Custormer Service. Its just that the others are really really bad. BTW the Airport came out in the same year as the iPod, 2001.
April 6th, 2007 at 2:08 pm
The silliest part of this prediction of the downfall of Apple is the statement “but what I do know is that due to Apple’s hubris and thinking that they can launch any product in any market and win any client” Apple clearly doesn’t launch “any product”. But they do have everything riding on the success of the iPhone and Apple TV. If they can’t really be the lead player in either of these 2 markets, then the company will unavoidable begin a descent - slow or fast is irrelevant. No one will care. People are only interested in celebrities - corporate or human. No leadership products - no corporate celebrity for Apple. Hey! It’s a cruel world out there.
April 7th, 2007 at 7:16 am
(1) iPhone battery. Dvorak has stated for the record that he’ll consciously try to incite Apple fans just to drum up hits. Or, as the link that you posted said - “The validity of this information is flimsy at best.”
(2) AppleTV and HD quality. Apple _never_ claimed HD quality, just DVD quality.
(3) Airport Extreme. You do know that an external USB drive only works with Mac OS, right? And you did know that before you purchased it, right?
But I’ll give you credit for being upfront:
“I’ve never been a Mac guy.”
Peace.
April 7th, 2007 at 10:18 am
Some valid issues, some not, but a very limited sample base and experience to call a peak on a company that is so small with so much untapped potential. Apple is no oversized lumbering behemoth that can no longer respond to the rapidly changing market. They still succesfully define the future for every major product market they are in. I continue to own their stock since $13 and own their products since the original white iBook and the PowerMac G4. I see nothing that indicates that we are nearing the top of the lift and need to get off.
April 7th, 2007 at 4:47 pm
You idiot! Just try to write something that somebody can understand. This article ist sowhat of stupid and irrelevant! You shurely are one of the fucksclaves of balmer.
April 7th, 2007 at 8:41 pm
Customer service and stock prices are two different matters. Apple’s stock price reflects speculation on the part of investors and has little to with the strength of the company. Most ‘hot stocks’ are like this - the stock price has little to do with earnings, current or future (Google for $470!).
Steve Jobs does not run Apple according to the whim of speculators. If the share prices fall, it will be because speculators no longer believe that the high price can sustained (ie justified) and will sell (take a profit). They are not investing in Apple for the long term dividends! This does not mean that Apple is in decline - it just means that there is a realisation in the market that the gap between price and earnings is not justifiable.
As to customer service, all big firms are grappling with this. For example, the banks here in Australia are rediscovering it. Apple seems to, on the whole, do a good job. It isn’t perfect - as you found out - but is generally considered good.
A final point. You made the comment about Apple stretching themselves to thinly. I recently prepared a product mix table of all Apple’s products. Apple is very focused - the products leverage Apple’s core abilities in interface design and become part of people’s lifestyles. Apple only adds product lines where and when they believe that they can do better and the product fits with their core abilities and overall product mix.
April 10th, 2007 at 7:07 am
…. I’m always interested in opinions that are contrary to mine but this takes the cake. I have three wireless routers. DSL. Cable modem…macs and pc’s. dell, hp…ibook, pro’s…everything. other than the few things that are awkward to do on the macs (like run quicken) the apple network works the best and streams music into four areas of our home. when we have had a problem, their service hasn’t been good… it’s been excellent. Local support that’s quick and compleat… I use a blackberry and will likely buy an i-phone…and as a friend who works at apple likes to say, they “will continue to astound the world with new and surprisingly innovative products that integrate seamlessly”…how the market responds is hard to say… how the public responds is factual….just look at the iPod.. 100 million sold in 5 years..whatever happened to the walkman? who knows.. one thing’s for sure…you don’t. You have never used their service, that’s apparent. This is reckless jealousy. Ignorant.
April 10th, 2007 at 7:51 am
How do you get this junk into Yahoo! Finance? Your writing is terrible. You’re clearly just going for headlines and shock appeal.
Are you paying Yahoo! or paying for press releases? Because your stuff is really sloppy and pointless.
April 10th, 2007 at 8:03 am
Folks, we have articles here that are analytical, others that are commentary. A few are written in a stream of consciousness style, this being one, written after my phone call with Apple.
So if all you have to criticize is the writing, grammer or punctuation, then that says a lot about the merits of the post, no?
We have nothing against Apple (and use them at our office here), we even placed them in our Top High Tech/Web Stocks of All Time:
http://www.watchmojo.com/web/blog/?p=934
For the most part, we let readers comment no matter what they say, and initially I was surprised by the intelligence, tact and thoughtfulness of commenters who read this first via MacSurfer.
Today I see it’s picked up by Yahoo! finance, so before the deluge of “this sucks” comments, let me simply say: this article’s main point was that no matter how much brand equity a firm has, service seems to be sloppy, and that is a shame. That’s all.
Now, because this blog touches on investing, advertising, technology, we just pointed out that Apple needs massive hits, and that means they will probably take risks that they otherwise would not. By taking on product risk, they might put out clunkers (like the Apple Airport Extreme) and turn off potential clients for their core products. Translation: the stock, in my eyes, can keep going up, but having risen 10x in a few years, there’s downside risk. I am neither long or short Apple, it was a simple observation of that reality, or at least, potential.
How, on earth, does that make me “jealous of a business entity,” or a “Steve Ballmer f***claves…” - have you seen what we’ve written about MSFT?
That being said, keep the comments pertaining to how great or bad Apple is coming. Loyal, fanatical users indeed.
April 10th, 2007 at 12:01 pm
I guess muckraking will always exist in journalism.
Your arguements for Apple’s downfall would be much better based on criticism of Apple’s 2 main products: Macs and iPod. But you haven’t even tried them and are already predicting a downfall. This leads to me believe that your article is focused on trolling for ‘hits.’ Kind of sad.
Here’s a hint for the future: don’t quote Dvorak.
April 10th, 2007 at 2:46 pm
(a) “18 months (and one day!) doing customer service” doesn’t make somebody an expert on customer support, especially when you consider the vast difference in tech support vs. banking support. I’ve spent 18 months or more cumulatively on the phone or dealing with tech support agents as a CONSUMER…I can assure you, Apple is MUCH better than any of the guys you list here. Dell is a complete DISASTER when it comes to customer support (and a company, really). You had one unfortunate experience, but it sounds like it got resolved. I’ve spent MONTHS dealing with Dell on a single issue and never got satisfaction! Extrapolating one incident (a hardware failure out of box) to the downfall of a company like Apple is insane, not to mention naive. Apple’s service isn’t as good as its products, to be sure, but it blows away the guys you mention.
(b) “Apple is on the descent.” Huh? The stock is 4% below an ALL TIME (30 YR) RECORD HIGH! It is forming a technical base in the mid-90s–if it takes out the 52 week high shortly ($96.50 approx), it is likely the stock will run up to $120 or higher before year end. The earnings on April 25 will almost certainly beat the very conservative company estimate of mid-$0.60s/share, which should easily take out the 52 week high. If your story is, as you point out, that Apple’s “service seems to be sloppy”, that is one opinion, but making prognostications about the stock momentum is completely another thing. I would recommend sticking to the service opinion schtick…and pick up some aapl stock, while you’re at it
April 11th, 2007 at 8:18 am
Hello Ash, well after my private email to you, pulling you up on your shocking writing skills, (due to your - “stream of consciousness” - apparently) and, after your private response to me, and my following email, setting you straight again re your reverie my emails were polite … but you left me hang’n …
But now your “good linkbait.” apropos “Golden era” has brought the “fanatical” to your doorstep. and your peeved, Tisch!!!
I assumed that my message got thru to you.
Huh … not
Re your response above (April 10th, 2007 | 8:03 am) another exercise in “stream of consciousness” I assume.
…”By taking on product risk, they might put out clunkers (like the Apple Airport Extreme).”
… “service SEEMS to be sloppy.” (my use of bold type)
- Seems? WTF!!!
- Get a grip on reality, Ash. As you like to pontificate on the web, use it to get the facts, your anecdotal bellyaching is fatuous.
…”but having risen 10x in a few years, there’s downside risk. I am neither long or short Apple, it was a simple observation of that reality, or at least, potential.”
- I repeat :- This reflects your limited knowledge of Apple, Apple products, Apple services and Apple users, it is clearly evident, your lies - your venal rendering of twisted facts and lies soon become a parody of your own lack of cognitive reasoning.
And as for …”So if all you have to criticize is the writing, grammer or punctuation, then that says a lot about the merits of the post, no?
(it’s grammar not grammer)
NO, IT DON’T, if anyone reads your lengthy CV, they will not accept your shoddy writing skills, but again looking past those issues the post was asinine and steeped in chimeric stupidity.
Zax.