How Apple failed during moments of trust

July 19, 2010  By Jeff Hasen

For decades, the adage in crisis management has been that you can lose the battle for public opinion in two hours. My view is that in the "Technology on Steroids" era, the period is closer to two minutes.

Following Apple's unfathomable silence, we are left with one question – are there clock issues on the iPhone 4 as well?

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The irony is that many of Steve Jobs' remarks Friday [July 16] would have diffused the crisis if they were delivered weeks earlier. Among them:

• The company has 18 Ph.D scientists and engineers working on antenna design and has invested $100 million in testing facilities

• Apple has seen return rates significantly less for the iPhone 4 than the iPhone 3G S

• Fewer than one call in 100 drops, according to Mr. Jobs

Missed signals
It is incredible to believe that Apple needed weeks to pull data. Can you just imagine AT&T telling Mr. Jobs that it was too busy to run reports?

What happened in the two-week delay that shined the light on Apple and often moved BP to below-the-fold coverage?

Exactly what could be expected.

• Rumors flew, everything from one that said Mr. Jobs was retiring to another that claimed the company was issuing a refund. The most damaging? I would vote for the one that said Mr. Jobs knew of the product defect and green-lighted the project anyway for financial reasons.

• Consumer Reports ran and reported on more tests – anyone who thinks Consumer Reports does not still matter believes that all 285 million mobile subscribers carry smartphones and read Mobile Marketer, Engadget and The Boy Genius. The writers and editors of this publication are good but they are not that good.

• Apple was perceived as arrogant and/or out of touch each day it remained quiet following the time when the Consumer Reports findings were released.

So Friday brought the predicted remedies – free bumpers, a software update and the ability to return the iPhone 4 and get out of a contract.

As to whether Apple learned any lessons, please do not hold your breath until you have a full iPhone 4 signal.

In fact, Mr. Jobs spent much of Friday's question-and-answer session slamming the media.

Further, he spoke of the relationship with Apple customers, but dismissed the idea that the company failed at what I call "Moments of Trust," the critical touch-points that affect sales, trial and loyalty.

"We don't know everything, but we figure things out pretty fast … and we love our customers and appreciate them," Mr. Jobs said.

Oh, really.

All's forgiven, come back
My belief is that despite the missteps, Apple will escape long-term damage.

Remember, Apple has been atop Fortune's Most Admired company list for three straight years, winning this year's vote by the highest margin ever.

Early iPad and iPhone buyers were predominantly Apple loyalists, those who have experienced the game-changing technologies and products the company has brought to market.

As BMW CEO Norbert Reithofer told Fortune, "The whole world held its breath before the iPad was announced. That's brand management at its very best."

It provides a sharp contrast to what we have seen in the last several weeks.

http://www.mobilemarketer.com/cms/opinion/columns/6841.html

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