Steve Jobs is a master at media manipulation but fell far short when it came to how he, and Apple, responded to bad reviews regarding the new iPhone 4. When dealing with a crisis, denying there’s a problem – when one clearly exists – is NOT the solution.
Quick synopsis: Apple came out with a new smartphone called the iPhone 4. Apple disciples, people fanatical about Apple products like squealing teenage girls are about those dreamy Twilight vampire movies, snatched up the phones like cheap candy. (Which they are NOT, by the way. Those things cost at least $200.)
But shortly after the iPhone 4’s release, users started reporting reception problems. First, Jobs said – and I am paraphrasing here – “People are holding the phone wrong…” or something like that. Okay, so you have to hold a phone a certain way to guarantee good reception?
That was not a smart move to say customers were too dumb to use the smartphone the right way.
A big blow came when Consumer Reports would not make the iPhone 4 was one of its recommended products because of the external antenna reception problem. So, Apple called a press conference and Jobs demonstrated that other competing models, like BlackBerry and HTC, also had signal loss issues. Jobs said "All smartphones have weak spots, this is not unique to the iPhone 4.”
That ploy was, kind of, I don’t know…bush league. There’s no need to demo other models and basically say “Yeah, well their stuff is messed up too!”
Patrick Kerley, a crisis communication expert for Levick Strategic Communications, in an interview with the International Tech Times, said Apple was caught flat footed right out of the gate. Kerley said: "They should have simply acknowledged the fact that the iPhone 4 has reception problems, said 'We're getting reports of problems, and we're investigating,' then sit on that message throughout."
Jobs and Apple’s execs should have admitted to the reception problem right away, rather than denying a problem existed.
However, Jobs did the right thing when he announced all iPhone 4 users would get a free case to solve reception problems. Some estimates say the free cases could cost Apple close to $180M when all is said and done.
That decision will take a bite out of Apple’s profits (pun intended) but I have to say nice recovery Mr. Jobs!
Apple’s image and its bottom line took a hit, but the corporation did the right thing by making things right with faithful followers. But, if it ever happens again, Apple, react a little quicker please.
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