Three Reasons the Internet is Eroding Apple's Mojo

"Rotten to the Core" by Pupski on Flickr.

I have been an Apple fan and a Mac user much of my adult life. I bought my first Mac in 1992 and have owned half a dozen since. I wrote for Mac magazines in the mid-1990s. I waited on line for many hours twice for the iPhone and I am writing this post on a MacBook Air that I bought sight unseen last year after the Jobsnote.

However, after yesterday's disappointing keynote, I am convinced the Internet is slowly eroding Apple's PR mojo. They are still having a good run, but the times are changing. Here are three reasons why Apple may not make the turn like it did before. There's a lot of lessons here for PR professionals.

1) Bloggers and Citizen Journalists

In the old days, Apple could keep a tight lip on the ship. Steve Jobs has built a no-leak culture since he arrived back in 1996. Today, however, with eyes everywhere and contract manufacturing in China, that's getting harder.

The bloggers are getting pretty good at least at directionally writing about what's coming. The professional journalist are feeding off of it and doing more fact checking of their own. By the time the press invitations are emailed, there's not a lot of oomph left - especially since the iPhone debuted. If you think about it, that was the last time Apple was able to shock and awe.

What does this mean? That expectations are high and Apple can't meet them since the launch of the iPhone.

2) The Rock-Star CEO Era is Over

For years we lived in an age where CEOs were like rock-stars. Edison, Henry Ford, Jack Welch, Sam Walton, Bill Gates and Steve Jobs - all are rock stars.

Today, however, employees and "a person like me" are far more trusted, according to data from the Edelman Trust Barometer. This isn't Apple's fault. It's just times are changing. Recent CEO scandals haven't helped. More importantly, Web 2.0 and social software is giving rise to individual voices and personal brands.

Apple is still living in age where its CEO or executive team are the only people who speak for the company. Compare that to Google, meanwhile, who have an army credible faces in the community like Matt Cutts. Got a Gmail security problem? Matt is on the case. Got a flaming Macbook? Email Steve and pray he isn't too obnoxious.

3) Cloud Computing and Netbooks Erode Apple's Edge

As an early adopter, I am a huge enthusiast of web-based applications. About 75-90% of my needs are handled in a browser. I do all my writing in Google Docs. I edit photos using Picnik or Photoshop.com. The only desktop apps besides a browser that I still use are Microsoft Entourage and PowerPoint. (Microsoft and Adobe are clients of my employer, Edelman.)

Now I am rare. A lot of you still love desktop apps but I think that's going to change. In the next few years you will do more of your computing online. And that means you will be able to be just fine using a netbook or even a phone. The category is still emerging and many are still 1.0 products. But I expect that to change and if the current economic climate continues, then it could erode Apple's notebook share.

"But Apple has web-apps," you say. "What about Mobile Me and the new iWork.com?" They're gorgeous, for sure. However, functionally, they don't hold a candle to Google or Adobe's web apps. And I think Microsoft's products here for sure will be strong. In three years iLife and iWork will have to be entirely cloud-based and the edge goes to the first movers.

That's one person's view of the situation. There are others. What's yours? (For more, see this thread on Friendfeed.)

Comments

[iSponsor]

I think there is a clash of cultures going on as we speak. Now that Bill Gates and Steve Jobs are gone, or almost gone, it may be time to have Apple and Microsoft start merger talks. Maybe by putting Apple in charge of hardware AND software, and for Microsoft to concentrate on interactivity and communication, and those wonderful things Steve mentions in this post that Apple may be lacking...

[SeekGeek]

Personally I think your 3 reasons overlooked the biggest. I think online culture, aided by Web 2.0 and mash-ups, has veered strongly towards "open source" thinking and Apple fails miserably in this regard. People want unfettered access to hardware and software source code so that they can create mash-ups, get under the hood, customize things. Most Apple products however are still very much ensconced in the "Walled Garden" mentality, and this is slowly building resentment.

[Tom Ward]

Why does iLife have to be web-based? What crack are you smoking? If I want to edit my holiday footage I don't want to send it tothe cloud just so I can edit it - that's just insane ... How do I benefit from that? There is still a lot to be said for desktop applications.

[Michael Cayley]

I agree there is something seriously wrong. I think that Apple undervalues the loyalty of people like you. Steve Jobs is amazing, but his role is over valued.

My take here:

http://socialcapitalvalueadd.com/2008/12/17/the-wizard-of-oz-is-a-carny-the-macworld-or-jobs-question

[Chris]

I just have one answer for all the issues you think Apple has. It's called a "recession" Who is going to come out with stunning products when no one really wants to buy? Although, when I went to the Apple Store these past few weeks, you would think you "were at a rock concert". This is testimony to the amazing attraction of Apple and that 90% of the PC world has missed out on for decades because they have been so used to mediocre computers, devices and operating systems. Everyone is now talking about wanting to own an Apple. Take a bite of that!

[kupa]

Knowledge for thanks.For me it helped very much.

[kupa]

Knowledge for thanks. For me it helped very much

[Derek Rey]

It's sad really... I've wanted to see Apple turn into a more progressive "brand for the people" and reinvent their image similar to the way Dell has however it looks like we're not going to see that.

This week feels like a tipping point for Apple supremacy. They're obviously still extremely strong but there is an apparent "writing on the wall" -- so to speak...

My predicting that 2009 will be "The Year of DELL."

[Jof Arnold]

In a similar spirit, I took a swipe at Apple on my blog a few days back (link: http://jofarnold.com/2008/12/30/what-they-might-be-thinking-in-cupertino/)

Having said that, I don't really agree with the article1) I'm willing to bet most of the "leaks" we hear about are totally under Apple's control. Firstly because no one would leak something that would damage chances with such a valuable customer and secondly because it keeps the buzz going.2) I still think people need good leaders, so regardless of the "CEO like me" mentally there's still plenty of room for rockstars3) Yes, but... Do you think Apple cares? What are the profits on netbooks versus apple laptops? Can all those companies seriously make it up in bulk?