Anyone concerned about the imminent decline of Apple following the passing of its visionary leader Steve Jobs can go back to worrying about climate change or the Mayan calendar doomsday. This week’s quarterly earnings report blew the doors off investor expectations: profits up 94% over a year ago; highest ever Mac, iPhone, iPad sales in a March quarter; cash above $110 billion; it’s Camelot in Cupertino.
Apple has been top of mind a lot lately. I recently recounted my self-administered laptop damage travel fiasco that occurred at SmartPark (I know, right?). Incredibly, despite running over the edge of my MacBook Pro when the laptop case flopped over as I parked, the tough aluminum case was bent but not broken. The CD drive, which looked to be affected, wasn’t. The display was compromised but only in the upper right corner. Less than 24 hours at the Apple Store restored it to pristine condition. Can you name another product that can take that kind of licking and keep on ticking?
While my Mac was in for repair, I spent the weekend in Manhattan and had the chance to visit the Apple Store on Fifth Avenue. It is just below ground, but by the stairs or glass elevator that take you down, it feels like you are entering the Starship Enterprise. This is a company that knows how to fire the public’s imagination and desire for all things digital.
I am not a huge cellphone guy, but I have had an iPhone for about a year and it’s wearing me down. I don’t need to be on it all the time, but I find myself using it for so many different things. In the car, it’s my GPS and my iTunes feed. In a long line at the store or restaurant, it’s my e-mail, Facebook, and Twitter access. In bored moments, I find myself downloading really useful apps like the Flipadelphia cup flipping game from It’s Always Sunny In Philadelphia. Obviously, with the explosion of iPhone and iPad users out there (including a burgeoning market in China), Apple’s future is looking mighty rosy. Even a Justice Department investigation over possible book publisher collusion on digital book pricing is little more than a minor distraction.
The cool factor has always been there in Apple advertising. From 1984, through the PC and Mac guys, and the iTunes tunes, Apple has managed to capture attention, set trends, and create demand for its amazing products. Now comes two new TV spots featuring celebrity users of the latest generation iPhones with Siri capability. Although Apple has enough cachet on its own, it doesn’t hurt to trade on the current popularity of Samuel L. Jackson and Zooey Deschanel. Neither spot is ground-breaking, but both are fun and play to the strengths of the actors at quiet moments at home with their digital personal assistant. The reviewer from Advertising Age found them somewhat misguided and with the strategy adrift now that Steve Jobs isn’t captaining the ship. Still, the spots are scoring well with consumers. Right now, I think you could replace Jackson and Deschanel with Mahmoud Ahmadinejad and Snooki and it wouldn’t have any effect on Apple sales or popularity. The economy might be hurting, the California economy in particular, but in Cupertino, it’s the gold rush all over again.