Apple WWDC

Apple’s WWDC began with an inspirational message to its audience that the world is counting on individuals to create apps and Apple’s new products will be there to aid the effort along the way. This WWDC was based on the developments in Apple’s four platforms: iOS, tvOS, watchOS, macOS. 

What I found most interesting was that Apple was concerned with the prices it was going to charge on soon to be released products. For example, Tim Cook makes note that the new desktop iMac will be sold at $4,999 in juxtaposition to what the market price of a computer with similar capabilities would be ($7,000) if it were to have the same attributes. I find it interesting that Apple would finally lower their prices when previously CEO Tim Cook addressed an issue regarding the price of Apple’s products in 2013 stating– “Apple doesn’t want to sacrifice quality for price” (http://www.huffingtonpost.com/2013/02/12/apple-ceo-tim-cook-expensive-products_n_2670366.html). I would not say that Apple’s adjustment of their prices for upcoming products (the MacBook Pro’s price will drop to $1,200), while simultaneously providing the same quality, is a sign of weakness or strength because they are responding to keep their customer base. To clarify, I could see a company lowering their product’s price because they are selling less, or continuing to charge the same price because they know the market will continue to buy the products for a higher price. However, my initial suspicion to this drop in price was that Apple’s competitors were beginning to develop products of comparable quality while undercutting Apple’s prices— such as the Microsoft Surface Pro which is advertised for its lower price yet a high level of functionality in comparison to Apple’s MacBook and the iPad. In a 2013 study, it was reported that Apple was recording large profit margins for what they were selling. For example, the 64GB iPad was retailing for $699 but costs $366 (a profit margin of 48%) (http://www.huffingtonpost.com/2013/02/12/apple-ceo-tim-cook-expensive-products_n_2670366.html). I believe that Apple’s reduction in prices for their consumers as announced in the WWDC can be seen as an admission of guilt for overcharging their consumers for products; something that was not meant to be continued or was initially meant to cover their high initial fixed costs. While on the flipside, Apple preserving the quality of their product and slashing the price can signify them losing their grip on the technology market as they must give in to the fact consumers can now buy as efficient machines from competitors like Microsoft. 

One of the key differences between what Apple focused on in their WWDC and Google’s keynote address was privacy. Each company had a different perspective on user privacy. Google mentions that by monitoring user searches it could help machine learning become more accurate assistants for the user. Whereas, Apple ensures that privacy is sacred to the user and should never be exploited or tracked by a third party. Both of these arguments appealed to me in different ways; where I want my Google Search Assistant to be more accurate in suggesting websites for me, I also do not like the idea of being hounded by trackers looking to sell me products I don’t need. So for me, this announcement of Safari protecting its user’s browser history compared to Google’s Chrome monitoring are opposites but appeal to different consumers. I imagine people have different preferences; to each his own. Additionally, in respect to the content of the WWDC, Apple briefly alludes to their competition (Google) by comparing customer satisfaction, but never in Google’s keynote address did they mention or compare themselves to Apple. Why do these company’s not place emphasis on publicly recognizing the other as their competitor such as mobile companies like Verizon, Sprint, and AT&T? Whoever is reading this post I want to leave you with this: do Apple and Google see each other as their main competitor? Should they be combining their assets in order to deliver further advancements in computer science? And finally, how much of a threat is Microsoft to Apple? 

 

References:

https://www.apple.com/apple-events/june-2017/

http://www.huffingtonpost.com/2013/02/12/apple-ceo-tim-cook-expensive-products_n_2670366.html