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Apple’s Competitions Ads Aren’t Working….And Why

The Most Effective – Kind Fire “3 for 1”

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The latest ad for the Kindle Fire attacks Apple were it hurts, price…two Fires AND a reader for the price of one iPad? Holy crap! Another example of the “Apple Premium”, buying the brand and nothing more!

Or is it?

A big trend these days is for people to examine the “cost” of a popular electronic device so as to see how much of a killing the company is making off the back of the buyer. With access to “tear downs” and available electronics prices they are able to determine the total cost in parts.

So with that in mind, here is the cost to build an a base model Apple iPad: $300. Wow, Apple is making a killing eh? Those suckers cost us $499, meaning those bloodsuckers are taking over $200 a pop!

Well, let’s look at the Kindle, see if they are so greedy? The cost to make a basic Kindle Fire is $201, which then they turn around and sell you for…$200. Wait a tick…they are loosing a $1? Wow…Amazon is awesome, they are paying YOU for the Fire!

How can they do this?? Well, they are hedging their bets on you buying content from them, that way they can make back the money they lost on the hardware. What About Apple? Don’t they sell the content to? Double dipping to fill their pockets they are!

Or are they?

Those guys that go out and find the cost of things are not taking a few things into account, in fact, those figures only cover the cost of parts and assembly. What they don’t take into account is the packaging, shipping and money spent on R&D. So for one, Apple certainly is not taking all of that $200 as actual profit, and by extension, it means Amazon is actually taking one hell of a loss on the Fire.

Great for us as customers eh? But how is it a business can afford to do this, after all, the point of business is to make money! I wonder what the panel would have to say about this business model if Amazon were to walk into the Dragons Den and pitch their idea to take a massive loss on every product sold in the hopes they will make it back on sales of other items. I tell you, think goodness the Android OS the Fire runs on is free to license from Google…

Apple is interested in making money, and believe it or not, the iPad is not victim to the so called Apple Premium, it’s actually a very good bargain when compared to other companies not interested in selling the farm. The only reason we see other tablets on the cheap is they are having trouble selling, so they are sold for cost, or they are made of lower cost components much like the Kindle. The reason you should be happy about paying for the R&D is that Apple reinvests that money into R&D and paying developers, which means better future products and a vast and expansive App Store.

So, on the surface, the Fire seems like a steal of a deal, but in reality, it’s simply a desperate and I’ll conceived idea to outsell Apple, and the looser is you, the customer. Let’s see how the Fire looks like in a year or two shall we?

Close…but not quite…. Google Nexus Series

http://youtu.be/CdD8s0jFJYo&w=640&h=385

Having Google finally pitch it’s own products has been pretty effective for the Android platform. Every manufacturer that uses Android simply mentions that name in passing. As a result, the hardware manufacture is more liable to pitch the hardware, rather then the thing that really matters, the OS.

As an iOS supporter, I personally despise Android for a variety of reasons, least of which is the inconsistent user interface, and this is where the Nexus has the edge, it’s the purest form of Android there is. And with Google in the directors chair this time, they are finally able to tout the OS. In a very Apple-esque way they have a commercial that shows what you can do with your device in a lifestyle format; real world experiences and their solutions as delivered by Android.

Ok…I’ve given the kudos, what’s wrong with it? There is nothing unique or killer app about it. At all. Unlocking your phone with your face is nothing but a gimmick, it’s not nearly as secure as they claim it to be, and by the time you have triggered the feature, lined your face up, and waited for it to recognize you, I’m already in my iPhone and doing what I got on my phone for.

Camera with Panorama? Beyond the very limited time I would ever use it, not to mention the questionable quality you can achieve without a tripod, there’s an App for that.

Google Beam? I’ve used bump for years…nothing special at all. Google+ with Hangouts, nice plug there for their social media network, but again nothing new at all. Virtually ever phone on the market has video conferencing. Maps, sorry navigators, nothin new there either. Voice Services have improved with the latest Android, and it is an unique feature, but it still lacks next to Siri, who is still in a beta phase!

Now that I’ve finished bitching abut it, once again, these ads indicate Google is finally getting it. Relate to real people, show what everyday people can do with the product, make it feel good through stylish shots and beautiful people. But minus several points for showing that your product does what everybody else’s does.

The Absurd – Samsung Line Ups Series

http://youtu.be/X4VHzNEWIqA&w=640&h=385

This series of commercials shows just how desperate Samsung is, and how terribly off base they are. These are the antithesis of Apples successful ad campaigns, and it shows an amazing lack of insight on behalf of Samsung and their marketing department.

As you can see, the basis of these ads is to make fun of those poor saps that are lined up waiting for the iPhone. Why wait for an iPhone when the Samsung whatever-it-is is already here? There is no line for the Samsung, you can get one right away and live your life! And look at those coffee baristas, and artsy fartsy types, they have seen the light, and they are SPRINTING out of line to freedom!

http://youtu.be/a4STej_rWlo&w=640&h=385

Really? You best idea is to attack your competition on its popularity? So you are telling me some guy will walk by a huge lineup for Aerosmith, tell them all, “Hey, I’m going to Nickleback!”, they are all going to join him?

These ads are so unrealistic it’s laughable. Perhaps if you were showing HTC users jumping to the Samsung name…but Apple users devoted enough to wait in a line “don’t feel like they are in detention”, and they are more then happy to be there. Some people may be convinced to jump to your product, even from an iPhone, because of its over all quality, larger screen, ect…. but they very, very last individuals that would even think of your product as anything else but expensive toilet paper would be individuals in a line at an Apple Store.

Another thing Samsung is a little late on, Apple iPhones are premium products, not generally affordable by the low income individuals they depict in these ads. The idea that Apple products are used by nothing but artists and hippies is an ancient stereotype from the 90’s. Samsung may want to have a look at what industries and what type of individuals are using Apple products in 2012. The people I see with iPhones and iPads are more likely in a suit then in something woven from hemp.

http://youtu.be/CgfknZidYq0&w=640&h=385

But what is the most absurd of these ads? The most expensive of them. The decision to not only write this ad, not only run it during the most expensive time slot in network television, but to spotlight a product that belongs in a past era had better result in the firing of the entire marketing department at Samsung. After this ad aired during Superbowl, Twitter exploded with people either laughing or simply dumbfounded that Samsung would try to bring back the stylus, something long forgotten in the realm of the flesh and bone stylus…one I won’t lose without at least the aid of large machinery.

Samsung is probably the best Phone manufacturer next to Apple, they have a quality name and they actually manufacture some pretty good hardware. But it’s apparent when it comes to advertising, they don’t have a bloody clue. They may want to shake up their R&D department while they are at it…a STYLUS?

Conclusion

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Weather or not they can make a product that can compare to Apples in quality or features, it’s clear that they haven’t come even close to beating them in terms of marketing their products.

Compare these examples to the ads Apple has run since the introduction of the iPad. Some concentrate on the product itself yes, but the majority, and the ones the resonates with viewers are the ones that show what you can DO. It’s not, “here is the iPad, it has a touch screen and a blah, blah, blah..”, it’s “here is an iPad, look at the amazing things you can do with it!”. It goes beyond simple demos of Apps as well, it shows various lifestyles and how the app empowers the user to do cool or amazing things.

http://youtu.be/_5i1Dyj5k1A&w=640&h=385

Another, less direct benefit to Apple of these ads is it spotlights the app developers, the real meat and potatoes of the iOS ecosystem. Apples biggest advantage is its vast collection of quality, secure, easy to find apps. These ads show developers that Apple cares for them, because Apple knows its the developers that really sell these products.

When I saw the ad showcasing the app Mathboard, showing two children learning and working on a math problem together, I went on and downloaded it right away. Minutes later my 6 year old son was learning how to do long addition. Apples advertisements show a enriched lifestyle with real people but in ways that make you want to share that lifestyle.

http://youtu.be/3YILp-_b1h0&w=640&h=385

Until Apples competitors can achieve that, they will continue, regardless of their product quality or features, to lose the game.

Good advertising does not just circulate information. It penetrates the public mind with desires and belief
– Leo Burnett

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Ryszard (Rick) Gold, From Calgary, Alberta, Canada has over 20 years of experience working with Apple products in a technical capacity. Passionate about technology in general, his natural troubleshooting abilities, curiosity and appreciation of good design lead him into working exclusively with Apple Computer products.
Ryszard Gold
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