Apple just became a designer brand

[Zwhaler]

Think about it. I saw Angela Ahrendts sitting in the front row in her fancy all-white, and it just clicked. The former CEO of Burberry reports directly to Tim Cook. Over the past year and a half Apple has tried $17,000 watches, a bevy of stylish bands including collaborations with designers like Hermès, gold and rose gold colored products, all while leaving products that defined the Apple brand like the iMac, Mac Pro, Mac Mini, and iPod in the dust.

Admittedly, everyone doesn't buy iPods nowadays. But there is a difference between an excused absence and outright abandonment. As I continue to read more and more news stories about Nike, Dre Beats, producing TV shows and the Jony Ive Christmas tree, it makes me wonder, what happened to Apple? For awhile it seemed like the company was partying on its runaway success and experimenting with different avenues like Google has been known for. There is no doubt about that. But then today they unveiled a truly innovative product, the new MacBook Pro with Touch Bar. And for those who are complaining about the ports, let's face it, its the future.

BUT, like most users on this forum, the price shocked me. It forced me to question if I really needed the product as much as I wanted it (either for myself or for my family). And the answer is no! So why designer? Well, like a nice pair of Loro Piana slippers, your best bet is to simply buy the product you want and don't look at or think about the price! This is the designer mentality. However the key difference is that Apple has been a consumer brand for much of its life. Now it is making consumers stretch into designer territory prices.

At the time of this posting the fate of the aforementioned products such as the Mac Pro remains unclear. However, I anticipate that Apple will gradually migrate their Mac product line to more premium designer-like pricing and quality, until the Apple tax hike propels them to the position that Cook and Ahrendts apparently want them to occupy.

 

[satchmo]

I don't think Apple, or should I say Tim Cook knows what Apple is.

My highly speculative take on the designer angle is that Cook realized without Steve around, he needed to surround himself with people with taste. He likely reached out to Sir Johnny who quickly grabbed Marc Newson. Perhaps Angela's hiring was through connections in the design industry.

And when confronted with what to do in Music, Cook realized without Steve, he need to surround himself with people who were 'cool' or had street cred. So he bought 'designer' brand Beats...thinking Dr.Dre is in hiphop, so he must be cool...not realizing he was, but 20 years ago.

My point is, there is no strategy. It's reactionary and follow the trends, instead of leading them. An analyst at this week's earning report asked Tim what if any was Apple's big strategy. And on cue, Tim answers with his customary 'great products in the pipeline' response.