Tim Cook and Co can't really manage expectations

Discussion in 'Apple, Inc and Tech Industry' started by colbertnation, Oct 19, 2011.

  1. colbertnation macrumors regular

    Joined:
    Nov 20, 2009
    #1
    Okay so first of all, to anyone who thinks that Apple hasn't said anything or guaranteed anything, should really think twice before being so technical. All corporations have expectations, and consumers (as well as investors) rely heavily on expectations to base their decisions on. That being said, I'll continue with my post.

    1) iPhone 5 expectations were off the roof right up to the Oct 4th event, and yet Tim Cook and Co had done very little in terms of managing expectations to lower them for only a 4S release. The constant darkness that was surrounded about the new iPhone definitely hurt iPhone 4 sales, and they could have done much better had they stayed with a consistent rumor of iPhone in Oct. They would also have done much better if they had tamed the expectations with the leaked cases. Those leaked cases made it to front page of average mainstream news sites, meaning average consumers had exposure to iPhone 5 rumors.

    2) And now, the "miss" Wall St. analyst expectations. Now, obviously, Apple beat its own expectations, and having $100 billion revenue for their fiscal year is creeping into oil corporation territory. Unfortunately, Apple's standards were set too high, and yet again, it served as a "disappointment" of sorts, as indicated by after hours sell off.

    To me, this shows that Tim Cook and Co don't have a handle yet of how to manage the public (and investors') expectations of Apple. If they did, then hopes and expectations would be crushed and managed accordingly before announcements or conference calls.

    What do you all think? Discuss.
     
  2. Sir Ruben macrumors 65816

    Sir Ruben

    Joined:
    Jul 3, 2010
    #2
    Apple cant be blamed that people believe rumours.

    Looking back I only blame myself for getting drawn in to unofficial facts.
     
  3. vitzr macrumors 68030

    vitzr

    Joined:
    Jul 28, 2011
    Location:
    California
    #3
    Tim Cook is a brilliant guy. Period.

    It's far too soon to judge him. The presentation he gave was quite good given the circumstances. I'm sure he knew Steve was on his deathbed, and hence the task in front of Cook was to go on and present when I'm sure he would have rather been by Steve's side.

    So let's be reasonable and not judge him based on one public appearance.

    Secondly. We don't know why Apple chose to only release the 4S at this time. So again I say dont judge.

    Respectfully, it's best that Steve has passed. Why? The poor man was suffering unmercifully. That's reason number one.

    Reason number two is it clears the way for Tim Cook to rule without Steve pulling the strings remotely. Cook deserves his time and not under Steves thumb. Everything happens for a reason and now we have a fresh start with another great man at the helm.

    It's only natural the poor guy will be repeatedly compared to Steve. It's unfair but so is life. Personally I support Cook 100 %.
     
  4. TraceyS/FL macrumors 68040

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    Location:
    North Central Florida
    #4
    I think it shows that the public will hype anything, and wall street went with that hype rather than companies own forecast.

    Apple NEVER comments on stuff beforehand, so you want them to start now? with a, "hey you, those cases are wayyyyy off, might want to dump our stock now because we aren't releasing crap"? Type of leak?

    Apples performance was/is amazing compared to the worlds economy.....
     
  5. AdeFowler macrumors 68020

    AdeFowler

    Joined:
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    Location:
    England
    #5
    I'm not sure how Apple were meant to quash the iPhone 5 rumours without damaging sales/stock price. The 4S seems to be doing okay regardless. I think it's Wall Street that needs to learn how to manage expectations.
     
  6. MonkeySee.... macrumors 68040

    MonkeySee....

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    Sep 24, 2010
    Location:
    UK
    #6
    I agree with this. Its great to be caught up in the hype but you need to keep a level head.

    Thankfully I was upgrading from the 3GS so my expectations where still met somewhat :)
     
  7. SR45 macrumors 65832

    SR45

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    Aug 17, 2011
    Location:
    Florida
    #7
    Rumors should have been shot down by Apple so the customers thinking of this new iPhone would not get there hopes up. Its very simple to say online or news release that there will be no iPhone 5, just a iPhone 4s with some nice upgrades..... How difficult would that be and why not, its coming (iPhone 4s) anyway, just say so for goodness sakes.

    And please, don't anyone say its a trade secret.
     
  8. ZBoater macrumors G3

    ZBoater

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    Jul 2, 2007
    Location:
    Sunny Florida
    #8
    You mean instead of the FOUR MILLION iPhones they sold already, they could have sold what? Five? Six?

    What this shows is that the geeks and technotalking heads make up an insignificant percentage of the buying public. The masses that spend the money spoke loud and clear with their WALLETS. They love the iPhone 4S.

    Don't believe everything you read from the press. Most of them are morons.
     
  9. eawmp1 macrumors 601

    eawmp1

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    Location:
    FL
    #9
    OP, that you still think Wall Street expectations are based on rational analysis says more about you than Apple.
     
  10. wenstinator macrumors member

    Joined:
    Mar 16, 2011
    #10
    Totally agree, in the past Apple has managed expectations through carefully timed leaks to publications such as the WSJ. Not sure why this didn't happen this time around... they let the build up and expectations get out of control. When you have a business and clients/customers, it's always about managing expectations.
     
  11. GoCubsGo macrumors Nehalem

    GoCubsGo

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  12. nfl46 macrumors 603

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    Oct 5, 2008
    #12
    It's the people who make up such BS lies. It was pointing at an minor upgrade for months but people kept pushing this iPhone 5 bullcrap. The analysts are to blame too.
     
  13. AdeFowler macrumors 68020

    AdeFowler

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    #13
    Lots of media outlets said there would only be a 4S. On 21st September I said:

    http://forums.macrumors.com/showthread.php?p=13382454&highlight=#post13382454 post 11

    and got 33 negative votes. Nobody was prepared to believe that there wouldn't be an iPhone 5 this year.
     
  14. fjrabon macrumors regular

    Joined:
    Oct 22, 2010
    #14
    First thing Steve Jobs did when he came back to Apple was to tighten up leaks so that there would be more mystery and majesty around product launches. So that even relatively minor launches would still have some aura. And I think the sales records that just keep piling up speak for themselves on that front. It's hard to question a strategy that has been directly correlated with perhaps the greatest 10 year run of any company in world history.

    ----------

    yep, I mean even if Apple straight up came out and said it, half the people on here would say that it was Apple being secretive and manipulating the media.

    "I saw that mock up of the curved back aluminum iPhone5, it must be real!" "case makers!!!!!!111!!1!11!!!!!"
     
  15. Fernandez21 macrumors 601

    Fernandez21

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    Jun 16, 2010
    #15
    To me, this is what is wrong with wall street. A company makes money hand over fist, profits and revenue are up, yet it was a disappointment because they thought it would be even better and the stock takes a hit. So many other companies fall into the trap of laing off employees, cutting corners on their products, and ripping off consumers just so they can hit expectations for that quarter because it doesnt matter if they had $1 billion in profits if wall street expected $1.1 billion. I just hope that with Steve gone apple keeps ignoring wall street and keeps consetrating on products.
     
  16. roadbloc macrumors G3

    roadbloc

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    UK
    #16
    I personally don't think Tim Cook is responsible for the hype generated by rumours. If they had called the 4S the iPhone 5, I think a lot of people would have been much happier. Because psychologically, it sounds more than just a spec bump upgrade.

    What expectations did people have? What more can you add to the iPhone without breaking Apple's philosophy. We all know that a File System, Widgets and vast customization of the UI is never going to happen. I feel that instead of dwelling on what people wanted that was available on other phones, Apple took something people thought was a gimmick (voice recognition) and turn it into something that appears to be pretty damn decent.

    All in all, Apple basically did what they usually do. Instead of following sheep, they took an alternative route. As we all know, sometimes it works, sometimes it doesn't. This time, despite me thinking that Siri could have had a lot more intergeneration and isn't really worth the upgrade if you're on a 4 or 3GS, it's probably worked.

    In other words, would you rather have widgets, a file system and vast customization of the UI on your new iPhone? Or would you rather have Siri? Apple has never been a company that strives to meet expectations. They appear to strive to create new ones.
     
  17. *LTD* macrumors G4

    *LTD*

    Joined:
    Feb 5, 2009
    Location:
    Canada
    #17
    Everyday PEOPLE and Wall Street need to learn how to manage their own expectations and control themselves. Some people need a cold shower.

    Apple has spoiled us over the years. They cannot turn water into wine every single time, however.

    By the way, Apple's competitors would kill to have this kind of "problem."
     
  18. ucfgrad93 macrumors P6

    ucfgrad93

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    Colorado
    #18
    Great post, I completely agree with you.


    Agreed.
     
  19. ppilone macrumors 6502

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    Jan 20, 2008
    #19
    Most customers don't read rumor sites and aren't aware of rumors about the next iPhone. Many people I know weren't even aware that there was an Apple event until I told them about it. Why even read rumor sites if you then expect the company to confirm or deny them? If you don't want to get your hopes up - don't read the rumors.

    There really wasn't a whole lot of evidence for an iPhone 5. Most of the rumors pointed to an iPhone 4S and the few that talked about iPhone 5 were sketchy at best.
     
  20. za9ra22 macrumors 6502

    Joined:
    Sep 25, 2003
    #20
    You seem to think that Tim Cook is new to the job and not yet experienced at it. You don't get to be a senior manager in a company such as Apple, let alone the CEO, without a great deal of experience and a track record to prove it.

    Nor do I think Apple need to take any particular action to control expectations. They aren't responsible for public behaviour or the frenzy stirred up by ill-informed rumour. They can, and occasionally do, drop hints via chosen sources, but the public will believe what it wants to believe, and expect what it wants to expect.
     
  21. rhett7660 macrumors G4

    rhett7660

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  22. ucfgrad93 macrumors P6

    ucfgrad93

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    Colorado
    #22
    I'm sure he'll be back any moment to rebut our statements.;)
     
  23. eawmp1 macrumors 601

    eawmp1

    Joined:
    Feb 19, 2008
    Location:
    FL
    #23
    Yeah, and if anyone missed the sarcasm and believes that, I've got a bridge (probably the one the OP lives under) in Brooklyn to sell you.
     
  24. boss.king macrumors 68040

    boss.king

    Joined:
    Apr 8, 2009
    #24
    He's not in PR, he's the CEO. The E isn't for Expectations.

    He hasn't done anything different to what I would expect Jobs to have done.
     
  25. *LTD* macrumors G4

    *LTD*

    Joined:
    Feb 5, 2009
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    Canada
    #25
    With Tim Cook + Scott Forstall, there isn't much reason for worry.

    http://today.msnbc.msn.com/id/44904886/ns/business-us_business/

    Forstall is more or less "mini-Steve", or "Steve: Reloaded." The key is for Cook and the rest of the team to allow him to be that. Given Forstall's influence and power at Apple, it seem they already do.
     

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