IS APPLE EVIL?

A person can be viewed as good or evil based on their actions. Think Hitler. Or Mother Theresa at an opposite extreme. Can a company be classified as good or evil?

Enron is usually viewed as an evil company. This ignores the majority of employees who innocently lost their jobs and life savings due to the illegal actions of a few. Johnson & Johnson earned a reputation of "goodness" for the swift and high integrity response to the Tylenol tampering decades ago. Companies earn a reputation based on the decisions made and the actions taken by a few or many -- often at the top of the pyramid.

The recent news about Steve Jobs' decision to unexpectedly reduce the price of the 8-gigabyte iPhone by $200 to $399 is a case in point. Apple is the envy of many for its (up to now) ever increasing stock price appreciation, the fanatical devotion and loyalty of its hip, young, "we're cooler than the PC crowd" fan base and market leading design and innovation. The news of the price cut is a rare example of a marketing misfire on Apple's part.

Wall Street quickly reacted with scepticism that Apple will hit its stated goal of selling one million iPhones in the U.S. by the end of this month. The growing belief is that the price cut was necessary to curtail post-launch softness.
The follow on reaction focused not on investors but on the customers first to buy the phones at the now higher price. Jobs' apology and offer of $100 gift certificate may not remedy to this dissatisfaction. Apple and Jobs have a pattern of after the fact apologies (think stock option practices) making their credibility suspect.

Wasn't there anyone within Apple who was willing to stand up and ask the question: "If we lower the price now, what will be the reaction from those who only recently purchased the iPhone at the higher price?" An open forum for these kinds of questions shapes good or evil actions -- as well as smart or dumb actions. And the role of the CEO is to ask them if no one else does. It's often not that difficult -- as in the situation of the iPhone price cut, these questions are as obvious and simple as old fashioned common sense. Truthfulness and standing by the customer, while sometimes painful, are the best course of action.

Notwithstanding the sleek design of the Apple stores and the presence of ever smiling Mac Geniuses, Apple has never been known for an attention to customer service. The Apple mission seems to be extraordinary customer experience set to stimulate purchase rather than satisfy long term. Dissatisfaction with obsolete iPods and concern about iPhone battery life are just two of the reasons to be sceptical about Apple's focus on the customer. Some argue that Apple's focus on innovation and design takes precedence over customer value and satisfaction -- but these principles are not mutually exclusive.

The iPhone price cut may not be sufficient evidence of an evil Apple empire. If it was an evil move on Apple's part, take heart that it was a dumb one as well -- the implications are transparent to just about everyone. Perhaps Jobs' and Apple aren't as smart as they think they are. Smart and evil -- now that's a truly scary combination. Much scarrier than evil and arrogant.