Apple Mystique and the Recession Mindset - Essay Example

Today, we take for granted the fact that no fewer than 300,000 PCs are sold globally each year. In the mid-1970s, however, only “big iron” IBM mainframes and minicomputers like those from Burroughs were available. IBM invented the Personal Computer and ruled the market by adopting open licensing. Clones proliferated worldwide.

The creative genius of the two Steves at Apple – Wozniak and Jobs – lay in driving the concept of consumer-friendly machines. The Apple I was a pre-assembled hobbyist’s kit but a true microcomputer nonetheless. Beginning with the Apple II and even more famously with the enduring Macintosh line, Apple reduced the complexity of computing to a manageable level. The world became computer-literate learning word processing, spreadsheet “what if” analysis and “point and click” at the altar of the folks from Cupertino.
Ease of use combined with monumentally breakthrough advertising executions to create a cult following that now spans two generations of students, teachers, art directors and graphic artists. Apple never dominated the PC industry owing to its premium-pricing strategy. But the heritage of iconoclastic advertising first created by Chiat/Day three decades ago continues with such campaigns as “Think Different”. Apple then continues to position on eye-opening consumer-driven innovation. The result is an amazing 70% market share for the iPod, 90% for iTunes music downloads, leadership in smartphones and a commanding lead in tablet PCs.

Consumer Behavior Blog #2: The Recession Mindset and What to Expect in a Double-Dip
The spring and summer of 2011 have been a seriously bad time for the economic managers of the land. From the White House down to state governments, there is a surfeit of joblessness, deficits and other harbingers of doom and gloom. Is nothing going right at all? Are consumers condemned to a kind of perpetual manic-depressive state, oscillating between drooping stock markets one day and the drumbeating of the Obama media chorus that things are looking up?

As always in consumer marketing, crises should be viewed as opportunities. The very first take-out is that the country has been in recession more or less continuously since the “dot-com” bubble burst in early 2001. Consumers and manufacturers have therefore had plenty of time to get used to low growth, spiraling inflation and a permanent lifestyle of trading down. Hence, value, generic and store brands will continue to do better than ever. And so will direct selling on the Net, based on the Amazon and e-commerce models.

If that Tampa Bay condo unit is already out of reach, a family might “trade down” to a series 7 Mercedes Benz SUV or a Jaguar.
Still, memories of the last oil price shock when premium gasoline reached $4.28 a gallon linger. While Americans will never abandon their love affair with cars, they trade down with shorter road trips. This puts a premium on local resorts and entertainment parks.

Meantime, there is only so much pessimism the human psyche can take. Affordable treats are the order of the day. Escape and fantasy will continue to do well, as shown by TV shows like Glee, the movies Mamma Mia, High School Musical 3, and Quantum of Solace, and booming sales of DVDs. Read More