Apple Inc, the computer and gadgets company, is reporting exceptional sales. Again. What about the recession then?
So what that the sales are being driven by the cheaper 13″ harder body (yeah - because I managed to buckle my aluminum case with a gentle knock ) MacBook Pro. Or the new iPhone is whipping off the shelves and out of the warehouses serving the online store at the rate of many, very many.
The point here is that Apple is showing great growth in a recession. This is a period where the consumer supposedly has snapped his purse shut, where the credit card folks are turning off the tap, where the banks are not lending out money anymore.
For the rare person reading this who has not heard of Apple, their products are expensive. A 13″ little fella laptop sells at $1 199.00 for the entry level one. And a nice little $1 499 bill will be yours for the more powerful chappie.
And the iPhone, not exactly a give away price and you have to commit yourself to a fairly lengthy phone contract. Premium priced toy. No doubt about it.
And your point, I can hear you ask?
If it’s a recession with no money or credit available how does a company with an extensive library of premium priced products and toys get to show such strong sales?
Doesn’t that kind of put paid to the whole recession idea? Maybe what is really happening is that consumers are just tired of rubbish. Possibly last year’s turmoil in September made the consumer get some sense.
If we are going to spend hard earned money, we want to spend it on a cool design, a tool with great benefits and yes features as well, a computer that doesn’t break down all the time and runs a fabulous operating system, and a phone that does just about everything except boil water for your coffee. And they’re working on that. (You can order one on the way to the coffee shop - using a little app - and pick it up as it’s ready for you… Close enough?)
Possibly all the recession has done is make us rethink our spending. We now keep our wallet closed unless the product is outstanding. We have become discerning again.
It could just be good for us all in the long run. Excellence rather than rubbish. Wonderful design rather than blandness. Exciting new technology rather than all-so ran features. It’s almost too much to cope with!
on Jul 12th, 2009 at 4:30 am
Yes and no… and I don’t know the how or why to answer this…
Crabtree & Evelyn in the US has just filed for bankruptcy … these are the guys supplying high-end soap and beauty products.
CNN Money actually has quite a nice gallery going at the moment of big name “brand” companies going belly up.
http://money.cnn.com/galleries/2009/news/0906/gallery.companies_going_bankrupt/4.html
So why will somebody pay top dollar for an Apple product but not for a high end soap product?? Is it just functionality?
Obviously each business as a whole had its own strengths and weaknesses - Apple is still playing to its strengths. Maybe Crabtree had more fundamental weaknesses in their business model than Apple… Dunno.
Tough one to call
on Jul 12th, 2009 at 4:49 am
[...] over The Marketing Fundi site recently posted a blog on brands and pointed out how Apple - despite the adverse economic conditions - was still able to [...]
on Jul 12th, 2009 at 10:32 am
@Marc
Agreed. Nice little list. However, one thing most of them have in common are huge debts. That could be a pointer. Profit looting during the good times. Too much shareholder value distribution. Nothing in the kitty for when times are tougher.
Will be interesting how this all plays out.