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iPhone Baby Shaker Just What Apple Ordered

By Michael Hickins | Apr 23, 2009

I’m afraid my colleague Erik Sherman is all wet where the Baby Shaker app is concerned — and so are the alarmists claiming that the now-withdrawn app would have encouraged people to shake actual babies. The iPhone application — which featured a crude image of a baby that emitted squalling sounds until the user shook the phone, at which point the caricatured baby’s eyes were X’d out — is in extremely poor taste, but far from presaging Apple’s fal from grace, demonstrates how it can seemingly charge customers whatever it wants without suffering a drop-off in loyalty.

The outcry against the Baby Shaker app was led by the Sarah Jane Brain Project, an organization that is trying to raise awareness and further medical research into this truly horrific phenomenon. Jennipher Dickens, SJBP’s communications director whose 2-year-old son was was shaken by his 21-year-old father, said in a statement, “This horrible iPhone app will undoubtedly be downloaded thousands of times by others in that same young male demographic — the population group that is already statistically the most likely to shake babies. As a result of the child abuse my son endured in the form of Shaken Baby Syndrome, my son now has irreversible brain damage.”

Shaking babies is reprehensible in the extreme (and as a parent, my heart goes out to Jennipher), but the idea that this app could encourage young men to shake actual babies is ridiculous. Voodoo dolls, pinatas and scape goats — not to mention violent video games — are used as formal and informal ways of blowing off steam and directing anger towards inanimate objects in many societies, including our own.

That said, Apple was smart to pull it as soon as the ruckus began, because it has nothing to gain from defending an application that it didn’t spend resources developing and which can only bring it unwanted controversy at this point. But this is hardly an example of Apple management’s “uncanny knack for shooting itself in the foot with a howitzer,” as Erik states. On the contrary, it seems like an example of very fast reaction, extinguishing a spark before it became a firestorm.

Contrast that with Facebook, which appeals to a similar demographic as Apple, and whose management has on several occasions tried to face down its customer base before ultimately backing down in the face of determined opposition. Apple is by far the quieter of the two companies, a fact that infuriates reporters and analysts who try to cover it, but it’s also by far the smarter.

Erik makes the point that Apple lost a point and half of market share in the personal computer segment during the last quarter, which seems like a big deal in such a mature market. But what Erik neglects to mention (I suspect to make his point, because little escapes Erik’s ken) is that Apple’s product mix is changing for the better, with greater emphasis on higher-margin items like the iPod Touch. In fact, its gross margin of 36.4% was 390 basis points higher than the guidance it had given the market, prompting COO Tim Cook to crow that “sales of higher-margin products… were better than planned” during yesterday’s conference call.

Shooting itself in the foot with a howitzer? There are a lot of companies that would like to license Apple’s howitzer if that’s what shooting yourself in the foot feels like.

Earlier, I said the Baby Shaker app is part and parcel of Apple’s success, and here’s why: Apple excels at creating emotional connections between itself and its customers with exactly these kind of applications (as horrible as it may seem to parents of children suffering from shaken baby syndrome). With a little bit of objectivity, you can see that Baby Shaker is in line with many other applications that customers can choose from to make their experience with Apple products seem more personal. If Apple weren’t able to do that, it would have to be driven by price, and not only would iPods, iTouches, and i-everything-elses be much less expensive, but its margins would be under severe pressure as well.

Michael Hickins is a professional writer and journalist with a passion for ferreting out the intersections between technology and culture.

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  •  
    1

    ErikSherman

    04/25/09 | Report as spam

    RE: iPhone Baby Shaker Just What Apple Ordered

    Now that I'm off the road and back at my desk, I should point out a couple of things. One is that I wouldn't omit something to make a point. Margin percentage isn't the only thing in the world - absolute margin dollars can be more important. The net sales from the average Mac is worth about nine or ten times the net sales from the average iPod. Macs are the high margin item from that view. Moving from Macs to products that don't necessarily bring in the same level of margin dollars isn't a smarter product mix - it's a bottom-line poorer one. Literally.

    Another is that I did bring up Apple's solid financial performance. But quarterly numbers alone don't provide the necessary perspective for smart management. That breaks down into two areas. One is that Apple has to spread beyond its fan base if it is to grow. The company has been doing that, but also managing to antagonize enough customers to fuel a series of suits against it for not delivering what it says it will. And the new customers it needs aren't the type that will necessarily stay around if they get irritated enough. Apple can't claim to be vetting apps and then letting something like this through -- which means that, again, it isn't doing as it says it will. The drop in Mac sales suggests that the interest in getting newer customers to buy into all parts of Apple products isn't working, and, in fact, is reversing from growth. The importance of that reversal is the hint it might offer about company-customer relations.

    That brings up the second point about finances. There are many companies that once became complacent about their financial prowess and the ability to keep prices high and make them stick. That can last for years, but eventually comes back to strike them. The baby shaker app approval is just another example of Apple creating ill will and bad publicity -- as it did when iPhone service through AT&T didn't live up to the hype and convinced customers to sue, as it did when people complained online about many iPhone problems. As it more often seems to do these days.

    But I'll have more on some of this as I go through Apple's 10Q.

  •  
    2

    ErikSherman

    04/26/09 | Report as spam

    RE: iPhone Baby Shaker Just What Apple Ordered

    One other point on Apple's margins - in iPods and Macs they are changing for the worse, at least in average net sales:

    http://industry.bnet.com/technology/10001514/under-apples-financial-fy09-q2-covers-margins-slipping/

  •  
    3

    Michael Hickins

    04/26/09 | Report as spam

    RE: iPhone Baby Shaker Just What Apple Ordered

    Lawsuits are a reflection of our litigious society, not a sign of material customer disaffection. I'm not at all convinced that the Baby Shaker app was any kind of mistake where Apple is concerned. You made the point elsewhere that the app was offensive to parents of children with shaken baby syndrome in the same way as some jokes are offensive to minority groups, and thus while not seeming offensive to the majority, are hurtful--and I agree this is a reasonable argument. But note Saul Hansell's defense of the Baby Shaker on the grounds that Apple shouldn't be an arbiter of what is offensive.
    http://bits.blogs.nytimes.com/2009/04/22/in-defense-of-baby-shaking-on-the-iphone/
    As for Apple's finances, you keep focusing on the Mac and iPod--and I take your point about sales of iPods and Macs--but those are not the products Apple is focusing on; but that's intentional. You can't argue both that Apple is losing customers because of arrogance and poor customer experience and that their product strategy is poor. And if you're arguing the latter, all I have to say is I wouldn't put actual money against Apple management right now.

  •  
    4

    ErikSherman

    04/26/09 | Report as spam

    RE: iPhone Baby Shaker Just What Apple Ordered

    >> Lawsuits are a reflection of our litigious society, not a sign of material customer disaffection. <<

    Michael, that's too easy a write-off. Most companies don't get one class-action suit filed after another. And when that is happening, there's something wrong going on in the relationship between the company and its customers. But then, most companies wouldn't actually say in a court filing, as Apple did, that someone would have to be foolish to believe its claims in ads.

    >> But note Saul Hansell's defense of the Baby Shaker on the grounds that Apple shouldn't be an arbiter of what is offensive.<<

    I would agree that it shouldn't be an arbiter. However, that's what it has made itself, so it set the ground rules. Frankly, I think it would be far smarter for the company not to make itself a potential target by tying itself to the actions of iPhone apps. But then, it doesn't want any competition and wants to get a cut of the application sales. It may look smart now, but it's the sort of approach that ultimately ticks off the developers that a company needs to support a platform.

    >> You can't argue both that Apple is losing customers because of arrogance and poor customer experience and that their product strategy is poor. <<

    Michael, I said neither. I have said that creating ill will is ultimately stupid - if not today, then eventually. As for the product strategy, I'm not saying that it's good or bad. It simply is something developing in the market. Frankly, I think it's a sign of what the company has to do to attract a wider audience, and the retailers it needs to get them. Trying to find an optimized balance between price and market share is tricky. But when things are changing, strategy has to change as well.

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