What’s going on at Apple? (Part I)
As everyone knows by now, Apple is pulling out of MacWorld Expo after this year. More importantly, Steve Jobs won’t be delivering his annual keynote speech. Instead, Philip Schiller, Apple’s senior vice president of Worldwide Product Marketing, will deliver the keynote address. Following a year of rampant speculation on Steve Jobs’ health, it is quite worrisome to note that Philip Schiller also presented in Steve Jobs’ stead at Macworld Expo when Jobs had pancreatic cancer in 2004.
Health and continued presence of Steve Jobs’ aside, this is the first time that Apple’s shift away from trade show marketing has manifested itself to the general public. While unexpected to most, the decision to leave MacWorld Expo is not entirely out of character. Apple has been slowly pulling out of trade shows all year. Apple pulled out of the National Association of Broadcasters Conference in February. And, it also pulled its appearance at Apple Expo this September.
Is this necessarily a poor decision? Apple’s brand cache has been created and propped up in both its darkest and now brightest times by an enclave of true Mac enthusiasts. Tradeshows like MacWorld have been the corner stone of this community for the last decade. Leaving MacWorld and taking away its yearly showcase risks alienating these fans. Could Apple be giving up a tremendous opportunity to create continued buy-in amongst its fans? Is Apple giving up on a key differentiator by declining to support the culture and community which has its products?
Truth be told, I’m not so sure. Apple is a global brand now. The company doesn’t just reach towards a niche and disparate group of enthusiasts anymore. The company also now has its own set of retail locations around the nation and has the PR clout to run its own events for product releases. Blogs, news outlets, trade magazines, chronic Apple.com visitors. They all fawn over new Apple releases. Apple enthusiasts no longer have to make their annual pilgramage to MacWorld. The community is alive and well and more decentralized than ever. If anything, Apple has more reach through other channels. Tradeshows are very expensive and Apple, being the headliner of any tradeshow it attends, likely spends much more than even the average tradeshow attendee which can pay upwards of $20,000 for three days just to have a booth not to mention the cost of designing and constructing its display. In an economy like this one, tradeshows are a prudent and effective way to quickly cut costs.
All-in-all, I see the move away from trade shows as a neutral to positive move for Apple. It shows fiscal responsibility, prudent planning, and a commitment to their long-standing strategy of doing everything they can to control the “Apple experience” from announcement to delivery. The real question is, “Where is Apple going from here?” And, as a corollary, can they get there without Steve Jobs? Tune in tomorrow for more.
Full Disclosure: Long shares of AAPL at the time of writing.
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