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Apple Inc.



Apple was one of several highly successful companies founded in the 1970s that bucked the traditional notions of what a corporate culture should look like in terms of organizational hierarchy (flat versus tall, casual versus formal attire, etc). Other highly successful firms with similar cultural aspects from the same time period include Southwest Airlines and Microsoft. Originally, the company stood in opposition to staid competitors like IBM more or less by default, thanks to the influence of its founders; Steve Jobs often walked around the office barefoot even after Apple was a Fortune 500 company. By the time of the "1984" TV ad, this trait had become a key way the company attempts differentiated itself from its competitors.[80]

Apple Fellows

As the company has grown and been led by a series of chief executives, each with his own idea of what Apple should be, some of its original character has arguably been lost, but Apple still has a reputation for fostering individuality and excellence that reliably draws talented people into its employ, especially after Jobs' return. To recognize the best of its employees, Apple created the Apple Fellows program. Apple Fellows are those who have made extraordinary technical or leadership contributions to personal computing while at the company. The Apple Fellowship has so far been awarded to a few individuals including Bill Atkinson,[81] Steve Capps,[82] Rod Holt,[81] Alan Kay,[83][84] Guy Kawasaki,[83][85] Don Norman,[83] Rich Page,[81] and Steve Wozniak.[81]

Environmental Record

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Apple has a track record of being an environmentally conscious company. Four areas of particular attention are product and packaging design, responsible manufacturing, energy efficiency, and recycling. Design dictates the quantity of raw materials, type and recylability of materials, energy consumption required for manufacturing and use, and the ease of recycling. Like other flat panel displays, Apple's displays eliminate more than two pounds of lead, consume up to 80% less energy in sleep mode, and weigh half as much as their CRT counterparts. Apple plans to completely eliminate the use of polyvinyl chloride (PVC) and brominated flame retardants (BFRs) in its products, and arsenic in the glass of flat-panel displays by the end of 2008.[86]

The EPA rates Apple Computer highest amongst producers of notebook computers, and fairly well compared to producers of desktop computers and LCD displays.[87]

In 2007, Apple released its first MacBook Pro with mercury free LED backlit display and in 2008 released its first MacBook Pro with arsenic free LCD.[88]

Since 2004, Greenpeace has attacked Apple for not setting a timeline to remove PVC and BFRs, which still exist in recent products such as the iPod nano and MacBook; and for not promoting a global end-of-life take back plan for Apple hardware (although it does within Europe and Japan where this is required by law); as well as for not having reusable components.[89] As of December 2006, Greenpeace ranked Apple last out of ten electronics companies in dealing with toxic substances in their products, mostly due to a lack of relevant documentation and timelines.[90] On May 2, 2007, Steve Jobs released an open letter named A Greener Apple,[91] responding to some of the allegations. In his letter, Jobs stated:

In one environmental group’s recent scorecard, Dell, HP and Lenovo all scored higher than Apple because of their plans (or “plans for releasing plans” in the case of HP). Apple claims to be ahead of all of these companies in eliminating toxic chemicals from its products.[91]

A study in January 2006 by the United States Environmental Protection Agency found that Apple's hardware compares favorably with that of its major competitors on environmental friendliness.[92]

On June 5, 2007, Apple updated their MacBook Pro product line. This hardware update is environmentally notable because LEDs fully replaced cold cathode lamps in the 15 inch MacBook Pro's display backlighting,[93] a first for Apple laptops (the iPod has had LED backlighting since its creation in 2001). This ameliorates Apple's environmental stance, as cold cathode lamps contain mercury, whereas LEDs do not.

At the 2007 Macworld Expo, environmentalists such as Greenpeace presented a critique of Apple. Rick Hind, the legislative director of Greenpeace's toxics campaign, said, "(The company) is getting greener, but not green enough." Hind commented further, "The Macbook Air has less toxic PVC plastic and less toxic BFRs, but it could have zero and that would make Apple an eco-leader."[94] Climate Counts, a nonprofit organization dedicated to directing consumers toward the greenest companies, gave Macintosh an 11 points out of a possible 100 which places the company last among electronic corporations. Climate counts also labelled Macintosh with a "stuck icon," and the environmental group added that Macintosh was, "a choice to avoid for the climate conscious consumer."[95] On the other hand, Macintosh CEO Steve Jobs, stated to the environmentalists, "get out of the computer business (and) go save some whales."[94]

Users

According to surveys by J. D. Power, Apple has the highest brand and repurchase loyalty of any computer manufacturer. While this brand loyalty is considered unusual for any product, Apple appears not to have gone out of its way to create it. At one time, Apple evangelists were actively engaged by the company, but this was after the phenomenon was already firmly established. Apple evangelist Guy Kawasaki has called the brand fanaticism "something that was stumbled upon".[96] Apple has, however, supported the continuing existence of a network of Mac User Groups in most major and many minor centers of population where Mac computers are available.

Mac users meet at the European Apple Expo and the San Francisco Macworld Conference & Expo trade shows where Apple introduces new products each year to the industry and public. Mac developers in turn gather at the annual Apple Worldwide Developers Conference.

Apple Store openings can draw crowds of thousands, with some waiting in line as much as a day before the opening or flying in from other countries for the event.[97] The New York City Fifth Avenue "Cube" store had a line as long as half a mile; a few Mac fans took the opportunity of the setting to propose marriage.[98] The Ginza opening in Tokyo was estimated in the thousands with a line exceeding eight city blocks.[99]

John Sculley told The Guardian newspaper in 1997: "People talk about technology, but Apple was a marketing company. It was the marketing company of the decade."[100]

Market research indicates that Apple draws its customer base from an unusually artistic, creative, and well-educated population, which may explain the platform’s visibility within certain youthful, avant-garde subcultures.[101]

Criticism

Apple has received criticism for not notifying users of system vulnerabilities until a fix is released,[102] meaning users are vulnerable to known security flaws until the fix is released.

Longtime Apple consumers have claimed to observe a marked decline in the reliability and durability of the company's computing and iPod lines, particularly since Apple's migration to Intel processors in 2006.[103] The MacBook and MacBook Pro series of laptop computers in particular drew considerable criticism for problems associated with malfunctioning fans, surface discolouration, excessive heat production (up to 80 degrees celsius), and warping cases and batteries, particularly among "revision A" models. The Dublin office of the European Consumer Centre (ECC) consumer body has reported a rise in complaints about products made by Apple, many of which relate to an alleged design fault in some Apple laptops that causes the computer to break down after a year's usage, just outside the company's warranty period. ECC Dublin claims there is a problem with "built-in obsolescence" in some well-known Apple products such as laptops and iPods.[104] It is difficult to estimate the proportion of faults per unit shipped due to the naturally self-selecting tendency of the sample of a consumer base reporting faults. However, the existence of a website, AppleDefects.com, dedicated solely to the discussion of faults with Apple's post-Intel transition product portfolio would appear to vindicate some of the claims being made.[105][106] In conjunction with the above, Apple has been criticised for treating early adopters of new hardware like "guinea pigs" - in effect using their experiences to iron out bugs in subsequent revisions. One website states that "The conventional wisdom is to not buy "Rev A" Apple hardware".[107] The iPhone was particularly subject to this accusation after the price of the phone was reduced by $200 just two months after its release, resulting in a flood of complaints to Apple.[108] Apple did however attempt to rectify complaints by offering $100 store credit to early iPhone customers.

Apple has been accused of pressuring journalists to release their sources, with regards to leaked information about new Apple products, going as far as filing lawsuits against "John Does".[109] In particular, Apple fought a protracted battle against the Think Secret web site, eventually ending in a settlement that closed the web site but maintained the anonymity of its sources.

Apple also has received criticism for its iPhone and iPod integration with iTunes for not facilitating creation of software to run and maintain those devices using different applications tools besides iTunes.[110]

Similarly, Apple has not licensed its Fairplay DRM system to any other company, preventing users to listening to DRM protected music bought from sources other than the iTunes Store. By not allowing other companies or individuals to interoperate with its DRM system, Apple prevents competition and divides the market. For that reason, most other online music stores which use DRM use the Windows Media format, which is incompatible with Apple products.[citation needed]

Apple has been criticized for possible sweatshop conditions in factories in China where contract manufacturers make its iPod.[111] Immediately after the allegations, Apple launched an extensive investigation and worked with their manufacturers to remove all sweatshop conditions found.[112]

Apple also has received criticism and two class-action lawsuits at both state and federal level about its iPhone product only being allowed service through a single mobile service provider in each country it has been released in (AT&T in the US, O2 in the UK), citing monopolistic and antitrust allegations between the two companies.[113] Software updates (maliciously or not) initially made unlocked iPhones unusable ("bricked"), however the most recent update revives the phone. Currently there is no official way to unlock an iPhone, and it cannot be bought unlocked for use on any network.

Another common criticism of Apple is that its products are often not user serviceable, instead requiring they be returned to Apple for repairs and upgrades.[citation needed] Typical examples include the batteries in the iPod, iPhone and MacBook Air which are non-user replaceable, and the difficulty of installing simple upgrades (e.g. replacing the hard drive) in MacBook Pros. In the past it was possible for consumers to replace iPod batteries themselves following instructions on popular websites, but more recently Apple has opted to solder batteries to the casing, forcing owners to pay a premium to Apple for the service.

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See also

References

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Annual revenue: US$24.01 billion (▲24.3% FY 2007) · Employees: 17,787 full-time; 2,399 temporary · Stock symbol: (NASDAQ: AAPL, LSE: ACP, FWB: APC) · Website: www.apple.com
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