Does Apple Hack Its Own Products?

Axios: “Every time Apple releases its newest iPhone or OS, there are significant spikes in searches for terms like ‘iPhone not working,’ ‘iPhone slow,’ and ‘iPhone problems,’ according to data from Google Trends.This has led to a conspiracy theory that has been revived almost every year, claiming that Apple intentionally slows down old phones to entice iPhone users to upgrade to their newest, often more expensive product. But the phenomenon can also be explained by a few other reasons.”

For example: “Older models have to work harder to run everything the newest, superior OS provides, and therefore consume more energy and battery life.” Also: Patrick Moorhead, an analyst for Moor Insights Strategy comments: “One very important thing to consider is that at the same time of an OS upgrade, application developers upgrade their applications. Therefore at the same time the new OS is indexing for Spotlight, it is updating applications, which temporarily would slow down the phone.”

And: “Most iPhone users are quick to update to the newest OS, and tend to be critical of every included change. This critical mindset might cause some to feel like like their phone is working slower than before at first … Nothing has been ‘proven’ here, but there are many logical explanations for why iPhones might not run quite as smoothly after an OS update that don’t include Apple maliciously hacking their own products.”

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Late & Great: Arthur Cinader

The New York Times: The late Arthur Cinader “decided to start J. Crew in the early 1980s while running the Popular Merchandise Company, a business, founded by his father in Rye, N.Y., that used a catalog to sell affordable clothing and home furnishings directly to consumers … The new venture took the word “crew” from the water sport and affixed a J in front because it was thought to be graphically appealing … Mr. Cinader empowered his daughter, Emily Scott, to conceive of the company’s aesthetic and oversee the design of its apparel while he focused on the financial side of the business and on marketing through the J. Crew catalog.”

“J. Crew opened its first store at the South Street Seaport in Manhattan, followed by stores in San Francisco, Chestnut Hill, Mass., and other places. The segue proved successful, and by the mid-’90s the company had several dozen stores collectively generating revenue in excess of $500 per square foot … The success of the company owed much to Mr. Cinader and Ms. Scott’s scrupulous focus on their target demographic: affluent, high-achieving people who wanted to signal a certain pedigree with their fashion choices, but not one so stuffy that they would think twice before associating with it.”

“Articles in the business press over the years have described J. Crew’s niche as one notch below Ralph Lauren and one notch above retailers like Gap or the Limited. While the company’s first catalog featured photographs from the Weld Boathouse at Harvard, J. Crew marketed itself to the man or woman who might have attended any college or university and simply wanted to evoke a hint of the Ivy League.”

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Klatch: The $55 Cup of Coffee

The Wall Street Journal: “Earlier this year, Extraction Lab, a coffee shop in Brooklyn, N.Y., that is connected to Alpha Dominche, a manufacturer of brewing equipment, began selling an $18 cup of coffee. It is made using a $13,900 Alpha machine that controls every aspect, from water temperature to timing. The brew is a Panamanian-sourced variety, called Gesha, sometimes spelled Geisha, once described by Don Holly, a veteran of the gourmet-coffee industry, as seeing ‘the face of God in a cup’.”

“In Southern California, $55 is what it will cost to get a special cup at Klatch Coffee, which plans to roll out a particularly prized version next month, dubbed Esmeralda Geisha 601. The ‘601’ refers to the price per pound that the coffee sold for at auction … The store is set to offer it at ticketed events. But for those who can’t attend, Klatch will ship the coffee out—for the same $55—in 15-gram packages of pre-roasted beans, good for making one cup. A souvenir mug will come with mail orders.”

“Some Starbucks enthusiasts have created their own price-be-damned drink by ordering extra shots of espresso and bringing their own oversize vessel … William E. Lewis Jr., a political consultant in Fort Lauderdale, Fla., said he once paid $148.99 for a Starbucks Flat White coffee with 170 extra shots. Mr. Lewis said he didn’t consume it all at once, saying that much caffeine in one sitting might be deadly. Instead, he packed it to go and enjoyed it over a couple of days. ‘It’s all about the hunt. It’s all about doing it’.”

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Free Meals in Coach Make a Comeback

The New York Times: “It seemed to be extinct. The airlines stopped offering it on domestic flights more than a decade ago, along with other amenities that once made air travel an adventure rather than an endurance test. And yet it has reappeared in recent months: a free meal in coach. Continuing their emergence from hard economic times, some airlines have begun adding complimentary breakfast, lunch or dinner on some of their flights in the United States.”

For example: “Delta’s snacks have gotten an overhaul, moving on from ’40 years of unbranded peanuts and pretzels,’ said Lisa Bauer, Delta’s vice president for onboard service, to a variety that includes sweet, salty, healthy and gluten-free choices that will be rotated every six months … The company tried to replicate what the customers would naturally choose for themselves “if they weren’t at 35,000 feet,” Ms. Bauer said. And that includes local and seasonal foods.”

“Ms. Bauer said a free meal alone might not change a customer’s mind. But she said she hoped that given a package of amenities and service, a customer faced with two flights might choose the one run by Delta, even if it costs a little more.”

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Surge Pricing: The Customer is ‘The Boss’

The New York Times: “When Bruce Springsteen decided to do a run of shows at a Broadway theater with fewer than a thousand seats, he appeared to reject the laws of economics — or at least what would seem to be in his financial best interest. He limited ticket prices to between $75 and $850 and has been allocating them through a lottery that includes identity verification. His goal was to prevent scalping. Yet not everyone who sought tickets got them at those prices. The tickets that have leaked onto the open market on StubHub ranged in one recent search from $1,200 to $9,999.”

“Fans don’t want to think their favorite artist is gouging. And the entire concert experience may be better if raucous superfans are in the front rows, rather than whoever is able to pay four figures for a ticket. The goal is to create an experience that makes everyone leave with a warm glow, their fandom of that artist that much deeper. If artists did raise prices sharply, there’s a risk they would need to discount prices later to fill up the arena. Research shows that when people find out they overpaid for something, they buy less in the future.”

“That might be a lesson for the other industries where variable pricing could make a lot of sense … What the successful examples of variable pricing have in common is that they treat customers’ desire for fairness not as some irrational rejection of economic logic to be scoffed at, but something fundamental, hard-wired into their view of the world. It is a reality that has to be respected and understood, whether you’re setting the price for a highway toll, a kilowatt of power on a hot day, or a generator after a hurricane … one view of the Springsteen approach is that it is economically irrational. But another is that it is part of a long-term relationship between a performer and his fans.”

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Broadway Bargains: There’s An App For That

The Wall Street Journal: “A veteran Broadway producer is instituting what he believes is an industry first: A best-price guarantee on show tickets. Ken Davenport, lead producer of the revival of ‘Once on This Island,’ … says the guarantee will ensure that ticket-buyers won’t have to scour the web for deals through theater sites advertising discounts. Instead, they can go to the show’s website.”

“While Mr. Davenport says the idea is to make pricing fairer and more transparent, he also allows that he stands to benefit from the guarantee. If theatergoers come to see the show as the best source for a discount, he says he doesn’t have to spend as much time and money marketing various other deals. Moreover, when theatergoers go to discount sites in search of cheaper seats, they often learn about deals for other Broadway productions, Mr. Davenport says. In turn, that could lead them to buy tickets for a different show.”

“But while Mr. Davenport’s strategy may resonate with theatergoers tired of the bargain hunting, not everyone thinks it will pay off. Larry Compeau, a Clarkson University professor who specializes in consumer psychology, says Americans have become accustomed to the hunt. He notes failed experiments by prominent retailers and manufacturers to simplify pricing and do away with discounts. “The general American consumer values the deal,” he said. Others say Mr. Davenport could be sacrificing revenue from ticket-buyers who don’t necessarily worry about deals.”

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Columbus: The Silicon Valley of Retail?

The New York Times: “A combination of demographics, geography and luck turned Columbus into the nation’s consumer laboratory. This Rust Belt city has historically been a microcosm of the national population’s age and ethnicity, ranking fourth among metropolitan areas in its resemblance to the United States over all, according to data compiled by WalletHub.”

“Ohio State University’s 65,000 students mean young shoppers are always on hand. Columbus is within a day’s drive of nearly half of the United States population, making it a convenient hub for distribution. The city’s relatively small size and contained media market make it affordable for companies to run advertising campaigns and measure their effectiveness. And its relatively low profile allows brands to try something and fail — without the scrutiny they would draw in New York or Los Angeles.”

“Perhaps most important, a robust network of retailers and service providers — from big brands like Abercrombie & Fitch to small design firms that focus on store layouts — has taken root in Columbus. Today there are more fashion designers in Columbus than in any other American city besides New York and Los Angeles.”

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Richie’s Guitar Shop: (212-253-7643)

The New York Times: “Got a gig downtown in two hours and there’s no sound coming from your ’68 Stratocaster? Action need adjustment? Are you afraid your bass is possibly haunted? ‘Call Richie’ is the mantra — if you’re connected enough in the music world to have the business card with the phone number for Richie’s Guitar Shop, which has been promoted solely through word of mouth since Mr. Baxt started teaching himself to fix guitars in 1978. Upon calling (212-253-7643), Richard Baxt will tell you where to go — to a modest one-bedroom apartment on East 11th Street.”

“If you are a new customer, you will be handed a single-spaced, double-sided sheet of paper titled ‘The Richie’s Guitar Shop Philosophy.’ These are the rules of engagement, which include both the practical and unexpected — from the importance of appointments, to the $15 surcharge if Mr. Baxt has to clean ‘blood or other bodily fluids’ off the instrument.”

Mr. Baxt says big retailers “‘charge you $100 just to change the strings and make a few adjustments. To me, that’s unconscionable. I try to charge as little as possible’ … Customers’ needs vary. Mr. Baxt recalled a job he performed for a man convinced that there were demons inside his guitar. The man asked Mr. Baxt to carve the outline of a swastika into his pick guard, which he hoped would scare them out. ‘I did it,’ said Mr. Baxt, who is Jewish, with a laugh … The man called several weeks later, swearing that the demons had been exorcised. As it says on the guitar shop business card, ‘Psychotherapy extra’.”

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The Microsoft Treehouse: Outdoorsy Creativity

The Verge: “Microsoft has built some tree houses for its employees. One sits in a Pacific Northwest Douglas fir, while another is 12 feet above the ground and features charred-wood walls and a high ceiling complete with a skylight … Microsoft said it had been planning renovations and surveyed employees to see what they cared about the most. Employees said if they were given the opportunity, they would work outside more.”

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