Wednesday, September 12, 2007

The Sheen Is Coming Off Apple!

Recently, I wrote a post about Apple making their first mistake regarding iTunes by letting NBC move to Amazon (Amazon gets my vote for the go-to company of the year). I had kind of overlooked another big Apple mistake -- because I'm just not an iPhone guy.

With the recent announcement of a $200 price reduction for the iPhone, coming so soon after the launch and the PR problems that move created, I think I see signs of a growing disease affecting many large respected corporations -- Arrogance.

Steve Jobs has never been considered a humble guy and this characteristic has served him well in the past but occasionally this my-shit-doesn't-stink attitude gets in the way of seeing potential problems or at least in giving them the attention they deserve. I think Mr. Jobs thought the iPhone was a slam dunk as did many others -- I didn't care either way. This attitude may have gotten in the way of seeing the downside and I'm sure it got in the way of Apple's negotiations with NBC. Digital downloads do not have the same financial impact to NBC as Pixar had to Disney. You can't play hardball with a company when the numbers just aren't there.

Steve Jobs, is not alone. "Corporate Arrogance" has played a major part in bringing many, once flying, companies back to earth. eBay is experiencing it now; Microsoft went through it in the Anti-trust days; Yahoo experienced the effect when it decided not to purchase Google or Facebook originally.

Note to company executives that think their shit-doesn't-stink: It smells the same as the rest of us and a little humility will take you a lot father down the road.

On a side note: When I first started selling DVD's, I sold an out-of -print classic to Steve Jobs, from my Amazon account. It was in 2001, I believe and I can't remember the title, but it was a classic film. Just thought I would tie this post together with a personal aside.!

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