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Wednesday, December 17, 2008

Apple Pulls It’s Apples From Macworld Expo

What a shocker! The news just came out, that Apple, which had been the meat and potatoes for the Macworld Expo held every year in San Francisco, has just announced it is pulling out of the Macworld Expo. The 25-year-old relationship will be severed after the 2009 event. CEO, Steve Jobs will not be doing the keynote speech at the 2009 show.

How can this be? How can they do this? While I have never attended the Macworld show, I have always wanted to go, but never seemed to be able to find the time. Now, the question remains, is this going to be the last of the Macworld Expos? Read the article: Apple at Expo: What went wrong? And, will I really want to go to the future Macworld Expos?

Why has Apple pulled the plug? Are they losing their customer focus? Have they attained such a following with the consumer markets with their iPods and their iPhones, that they can simply say we don’t need to worry about showing up at the Macworld Expo? Is it pride or is it smart business sense?

I find this very strange. With three weeks left before the 2009 Macworld Expo, Apple’s announcement of pulling the plug seems to be somewhat of a drastic move on Apple’s part. I think Apple, which has always generated a cult following through viral marketing, is making a big mistake on this one. Let’s be honest here, the Macworld Expo has in past years generated tons of publicity both from a marketing and an advertising perspective for Apple, that even if the Macworld show cost Apple five, ten, or even twenty million dollars, where else can you generate that type of publicity, and get people to freely write about you and your products. Look at me here, I’ve been thinking about writing at this blog in a year or so, and now this has sent me to this online place to write about Apple from this perspective. This is not good news for Apple.

What about all the hundreds or thousands of other bloggers online that are also scratching their heads and saying the same thing to themselves, “What is Apple doing?” I know their have been rumors of health issues with Steve Jobs, and also rumors that Mr. Jobs might have a new Apple CEO successor, but how much sense does it make to drop out like this for a company with Apples to sell?

Apple has traditionally used the Macworld Expo to announce new Apple products. OK, maybe Apple isn’t coming out with any new products this coming year that are earth shattering, but don’t they have any improvements in each of their product categories that have been engineered and are likely to be released on the open market next year? I know of many people from both a business world and a consumer market world that have wonderful things to say about Apple in spite of recent problems that they may have had with certain products or issues. This is because, Apple has done a fairly good job on customer service and kept their customers for the most part happy. But is this cold change in the weather causing Apple to now have a pride that says, “we have achieved a high degree of success, that we no longer have to do a Macworld show.”

Apple manufactures computers that are fun to use. But just like everyone else facing a rocky economic climate, Apple has experienced somewhat of a cold Arctic winter blast from the north to the south on their Apple Computer sales.

Sales of Macs in U.S. stores last month declined 1% from a year ago, while industry-wide PC sales rose 2%, according to research firm NPD Group Inc., which tracks retail sales. Apple Loses Some Shine as Mac Sales Slow

Analysts are starting to get uncomfortable with the company's future prospects as, for the first time in modern history, sales of its computer products have gone down over the prior year. Apple computer sales decline for the first time

While those declining Apple sales figures are not earth shattering, and may be just a downward blip on the radar screen, the fact remains, the economic climate is changing for most businesses today. Businesses all over are seeing sales tracking downward because of the recession. Many businesses are taking the attitude on cutting marketing and advertising as a way of reducing costs. But, that is not the way to go. Now is the time to strategically increase your marketing and advertising in areas that can improve your ROI and expand your presence in the market place.

Apple, and specifically Steve Jobs, may have felt that they were always pressed into releasing new products on someone else’s timetable. But, to announce this with the show coming up at the beginning of January, is a smack in the face for everyone involved.

I guess time will tell if this is the end for the Macworld Expo shows. I hope not, because I still want to look forward to going in future shows and seeing or reading about both Apple and the complete repertoire of software and hardware vendors which have built a longtime marriage relationship with Apple and Apple products. Now is not the time to breakup a 25 year marriage.

Best Regards,

Jim

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