Steve:
I am one of Apple's absolutely most enthusiastic supporters (e.g.
check out my well-known Mac vs. PC website <http://macvspc.info/>). Furthermore, my
personal opinion is that you have done a simply superb job of directing
Apple forward during the last few years.
Since the buck stops on your desk, I am conveying my disappointment
concerning Apple's recently announced Dot-Mac plans directly to you.
Here are my views:
- The way this situation was handled gives the semblance of a
bait-and-switch tactic. This is not good PR for Apple. [Note: bad PR
for Apple means lost income to Apple.]
- Despite your (hopefully) humorous Macworld comments, there are many
worthwhile things for free. Close to home are such nuggets as iTunes,
iMovie, iPhoto. Unfortunately, your observation might be interpreted as
an omen that these other benefits to being a Mac user will soon
evaporate. [Note: undermining users' confidence in Apple's
dependability means lost income to Apple.]
- I fully understand that Apple has to make a profit, that there are
costs associated with maintaining the iTools site, etc. However, the
projected annual income from making iTools a fee based service is very
small potatoes when you look at Apple's total revenue.
- For any manufacturer of a 5% market product to survive against a
95% competitor, they must maintain a significant array of
distinctly better benefits. Free iTools fits this description. [Note:
reducing these benefits means lost income to Apple.]
- One of Apple's main selling points to counter the often lower
initial cost of Wintel PCs is that a user should take into account more
than just the initial price. In a similar vein, Apple should apply this
thinking to having free iTools: they get compensated in many
indirect ways (e.g., by offering services and a mentality not available
in the Wintel world). [Note: lessening these distinctions means lost
income to Apple.]
- Free iTools is an important selling tool for selling to the
education market (e.g., for students to use to transfer files to their
home computer). Success in the education market is absolutely critical
for Apple's survival. [Note: eliminating this education market selling
point means lost income to Apple.]
- Free iTools encourages Mac users to be more expressive, exchange
more files, write more software, etc. All of these are beneficial to
keeping Mac users happy and creative, which means dollars in
Apple's coffers. Just one example of this is my Mac vs. PC site (posted
on iTools). I never would have done this if I had to start by signing
up for a $100/year service!
Why is that? Well, although I have been willing to donate
many hundreds of hours of my time for the benefit of Apple, I
would not be interested in paying for that privilege. Based on the
feedback I have received, my little iTools site has been responsible
for a minimum of hundreds of Mac sales.
- In a similar vein that I would never have started my Mac vs. PC
site with iTools if I had to pay for it, I will also not continue it on
Dot-Mac if I have to pay for it (for the same reasons).
- When users have "homepage.mac.com" URLS or "@mac.com" email
addresses, this is free advertising for Apple. I have had many
PC users comment on my "johndroz@mac.com" email. I tell them that this
is a free service - another benefit to being a Mac user. They are
always impressed. A fee based service will severely reduce both
of these (estimates are by 90%). [Note: reducing free advertising means
lost income to Apple.]
- In summary it seems like this decision was made by accounting types
vs. insightful leaders who have the big picture. Apple cannot afford to
be led by accountants.
When Apple is at a crossroads and has to make such a decision, they
need to answer the Big Question. Accounting types think that the Big
Question is, "Will this be a profit center?" Visionary leaders know
that the Big Question is, "Will this increase our market share?"
The answer to the Big Question when applied to this situation is
no! (Charging for iTools will not increase our market
share, in fact [for reasons stated above] it may reduce it....)
I there any solution? I'm sure that others can offer even more (and
probably even better) alternatives, but I would suggest these:
- Have a two tiered setup: continue a basic free iTools
program and also offer a more comprehensive Dot-Mac option for a fee
(much less than $100/yr. - $50 max).
- Continue to offer free mac.com email addresses.
- If Apple must stick with the $100/yr. iTools fee, then some
additional incentives are needed, like a free hosting service for Mac
users who have their own domain names, inclusion of QuickTime Pro,
etc.
- In any case, iTools should be free to new users for at least six
months.
I could go on, but I'm sure that you get the message: I find this
plan - and the mentality behind it - to be most disappointing.
Again this is coming from an ardent Apple supporter.
regards,
john droz, jr.
johndroz@mac.com (until September
30th)
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