Generally, the idea of Apple and losing money is something you wouldn’t piece together. It seems like since the release of the iPod, Apple has continued to release hit after hit. The fan base for Apple has grown, and they continue to sell their products at breakneck paces. Even the iPad, a product chastised by many critics sold a million units during its first week of release. So, what could potentially lead to Apple losing revenue?
I think we all remember the fiasco that was the4G iPhone leak. The leak then lead to the search and seizer of Jason Chen’s, editor of Gizmodo, home. The story lead to a backlash of sorts against Apple for being draconian about securing the secrecy of the iPhone 4G prototype. Much of this backlash was unwarranted as no one officially knew how involved Apple was in the process. Luckily, the judge who is overseeing the case hasmade the documents public and has revealed Apple’s side of the story.
According to the affidavit, Apple was concerned about taking losses due to the leak. George Riley, representing Apple in the case, states why the leak is such a detriment to the company:
Riley stated the publication of the device and its features is immensely damaging to Apple. By publishing details about the phone and its features, sales of current Apple products are hurt wherein people that would have otherwise purchased a currently existing Apple product would wait for the next item to be released, thereby hurting overall sales and negatively effecting Apple’s earnings. Riley stated he could not currently provide an estimated loss, but believed it was, ‘huge’.
I asked Riley what the value of the missing iPhone was. He stated it was invaluable and that he could not place an amount on it. We discussed the fact that the phone was sold by Suspect Hogan for $8500 and I asked if the phone was worth at least that amount. Riley said that it was.
So, there you have it. Apple’s side of the story, concerning the events surrounding the iPhone 4G leak and what occurred afterward. There has already been reaction throughout the tech community concerning Apple’s side of the story.
Andrew R Hickey,of CRN states, “Apple buyers and consumers know a new iPhone will hit in the summer of 2010. They’ve known it since they plunked down the dough for a 3GS. That’s how Apple works. For Apple to claim that early details of its latest smartphone creation leaking to the public will have a “huge” negative impact current sales is short-sighted. Apple is assuming consumers don’t expect a new iPhone each year.”
“Instead, Apple should embrace the leak as free advertising and publicity and get out ahead of it. Apple knows it has the power to make consumers and fanboys alike salivate with the prospect of new gear, why not use the leak to its advantage instead of crying poor house?”
Time will tell if Apple’s concerns are validated or not. The reaction to the story has been the most interesting aspect of it thus far, as people have been divided in their opinions. Either people see that Apple was simply trying to protect their trade secrets, and get their property back. Or they used bully tactics to silence an online publication.
