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Editorial

By Daniel Eran Dilger
Tuesday, October 15, 2019, 05:31 am PT (08:31 am ET)

Apple's high-end pro market has long wished for a seriously fast Mac workstation. The premium new system Apple debuted at WWDC19 is one of the most expensive Macs ever, but it is being sold at a time when unit sales of desktop Macs are small and not really growing. Will Apple have to brainwash the masses to buy it?

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The flawgic behind Apple's billion brainwashings

Previous segments looked at how Apple plans products and builds them. Here, examine the criticism that Apple brainwashes the world to pay too much for its products.
It's common to hear that Apple's global sales —at Average Selling Prices that are often several times that of its rivals —are just a matter of the company being able to fool people into thinking that they need something that is wildly overpriced and should actually be half the cost, and really should have been delivered two years ago.
A couple of decades ago, this idea would be a little easier to swallow. Apple once had--much like Microsoft Surface or Google Pixel today--a tight, cult-like following of a few million people, mostly in the U.S., who paid a premium for a brand that they had an emotional relationship with. Calling them 'brainwashed' was an excessive pejorative, but they were not representative of the masses.
Today, more than half of the active mobile activity in the U.S., Japan, and other affluent Western countries comes from iOS. Apple's billion and a half active devices in use very much do represent mainstream consumers. If you're more popular than a religion, you're not a religion.
For

Apple's minimal ad budget

Apple has frequently won awards for its marketing, most recently 2019 Creative Marketer of the Year from Cannes Lions International Festival of Creativity. But while many of Apple's ads have been iconic, memorable, or even tear-jerking, they haven't necessarily pushed significant numbers of people to buy a specific product with obvious impact.
Last year's critically acclaimed Spike Jonze spot promoting HomePod didn't immediately turn Apple into the leading speaker vendor or convince Alexa and Assistant buyers to pay for a premium speaker rather than a accept a much cheaper loss leader microphone. The four minute

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ad was more of a work of art than overtly messaging. Viewers might easily have mistaken it for an FKA Twigs video than even being aware that it was selling a new home speaker product.
Similarly, Apple's most famous ad ever—perhaps the most famous ad ever—the 1984 Super Bowl spot introducing Macintosh, was talked about incessantly, but didn't coincide with Macs flying off the shelf. Macintosh sales didn't gain traction until a couple of years later when it started to become apparent that desktop publishing was a valuable new capability and that Macs were exceptionally good at graphic design and printing with LaserWriter fidelity. Then as now, the main thing driving ongoing Mac sales is 'customer sat' not advertising.

Apple's '1984' ad portrayed IBM as 'brainwashing,' but the ad itself didn't really help sell many Macs in 1984

Apple's supposedly brainwashing ad budget is a fraction of Samsung's. It also comes up less than most other advertisers, including Microsoft—which spent billions on ads trying to sell products like Windows Phone and Surface. Google leveraged its prime search engine real estate to push Pixel, and drove Pixel fire sale ads across billions of empty display ad inventory, all quite ineffectually.
It is worth noting that much of the advertising for the iPhone isn't Apple's. Billboards and print ads for iPhone are often paid for by mobile carriers, who are contractually obligated to place ads to sell Apple's hardware.

This isn't an Apple ad; it's from Deutche Telekom

Apple has also long leveraged other forms of free advertising, ranging from prop product placement in TV shows and movies to the company's keynotes and events, which grab and retain the interest of the media unlike anyone else's. Apple's recent advertising is largely just product recognition. Apple rarely runs ads comparing its features to the competition, or even explaining what its products do.

The free market ignores being told what to do

We have a pretty good system for democratically evaluating and voting for corporate winners with our dollars. That free-market system has consistently awarded Apple with the most global profits around the world for many years now.
There is also a broad and deep media network of bloggers from Engadget and the Verge

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, along with various newspapers who have hired their former employees. They are all consistently contradicting, in unison, the choices of billions of people making their own independent purchasing decisions.
Customers are deluged with online editorial content from high power content outlets like Vox Media and Fox Corp., which has long and consistently insisted that 'Android is winning,' while regularly and stridently advocating that people buy Google Pixel phones, Microsoft's Surface PCs, and Samsung Galaxy products, and to please delay buying the next iPhone because, as they've recently started repeating in suspiciously creepy unison, everyone should be happy sticking with their iPhone 6s.
If media brainwashing were a thing, it should be apparent outside the comments section of The Verge articles, out in the global market for hardware. Yet neither these bloggers nor the ad network that monetizes them have been able to convince any commercially significant number of people to buy what they endorse, nor have they been unable to stop the masses from wanting more gear from Apple.
Think of all the invented crisis panics and attempts to impeach Apple with allusions to Watergate: antenna-gate, bend-gate, beauty-gate. These did confuse and mislead some people, but they had no apparent impact on Apple's success in leading the market.

Apple's teaser ad was shown in movie theaters, but didn't make audiences rush out to drop $3,000 on a Mac Pro

Conversely, Apple has also on many occasions tried to sell things that just never found an audience, and its advertising was unable to make a difference. Steve Jobs once tried valiantly to sell Xserve to corporate users. Apple has created everything from Aperture software, to a solid gold Apple Watch, to AirPort routers, to consumer monitors, to the canister Mac Pro from 2013. It has found that some of its products just won't sell in enough quantity to sustain their continued production no matter how great it's advertising.
The last Mac Pro was cinematically, bombastically advertised in movie theaters, but individuals weren't turned into zombies that dutifully marched out to buy it.
That tells us that if the new 2019 Mac Pro is going to remain in sustained production going forward, it will need to find a real audience willing and capable of paying for it. Or, alternatively, that Apple will subsidize its production for a strategic benefit.

The flawgic behind Apple's billion brainwashings

Apple's minimal ad budget

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The free market ignores being told what to do

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Fairy tale journalism is just enterta