Is Apple Rotten?

Much has been said about the new innovative iPhone, which Apple's rabid fans gobbled up when it was initially released. Now, just a few months later, this core group is turning on Apple, threatening what has become a hallmark of Apple's brand: consumer loyalty.

Apple has relished its role as the underdog computer-maker, but it is now becoming a major player in consumer electronics, fulfilling a promise to make Macs a digital media hub. The iPhone is just the latest entry- albeit a significant one- following the success of the ubiquitous iPod. As customers and investors reacted positively, Apple surprised them by dropping the price $200 only 2 months after it's release. To make matters worse, a recent security update wiped out user-installed apps, which Apple seeks to curb. It's assumed that Apple's strategy was to skim off the cream and drop the price to attract a broader market, while controlling their proprietary software, at least for awhile. Meanwhile, CEO Steve Jobs has been vilified, and Apple has suffered significant backlash.

My take? Steve Jobs is not an enemy of the people, nor has he lost his soul. He's a businessman- and a good one at that. Not only has he understood the market and leveraged consumer trends, he has capitalized on them and even driven the industry. The challenge is that he must deal with the army of followers he has created who demand both greater innovation and near infinite customization.

Apple is at a turning point. The point at which David becomes Goliath. Having stayed true to their brand- like so many of my "Best Brands"- they have grown. Nike faced this turning point years ago, and now they must deal with start-ups like Under Armour who have inspired a new generation. Even though Nike will always stand for "innovation", they can no longer fool anyone into thinking they are anything but the major player in the industry. Apple may not have to dominate market share to be perceived as the industry leader, and they will undoubtedly be faced with upstart competition in the near future, created in their own image. More than ever, Apple must continue to reinforce their brand as delivering the most innovative products consumers demand. If the iPhone is any indication, I think Apple will ripen.