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August 18, 2008

What Do You Mean You Are Not Afraid of Big Brother?

Analysis of: Steve Jobs Confirms iPhone Has a Kill Switch | news.yahoo.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
P.J. Louis
President, PJ Louis LLC
Implications: I find it appalling that no one is complaining that Apple has kept hidden the kill switch. I find it appalling that a vendor is watching what you are doing.  

Analysis: Well I got to give Apple a lot of credit.  The company has so many people brainwashed into believing it is the only game in town that not one financial analyst has made a stink of two facts:

    -    First there is a kill switch on the phone.  In 25 years I have never heard of a handset vendor putting a remote kill switch in the handset.
    -    Second the vendor is essentially able to monitor what is on the phone.  I think the term is spying?  The company is not directly monitoring the phone rather looking for so-called unauthorized apps; it is spying by proxy.
    -    Third the vendor has kept it quiet.  What else has Apple hidden?

I disagree with some analysts’ views that the consumer will accept just about anything if you let them know what it is they are buying.  I think the normal consumer would be outraged if another vendor did what Apple is doing.  This has to be an Apple only surreal happening.  I also disagree with analysts’ complacency regarding the heavy handedness and Big Brotherish action – it is WRONG.

I will say one thing about Apple’s sales and marketing force.  Darn it’s good.  If it were any other manufacturer, the public would have been screaming so loud you would have been able to hear them in outer space.  Any company that can control its customer base like the way Apple does should give its head(s) of sales and marketing a medal and a one year vacation.

I would like to congratulate Jonathan Zdziarski for uncovering the secret.  I take my hat off to Jonathan Zdziarski.

Thank you to Apple for making it acceptable for a vendor to spy on its customers.  I wonder what Apple is going to do with that monitoring capability and kill switch?  I would say that is the end of Apple’s support for open networks.

As for investors, it is time to watch carefully what other vendors will do and how they will react.  Other vendors may use this event as a lever for themselves.  Hopefully there will be consumer concern and competitive reaction.  Hopefully consumers have not become sheep.

Vendors should view this as an opportunity for themselves.  Vendors can seek to differentiate themselves from Apple.

Other Analyses of the Same Source Article:
A Dose Of Reality For The Apple Faithful
August 18, 2008, Author: GLG Expert Contributor

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