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apple, inc. versus consumer reports

Consumer Reports, the venerable US magazine with over 7 million subscribers and a product quality laboratory, has recently reversed its approval of the iPhone 4, saying they cannot endorse it because of real, measurable issues with its antenna reception.

But Apple has such a strong brand, will such an announcement harm it? iPhone demand has recently been announced to remain strong throughout the supply chain, with Apple still struggling to keep up. Clearly customers want what they sell. 

You bet Consumer Reports' refusal to endorse the product has hurt Apple -- for now. See the Google finance chart comparing Apple's stock price to NASDAQ (APPL trades on NASDAQ). 

Apple got hit by the news Tuesday, and its stock promptly dropped.

And who might be benefitting from Apple's woes? Take a look at Dell's and HP's stock prices, compared to Apple's.

Now, Apple-haters may find this really good news. Apple's loss is the PC world's win. A few extra points for Linux and Windows!

Ah, but as I contemplated this fiasco for Apple, I noted a silver lining, to wit: Apple is a consumer product company, right? Why would companies whose bread and butter is B2B benefit from Apple's decline?

My conjecture: Apple is increasingly being viewed by investors as a business products company. That, my friends, is a huge win for Apple. 

Provided, of course, they can restore their former luster by dealing with this PR issue and making up with their audiences - customers of all types, the media, and the pundits. Apple, you gotta pay the piper this time, I'm afraid. There's too much at stake.

Reader Comments (1)

Note that HP is getting more of a boost than Dell from Apple's woes (apparently). Dell is tracking NASDAQ, whereas HP has a lift in comparison. Do you think this destroys my argument that Apple is increasingly being viewed as a business products company?

July 13, 2010 | Unregistered CommenterPaul Ward

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