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Thursday, September 11, 2014

Marketing Article

An Apple a day keeps the critics of Cook away

It was supposed to be the show stopper of the year in the United States of America. But how far and to what extent has Tim Cook bitten into the apple of his dreams? Here is a reality check.
When Apple CEO Tim Cook introduced his company's first wearable device during a flashy event, one of the biggest surprises was its name. Most people expected Apple to show off an "iWatch" and an "iPay" or "iWallet" mobile payments system to go along with it. But Cook didn't stick to the "i" moniker at all, shirking the branding that has been pervasive at the company since the iMac computer landed in 1998.
His device was "Apple Watch," a gadget he called a "breakthrough" product that works as a health and fitness device, a walkie-talkie, an Apple TV remote control, and a notification device, among other things. Cook also introduced Apple Pay, a new system that allows users to buy items by tapping their iPhones to sales terminals and by using their fingerprint for quick online purchases.The Apple Watch "is the next chapter in Apple's history," Cook said  to the audience of more than 2,000 people. "The foundation of Apple is built on the best computers in the world with the Macintosh, the best tablets in the world with iPad, the best phones in the world with iPhone, and it was made even better today."

But why the name change?
Apple's not saying, but some analysts believe the Apple Watch and Apple Pay represent the Cupertino, Calif., company's efforts to start a new era -- one separate from Steve Jobs. Jobs, who died from pancreatic cancer in October 2011, had his hand in every product Apple has introduced since he returned to run the company in 1997. Each iPhone and iPad released since his death built on the first devices he created, rather than something entirely new. But the Apple Watch is different.

Leading into  event, hopes were high that Cook would finally take Apple into new territory. Until now, Cook, who took over as CEO two months before Jobs died, had not yet expanded Apple's footprint into markets beyond the iPhone, iPad, and other products introduced with Jobs at the helm. Some critics have worried that Apple has lost its innovative drive. The jury is still out on the Apple Watch, but at the very least, the wearable -- and Apple Pay -- help Cook keep his vow.
Some analysts, like PiperJaffray analyst Gene Munster, were impressed. "We believe Apple is entering its strongest product and service offering in history," he said.
During an interview Tuesday with ABC News, Cook said Apple started working on the Apple Watch after Jobs died. And though Jobs never saw it, the "foundation that he left" influenced the creation of the device.
"To me it's not as big a deal whether he saw something or didn't," Cook said. "It's his thinking and his taste and his incredible perfectionist kind of view and his view that you should always innovate. All of those things are alive and well in the company."
He said he believed Jobs was smiling down on Apple that day. "I think his DNA will always be the foundation of Apple."

Breaking away from the Steve Jobs Legacy?
For the past three years, Cook has slowly been molding Apple in his own image. Dramatic changes included dismissing one of Jobs' top lieutenants after the embarrassingly bungled release of Apple Maps in 2012. He's encouraged once-siloed software and hardware teams to work together. And now he's changed the way Apple names its devices.But some things at Apple remain. Cook acknowledged the still-close ties to Jobs, using his former boss' famous "One more thing" phrase before introducing