A Black Friday Reflection: The Art of Want and Apple's Marketing Mastery

A Hungry Apple

Today, there’s probably one thought on people’s minds: will I get the best bargain ever? Yes, it’s Black Friday, and many have a shopping list ready to scoop up on those deals. As we scan those websites to see what’s on sale, it is an excellent time to reflect on how the Master of Marketing gets into our minds and makes us buy. Who would that be? It is Apple, of course.

Earlier this year, we looked at the chasm between the company's ESG aspirations and the resource-intensive nature of its operations. Today, we explore Apple’s uncanny ability to cultivate an obsessively loyal following, some of which deify the company.

Deify? Yes, deify.   According to a BBC documentary:

“The neuroscientists ran a magnetic resonance imaging (MRI) test on an Apple fanatic and discovered that images of the technology company's gadgets lit up the same parts of the brain as images of a deity do for religious people, the report says.”

The documentary also explained that a gadget from a competitor did not elicit the same brain activity.

Psychological Obsolescence: Will You Buy the Best iPhone Ever?

When examining the amount of money Apple spends advertising its iPhone, the figure falls within the $1 billion to $2 billion range. For the 2022 fiscal year, the figure is buried in the $25 billion categorized as "Selling, General, and Administration" expenses. [1] We can’t be sure as to how much Apple spends, as the Company inexplicably stopped publishing this figure in their financials back in 2016. [2] For 2015, the total advertising expenditure came in at $1.8 billion. [3] Assuming that advertising spending is proportional to revenue generated by their different product lines, we can estimate that Apple spends approximately $1.2 billion on advertising the iPhone.

However, focusing solely on the numbers would not do justice to Apple's advertising expertise. Annually, Apple fans must face the fear of missing out. Year after year, Apple enthusiasts are enticed onto a never-ending treadmill of upgrades, each promising the 'best iPhone ever.' Here, we can see the Siren calls in succession: [4]

"Today, Apple is going to REINVENT the phone"

 (Original iPhone, 2007)

"It's REALLY, REALLY GREAT and it feels even BETTER IN YOUR HAND if you can believe it"

 (iPhone 3G, 2008)

"This is the MOST POWERFUL, FASTEST iPhone we've ever made"

 (iPhone 3GS, 2009)

"One of the MOST BEAUTIFUL things we've ever made"

 (iPhone 4, 2010)

"Has an INCREDIBLE STAINLESS STEEL BAND around it making it the THINNEST SMARTPHONE"

 (iPhone 4S, 2011)

"It is an ABSOLUTE JEWEL; it is the MOST BEAUTIFUL product we have ever made, BAR NONE"

 (iPhone 5, 2012)

"The MOST BEAUTIFUL phone ever made"

 (iPhone 5S, 2013)

"They are WITHOUT A DOUBT the BEST IPHONES we've ever done"

 (iPhone 6, 2014)

"MOST ADVANCED SMARTPHONES"

 (iPhone 6S, 2015)

"It's the BEST IPHONE that we have ever created"

 (iPhone 7, 2016)

"MOST POWERFUL and SMARTEST CHIP ever"

 (iPhone 8, 2017)

"It is the BIGGEST LEAP FORWARD since the original iPhone. This REALLY IS THE FUTURE"

 (iPhone X, 2017)

"MOST ADVANCED iPhone we've ever created"

 (iPhone XS, 2018)

"Most ADVANCED IPHONE that we have ever built"

 (iPhone 11, 2019)

"In iPhone 12 Pro Max, we've been able to create our BEST CAMERA EVER."[5]

 (iPhone 12, 2020)

"And we're NOT DONE YET... Let's take a look at our MOST PRO IPHONE EVER"[6]

 (iPhone 13, 2021)

“iPhone 14 Pro and iPhone 14 Pro Max: the BEST IPHONES we've EVER CREATED”[7] 

(iPhone 14, 2022)

Apple is not the first to use this strategy. Employing this approach of psychological obsolescence goes back to the 1920s as one of the strategies to deal with the spectre of overproduction. Silver manufacturers, for example, used advertising campaigns to "shame the prospect into buying the latest model of a venerably old product." They targeted newlyweds who valued heirloom silverware, making them feel outdated and encouraging them to purchase newer models by ridiculing the past from which their old sets originated. Similarly, Elgin's wristwatch advertisements sought to make owners of older models self-conscious, nudging them to upgrade. Both campaigns harnessed the power of social shame to drive new purchases, tackling the business dilemma of durable products that don't require frequent replacement. [8]

 General Motors was another company that embraced the concept of psychological obsolescence in the 1920s. Executives who transitioned from DuPont to General Motors imported marketing strategies directly from the nascent fashion industry. They introduced the concept of styling in their 1923 Chevrolet models, realizing that consumers were willing to upgrade for aesthetic appeal rather than just technological advancements. [9] Harley Earl, a GM executive, summed it up by stating that hastening obsolescence was the company's "big job." He highlighted that the average car ownership span had dropped from five years in 1934 to just two years by 1955, to reduce it to one year for a "perfect score." [10]

 

Apple’s Secret Sauce: Secrecy & Scarcity

The key to making the Apple iPhone launch events successful in extracting the maximum fear of missing out is secrecy. Apple's ability to rapidly assemble new devices gives it an operational edge, allowing it to match production to consumer demand closely. This quick turnaround minimizes excess inventory and creates a sense of scarcity, further fueling consumer anticipation. Critically, the swifter a device moves through the production process, the fewer the chances for information leaks, reinforcing the shroud of secrecy that is absolutely vital for building unparalleled hype and FOMO around each new iPhone release. [11]  

 Steve Jobs was the one who pioneered the idea of using secrecy as a critical marketing strategy for the launch of the inaugural iPhone.The iPhone began as a secret project code-named “Purple”. In the “Purple Dorm,” management had posted the sign “Fight Club” to remind people about the movie's first rule, “that they do not talk about Fight Club.” It's a bit of an irony that a film denouncing materialism was used to usher in an age of unprecedented consumerism. When working with suppliers, Apple would give “false schematics” to give the false impression they were working on the iPod. Also, employees would pretend to be representing “other companies when meeting with vendors to avoid starting rumors.” [12]

The secrecy created a strenuous work environment. Employees found it divisive and an obstacle to collaboration. For example, the User Interface (UI) was kept so secret that it made it difficult for employees to finish their work. Tony Fadell, the “father of the iPod”[13], showed exasperation when discussing the intensely political environment he had to operate in. He was the only hardware team member who could see the UI. He notes that “it was [so] super-secretive…[that you] … had to ask permission for everything, and it really built a huge rift between the two teams.” Andy Grignon, a senior engineer at Apple, described lunch as a “Mexican standoff” requiring code names. He described the environment as “passive aggressive.” [14]

 So why did Jobs want all this secrecy? One ex-Apple executive suggested “that keeping the first iPhone secret “was worth hundreds of millions of dollars.” The secrecy simultaneously generates free press coverage and instigates that desire in the masses. [15]

A closely related element to secrecy is the artificial scarcity that Apple creates around its iPhones. According to a paper entitled “It's a secret: Marketing value and the denial of availability,” Apple purposefully “keeps supplies immediately post-launch artificially low.” [16] Such a strategy is focused on provoking FOMO within us.   

What about Planned Obsolescence?

While Apple's mastery of psychological obsolescence is second to none, the company has also faced scrutiny for planned obsolescence. This controversial practice has led to legal challenges and public outcry. In 2005, Apple settled out of court over customer complaints “alleging that the iPod did not have the battery life Apple represented...and that the battery’s capacity to hold a charge diminished substantially over time".[17] The article also noted that customers “who bought a first or second-generation iPod who experienced a battery failure within two years of purchase,” which of course would force them to buy a new one. [18]  

The issue also surfaced in 2018, when Apple confirmed that it purposefully slowed down its older model. As noted in the Guardian: “The feature was recently highlighted by users on Reddit, who noticed that their processors were running slowly in iPhones with older batteries, but that when they replaced the batteries the speed of the phone returned to normal…Analysis of data by benchmarking firm Primate Labs collected from thousands of iPhones appeared to confirm the theory, showing multiple performance peaks for phones of different ages, slowing down from their maximum speed.”[19]

Consumerism or Technology: What Matters More?

Apple’s products are often first to mind when thinking about modernity. The iPhone, specifically, is seen as a fruition of sci-fi-inspired gadgets like Star Trek’s Tricorder. Stepping back, however, we see that science and technology are not the prime movers of success regarding Apple. Its ability to tell a better story and convince people to buy its products has distinguished the company. This reveals that success is not raw science or technology. Instead, it’s about the art and science of persuasion. In this ESG-conscious era, understanding the drivers of our consumer decisions is critical to mitigating the environmental and social fallout of rampant consumerism. This reflection is essential in steering us towards a more sustainable future.

 1] https://www.sec.gov/ix?doc=/Archives/edgar/data/320193/000032019322000108/aapl-20220924.htm  

[2] https://www.businessinsider.com/apple-stopped-disclosing-ad-spend-2016-11  

[3] https://www.sec.gov/Archives/edgar/data/320193/000119312515356351/d17062d10k.htm   

[4] Taken from CNET’s compilation for iPhone events from 2007 till 2019; https://www.youtube.com/watch?v=5WcjWxW2W2Y  

[5] https://www.youtube.com/watch?v=KR0g-1hnQPA

[6] Taken from the 2021 Apple Event; https://www.youtube.com/watch?v=EvGOlAkLSLw 

[7] https://www.youtube.com/watch?v=ux6zXguiqxM

[8] Giles Slade. Made to Break: Technology and Obsolescence in America (Kindle Locations 498-504). Harvard University Press, 2006. Kindle Edtion..

[9] Giles Slade. Made to Break: Technology and Obsolescence in America (Kindle Locations 42-48). Harvard University Press, 2006. Kindle Edtion..

[10] Giles Slade. Made to Break: Technology and Obsolescence in America (Kindle Locations 419-421). Harvard University Press, 2006. Kindle Edtion.

[11] Merchant, Brian. The One Device (pp. 284-285). Little, Brown and Company, 2017. Kindle Edition.

[12] Merchant, Brian. The One Device: The Secret History of the iPhone (p. 349). Little, Brown and Company. Kindle Edition.”

[13] https://appleinsider.com/articles/17/05/11/ipod-father-tony-fadell-speaks-at-computer-history-museums-iphone-360

[14] Merchant, Brian. The One Device (pp. 350-351). Little, Brown and Company, 2017. Kindle Edition.

[15] Merchant, Brian. The One Device (pp. 300-301). Little, Brown and Company, 2017. Kindle Edition.

[16] Merchant, Brian. The One Device (pp. 300-301). Little, Brown and Company, 2017. Kindle Edition.

[17] https://www.macworld.com/article/1045105/ipodsuit.html  

[18] https://www.macworld.com/article/1045105/ipodsuit.html  

[19] https://www.theguardian.com/technology/2017/dec/21/apple-admits-slowing-older-iphones-because-of-flagging-batteries