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How Apple Orchestrates Controlled Leaks, and Why

Lanxon writes "'I was a Senior Marketing Manager at Apple and I was instructed to do some controlled leaks,' confesses John Martellaro. Monday's article at the Wall Street Journal, which provided confirmation of an Apple tablet device, had all the earmarks of a controlled leak. Here's how Apple does it. Often Apple has a need to let information out, unofficially. The company has been doing that for years, and it helps preserve Apple's consistent, official reputation for never talking about unreleased products. The way it works is that a senior exec will come in and say, 'We need to release this specific information. John, do you have a trusted friend at a major outlet? If so, call him/her and have a conversation. Idly mention this information and suggest that if it were published, that would be nice. No e-mails!'"

4 of 195 comments (clear)

  1. More like applie by Tobor+the+Eighth+Man · · Score: 5, Insightful

    It's worth noting that if Apple were a smaller company, this sort of behavior would (or should, you can always find more shills) get doors slammed in its face at media outlets pretty fast. There's two reasons why it doesn't: 1. They're probably well-connected enough that they could always find someone else to leak their supposed "info," either through naievete or just apathy, and 2. They're so big that exclusive Apple news is a big plus, even if it turns out to be false or misleading.

  2. Re:duh? by bondsbw · · Score: 5, Insightful

    "OMG Apple does what everyone else does..."

    Not really. Most companies freely brag about their unreleased products in order to gain hype. Apple has everybody else brag about their products to gain hype. That keeps them legit and makes it hard to accuse them of announcing vaporware.

    --
    All my liberal friends think I'm a conservative, all my conservative friends think I'm a liberal.
  3. Stocks? by retech · · Score: 5, Insightful

    I'd love to see some data about company insiders and their stock purchasing/selling in relation to the "leaks". There are a few people making a shitload of $$$ off of the leaks. And if they are not then I'd be shocked. The last WSJ "leak" shot appl stock way up and my first thought was: someone is having a nice Christmas bonus.

  4. Re:I will need some help with this. by nine-times · · Score: 5, Insightful

    I think you're on to something, but the reasons are a little more complicated than, "they want to release gadgets in generations".

    First is the fact that their development method is just different from a lot of other companies. Most companies take an idea an idea like a portable MP3 player and say, "Lets put every feature we can into this thing for launch. I want it to have a radio, and have it play lots of games, and maybe have a built-in toaster oven!" So they make a list of features and put them all into a prototype. They polish the prototype until it kind of works, and then release that design as a product. In its first version, it only kind of works, but has lots of problems from having a lot of not-quite-ready features crammed in. They try to fix these problems in the next version.

    In contrast, if Apple sets out to design an mp3 player, then there's a decent chance that the product will only have 1 major feature: playing mp3s. Instead of making the first version have loads of features, they'll spend their development time making sure that using the product as an mp3 player is easy, intuitive, and works very well. They'll add features over the next few versions, but they'll do so relatively slowly because each time, they're making sure the new features are integrated well into the existing design.

    Those are two different design philosophies which bring different results. In the first way of doing things, you start with a more feature-rich product, but in the second way you start with a more polished product.

    Beyond that, there's something else going on in Apple's marketing that is pretty obvious once you notice it, but a lot of people don't notice it. Most tech manufacturers are constantly trying to introduce new products and drive down the price. When Apple introduces a new product, they tend to keep the price stable for a very long time. Watch iPod prices or Macbook prices, and you'll notice that the price very rarely goes down. As new technology comes out, Apple keeps upgrading the product to be smaller, lighter, or more feature rich in order to justify the current price, but they don't really drop the price.

    It's worth understanding that the price points are often chosen by marketing, and then a product is designed to fit that price. I believe the first iPod was $400, and right now that's also the price of the most expensive iPod. There's a reason for this. It's not that Apple couldn't create a really snazzy $700 iPod, but that if they did, Jobs would probably say, "Let's put that on ice until we can make it cheaper." Ultimately, they don't want to release a $700 iPod and then two years later sell the same iPod for $400. Along with everything else, that creates the impression of a product whose value is dropping. They'd much rather sell a crappy $400 iPod this year and then two years later sell you the super-snazzy iPod for $400, so that you have the impression of a product which preserves its value by continually improving.