Originally Posted by anantksundaram
1) The impact of negative PR from public perceptions of Apple 'burying' a small, seemingly inconsequential player like Gizmodo -- regardless of your opinion about them -- could be devastating for Apple.
I am curious what the reaction to the media is going to have with this. After the release of the affidavit, it looks like the media are simply going to shut-up. It's been 3 or 4 days now, and the media basically has said nothing. I don't hear people talking about it on podcasts, I don't read about it on websites, and I haven't seen media brethren try to defend Gizmodo.
Basically, I think what happened was once media read the affidavit, they were repulsed by Gizmodo's actions and simply prefer not to talk about it anymore as it is unsavory and indefensible. Really, Gizmodo may have set back all of the efforts to the court that prove bloggers are journalists by 10 years.
So, if the DA continues its case and charges everyone involved, I think the media will generally be as neutral as possible on it. That's, surprisingly, what their job is to be. Report the news, not make it.
2) There is no evidence that it cost Apple anything. Indeed, even if it did, it would be impossible to prove in court. More important, it actually provided phenomenal pre-launch publicity for the 4G.
Any kind of damage will be unknowable and unprovable, I agree. I do feel that it is damaging as it totally FUBARed the iPad media cycle, the iPhone media cycle, and even hurt the Apple brand a little bit.
And it wasn't pre-launch publicity. There's a difference between talking about the device and talking about the controversy over the device.
3) You've got to be pretty dumb and/or uninformed if you did not know that Apple has been coming out with a new iPhone every year, mid-year, since the original version and would do so this year too. I don't think most people are so dumb/uninformed, so this argument does not wash.
You give people too much credit in following tech news, and they are not dumb or even uninformed. They simply aren't interesting in devoting time or following the tech cycle. My barber didn't know, and I told him to wait 2 months.
For it to matter, it doesn't take a lot of numbers. Take 5 million cell phones in Q2 or so. If 0.1% don't buy, that means 5000 phones. Those 5000 phones are worth 3 million in revenue. Every million probably counts to Apple. Who knows how the math works out in margins on a year old iPhone 3GS, on a brand new iPhone 2010 and deferred sales and stuff.