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In an age where everyone seems to complain about poor customer service, I’ve had two really great experiences in the past two weeks.

First, my white iPhone 3GS developed a small crack around the silence switch. It was odd because I kept the phone in a case, never dropped it, didn’t see any other signs of wear on it, and rarely used the silence switch.

I went to my local Apple Store expecting to be told the crack wasn’t covered under warranty (and perhaps for it to be implied that I had dropped the iPhone). To my surprise, an Apple Genius handed me a replacement within a few minutes of looking at the phone. (Interesting side note, the Genius shined some sort of UV light down the iPhone’s audio-out port. Apparently Apple can tell if an iPhone has been submerged in water that way. Not that mine had.)

Next, my Kindle 2 has been resetting on me daily lately. Restoring to factory settings hasn’t helped. It’s a strange problem that I haven’t seen many others report and I can’t reproduce the problem at will. So, when I called up Amazon I expected a refusal to replace the Kindle or some sort of run-around. Again to my surprise, Amazon quickly offered to replace the Kindle free of charge under warranty. It’s coming next-day air and Amazon is paying shipping both ways.

I feel like both of these are examples of big companies with big brands that really get the concept of brand promise. Brand promise isn’t just marketing and it isn’t just product. It’s also how you treat customers at every stage of interaction. I already adored these two companies and their products. (I even own a little stock in both.) But, I’ve now been so pleased with how they’ve treated me from a support standpoint that I’m blogging about it. I wish every company treated all of its customers this well all the time.

It surprises me that the iPhone 3G S does not support 802.11n wireless networking. Why is that?:

• Because 802.11n is still a draft standard? (That hasn’t stopped Apple from using it in computers.)
• Do 802.11n chips draw more power or produce more heat than 802.11b/g chips?
• Is the chip for 802.11n physically larger than a b/g chip?
• Is there some bottleneck in the 3G S that would keep 802.11n from being useful?

I saw a post over at TUAW about how one of their writers, Mel Martin, was selling his used iPhone 3G to a company called NextWorth. Martin’s story on June 16th said NextWorth was offering $280 for his “like new” 16GB iPhone 3G. I was lazy and didn’t check it out until June 17th and was offered $250, which is still being offered as of this writing.

I reformatted and packaged up my iPhone 3G yesterday afternoon and used NextWorth’s pre-paid address label to mail it off for free via USPS. NextWorth is charging me $5 to get a check, but my take should be $245 from this. Not too shabby.

NextWorth’s offer of $280 to $250 for a used 16GB iPhone 3G amazes me. I would think to resell my old phone at a decent profit they will have to charge $325 or more. If someone is a new iPhone user or is eligible for a full iPhone upgrade, they can get a brand new 16GB iPhone 3G S for $199 or a brand new 32GB version for $299.  So, why would anyone spend $325 or more on a used iPhone 3G?

I can only guess this has something to do with some people wanting a contract-free iPhone or perhaps used iPhones can be made to work on networks other than AT&T.

Martin’s story says that he successfully sold his first-generation iPhone via NextWorth, so this sounds legit. Time will tell!

I also found it interesting how little used iPhone accessories are worth at NextWorth relative to a used iPhone. NextWorth was only offering $2 for a used docking station (sells for $49 new), 50 cents for used earbuds ($29 new), $2 for a used AC adapter ($29 new), and $1 for a used USB cable ($19 new).

I kept my accessories since they will all work with my new iPhone 3G S. But, perhaps many people sell them to NextWorth. If so, perhaps NextWorth is getting a lot of their margin on reselling accessories.

• This is a huge win for Amazon. There are many more iPhone and iPod Touch users than there are Kindle users. iPhone/Touch users can now consume purchased Kindle books on their devices, which will generate more e-book sales for Amazon. And, Kindle for iPhone may prove to be a gateway drug that leads to more Kindle device purchases. Again, more money for Amazon.
• Kindle for iPhone actually does a few things a Kindle device can’t. You can see images in color. You can download e-books via Wi-Fi. And, you can download e-books via the iPhone’s mobile phone network. Nice.
• Whispersync page location syncing is kinda cool.
• I haven’t personally used Stanza on iPhone/Touch, but Kindle for iPhone can’t be good news for it. Access to 50,000 free books (generally old, copyright-expired works) and 50,000 commercial books on Stanza is appealing. Access to almost 250,000 commercial books on Kindle for iPhone may be more appealing for most people. And, many people are already familiar with buying things on Amazon.
• Until today, I have thought of “Kindle” as being the physical device that Amazon sells to read e-books. Now, it appears that “Kindle” is really an e-book service. And, apparently we use things like the Kindle e-book reader, Kindle for iPhone, and presumably upcoming clients for other devices to consume books from the Kindle service.
  • I like Apple’s method of having an iTunes Store service and then having discretely named devices/applications (iPhone, iPod, iTunes, Apple TV) for accessing that service. It’s easier to talk about, write about, and get your head around.
• Areas for improvement on Kindle for iPhone:
  • Support landscape view.
  • Support e-book purchases via the iPhone/Touch. I would think this would be fairly easy to add since Amazon already has an iPhone/Touch application for buying physical items from Amazon.com.
  • Support bookmark deletion.
• I have seen people saying that Kindle for iPhone should support magazine and newspaper subscriptions. I think it should too. But, I suspect you would have to get the publication on the Kindle or on the iPhone/Touch, but not on both. I think this is a contractual issue with the content providers. I noticed that when I moved from Kindle 1 to Kindle 2, I had to also move my Newsweek and Atlantic Monthly subscriptions from one device to the other. I couldn’t have the subscription accessible on both. So, if a publication subscription can’t be on two Kindles, I doubt it can be on a Kindle and an iPhone. (I think one-off purchases of specific issues may be treated differently and syncable across Kindles.)
• I have seen people saying Kindle for iPhone should support emailed documents. I think it should too. But, keep in mind that emailed documents even on Kindles are sent to a specific device and aren’t synced across devices. So, again, I suspect you could get a single emailed document on the Kindle or on the iPhone/Touch, but not on both.
• When it comes to improving Kindle for iPhone, Amazon faces interesting choices. Improving this free application can lead to increased e-book sales and (if supported is added) increased newspaper, magazine, and emailed document sales. But, making Kindle for iPhone better could also keep a certain segment of users from buying a Kindle device from Amazon. I’ll be fascinated to see how the application evolves.

Random thoughts on today’s Apple Event:

• I loved how Steve handled (yet did not handle) the health question at the outset. Masterful.
• For me personally, the biggest news is that iPhone backups are getting faster and hopefully the dropped calls issue is being put to bed. Both cause ongoing pain. Can’t wait for the 2.1 release on Friday!
  
• I like revisions to the Nano and Touch a lot and they make for a compelling Christmas lineup along with iPhone. I hadn’t heard the accelerometer was coming to the Nano and am pleasantly surprised. Being able to shake in order to shuffle your songs is awesome!
• Glad HD TV shows are on iTunes and that NBC is back. This will make the Apple TV a stronger competitor against Netflix and Amazon/TiVo.
• $2.99 for one TV episode in HD feels pricey to me, but perhaps I just need to adjust.
• The iPod Classic is rapidly becoming the fruitcake that’s somehow always around at Christmas, yet few seem to want to eat. I give it one more year tops.
• I will have to play with the Genius feature in iTunes 8 before I know if I like it. Last.fm and Pandora have never been great at finding or pairing music for me.

While I will plead guilty to a long-term love affair with Apple, I’m not naive. Steve Jobs and Apple make decisions that are in the best interests of Apple first, shareholders second, and consumers third.

That said, I think Daniel Lyons (a.k.a the retired Fake Steve Jobs) is greatly exaggerating some of Apple’s actions in his “One Bad Apple” Newsweek article. Apple is far from perfect, but it doesn’t deserve many of these attacks. Let’s look at what’s accurate and what’s not so accurate.

That Vudu That Apple Does So Well?

Lyons paints Vudu as a victim targeted for termination by Apple in the market for streaming/downloadable video to home televisions. So Apple is evil for competing in this market? And, Apple is the only bad guy victimizing Vudu?

It’s not as if Vudu created this market and then Apple stole it from them. Apple has had a long-term interest in consumer digital video delivery and has done as much as anyone to create that market. (QuickTime, iTunes and iTunes Store with video, iPods with video, iPhones, Apple TV, etc.) Apple certainly didn’t make or revise the Apple TV simply because of Vudu.

I have no doubt that Apple was already focused on supporting rentals, broadening its movie catalog, and allowing direct movie downloads without a computer. Jobs said all along that Apple TV 1.0 was a “hobby” that they were working to perfect. And, lots of users and analysts were publicly calling for the features that came in Apple TV 2.0. They were not simply copied from Vudu.

Also, why don’t Netflix, Amazon/TiVo, or cable companies with On Demand get any “blame” for Vudu’s plight in Lyon’s article. If Vudu is laying off staff, I doubt that all of the blame can be laid at Apple’s door. The market for streaming/downloadable video to home TVs is a competitive place with major players.

Apple Owns Boardwalk and Park Place?

Lyons writes that:

“Apple owns popular hardware platforms (iPod, iPhone) and operates the only store that can sell music, movies and software programs for those platforms. Apple sets prices and takes 30 percent of the money. With iPhone, Apple decides which independent applications will be allowed, and it can pull the plug on any application at any time, without explanation<snip>”

Let’s break this tortured mess down:

• Apple operates the only store that can sell music for iPod/iPhone. As George Carlin would say, pure bullshit. The iPod and iPhone play numerous audio formats, including MP3s. It is a simple matter to buy music from Amazon MP3 or other online stores, put it into iTunes, and get it onto an iPod or iPhone. It is also a simple matter to purchase a CD, rip it in whatever audio format you like in iTunes, and get it onto an iPod or iPhone. Apple does not have a music monopoly on the iPod or iPhone and Lyons should be ashamed for implying it does. The fact that many iPod/iPhone users choose to use the iTunes Store to buy music doesn’t make the iTunes Store a music monopoly.
• Apple operates the only store that can sell movies for iPod/iPhone. Lyons is on firmer ground here, but just barely. No movie studio is allowing its films to be sold online without some sort of Digital Rights Management. And, there’s no standard for DRMed video. So, different stores and devices are using different DRM methods. That’s a shame, but it’s not Apple’s fault. If and when there is a standard for DRMed video, I think Apple should support it on iPods and iPhones. In fact, I’d love to see Apple show leadership in the creation of such a standard. Until then, I think it’s unfair to criticize Apple when no one else is offering a non-proprietary video store. Finally, if you are willing to use third-party software, it is already possible to get DVD video onto an iPod or iPhone.
  
• Apple operates the only store that can sell applications for iPod/iPhone. True. And, I would like to see this change. I applaud Apple for making it easy for developers to sell their applications and get payment, and for making it easy for users to purchase and install those applications. But, the App Store is a monopoly and I think it would be in the best interests of users for them to have more options for where and how they purchase apps. I won’t hold my breath.
  
• Apple sets prices and takes 30 percent of the money. This is a true statement for iPod/iPhone applications. But, it is untrue for music and video purchases and again Lyons should be ashamed for implying it. While I don’t know the specifics of the deals Apple has with record labels and movie studios, I do know that Apple is thought to only get a few pennies for each 99-cent audio track purchase. While the cut may be higher for video, I seriously doubt it’s anywhere near 30 percent. Is 30 percent too high of a cut for the iPod/iPhone App Store? I don’t know, ask a developer. Apple does help developers promote their applications, it handles all the financial transactions from sales, and it automates the downloading and installing of purchased applications. That’s certainly worth something.
  
• Apple decides which iPod/Phone apps will be allowed and it can pull an app at any time, without explanation. True. And, again, I would like to see this change. While this power can be used to ensure quality apps and to prevent fraud, it can also easily be abused. I think users who want to have this control for themselves should be able to have it. Again, I won’t hold my breath.
  

No White iPod Cases Allowed After Labor Day?

Last on his list of Apple gripes, Lyons takes the company to task for how it treats the makers of iPod and iPhone accessories. He says that Apple controls when accessory makers can announce new products, charges various fees to accessory makers, and takes large cuts on accessory sales in Apple retail stores (75 percent of the sales price in one noted case).

I have little knowledge of how Apple’s relationships with accessory vendors work. So, I don’t know whether these things are true or not.
If Apple asks a vendor to hold off on an accessory announcement because the physical design of an iPod/iPhone is changing and thus invalidating the accessory, that’s certainly reasonable. Beyond that, I don’t think a hold is reasonable.

I would have to see the specifics of the fees and sales cuts charged to have an opinion on whether they’re reasonable. Seventy-five percent is insane if true! But, I will say when it comes to sales cuts, keep in mind we live in a capitalist system. As Lyons own article somewhat notes, if you don’t like the deal the Apple Store is giving you to sell your accessory, go sell it at WAL-MART, Best Buy, Circuit City, or Target. Or, use an online store like Amazon or your own e-storefront.

Bring Back Fake Steve!

In closing, I want to say two things. First, Apple is an amazing, yet flawed company. It does many stupid and greedy things, just not all the stupid and greedy things mentioned in Lyons’ piece.

Second, I miss Fake Steve Jobs dearly. I found Lyons was more interesting, insightful, and (oddly) more accurate when he wrote about Apple as Fake Steve. Can we please, please, please have Fake Steve back?

I finally got an iPhone 3G this morning. I had tried Friday and the 16GB black models sold out while I was in line. And, on Saturday and Sunday, all models had been out of stock.

Today, I arrived at the Apple Store at Short Pump Town Center in Richmond at 9:30 a.m. I was seventh in an outdoor line that by 10:15 a.m. had grown to 12 people. A line even after three days of iPhone 3G sales.

Many of us told our stories of how close we’d been to attaining our chosen iPhone model over the weekend, only to watch our hopes tragically slip away. But, today would be different. There was hope in the air and someone said they thought they’d seen a UPS truck out back.

At 10:15 a.m., an Apple Store employee walked out. Everyone in line was edgy, tense. Did a shipment of iPhones come in? Would there be enough for everyone?! The employee quietly spoke to the first person in line.

“I have a 16 gigabyte black,” he said in a faint whisper. “You interested?”

“Oh, God yes, yes I’m very interested!” was the hushed reply.

The Apple Store employee nodded his head for the customer to follow him inside and put a hand on the customer’s shoulder as they walked away.

I watched this happen five more times. Every time it was done with a whisper and a nod. This was interspersed with the earlier customers emerging from the store clutching their iPhone boxes, their faces filled with a euphoric glee as we congratulated them.

Then, it was finally my turn.

“I have a 16 gigabyte white,” came the whisper.

“Uh, well, I’ve kinda been holding out for the black 16 gig,” I said hoarsely.

The Apple Store employee reached into his pocket and pulled out a white iPhone.

“I only have the white. But, the white’s better,” he said, stroking the phone like it was covered in fur. “It’s gorgeous and you can’t see the finger smudges like with the blacks.”

As I thought this over, I glanced back at the people behind me in line, their faces a mixture of jealousy that I was getting an iPhone and annoyance that I wasn’t doing it faster.

“OK, white it is.”

“Good choice. You won’t regret it,” he said, nodding me inside the store.

Activation took mere moments and then I held the iPhone 3G in my hands. It was beautiful, perfection. I walked from the store into the sunlight, the people in line applauding my good fortune.

I have a Belkin holster for my iPhone that I purchased a year ago. It’s been OK. The case protects the phone well. But, the problem is that I have to take the phone out of the case to use it.

For 11 months, I never dropped my iPhone once. But, I’ve dropped it four times in the past month when it was out of the case. I don’t know what my problem is! And, the iPhone has gotten dented and scratched each time.

So, when I get the iPhone 3G on Friday, I wanna get a new case. If anyone out there has one you recommend, please let me know! I need something that stays on when the iPhone is in use, has a belt clip, and looks decent.