Stock Hits: Are Apple and Toyota Being Treated Unfairly?

Steve Jobs took the stage last Friday to address widespread complaints about the antenna design of the iPhone 4.  His talking points included the conclusion that several smartphones share the the flaw exhibited by the iPhone 4 when held a certain way.  In order to address the concerns of Apple customers, Jobs offered a free case for everyone who has purchased an iPhone 4 and for everyone else who does so up until September 30th.

Regardless of Apple’s financial performance, is the company being held to an unfair standard?  Jobs himself said that the antenna problem has been blown out of proportion, and that is not surprising coming from the CEO of Apple.  Yet, there is truth to the statement.  Even Consumer Reports is conflicted about the iPhone 4 since they continue to not recommend the iPhone 4 yet give the device its highest rating for smartphones.

Another technology company suffered a similar public relations nightmare a few months ago and continues to grapple with the issue.  While not usually thought of a technology company, Toyota, like all major carmakers, create automobiles that have numerous sophisticated computer systems.  Those computer systems are possibly the cause of many complaints of unintended acceleration reported by drivers of Toyota vehicles.  Toyota has faced congressional inquiries, calls for its Akio Toyoda (its President) to resign, a $16.4 million fine, and widespread erosion of its brand.

However, a recent article by the Wall Street Journal concludes that in several of the reports of unintended acceleration, drives actually had their foot on the accelerator instead of the break.  Toyota and the National Highway Traffic Safety Administration (NHTSA) continue to look for the root cause of the unintended acceleration problem, but this report raises the possibility that the company may not be totally at fault.  If further analysis supports the Wall Street Journal’s report, Toyota may regain a fair amount of its reputation for excellent quality.

Perhaps future analysis into the performance of the iPhone 4 will also resuscitate Apple’s reputation.  Steve Jobs presented Apple’s research during the press conference, but independent investigations by other companies and government agencies like the FCC may support his assertions.  It is possible that Apple and Toyota, who both place extreme value on the quality of their products, will be exonerated in the months to come.

About the Author
Anjuan Simmons is an emerging technology consultant and freelance technology consultant currently working as a Director at Adverlyze, an online marketing strategy company. Anjuan has previously worked for Accenture and Deloitte. He has an undergraduate degree in electrical engineering from the University of Texas at Austin and an MBA from Texas A&M University. He can be found on Facebook at http://www.facebook.com/anjuan and on Twitter at http://www.twitter.com/anjuan.
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