Apple Tech Support Satisfaction Plummets

Apple customers are increasingly unhappy with the company’s technical support, which could affect the firm’s bottom line in the future, a researcher said today.

Although Apple continues to outperform rival computer makers Hewlett-Packard and Dell in overall customer satisfaction with technical support, in several areas Apple’s slippage over the last year is alarming, said Peter Leppik, CEO of Vocalabs, a Minneapolis-based company that surveys consumers after they’ve contacted customer or technical support.

“Apple is still definitely ahead of its competition, but what we are highlighting are deeper metrics that are showing negative trends,” said Leppik. “Customers are upset with the automated part of support calls to Apple, and that might be trickling into higher metrics.”

Those higher metrics Leppik referenced include the likelihood customers will return for another purchase in the future, or continue to recommend Apple products to friends and family.

In the past 12 months, consumers who said they were “very satisfied” with Apple’s technical support dropped 15 percentage points, from 73% at the mid-point of 2010 to 58% halfway through 2011, said Leppik.

The primary cause of the tumble was a turnabout in customers’ opinion of the automated section of their calls to Apple. In the last year, the percentage of those who said they were very satisfied with the quality of Apple’s automation fell 13 points to 24%. That’s a new low for Apple in Vocalabs surveys, and a whopping 28 points off the peak of 52% a year-and-a-half ago.

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HP Exec Claims Evidence Was Falsified

HP has been accused of producing “false and fabricated” evidence against a former sales executive who the firm claims stole confidential information.

Adrian Jones, who was a sales executive at HP, left the firm to join Oracle in February 2011. HP claims that Jones nabbed a load of confidential information between 10 and 11 February using a removable hard drive. Jones told the court that the hard drive was used by HP for backup and was never in his possession, saying that HP and its outside counsel have confirmed these facts.

Jones’ current employer Oracle said that the accusations leveled at its employee are simply not true, with Deborah Hellinger, a spokeswoman for Oracle telling Bloomberg, “The central allegation in HP’s employment lawsuit against Adrian Jones has turned out to be complete fiction…. If they did it knowingly then HP and their lawyers should be sanctioned. If they did it mistakenly then they simply owe Mr Jones an apology.”

HP is said to have probed Jones’ relationship with a female subordinate, for whom Jones allegedly arranged a 94 per cent pay rise and expensed travel that had no business purpose.

Jones’ case mirrors that of former HP CEO Mark Hurd who left the company after similar expense discrepances were brought to light. Hurd, a close friend of Oracle CEO Larry Ellison, then joined Oracle as co-president within weeks of leaving his post at HP.

HP and Oracle have been going at it hammer and tongs in a largely public row over Oracle’s decision to dump support for Intel’s Itanium architecture. The two companies are in various other legal battles as well, with HP claiming that Oracle had gone from being a partner to a “bitter antagonist”. We assume the next lawsuit will claim that Oracle stole HP’s lunch money and beat it up behind the bike shed, or perhaps the other way around.

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Is Sprint’s Future Questionable?

Sprint Nextel Corp’s shares fell sharply on Thursday as heavy subscriber losses in the second quarter called into question the strategy and outlook of the No. 3 U.S. wireless company.

Sprint had spent heavily to promote its service and better compete against larger carriers Verizon Wireless and AT&T Inc. But that strategy backfired as profit margins eroded and customer losses persisted.

The weak results overshadowed Sprint’s announcement of a $9 billion network contract with start-up LightSquared, and sent the stock tumbling to its lowest point since February before recovering a little to close down 16 percent.

Investors questioned whether Sprint would be able to meet its 2011 targets after such a disappointing showing.

“Their cost of doing business went up dramatically,” said Piper Jaffray analyst Christopher Larsen. “People have less confidence they can meet expectations.”

Sprint’s operating profit margin of 16.3 percent was well below the average Wall Street estimate of around 19 percent as the company had changed its product rebate terms in an effort to combat Verizon Wireless’ sale of the Apple Inc iPhone, and an iPhone discount at AT&T.

But the bet did not pay off as Sprint still saw defections of 101,000 net subscribers — also known as post-paid customers — compared with analysts’ expectation for losses of 15,000.

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Jobs Returns To Announce Apple’s New Product

Apple Inc CEO Steve Jobs returns on Monday to the stage at San Francisco’s Moscone center to unveil what investors hope will be the next source of growth for the world’s most valuable technology company.

Jobs, who has been on medical leave for several months and last took the stage in March to present the iPad 2, will announce the iCloud, a Web-based service that lets consumers stream music they bought to any Apple device, pitting it against rivals Google Inc and Amazon.com Inc.

That expansion into cloud computing is seen as necessary if the company is to stay competitive with increasingly popular open-sourced software, such as Google’s Android operating system, according to analysts and investors.

The iCloud has the potential to make Apple’s iTunes even more powerful, making it tougher for rivals to keep up, Sterne Agee analyst Shaw Wu said.

“It looks like Apple will likely offer some base service for free,” Wu said. “Competitors, including RIM, Google, Amazon and Microsoft already have a hard time competing with iTunes as it is, but we believe will likely find it even tougher with iCloud enhancements.”

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Skype Gives Asterisk The Boot

The Internet is buzzing with news that Skype is in the process of giving Asterisk the boot by no longer offering Skype for Asterisk starting in July.  Skype for Asterisk is proprietary software that was developed by Digium with Skype’s approval. The software was unique in that it allowed Asterisk based systems to join Skype’s VoIP Network. We assume this will not negatively impact current users for the next couple of years.

We wonder if Microsoft had a hand in killing this deal with Asterisk since they have a competing product.  One could also assume that Skype wanted to develop a native application and not use Asterisk for SIP implementations. I guess we will need the executives at Skype to fill us in on the details one day.

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Bill Had A Hand In Microsoft Buying Skype

One of the world’s richest people, Bill Gates had given his blessing for Microsoft to buy Skype for $8.5 billion dollars.  Actually, Bill Gates pressed other executives on the board of directors to support or back the idea of gobbling Sky which has yet to turn a profit.

Word on the street is that Bill told the Gates BBC in an interview which will be televised this weekend that he played an instrumental role in getting this deal approved by the board of directors. So this really squashes any rumors that Steve Ballmer was the force behind the deal getting approved by the executive team.

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Apple Outs Patch For Tracking Issue

As Apple promised last week in several discussions regarding its location tracking issues, iOS 4.3.3 addresses three bugs related to the database of location information on iOS devices. Firstly, it reduces the amount of the cached location information to a week’s worth, rather than relying on a size limit, as it previously did.

Secondly, it no longer backs up the cache to your Mac or PC via iTunes upon syncing, so the information isn’t available to anyone with access to your computer. And finally, the cache is now deleted from the device when Location Services are disabled in iOS’s Settings app.

Apple has also announced plans to encrypt the location information on iOS devices itself in the next major update to the operating system, which presumably means it will be incoporated into iOS 5.

The iOS 4.3.3 update applies to the iPhone 4, iPhone 3GS, iPad, iPad 2, third-generation iPod touch, and the fourth-generation iPod touch. Exceptions to this fix though, are the iPhone 3G and the second-generation iPod touch, both of which were supported by the original release of iOS 4 when the location database is believed to have been created but have since been dropped from compatibility. Also missing in action is the CDMA iPhone 4, although some reports have suggested that it didn’t log data in the same way as the GSM model.

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Google Employees May Get Xoom Tablets

Google employees may be getting new tablets, Motorola’s CEO said earlier in the week.

Speaking at a Morgan Stanley conference, Motorola CEO Sanjay Jha said it’s clear that his company’s focus on enterprise is paying off in that it is having conversations with companies wishing to buy tens of thousands of tablets. Motorola last week began offering its Xoom tablet, the first to run the Honeycomb version of Android, which was developed specifically for tablet devices.

When asked why those enterprises are choosing to go with an Android tablet rather than Apple’s iPad, Jha joked: “One of them is Google so I think I understand why that is.” Google may be more inclined to buy tablets running its own Android software rather than a device from competitor Apple. Read More…

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