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    The Apple Ad Spend Mystery

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    Amit Srivatsa
    Amit Srivatsa Dec 2, 2016

    Advertisements! We see them everywhere we go – on TV, on Facebook, on billboards and even on our phones. They play games with our mind and tempt us to buy stuff that, very often, we don’t need.

    One of the greatest examples of this is Apple. There’s no denying the charismatic pull their giant billboards and creative television ads have on you. Each time you see one, your current smartphone or laptop feels like a major step down.

    Advertising is pivotal to the company’s success and they’ve always been candid about how much they spend on advertising. But this year, the company has decided to be not so forthcoming. They will no longer disclose how much they spend on advertising.

    Many pundits are speculating that Apple doesn’t want people to know they are spending more on advertising this year as compared to last year. For those who are curious, Apple spent upwards of $1.8 billion on advertising last year.

    I would assume Apple would be proud of this figure since it shows how well their company is doing. Besides, why would anyone judge Apple for spending more money on advertising? If anything, it proves that they are stepping up their game and not just their prices, proving that the company is trying to move forward.

    Their desire to keep ad spending a secret could be motivated by the fact that Apple is completing this year with their lowest margins since 2009. This suggests that people aren’t buying their products as much. This has led many to speculate that Apple may be spending more money on advertising to persuade consumers to buy their overly priced products.

    Still, this might not be the ideal solution for Apple. Though I am no genius, my suggestion would be shaving 50% off the prices for everything they sell. It is a sure-fire way of boosting sales.

    As brilliant as my suggestion is, it is not something Apple would do (heck, no company would, I guess). But the fact that they are presumably spending more on advertising alludes to the fact that they are feeling a bit of a pinch. A drop in sales was not expected and it is going to take some extra effort to push it back up again. A little imagination and innovation with regards to their products could help do the trick as well. Bringing the headphone jack back maybe, who knows?

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