The new Apple Watch: Rob Long doesn't need one, but like many of us he is going to buy one. Marcio Jose Sanchez / AP
The new Apple Watch: Rob Long doesn't need one, but like many of us he is going to buy one. Marcio Jose Sanchez / AP

The public wants what it doesn’t know it wants



‘If I had asked people what they wanted,” car-making pioneer Henry Ford is reported to have said, “they would have told me they wanted faster horses.”

His point is: don’t be too quick to believe what your customer is telling you. Don’t listen too closely to market research. People, when you ask them, will tell you which products they wish they had a few months or years ago. They’ll rarely tell you – because they can’t possibly know – what they’ll want next year.

Apple Inc, the company that informed us all, a few years ago, that what we really wanted was a larger iPhone, a pointless gadget they called an iPad – even though that was pretty much the last thing anyone on Earth either needed or wanted – conducted an enormous media event last week to announce another gratuitous product that we’ve all been commanded to covet: a clunky-looking watch with a small blocky screen and a weird-looking twisty thing on the side to control it.

It’s complicated and expensive and odd-looking and has no clear utility and, of course, I want one.

Apple doesn’t ask its customers what they want. Apple comes up with something cool and interesting and expects – no, insists – that Apple fanatics will line up outside its sleek and glittering stores to buy the first available versions of the Next New Thing. Which they do, setting off a cascade of buying by everyone else, until the very people who scoffed at the hype and rolled their eyes at the latest Apple gadget are seen in offices and boardrooms and airports with a MacBook Air synching with their iPad Mini while charging up their iPhone 5s.

Apple doesn’t trouble itself to investigate or measure its customers’ wants or desires. The hipster nerds who run the company assume, with justifiable arrogance, that the awesomeness of their products will just invent their own reasons for being.

If the secret to being a successful company is tossing out the marketing surveys and operating on instinct, why isn’t that a more popular business model?

Hollywood, which just suffered another lacklustre summer box-office season, with the number of moviegoers again drifting down, spends millions each year carefully testing themes, storylines and even different versions of the same movie.

It’s not unusual, for instance, for a studio to cut and recut a movie a dozen times – each time with a different opening sequence, a happier (or sadder) ending, more (or fewer) jokes, louder (or bloodier) explosions – and test it in front of audiences across the country in an effort to fine-tune the product and give the people what they want. This, as Henry Ford noted, is almost always “faster horses” and almost never “an iPad”. It explains why movie audiences are bored and unimpressed by what’s playing at the local cinema, and why movie studio executives are baffled because what’s playing at the local cinema is exactly what millions of dollars of market research told them would be popular.

The TV business, which is where I’ve worked for the past 24 years, has been throwing vast sums of money at this problem in much the same way. Broadcast television networks around the world do extensive market research on audience preferences, produce shows at enormous cost to match as closely as possible the scientifically measured audience tastes, and are then astonished when most of these offerings fail.

You can go broke giving people what they say they want. And you can get rich giving people what they don’t know they want yet. Audiences want to be surprised and delighted.

This is news to studio and network executives, perhaps, but anyone who has ever been married is familiar with the concept. As is anyone who has ever watched a presentation of new products by Apple – as I have, countless times – and wondered who the idiot is who is going to line up to buy the newest iPhone or the flatter iPad only to discover – as I have, countless times – that the idiot is me.

I’m not going to make the same mistake with the new Apple Watch. Its usefulness eludes me. I have no interest in a gadget that vibrates every time someone I know Tweets or sends a text message. I’m not concerned with my minute-by-minute heart rate, the phases of the moon, or three-dimensional emoticons. I can see zero practical value in the Apple Watch, but I’m not going to waste any time resisting it. Resistance is futile when it comes to Apple products.

Unfortunately, audiences find most of what comes out of Hollywood totally resistible.

Rob Long is a writer and television producer in Hollywood

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88 Video's most popular rentals

Avengers 3: Infinity War: an American superhero film released in 2018 and based on the Marvel Comics story.  

Sholay: a 1975 Indian action-adventure film. It follows the adventures of two criminals hired by police to catch a vagabond. The film was panned on release but is now considered a classic.

Lucifer: is a 2019 Malayalam-language action film. It dives into the gritty world of Kerala’s politics and has become one of the highest-grossing Malayalam films of all time.

Company profile

Name: The Concept

Founders: Yadhushan Mahendran, Maria Sobh and Muhammad Rijal

Based: Abu Dhabi

Founded: 2017

Number of employees: 7

Sector: Aviation and space industry

Funding: $250,000

Future plans: Looking to raise $1 million investment to boost expansion and develop new products

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Company%20Profile
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Jigra
Director: Vasan Bala
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
Rated: 3.5/5
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Gertrude Bell's life in focus

A feature film

At one point, two feature films were in the works, but only German director Werner Herzog’s project starring Nicole Kidman would be made. While there were high hopes he would do a worthy job of directing the biopic, when Queen of the Desert arrived in 2015 it was a disappointment. Critics panned the film, in which Herzog largely glossed over Bell’s political work in favour of her ill-fated romances.

A documentary

A project that did do justice to Bell arrived the next year: Sabine Krayenbuhl and Zeva Oelbaum’s Letters from Baghdad: The Extraordinary Life and Times of Gertrude Bell. Drawing on more than 1,000 pieces of archival footage, 1,700 documents and 1,600 letters, the filmmakers painstakingly pieced together a compelling narrative that managed to convey both the depth of Bell’s experience and her tortured love life.

Books, letters and archives

Two biographies have been written about Bell, and both are worth reading: Georgina Howell’s 2006 book Queen of the Desert and Janet Wallach’s 1996 effort Desert Queen. Bell published several books documenting her travels and there are also several volumes of her letters, although they are hard to find in print. Original documents are housed at the Gertrude Bell Archive at the University of Newcastle, which has an online catalogue.
 

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What should do investors do now?

What does the S&P 500's new all-time high mean for the average investor? 

Should I be euphoric?

No. It's fine to be pleased about hearty returns on your investments. But it's not a good idea to tie your emotions closely to the ups and downs of the stock market. You'll get tired fast. This market moment comes on the heels of last year's nosedive. And it's not the first or last time the stock market will make a dramatic move.

So what happened?

It's more about what happened last year. Many of the concerns that triggered that plunge towards the end of last have largely been quelled. The US and China are slowly moving toward a trade agreement. The Federal Reserve has indicated it likely will not raise rates at all in 2019 after seven recent increases. And those changes, along with some strong earnings reports and broader healthy economic indicators, have fueled some optimism in stock markets.

"The panic in the fourth quarter was based mostly on fears," says Brent Schutte, chief investment strategist for Northwestern Mutual Wealth Management Company. "The fundamentals have mostly held up, while the fears have gone away and the fears were based mostly on emotion."

Should I buy? Should I sell?

Maybe. It depends on what your long-term investment plan is. The best advice is usually the same no matter the day — determine your financial goals, make a plan to reach them and stick to it.

"I would encourage (investors) not to overreact to highs, just as I would encourage them not to overreact to the lows of December," Mr Schutte says.

All the same, there are some situations in which you should consider taking action. If you think you can't live through another low like last year, the time to get out is now. If the balance of assets in your portfolio is out of whack thanks to the rise of the stock market, make adjustments. And if you need your money in the next five to 10 years, it shouldn't be in stocks anyhow. But for most people, it's also a good time to just leave things be.

Resist the urge to abandon the diversification of your portfolio, Mr Schutte cautions. It may be tempting to shed other investments that aren't performing as well, such as some international stocks, but diversification is designed to help steady your performance over time.

Will the rally last?

No one knows for sure. But David Bailin, chief investment officer at Citi Private Bank, expects the US market could move up 5 per cent to 7 per cent more over the next nine to 12 months, provided the Fed doesn't raise rates and earnings growth exceeds current expectations. We are in a late cycle market, a period when US equities have historically done very well, but volatility also rises, he says.

"This phase can last six months to several years, but it's important clients remain invested and not try to prematurely position for a contraction of the market," Mr Bailin says. "Doing so would risk missing out on important portfolio returns."

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