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iPhone Marketing Strategy.
The Apple iPhone is an outstanding product.
The iPhone is at least 5 years ahead of the
competitors. The touch user interface and the
sleek and beautiful design by Jonathan Ive and
his team make it a true masterpiece of technology
and design. the iPhone is not only a mobile
phone, it is a product in between a mobile phone
and a laptop computer. Even calling it a smartphone
is not enough.
After many rumours and speculations which started
as early as in 2006, the first generation iPhone
was launched in the US on June 29, 2007.
The second generation iPhone, the iPhone 3G,
has been launched on July 11, 2008.
The iPhone enters a market - the market of mobile
phones - a market which is mature, and saturated.
Nonetheless, Apple has been able to develop
a revolutionary product, and to change the paradigm
in the mobile phone market. Apple did great
on the product side, no doubt. However Apple
has done some serious mistakes in the marketing
of the iPhone.
Mistake #1 - The iPhone Pricing at market launch.
Apple made a big marketing mistake in 2007,
by reducing the iPhone retail price from $599
to $399 - a 33% rebate - after only 3 months
from the initial product launch. This way the
iPhone early adopters - and Apple most faithful
costumers have rightfully felt being betrayed
and exploited.
A great company must not do so serious and bad
mistakes, betraying their most faithful customer
base.
They had other 3 better options:
They could have waited 6 more months before
reducing the price of the iPhone, or they could
have delayed the iPhone launch for 3 months,
or they could have decided to price the iPhone
at $399 since the initial launch.
and since July 2008, the iPhone 3G is sold at
$199, 50% less than the September 2007 price,
66% less than the launch price of just one year
earlier.
Mistake #2 - Forcing costumers in signing with
AT&T as exclusive carrier and the revenue
sharing business model.
It has been a greedy and wrong marketing strategy
on the side of Apple. Result: slowing down the
sales of the iPhone. 3.3 million iPhones were
sold in the US until Dec 29, 2007, but only
2 million contracts were signed with AT&T.
Were did the remaining 1.3 million iPhones go?
Mistake #3 - the Apple iPhone and the Europe
markets
The US makes 300 million inhabitants.
Western Europe makes 350 million inhabitants,
more than the whole US.
On June 29, 2007 the iPhone was launched in
the US.
Only in November 2007 the iPhone was launched
in some European countries. To be precise only
in 3 countries: UK, Germany and France. In each
of these country with the same stupid and self
hammering business model used in the US, and
in each country with a different carrier: O2
in the UK, T-Mobile in Germany, Orange in France.
Now, only on July 11, 2008, one full year later,
the iPhone has been launched in several other
European countries, as Italy, Spain, Switzerland,
Austria, Ireland, Denmark, Norway, Sweden, Finland,
Netherlands, Belgium.
Why so late?
It gets interesting to see the jam and confusion
of prices, terms and monthly fees charged by
the many different carriers in Europe: O2 in
the UK, T-Mobile in Germany, Austria and Netherlands,
Orange in France, Swisscom in Switzerland, Vodafone
in Italy, Telia Sonera in Denmark, Norway, Sweden,
Finland.
The iPhone
3G Price in Europe
On July 11, 2008 The iPhone has been launched
also in other key countries worldwide: Australia,
New Zealand, Canada, Japan, Mexico, Brasil.
In conclusion: a great lesson from Apple on
how to undermine a great product adopting a
stupid, greedy and self hammering marketing
strategy.
iPhone sales data.
Apple is always reluctant to give detailed data
about sales of their products. These are the
bare data which can be determined:
3.3 million iPhones were sold in the US until
Dec 29, 2007.
A total of 350,000 iPhones were sold in UK,
Germany, France until Dec 29, 2007.
A total of 6 million iPhones have been sold
worldwide in the first year, until June 9, 2008.
iPhone news update:
Apple has sold 1 million iPhones 3G in the first
three days after launch, between July 11 and
July13, 2008. The data are in line with the
estimates.
Gene Munster, Analyst at Piper Jaffray, estimates
that Apple will sell 4 million iPhones 3G in
the first quarter.
AT&T, Apple's exclusive U.S. partner, said
that most of its 2,000 stores were out of supplies
and that it expected new inventory within days.
Carriers in the UK, Germany, Canada and Japan
said many shops ran out of the iPhone 3G on
the first day.
Of interest:
iPhone
2008 Tv ads
iPhone
2007 Tv ads
Apple
Marketing Strategy
Apple
Communication
Apple
Tv Ads
"I am a Mac I am a PC"
Apple
vs Microsoft
Apple
Marketing in Europe
iPod
Marketing Strategy
iPod
Competitors
iPod
Manufacturing and Outsourcing
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