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