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,
was launched in July 2008.
The third generation iPhone, the iPhone
3GS, has been launched in June 2009.
The iPhone has entered 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
A great company must not do so serious and bad
mistakes, betraying their most faithful customer
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
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 between June andl December 2007,
but only 2 million contracts were signed with
AT&T. Were did the remaining 1.3 million
Mistake #3 - the Apple iPhone and the Europe
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
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,
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
The iPhone 3GS.
In June 2009 Apple launched the
The iPhone 3GS has a 3 megapixel autofocus camera,
video recording and editing capabilities, voice
control, longer battery life, 7.2 Mbps HSDPA
internet connection. iPhone 3GS is twice faster
than the iPhone 3G. The iPhone 3GS prices: $199
for the 16GB model, $299 for the 32GB model.
more on the new iPhone 3GS on the iPhone
iPhone Sales Data.
Apple is always reluctant to give detailed data
about sales of their products.
A total of 33.75 million iPhones had been sold
worldwide until the $th quarter of 2009. Of
these, 11.3 million 3G iPhones have been sold
between July 11 and December 27, 2008.
Previously a total of 6.1 million first generation
iPhones had been sold in US, UK, Germany and
From these data it comes that, in spite of the
serious marketing mistakes done by Apple, the
iPhone has been a huge success.
The new Apple Tablet, the iPad - iPad
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