On Friday June 29, the Apple iPhone became available for sale at AT&T and Apple stores. The news showed customers waiting in line to buy this device. Even here in Rochester, NY as I drove by the AT&T store, a news crew was filming the line outside the store.
What is the buzz about the Apple iPhone? Let's take a look at the marketing mix.
Product -- According to the description on the AT&T site, the iPhone combine three amazing products- a mobile phone, wide screen iPod, and a breakthrough internet device--into one small, lightweight, hand held device with the best e-mail ever on a mobile phone, full screen with browsing, multi touch screen, and applications. It does look cool and is innovative but does it deliver on the hype? Several reviews have been published, check them out to learn more on features and performance.
2- Businessweek.com's web exclusive Steven Levy's, At Last -the iPhone
3- USA Today's Edward Baig's Apple's iPhone Isn't Perfect But It's Worthy of the Hype
Blackberry and Treo users are not willing to give up their devices for now. The iPhone doesn't seem to be equipped for enterprise systems right now. Read more in a Businessweek.com article, Making the iPhones Better for Business.
Place -- AT&T is the
exclusive carrier for the iPhone. What is novel about the phone service activation
strategy is that consumers sign up for AT&T cellular services via
the internet on iTunes. Phones are sold in AT&T stores, Apple retail stores, and Apple online store. Typically carriers make all the decisions on
phone prices, how phones are marketed, and which services to offer.
This time Apple defined the 16 services that the iPhone has and of
course the sign up method on iTunes instead of through AT&T.
Promotion-- Typically Apple announces new products very close to the time when the product is available for sale. Not this time-the iPhone hype has been buzzing for about 6 months when the iPhone announcement was made at Mac World. The halo effect from its popular iPods will have a positive effect on some consumers' perceptions of the iPhone. Apple had kept advertising to a minimum since the announcement in January. According to Apple Insider, TB WA is the new agency of record handling the iPhone campaign.
Price -- The iPhone 4 GB version sells for $499 and the 8 GB version sells for $599. Monthly phone service charges start at 59.99 and you have to sign up for a 2 year service agreement. Read a Businessweek.com article, Taking the iPhone Apart to learn about a tear down analysis that estimates what it costs Apple to make the iPhone.
How have sales been for the iPhone? Analysts estimate that during the first weekend of sales, between 500,000 and 700,000 phones were sold. Apple plans to sell 10 million phones in 2008. Only time will tell if the iPhone meets Apple's sales and revenue expectations.
I had the chance to visit an Apple store to check out the iPhone. It is a a cool looking device. The touch screen and icons were easy to use and it was lightweight. For those consumers that are innovators and early adopters and are willing to pay the price-- the iPhone may be the right device.
In my opinion, I was enticed by the user interface but the price point is too high for me and I have other devices that have similar features. What do you think about the iPhone? Do you own an iPhone or know someone who owns one?
Comments