| As with all Apple marketing, the iPhone marketing | | | | commercials. In recent television commercials for |
| strategy is very clear, simple and clever. With the | | | | the Apple iPhone, "There's an App for that" is the |
| plain and simple apple icon, Apple focuses on the | | | | new catch phrase that places a strong focus on |
| pure innovative style of their products without all | | | | the apps available from the App Store. Apps, or |
| the "fluff". The iPhone was released by Apple in | | | | applications, are in "every category, from games |
| June, 2007. The ground-breaking style of the | | | | to business, education to entertainment, finance |
| iPhone was touted for months before the initial | | | | to health and fitness, productivity to social |
| release and has remained the best of the best | | | | networking. These applications have been |
| when it comes to cell phones over the past | | | | designed to take advantage of iPhone features |
| several years. Before the iPhone's official release, | | | | such as Multi-Touch, the accelerometer, wireless, |
| Apple ran four television commercials promoting | | | | and GPS" (Apple, 2009). Apple currently claims to |
| the new cell phone. | | | | have 25,000+ apps available, and counting. |
| The first of the commercials portrays the new | | | | The focus on the variation of apps offered opens |
| iPhone as the next step up from the popular iPod. | | | | up the target audience greatly. There is essentially |
| The iPod was all the rage up until this point, and | | | | an app for everyone. As a few of the iPhone |
| the iPhone was supposed to be the | | | | commercials advertise, you can find the snow |
| next-generation iPod, oh, and it's also a phone! The | | | | conditions on the mountain, track calories in your |
| advertisement displays all of the enhanced | | | | lunch, find exactly where you parked your car. |
| features available in the iPod, and more, the point | | | | You can find a cab in a strange city, find your |
| being "There's never been an iPod that can do | | | | share of the bill for a table of 5, or learn to fix a |
| this." | | | | wobbly bookshelf. You can read a restaurant |
| "So, say you're watching Pirates of the Caribbean" | | | | review, read an MRI, or just read a regular old |
| Finger clicks on video and displays wide screen | | | | book. These are just a few of the features that |
| movie. | | | | Apple has promoted through television |
| "Mmm, did somebody say Calamari?" | | | | commercials. iPhone apps provide every |
| Finger clicks back to menu, selects Maps | | | | functionality that one can imagine. |
| application to search 'Seafood'. | | | | When the iPhone was initially released, it was |
| "The closest would be..." | | | | priced at a hefty $599. Still, hundreds of |
| Map displays all seafood locations and highlights | | | | thousands of people rushed out to get the new |
| location nearest to you. | | | | phone, forking over a third as much as they |
| "Ah!" | | | | would have had they waited an extra 3 months. 3 |
| Finger clicks seafood location, and restaurant | | | | months after the initial release, Apple reduced the |
| phone number displayed. iPhone dial's. | | | | price of the iPhone to $399. This enraged Apple's |
| The first four iPhone commercials flaunted the | | | | loyal customers and consumers who purchased |
| convenience, innovation, and usefulness of a single | | | | the new phone just months earlier. One year |
| product with the functionality of not only a phone, | | | | later, Apple again reduced the price of the iPhone |
| or a music device, but a product that can, among | | | | to $199, 66% less than the original price. |
| other things, listen to music, watch videos, view | | | | In July, 2007, the Apple iPhone was all the hype. I |
| photos, make conference calls, check e-mail, | | | | believe that Apple's decision to release the phone |
| browse the web, and view maps. | | | | at $599 was slightly based on greed. However, |
| Not only does Apple utilize television for their | | | | their product was the most innovative out in the |
| marketing strategy, but they make use of their | | | | market place, giving Apple the freedom to price |
| website by posting videos, they also published a | | | | the iPhone at whatever they wanted. Many |
| handful of press releases that could have been | | | | believed that Apple had cut the price after |
| released in one single document. Apple often uses | | | | discovering lower than expected iPhone sales. |
| this tactic to build up hype and leave the | | | | Apple, however, states that the price cut was |
| consumer wanting more. | | | | made "to spur holiday sales and predicted that |
| With Apple's brief press releases, giving the | | | | Apple would meet its stated goal of selling its 1 |
| audience little to go off, "Apple leveraged a law of | | | | millionth iPhone by the end of September." |
| social physics - news, like nature, abhors a | | | | (Dalrymple, 2007) |
| vacuum. In the absence of real information, those | | | | As with the product life cycle of any cell phone or |
| who care about a product will grasp at any rumor | | | | Apple product, including Apple's iPod, prices are |
| that comes their way. Apple may publicly disavow | | | | often reduced drastically months after the initially |
| the rumor Web sites that scramble for scraps | | | | release. Tech products are always competing |
| about the companies plans, but secretly their | | | | against "the latest and greatest" while maintaining |
| marketing department must be delighted. It would | | | | a relevant price in the market place. Had Apple |
| cost a lot to buy that kind of Web advertising." | | | | not reduced the price of the iPhone, the customer |
| (Silverman, 2007) | | | | base would have dwindled quickly as many |
| The official iPhone website does more than just | | | | consumers are unwilling to spend $599 on a cell |
| provide information about the product. The | | | | phone, no matter how many useful features the |
| website provides top tips and tricks for the use | | | | phone may carry. |
| of an iPhone, as well as a huge focus on apps. | | | | As the iPhone remains to be the number one |
| Almost the entire iPhone page displays images of | | | | smart phone around, the product continues to |
| apps, provides the "App of the Week," the | | | | grow, increasing size capabilities, increasing the |
| website also contains sections titled "Apps for | | | | number of applications available, and providing new |
| Everything," and the "Top Apps." Apple's website | | | | features that are released through new iterations |
| is a great marketing tool for current iPhone users | | | | of the phone, continue to provide a greater value |
| and consumers that have an interest in purchasing | | | | to the iPhone while the pricing remains relevant. |
| the iPhone. The promotion of the apps will create | | | | At this time in the product life cycle, Apple |
| a stronger source of revenue for Apple. As | | | | continues to release enhanced iterations of the |
| customers see top rated applications, they are | | | | iPhone. With most iPhone users un-willing to |
| more likely to download the app, rather than | | | | purchase a newer version of the iPhone because |
| searching through 25,000+ apps to find one that | | | | of price, the target audience for the newer |
| may be of any value to the consumer. | | | | generation phones is new iPhone customers. With |
| Successful younger men were the target | | | | Apple's installed base continuing to grow, they |
| audience that Apple had originally focused on. | | | | have found a way bring in reoccurring revenue |
| Apple had hoped that with this target audience, | | | | from their existing customers through the sales |
| and the fact that 48% of this audience did not | | | | of their application downloads. As more and more |
| already own an Apple iPod, would allow them to | | | | people purchase the iPhone, Apple's audience for |
| reach their forecast of 10 million sales by the end | | | | new customers continues to dwindle. Fortunately |
| of 2008. | | | | for Apple, they have built in another source for |
| One month prior to the release of the iPhone, | | | | revenue that continues throughout the life of the |
| Solutions Research Group profiled a cross-section | | | | product. |
| of those aware of the phone. The forecast of | | | | References |
| potential buyers for the day of the release | | | | (2009). Apple: iPhone. Retrieved April 26, 2009, |
| ranked a majority of T-Mobile customers, AT&T's | | | | from Apple |
| only GSM-based product competitor, at 15%. The | | | | Dalrymple, J (2007, Sep, 11). Lessons learned from |
| second largest group expected to purchase the | | | | the iPhone price cuts. PCWorld, Retrieved Apr 26, |
| new iPhone was AT&T's existing customer base, | | | | 2009, from |
| at 12%. The Solutions Research Group also found | | | | Silverman, D (2007, Jul, 10). Apple's silence helped |
| that 72% of males, versus 28% of women were | | | | the iPhone hype. Chron.com:Computing, Retrieved |
| most likely to investigate the phone at its | | | | Apr 26, 2009, from |
| minimum price of $499. (Malley, 2007) | | | | Malley, A (2007, Jun, 6). Apple, AT&T neophytes |
| The obvious current target audiences for the | | | | to define iPhone audience - report. AppleInsider, |
| Apple iPhone include young people between the | | | | Retrieved Apr 26, 2009, from AppleInsider |
| ages of 20 and 35, affluent teenagers, | | | | Website |
| "jet-setters", and "mobile" employees who work | | | | Mukherjee, A (2007, Feb, 28). iPhone under |
| outside of the office. | | | | attack. |
| Apple is known for their simplistic, but catchy | | | | |