Launched on 30th June to an eager US market, Apple aims to sell 10 million iPhones in 2008, which would amount to a 1 percent share of the global market.
Not bad for a new entrant with a high priced phone aimed at affluent trend-setters. If you read all the negative reviews regarding phone quality, touch-pad screen, battery life, wireless speed etc then you'd soon consider that it may not be something you'll fork out US$500 (NZ$650) for the base model. But lets take a brief look at its pros and cons from a brand view point...
A Spectacular Failure?
I particularly like Al Ries argument for failure. He points to an iPhone as a convergence device; compared to the iPod which is a divergence device. "In the high-tech world, divergence devices have been spectacular successes. But convergence devices, for the most part, have been spectacular failures." comments Ries.
How many of us watch TV or recorded movies on our mobile phone - very few; that's convergent product development. The real action in the TV market is the booming market for divergence products such as wide-screen LCD TVs.
A convergent James Bond do-it-all watch is reality now but we tend to choose specialist devices that do things well rather than one device doing many things poorly.
iPhone is not first in its category. Feature and benefit wise it offers nothing new over competitors. One of our core principals is 'narrow the focus to build the brand'; it certainly isn't doing that - it does everything (with critics saying that even its phone audibility is poor - you'd think that the quality of that component would be fundamental!).
Or a Runaway Success?
For all of these criticisms and despite the fact that some will prove valid, the iPhone will be a runaway success.
The Apple brand has developed from computers to music players and to mobile phones because it's known for "cool thinking".
Applying our 'Degrees of Focus' model, Apple is not confined to being a computer brand because its reputation is not based on 'what it does' (computing), but 'how it goes about it' (cool thinking). This powerful Apple attitude transcends 'features & benefits' and allows it to offer a broad range of products that deliver on its "cool thinking" reputation.
Apple are unleashing a mobile phone that will succeed because it looks great, it taps into an ever growing and improving mobile world, it's an original, it's a badge, because it creates passion-beyond-logic, because it's cool, because its Apple.
It may not be first in its category but before it was even launched it was first in mind. Apple aren't asking for global phone domination - they're targeting 1% within 18 months. Even if half the product shortcomings bear true, it will be a success - because this is not about a multi-featured phone, its about buying in to the culture and authenticity of an Apple.
