Monday, July 14, 2008

Reviewing Apple iPhone's strategy


Is Apple the next Microsoft?

There are comparisons to be made, nerdy figure heads aside, but what does their similar company strategy do to their brand and staunch loyalty of their fans?

The new Apple iPhone has been released in Australia and despite the glitz and glamor of this wonderful product extension (or hybrid if you will), the reviews are coming back that it is falling short in many basic areas. If you have the time read Gizmodo's iPhone review, their stuff is excellent.

For those that can't spare a couple minutes to peruse another blog, the summary is that the iPhone lacks basic functions:
  • MMS
  • Video recording
  • Custom ringtones
  • Mass storage
  • Fully functioning Bluetooth with stereo audio streaming
  • Voice dialing when you're using a car kit
  • Sending contact info to other people
  • Instant friggin' messenging
  • Sending an SMS to more than one recipient at a time
So is the key learning that the iPhone is a dud?
Nope. Strategy. Sure they spent plenty of time and money on R&D, but can you honestly believe they could simply forget to put in such basic features? This is a classic 'Microsoft-esk' product composition strategy.

Why would anyone make a perfect product? Sales growth comes from replacement, time and time again. Replacement comes from either:
  • Organic damage
  • In-built defectives
  • Product becomes superseded
Josh Strawczynski's Opinion
Apple are going to release program updates to deal with the major customer complaints. It is essential to offer a great version 1 of your product. They will not however fix all the bugs and feature holes. Instead it is in their best interest to release a new phone every 12 - 24 months with slightly increase functionality and software packages.

There are readers out there who just love Apple and would never question their motives. Let me tell you something for free, every company is looking to make money at the end of the day. They won't sell you a lemon, but they will ensure that you repurchase...soon.

Sam Berringer's Opinion
I love my iPhone, but that lack of functionality is killing me. I now carry two phones around to do the job of my previous one. GRRRRRRRRR

Apple: Please release version 2 so I can rush out and buy that!

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