Deconstructing Apple’s iPhone Strategy
Tuesday, August 12th, 2008While the iPhone has an incredible number of fan(boy)s talking about it on the
Net, there is no dearth of articles criticizing it, either. The 2G version came under fire for not having GPS or a video camera — and for being 2G, of course. The 3G version now comes under fire for battery life, the kill switch, the app store, etc. If you were the product manager in charge of the iPhone, what would you do? What would you roll out and when? How would you balance the features, the price and the release timing to satisfy the clamoring crowds?

Whoever is making these decisions — my hunch: a guy wearing a black turtleneck and blue jeans and nothing so lowly as a product manager — has done a fantastic job. The first generation was aimed at the Apple fanatics. These are the evangelists, the first to buy every new Apple product at high prices and tell their friends about it. You have probably seen pictures of them lining up outside Apple stores. They serve as Apple’s test market, helping the company to recover development costs and reduce risk. That’s how Apple got away with pricing the phone around $500 initially. I’ll bet Apple knows exactly how many of these guys there are, where in the world they are located, what they want, and how much they are willing to spend. (more…)
















