Technology and Business Law Blog

Steve Job’s Marketing Strategy

Did I say that I closed the loop on the Apple iPhone saga, sorry not quite… Steve Jobs also said — sorry that he had to slash the price of the super duper gadget, here you go, for you suckers I will give you back $100, as a store credit. It did pacify a lot of people.

Steve being the savvy marketing guy that he is, actually is only getting back the $100 and more which the early iPhone adapters and wannabe cool people stood in line for (and felt so good doing that) and paid $599, because when these people go back to an Apple store it is most likely that they will end up spending much more than $100, for there is really not many things that one can buy for $100 except for the iPod shuffle and few accessories, even their back to school backpack costs $99.95! Also if someone paid $599 to be an early adapter they surely will be tempted to splurge some more.

So here is Steve Jobs seemly magnanimous and caring but what it really boils down to is good PR plus more money in Apple’s coffers.


September 7, 2007 Posted by | Apple, Marketing, Steve Jobs | Leave a comment

iPod Touch, iPhone or Gphone

Walk down any street or look into almost car driving around and you will notice that most people in the street or in their cars are talking on their mobile phones ( you no longer can say “excuse me, do you know this address or do you have the time?”). Walk into most homes today and you will see that almost each occupant has a laptop/desktop and the homes have wireless network and spend most of their time at home in front of the computer. Seems like in this age of interaction mobile phone devices and social networking sites have taken over our lives and that is why the media is obsessed with gadgets like iPhone and one social networking site or the other.

Keeping with the trend I would like to close the loop on my blog yesterday about the iPhone. With the iPhone having all the features of the iPod Touch except that the iPod Touch has more storage for music and is real sleek it is quite pricey at a 8Gbyte version costing $299 and a 16Gbyte version costing $399, and with the price cut the new iPhone will also be $399, so you in essence have the iPod and phone in the iPhone, so do you need an iPod Touch?

The announcement of the price cut generated a flurry of hate emails directed at Apple and Steve Jobs to appease the early buyers has agreed to give a $100 store credit for the iPhone if it was purchased from an Apple store or an AT&T wireless store. I had written in my previous blog that these early buyers will probably be feeling stupid, now all this hate and unhappy email confirms it. Maybe Apple cut the price a bit too soon before the sticker shock of $599 wore off for these people who needed to get it so bad, but most electronics goods prices drop every 6 months to a year and also the companies come out with better versions of the same, so this should be a lesson in delayed gratification.

All this aggressive marketing by Apple has placed Palm and Motorola at a loss of sales of Treo and Razr2, both of which did not have the “iPhones cool appeal”. Read here, Better than iPhone: 8 Mobile Handsets That Outclass Apple.

After the price cut and the fact that one can hack the iPhone and not just have to use AT&T as an exclusive carrier for the iPhone, it might be tempting to buy one but wait till Google comes out with it’s Gphone which might be better and cooler than the iPhone.

September 7, 2007 Posted by | Apple, AT&T, Gphone, iPhone, iPod Touch, Razr2, Treo | 2 Comments