Apple's Iphone Launch: a Case Study in Effective Marketing
Apple's iPhone Launch: A Case Study in Effective Marketing
Kyle Mickalowski, Augustana CollegeMark Mickelson, Augustana CollegeJaciel Keltgen, Augustana CollegeABSTRACT
When CEO Steve Jobs announced in January 2007 that Apple would be releasing a revolutionaryiPhone five months hence, consumers waited with bated breath for a phone that would deliver all the features of their iPods as well as a smart phone. Anticipation grew, just as Jobs knew it would, as Juneapproached. The launch would become one of the most heralded technological product splashes Apple,known for its masterful media build-up, had ever planned. How the iPhone was developed, priced, promoted, and distributed is lesson for marketers around the world. Apple investors were pretty happy withthe outcome as well.
INTRODUCTION
One year after Apple Inc. CEO Steve Jobs announced the company’s industry-changing iPhone onJanuary 9, 2007, at the Macworld convention in San Francisco, the share price of Apple’s stock has morethan doubled to a January 9, 2008, value of $179.40 (See Chart 1). This stock price incorporates all of Apple’s business, but a large part of the rise in value can be attributed to the launch of the cutting-edgeiPhone, of which four million have already been sold through mid-January 2008 (Carew, 2008). Based onthis simple observation of the stock price, the iPhone can so far be declared a success, at least from ashareholder standpoint. This paper will explore both the pre- and post-launch activities surrounding theiPhone to explain why it was such a success for the stockholders and why Apple’s reputation forunparalleled marketing success is deserved
5 One blogger (www.blogs.business2.com) was so interested in Apple's iPhone advertising schedule, he conducted a Nexis search for newspaper stories that mentioned the iPhone between June 23and August 18, 2007. During that timeframe, Apple had aired nine new TV ads. The week the iPhone waslaunched, 1,547 stories appeared in the media,
Kyle Mickalowski, Augustana CollegeMark Mickelson, Augustana CollegeJaciel Keltgen, Augustana CollegeABSTRACT
When CEO Steve Jobs announced in January 2007 that Apple would be releasing a revolutionaryiPhone five months hence, consumers waited with bated breath for a phone that would deliver all the features of their iPods as well as a smart phone. Anticipation grew, just as Jobs knew it would, as Juneapproached. The launch would become one of the most heralded technological product splashes Apple,known for its masterful media build-up, had ever planned. How the iPhone was developed, priced, promoted, and distributed is lesson for marketers around the world. Apple investors were pretty happy withthe outcome as well.
INTRODUCTION
One year after Apple Inc. CEO Steve Jobs announced the company’s industry-changing iPhone onJanuary 9, 2007, at the Macworld convention in San Francisco, the share price of Apple’s stock has morethan doubled to a January 9, 2008, value of $179.40 (See Chart 1). This stock price incorporates all of Apple’s business, but a large part of the rise in value can be attributed to the launch of the cutting-edgeiPhone, of which four million have already been sold through mid-January 2008 (Carew, 2008). Based onthis simple observation of the stock price, the iPhone can so far be declared a success, at least from ashareholder standpoint. This paper will explore both the pre- and post-launch activities surrounding theiPhone to explain why it was such a success for the stockholders and why Apple’s reputation forunparalleled marketing success is deserved
5 One blogger (www.blogs.business2.com) was so interested in Apple's iPhone advertising schedule, he conducted a Nexis search for newspaper stories that mentioned the iPhone between June 23and August 18, 2007. During that timeframe, Apple had aired nine new TV ads. The week the iPhone waslaunched, 1,547 stories appeared in the media,
Cited: Carew, Sinead. 2008. Apple says has sold 4 million iPhones. Reuters ¸ January 15.http://www.reuters.com (accessed February 9, 2008).Carton, Paul, and Woods, Jim Crum, Rex. 2008, Feb. 1. “Unlocked iPhones present dilemma for Apple.” MarketWatch com (accessedFebruary 13, 2008Dean, J Eisenmann, T., Parker, G., and Van Alstyne, M. 2006. Strategies for two-sided markets. Harvard BusinessReview, 92-101.Grossman, Lev. 2007, June 30. "I take the iPhone Home." Time .Jobs, S. 2007, September 6. "Steve Jobs ' Letter to iPhone Customers." The Wall Street Journal. McMains, Andrew. 2006, June 19. "TBWA 's Media Arts Lab Rebundles for Apple." Adweek , Vol 47, Issue25.Miles, Stuart. 2007. "Apple promises 3G iPhone for 2008 news." Pocket-lint , September 18.http://www.pocket-lint.co.uk/ (accessed February 9, 2008).Mossberg, W. & Boehret, K. 2007, June 27. "Testing Out the iPhone." The Wall Street Journal .Olson, P. & Laurent, L. 2007, November 9. "iPhones Land in London." Forbes.com. Reuters, 2007, October 3. 'O2 UK digs deep for iPhone."http://www.reuters.com/article/technologyNews/idUSl038246020071003(accessed February 12,2008).Rosmarin, R. & Greenberg, A. 2007, October 17. “iPhone Opens Up.” Forbes.com. Sharma, A. & Wingfield, N. 2007, June 15. "Is iPhone AT&T’s Magic Bullet?" The Wall Street Journal. Sharma, A., Wingfield, N., & Yuan, L. 2007, February 17. "How Steve Jobs Played Hardball In iPhoneBirth." The Wall Street Journal. Wingfield, N. & Sharma, A. 2007, June 29. iPhone ‘Surfing’ On AT&T Network Isn’t Fast, JobsConcedes. Wingfield, N. & Yuan, L. 2007, January 10. "Apple’s iPhone Is It Worth It?" The Wall Street Journal. Woyke, E. 2007, November 30. "Bonjour, iPhone!" Forbes.com. Yahoo, 2007. Chart 1, Apple stock prices.http://finance.yahoo.com/ (accessed January 9, 2008).Yuan, L. & Bryan-Low, C. 2007, January 10. "iPhone Hinges On the Likes of Mr. Digate." The Wall Street Yuan, L. & Sharma, A. 2007, June 7. "Rivals Answer the iPhone." The Wall Street Journal.