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The Psychology The Psychology behind the iPhonebehind the iPhone
How does an over-priced How does an over-priced product with limited functions product with limited functions
become so successful, and become so successful, and have a devoted fan-base?have a devoted fan-base?
Technological Development – Ages of ManTechnological Development – Ages of Man
StoneStoneIronIron
CopperCopperBronzeBronze
SteelSteelSteamSteam GasGas
ElectricityElectricity SiliconSilicon
AnalogueAnalogueDigital Digital
CommunicationCommunication Post DigitalPost Digital
Nano Nano
Everyone’s a CriticEveryone’s a Critic
Technological DevelopmentTechnological Development
Speed of product innovationSpeed of product innovation
Almost unstoppableAlmost unstoppable
UnsustainableUnsustainable
Reflect pace of modern life?Reflect pace of modern life?
Determines pace of modern life?Determines pace of modern life?
Future ShockFuture Shock
Context of Technological DevelopmentContext of Technological Development
Do Gadgets make us “frantic” ?Do Gadgets make us “frantic” ?
The sexiest words are . . . .The sexiest words are . . . .
uuPPGGrraaDDee
ccooNNnneeCCtteeDD
Context of Technological DevelopmentContext of Technological Development
Steve Jobs announced Jan 2007 that Apple would sell a Steve Jobs announced Jan 2007 that Apple would sell a product called iPhone in the yearproduct called iPhone in the year
Born on . . .Born on . . .
iPhoneiPhone June 9June 9thth 2007 2007
iPhone 3GiPhone 3G July 11July 11thth 2008 2008
iPhone 3GSiPhone 3GS June 19June 19thth 2009 2009
iPhone 4iPhone 4 June 20June 20thth 2010 2010
Newton’s FailingsNewton’s Failings
Replaced disastrous Apple NewtonReplaced disastrous Apple Newton
Stylus basedStylus based
Handwriting recognition dodgyHandwriting recognition dodgy
Learn “new” alphabetLearn “new” alphabet
LatecomerLatecomer
Slow to enter marketSlow to enter market
Policy of wait and see . . . Policy of wait and see . . .
iPhone ReviewsiPhone Reviews
Luke warmLuke warm
Mixed at bestMixed at best
Good but could do betterGood but could do better
Still popular with Early AdoptersStill popular with Early Adopters
UK Gadget Sales in 2008UK Gadget Sales in 2008
24,000,000 new phones bought24,000,000 new phones bought
6,000,000 digital cameras6,000,000 digital cameras
13,000,000 PCs13,000,000 PCs
8,000,000 flat screen TVs8,000,000 flat screen TVs
7,000,000 MP3 Players7,000,000 MP3 Players
Consumer electronic sales up 3% on 2007Consumer electronic sales up 3% on 2007
The First 2.5 Years in the Life of the iPhoneThe First 2.5 Years in the Life of the iPhone
The First 2.5 Years in the Life of the iPhoneThe First 2.5 Years in the Life of the iPhone
iPhone Worldwide SalesiPhone Worldwide Sales
Units sold worldwide (Millions)Units sold worldwide (Millions)
iPhone MindMapiPhone MindMap
1. Functionality1. Functionality
CameraCamera2MegPixel (3G)2MegPixel (3G)No video, zoom or flash No video, zoom or flash (3G)(3G)
iPodiPodLimited song libraryLimited song library
EmailEmailDifficulty with integrated systemsDifficulty with integrated systems
Direct ManipulationDirect Manipulation BrowserBrowserPinch, Wipe, ZoomPinch, Wipe, Zoom No FlashNo FlashCopy & PasteCopy & Paste No JavaNo Java
SearchingSearchingSpotlight searchSpotlight search
Mixed bagMixed bag improvedimproved satisfyingsatisfying could be bettercould be better
Reasons for using an iPhoneReasons for using an iPhone
Three Clicks from AnywhereThree Clicks from Anywhere
The real success story of iPod functioning . . . The real success story of iPod functioning . . .
. . . Absent from the iPhone. . . Absent from the iPhone
BudsBuds
The other real success story of iPod functioning . . . The other real success story of iPod functioning . . .
Technically poorTechnically poor
Aesthetically greatAesthetically great
. . . Present with the iPhone. . . Present with the iPhone
2. Aesthetic2. Aesthetic
LayoutLayoutClutteredClutteredLimitedLimitedNo personalisationNo personalisation
Look n FeelLook n Feel““iPhone black”iPhone black”Fixed FontFixed FontCurvedCurvedSolidSolidHeavyHeavyPackage Package White wiresWhite wiresConsistent with iPod familyConsistent with iPod family
GoodGood consistentconsistent simple interfacesimple interface makes digital feel analoguesmakes digital feel analogues
PackagingPackaging
BoxBoxSimple Simple CleanCleanHonestHonestCulturally neutral Culturally neutral
GoodGood consistentconsistent simplesimple promises contentpromises content
3. Campaign3. Campaign
GlobalGlobalConsistentConsistentCreativeCreative““Apple White”Apple White”LogoLogoYoungYoung
Rides on the back of successful Apple workRides on the back of successful Apple work
Investing in a stable successful companyInvesting in a stable successful company
Buying into AppleBuying into Apple
FaultlessFaultless sophisticatedsophisticated anti-marketinganti-marketing antithesis of Microsoftantithesis of Microsoft
Content of iPhone AdvertsContent of iPhone Adverts
Steve and Bill’s Excellent Adventures . . . Steve and Bill’s Excellent Adventures . . .
Riding on the back of successful Apple campaignsRiding on the back of successful Apple campaigns
UK iPhone Advert Banned!UK iPhone Advert Banned!
ASA banned UK iPhone advertASA banned UK iPhone advert
Misleading speed of web connections Misleading speed of web connections
““You never know which part of the internet you'll need ...You never know which part of the internet you'll need ...which is why all the parts of the internet are on the iPhone"which is why all the parts of the internet are on the iPhone"
4. Exclusivity4. Exclusivity
Single network onlySingle network onlyCombined with trusted providerCombined with trusted provider
LoyaltyLoyalty
StabilityStability
CunningCunning exclusive for 2 yearsexclusive for 2 years end exclusivityend exclusivity reduced price of new modelsreduced price of new models
5. Applications5. Applications
Content is the futureContent is the future
On-demandOn-demand
External developersExternal developers
ExcellentExcellent individualityindividuality tailor madetailor made regenerationregeneration
Marketing AppsMarketing Apps
Ads for Apps more than iPhone itselfAds for Apps more than iPhone itself
How People use their iPhoneHow People use their iPhone
Locations where People use their iPhoneLocations where People use their iPhone
Demographic of iPhone UsersDemographic of iPhone Users
Cultural SignificanceCultural Significance
Variety of AppsVariety of Apps
Variety of AppsVariety of Apps
MockeryMockery
Personification of successPersonification of success
Cultural significance achievedCultural significance achieved
Flattery of iconic statusFlattery of iconic status
Still untarnishedStill untarnished roastingroasting envyenvy McDonaldizationMcDonaldization
Overdone & OverusedOverdone & Overused
Cool versus Functionality paradoxCool versus Functionality paradox
2 markets – iPhone & Blackberry - will converge2 markets – iPhone & Blackberry - will converge
Dilution of user-baseDilution of user-base
Product loses identityProduct loses identity
Users look elsewhere Users look elsewhere
iPhone Product FutureiPhone Product Future
iPhone Product FutureiPhone Product Future
Unquestionable loyalty (for now)Unquestionable loyalty (for now)
Network exclusivity deal ends in late 2009Network exclusivity deal ends in late 2009
Creative imagination of usersCreative imagination of users
200 plus patents in iPhone tech200 plus patents in iPhone tech
Pervasive monitoringPervasive monitoring
Embedded useEmbedded use
Touchscreen tablet Mac coming soonTouchscreen tablet Mac coming soon
10 Psychological Rules for Marketing an Apple10 Psychological Rules for Marketing an Apple
1. CEO must own the marketing function: no delegation
2. Marketing department must start small and flat and stay small and flat
3. Face-to-face with customers: direct interaction.
4. Use market research cautiously: prefer grassroots techniques
5. Hire only passionate missionaries
6. Love and respect customers as individuals, not as numbers
7. Create a community of consumers unified by certain brands
8. Rethink the marketing mix: e.g. short, targeted ad campaigns
9. Celebrate common sense and compete via different marketing ideas
10. Be true to the brand: brand integrity & quality
ConclusionsConclusions
A product launched to luke-warm reviewsA product launched to luke-warm reviews
A product lacking in many key featuresA product lacking in many key features
Despite this . . . the future still looks brightDespite this . . . the future still looks bright
But can only go one way from here. . . industry expert dissatisfactionBut can only go one way from here. . . industry expert dissatisfactionStill has wow factorStill has wow factorThe right sort of usersThe right sort of usersCool perception of usesCool perception of usesHealthy apps developmentHealthy apps developmentNeat marketingNeat marketingNot Microsoft Not Microsoft Analogue feelAnalogue feelAvoided ethical hiccups – manufacturing & exploding batteriesAvoided ethical hiccups – manufacturing & exploding batteriesGraduated product roll outGraduated product roll out
ConclusionsConclusions
1. The iPhone is pretty
2. It's touchy-feely
3. It will make other phones better
4. It's not a phone, it's a platform
5. It is but the ghost of iPhones yet to come
Weakest Links? - - iTunes & Battery LifeWeakest Links? - - iTunes & Battery Life
Poor interface. Poor Design. Syncing. Slow. CorporatePoor interface. Poor Design. Syncing. Slow. Corporate
Further ReadingFurther Reading
Apple Insider. 2007. Apple’s iPhone the No. 4 U.S. handset during third quarter. October 19. http://www.appleinsider.com (accessed February 9, 2008).
Burrows, P. 2008. Feb. 12. Inside the iPhone Gray Market. BusineesWeek.
Carew, S. 2008. Apple says has sold 4 million iPhones. Reuters.
Eisenmann, T., Parker, G., Van Alstyne, M. 2006. Strategies for two-sided markets. Harvard Business Review; 92-101.
Grossman, L. 2007. I take the iPhone Home. Time.
Olson, P., Laurent, L. 2007. iPhones Land in London. Forbes.com. (accessed November 9, 2008).
Wingfield N., Guth RA. 2005. Why Shortages of Hot Gifts Endure as a Christmas Ritual. The Wall Street Journal. December 2, B1.
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