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MONDAY, NOVEMBER 23, 2009
Lost Opportunity | How Apple got its strategy wrong
It wasn’t just the pricing that did iPhone in. Apple got everything--starting with marketing communication to the sales and distribution model--wrong, say analysts
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As a hardcore Apple fan, who has enjoyed mac's, ipod videos and iconic apple advertising, I made a conscious choice to avoid the Apple iPhone. Many Apple fans like me do not need to be sold on the iPhone 3G or Apple. There was enough press in foreign publications, gadget websites and blogs to create a buzz. However, Vodaphone and Airtel screwed it up for consumers. Apple's premise in US was 'double the speed, for half the price'. Consumers, atleast the Apple audience in India was aware of price points, speed, features and expected premium pricing, but not rip-off pricing. In India, with no 3G, and with the exorbitant pricing, the proposition that consumers were exposed to was flipped: Half the speed, double the price Most consumers would rather purchase a 'jail-breaked' version from Hong Kong or a south east asian market. I am sure, the sales of the grey market, gen 1 iPhone is a higher multiple than the 'official' iPhone 3g. Also, while they absolutely messed up on the pricing, they also messed up on the product. Indians until now, are not used to being restricted to a single carrier, atleast not on account of their phones. This is the first phone (barring CDMA, which locks you into a service provider), no other GSM phone locks you into a provider. So why would a consumer, pay double, be locked into a service provider, for a service (3g) that isn't likely to debut for another year? What were they thinking, all they needed to do was subsidize the phone to $299/ $399, if they want to lock a consumer. I am disappointed, Apple didn't use their usual clout to beat Airtel and Vodaphone down on consumer friendly prices. Next big thing for gadget freaks, the launch of the Google phone. Bye bye apple, welcome Google.
Sameer
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