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Tuesday, June 19, 2007

iPhone: Great Product or Great Marketing?

I'm not an Apple fanboy. I don't know Steve Jobs. Hell, until today I didn't own anything Apple related (iPod), but Apple's iPhone marketing group has got me drooling. Maybe its the geek in me that has me clamoring for a nifty new gadget, but its been a long time since a new toy has gotten my attention like this.

Apparently, I'm not the only one. MarketingVOX points to this report that says 64% of mobile phone users are aware of the iPhone and apparently 19 million mobile phone users are interested in buying one. While those numbers look really good there is one problem. AT&T.

AT&T has a five-year exclusive on the device in the US, but 67 percent of those who were most inclined to purchase an iPhone are subscribers on other carrier networks. This raises some questions that maybe some of you have input on.

Why would Apple limit their market by signing an exclusive deal with AT&T?
Is it Apple's marketing or the product that has everyone drooling for an iPhone?
And finally, How long before we can find unlocked iPhones?

By Matt O'Hern at 07:06 PM | Comments (5)

(5) Thoughts on iPhone: Great Product or Great Marketing?

I believe AT&T has a two-year exclusive on the device and not the 5 you stated.

I know that one of their features, the ability to listen to voicemail by choosing the order similiar to reading email is only offered by AT&T atm.

Is it Apple's marketing or the product that has everyone drooling for an iPhone?

I think it's both. Unfortunately AT&T has the opportunity to ruin this device if service is poor or data plans are overpriced or perform poorly.

I honestly believe that the success of the iPhone depends on AT&T's service and ability to deliver data decently on their network.

Best regards,


Comments by Heath Snow : Tuesday, June 19, 2007 at 08:14 PM

Heath, Thanks for your input. I double checked and it is 5 years but I do agree the AT&T service (or lack thereof) could be the downfall or more likely stunt the growth of the iPhone.

Supposedly AT&T beefed up their network throughput in order to handle the requirements of the iPhone but I'm not sure I really believe that.

Comments by Kevan : Tuesday, June 19, 2007 at 10:11 PM

It will be the service (lack of) that will cause this to fall flat on its face - seems like anything with an 'i' in front of it gets people worked up:

What next? iTV, iPC...

Comments by Simon Chapple : Wednesday, June 20, 2007 at 07:48 AM

As is usual with new products for me, I'll sit on the sidelines with the iphone for now. It looks like it will be a cool product, but I'll let the "early adopters" check it out, break it in, and publicize the quirks/problems before I jump in and spend $500+. I guess I'm just conservative when it comes to spending money on new gadgets.

But I'll certainly give Apple credit in that they have solid, consistent, and intriguing marketing, but they also seem to produce products that set themselves apart from the competition. So to answer your question-- I think it's a combination of great product and great marketing.

Comments by Mike : Wednesday, June 20, 2007 at 09:06 AM

Mike, I am with you on this. I've always been a 2nd generation guy rather than an early adopter but Apple has me highly interested. If it wasn't AT&T only, I'd seriously consider getting one.

And MarketingBlog. There is an AppleTV and iMac already ;)

Comments by Kevan : Wednesday, June 20, 2007 at 09:27 AM

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