Monday, September 10, 2007

My opinion about Apple's story about the Iphone, and how it is related to CRM (2)

I wanted to give you my reaction and thoughts about the Apple's price cut for his Iphone. This news has made the headlines those past days worldwide, and is very interesting on a customer relationship point of view.

So what happened? The Iphone's launch has probably created the most hyped product ever. A new phone that was mean to change the face of the mobile phone market. However, a lot of people were wondering about the price of the phone, $599, and also the $69 minimum monthly plan you had to own to get the phone.

But two months afterward, as Steve Jobs was launching his new ranges of Ipod, the CEO of Apple decided to abandon the 4Gb version of his Iphone, and also to cut the price of the 8Gb version of 30%, from $599 to $399. This cut has been announced to stimulate holydays sales.

Apple's product, especially Ipods, are used to decrease prices every 6 months, offering more memmory capacity at each new modell. It is also not uncommon to lower prices for christmas period... But the fact is that we are in the early September, we have not even entered in Fall. In my opinion, this cut shows that Iphones sales have not been as good as expected, and to try to keep back in track, Apple had to cut his price to touch new customer segments.

But the problem with this technique is that the early adopter that bought the Iphone at its launch feel like they are the dumb asses. They paid $600 a phone to show off two months ago, where as two months afterward most of the people can afford a $400 version.

More than feeling like the dumb ass, Apple's strategy is very bad on a customer relationship management point of view. Apple has a niche market, build around customers with a high affection for the apple brand. My information system teacher in Ipag said something very true. There are Windows users, and Mac's lovers. I will hard to find windows customers loving the Microsofts software.

To calm the anger of its early adopters that bought the first versions of Iphones, Steve Jobs had to offer a day after his announcement a $100 credit to this clients. But who said these disapointed clients want to buy Apple's products anymore?

These clients have been higly deceived by apple. They thought they could keep their technology and coolness supremacy. The highest the affection the brand is, the highest the disapointement is.

Will this story hit Apple? That is for sure, even though some of its clientele will still love its products. But what is sure, is that the Iphone is not a success, and will have trouble fighting a probable Google phone, that would be way cheaper, and because it will deal with professional mobile phone company (people who has an expertise of the market), focusing on the OS,

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