INSIGHTS
The Lessons of iPhone Mania

Grossman adds, "It's also the best phone that anybody ever made." Even though he says it sounds like a sales pitch, his overall assessment of the Apple iPhone is simple: "This thing is a marvel."

David Pogue, The New York Times tech guy, agreed. The iPhone is "the most sophisticated, outlook-changing piece of electronics to come along in years."

The iPod All Over Again

While the critics complain about the iPhone not having a video camera (just stills), a battery that cannot be removed (the same as the iPod) and, of course, a high price at its release date (US$500 and $600), most of the criticisms are not only minor, but irrelevant.

Just as Apple touted its Mac as a "computer for the rest of us," the iPhone is the cell phone for those who hate cell phones. Almost instantly, the iPhone became the standard by which consumers judged all other cell phones, even though most people had not held an iPhone in their hands. Overnight, BlackBerries seemed antiquated and Treos were viewed as clunky and irrelevant.

Every cell phone on the market is being compared with the iPhone. It's the iPod all over again. In spite of Microsoft's (Nasdaq: MSFT) efforts, it can't move its Zune MP3 player beyond a 15 percent market share. No one ever said, "I've just got to have Zune," notwithstanding the fact that it receives very good ratings.

Lessons in Launching

Even as the iPhone introduction continues, one can uncover some interesting marketing and sales messages.

1. Have a clear vision of where the customer is going. Apple has always been a customer-focused technology company, and its genius is Steve Jobs. He recognized that computers were so complicated people needed to be trained to use them. Thus, the Mac was born. Even during the "wilderness years" when Jobs was away from the company, some of that vision continued. However, it wasn't until he returned that his vision juiced the company's creativity.

   It wasn't just the incredibly brilliant design of the iPod that sold 100 million units. It was the vision of the music player plus the music itself that made it work, all brought together by the iTunes software. That's what the customer wanted.

   The iPhone is an extension of the vision. Jobs understands that convergence is the key, that the customer wants everything in one handheld unit -- computer, music, video, messaging, Internet and cell phone. The desktop computer is in steady decline as laptops climb in sales, as smaller replaces bigger.

   Will all communication and computing fit in the palm of our hand? Undoubtedly. Will Apple deliver it? A survey might just suggest that Apple -- rather than Microsoft -- has the upper hand, at least at this moment.

   By the way, does anyone really believe that Dell's (Nasdaq: DELL) pink (or any other color) laptops are the answer to boosting sales? Consumers' views are colored by their experience with products and service.

2. Don't do everything at once. No one seems to understand the concept of the "never-ending rollout." Product introductions are almost always one-time events that soon fade from memory. It's even a bit difficult to recall a particular product rollout without making a concentrated effort.

   The first iPhone announcement came in January 2007, although rumors had been around for several years. Then, just about 24 hours before the iPhone went on sale, Jobs reportedly said that the Mac computer coming out over the next year would be "off the charts." While most marketers would have said that it was the wrong time to introduce another product, Jobs used it to ignite even more buzz. Then came more buzz when it was announced that the iPhone would be available outside the United States. However, that wasn't all. The critics labeled the iPhone a "consumer" product, and a number of corporate IT people said that iPhones were not on their agenda, raising the furor of countless employees. Apple's announcement of enterprise software created more excitement.

   Here's the point: Employee demand will open corporate America's door to the iPhone, and it won't cost Apple a dime, although the rolling rollout only works if the product or service lives up to the buzz.

3. Overcome customers' reluctance to making a change. Bambi Brannan, a moderator at Mac 360 Forum, opened her June 28, 2007, commentary this way: "Apple's iPhone marketing and promotion may go down in history as text classic -- Best. Campaign. Ever. ... You are witnessing history in the making."

   However, that's not all. Apple understands that most companies ignore what's so painfully obvious. We all have what seems to be an almost innate reluctance to change, other than the 7 percent or 8 percent of us who are inveterate "early adopters."

   Apple stores are the classrooms. Just because we may hate our cell phones doesn't mean we'll automatically shell out $500 or more for an iPhone. Our experience with cell phones doesn't allow us to jump so quickly.

   Apple understands. Thus, the company announced just before June 29, the day it released the iPhone, that beginning the next day, all 164 stores would be offering "free in-depth workshops, so customers can get the most out of their new iPhones. They will also have access to free iPhone support ... and personal training." You could walk in or schedule an appointment via the Internet and take your computer or iPod in without charge to have an expert work on it for you -- free.

   Taking the fear out and putting customers at ease is a key to the Apple experience. Going to an Apple store is part of the experience. Whether as a new customer or a veteran with the products, there is an interesting feeling of belonging, something that is found in few other places. One person likened entering the store to going to church. The next time you walk by an Apple store, think about that.

4. It's all about emotion. No matter what American automobile manufacturers do, they can't break loose from discounting prices to increase sales. If there is an exception, it's Chrysler's Jeep. Its break-free, go anywhere image lies deep within the American psyche.

   A colleague who drives a Pontiac G6, a highly rated American-made car, once commented that he aspires to own a Toyota Camry. Ironically, the Camry is now the all-American car, an association once reserved for Ford and Chevrolet. Remember the 1970s advertising jingle of "baseball, hot dogs, apple pie and Chevrolet"? Today, Camry carries that emotional cachet.

   As John Martellaro wrote in a recent edition of The Mac Observer, "People who feel attracted to a device have more of an interest in learning about it." So, one of Steve Jobs' product evaluation criteria, according to Don Norman, an interface expert who worked at Apple in the 1990s, is a user experience document.

   Whether it's an iPod or a Mac computer, it's the experience that drives the product.

   Some dismiss Apple customers as cultists, irrationally devoted to the company and its products. That's inaccurate, although, as a Mac user since 1984, I freely admit to being passionate about Macs. And why not? They are fun. In effect, Apple has never strayed from the task of creating a pleasurable and satisfying experience for its customers that produces excitement. This basic quality is expressed not only in Mac computers; it is the heart of the iPod, and now the iPhone.

Imperfections Aside

There's more to the iPhone story, of course. Nothing is perfect, even the iPhone. Reviewer Grossman offered a few improvement suggestions and then added, "Cold fusion would be great too, but you know what? Nobody cares. Steve Jobs has said, repeatedly, that this is the best iPod that Apple has ever made, and it is. It's also the best phone that anybody has ever made." If it's true that Apple has sent every other smartphone manufacturer back to the drawing board, then every consumer wins.

Among the thousands of comments that appeared online and in the press during the iPhone launch week, one seemed to capture the moment. San Francisco-based tech consultant Daniel Eran Dilger wrote, "The iPhone is simply the most incredible piece of consumer hardware I've ever touched. ... The iPhone simply embarrasses my own expertise, which I am usually loath to admit."

If we can learn anything from all this, it's that price is no barrier to products and services that allow customers to do what they want, perform intuitively and are fun to use.