And the iPhone Wins Again
the iPhone 3.0 (now, iPhone 3G S … however, the iPhone OS is going to version 3.0, so perhaps the title is still ok). Now that Apples’ WWDC has come and gone, and the dust has settled (for the most part), the press coverage makes it pretty clear that Apple has been able to pretty effectively execute on its differentiation strategy: First, the major complaints leveled against the iPhone have been addressed (a series of fairly commoditized features such as cut-n-paste, MMS, opening .ics files, etc.) Second, if we revisit the product revision options open to Apple pointed out in a previous post on Apple and BPM, it looks like they fired on multiple cylinders:We previously addressed the newest generation of iPhones in
- Lower the price on the existing units – the iPhone 3G’s price has been reduced from $199 to $99.
- Release a new, improved unit with the old (high) price – the iPhone 3G S has more memory, faster processing, better graphics, a better camera, somewhat improved battery life, tethering, MMS, etc.
- Release more varied looks with approximately current technical specs (e.g. the colored iPod Nanos, for example) – Nothing done on this front, this time around.
- Create new pricepoints with low-cost components – e.g. RAM. The new, improved iPhone carries higher pricepoints for a 16Gb and 32Gb version, which represent profitable upgrades for Apple, along with a fairly inexpensive camera upgrade (they are trailing the state of the art for phone cameras by enough that they aren’t paying much for innovation in that particular area).
- Improve the platform by adding new services or functions – the new iPhone offers the “find my phone” feature, video recording and editing, voice activation, etc.
- Change the pricing of services on the platform – Not too many changes on this front.
- Any combination of the above. Check.