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iPhone…soon you will too

Posted in Media, Digital January 12th, 2007 by Stuart Aitken

“It works like magic”, said Steve Jobs announcing the imminent launch of the latest sure fire winner from the Apple stable. In theory the iPhone is a no-brainer. It will sync with iTunes, it has a 2 megapixel camera, and – as with anything Apple – it’s extremely stylish. No one does technology like Apple.

After months of speculation the new Jonathan Ives designed phone doesn’t flip or slide. Instead it dispenses with buttons and comes equipped with a proximity sensor. Serious stuff. The announcement was enough to send Apple’s shares jumping while the stock of rival phone manufacturers plummeted.

But this is perhaps not as cut and dried as you might imagine. The telecoms market is no push over. “The iPod changed everything in 2001,” said Jobs. “We’re going to do it again with the iPhone in 2007.” While in the early days, Apple made the MP3 market its own, it has recently come up against stiff competition from Sony and others. As it attempts to enter the already established mobile market with tough competitors like Nokia and Motorola to deal with, it may find the going a little tougher.

Indeed it was the growing strength of the mobile market that pushed Apple into the iPhone. If there was an air of inevitability to Apple’s announcement it is because mobile phones with built in MP3 players are on the rise and have begun to threaten the iPod’s dominance.

The move is symbolic of how reliant Apple has become on the iPod. Since the product’s launch in October 2001, Apple’s stock has risen from $7.44 to $85. The iPod has turned around the fortunes of a technology company that was previously considered to be struggling. But is Apple spreading itself too thin? The company is now ditching the word Computer from its name in recognition of the fact that it is moving more into the consumer electronics sector. But just how much of the company’s success is based around the iPod? Is there a danger that the company is becoming something of a one-trick pony? “Every once in a while a revolutionary product comes along that changes everything,” said Jobs. “It’s very fortunate if you can work on just one of these in your career”. The iPod was definitely that product. Can Jobs do it again? 

Whatever happens, it is crucial that Apple gets the marketing right. The iconic iPod imagery did much to propel the product into the public consciousness. Much rests on Apple’s ability to repeat this success with the iPhone.

Another thing is for sure, Apple will have to ensure that its product is ready when it is released. There can be no repeat of the teething problems seen when the iPod was launched. Consumers may grudgingly accept scratched screens and poor battery quality when applied to an MP3 player but things are different with phones where functionality is key.

Meanwhile, looking to the future, there is a danger that Apple is becoming too big, too corporate. The company may be the darling of the creative industries, but it is not without its detractors. Greenpeace for example has long been critical of Apple for its poor environmental record. The charity has had long running issues with the amount of toxic PVC in Apple products and the company’s unwillingness to participate in recycling programmes. Jobs’ inability to highlight green issues as a key concern at the iPhone launch led to further criticism from Greenpeace. Soon beautiful products will not be enough to win round consumers. Apple would do well pay attention to environmental concerns if it hopes to continue to be a major player in the years to come.