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June 25, 2007 2:14 PM PDT

Apple basks in iPhone buzz

As iPhone Week dawns, one thing is clear: marketing is a lot easier--and cheaper--if you let other people do it for you.

Some day business students will look back at the first half of 2007 to learn about Apple's best marketing campaign ever, and maybe one of the best ever in American business. The iPhone will finally arrive on Friday after six months of up-to-the-second coverage from even local television types who think the EDGE network is the channel next to VH1.

What did Apple do to mount that campaign? Not much. It simply introduced the iPhone in January with one of CEO Steve Jobs' patented dog-and-pony shows, bought ad space during the Academy Awards to say "hello," and only within the last few weeks started a broader ad campaign.

Say what you want about Apple, its products, its leader, and its fans, but the company has figured out how to appeal to consumers like no other company in technology--and with a smaller marketing budget than companies like Intel, Microsoft or Hewlett-Packard. Apple has perfected the art of buzz during the Internet's second act, Web 2.0.

"They simply do a masterful job of capturing the imagination of just about everyone," wrote Jim Lattin, a professor of marketing at Stanford University's graduate business school, in an e-mail interview.

Traditional ways of reaching potential customers are changing rapidly, as any newspaper employee will tell you. Some companies have plunged headlong into a new media frenzy, setting up shop inside virtual worlds such as Second Life or trying to create "grassroots" viral video campaigns.

"It's easy to get the tech enthusiasts to line up but the mass market consumer, that's another story."
--Michael Gartenberg, Jupiter Research analyst

But a passionate, almost evangelical base of supporters makes any marketing campaign easier. Apple's reliance on a horde of loyal fans thirsty for information is the catalyst for its marketing.

Usually, Apple likes to announce its products and start the marketing effort very close to the actual date those products are available, if not the same day, said Ross Rubin, an analyst with The NPD Group. That wasn't an option this time around, since the Federal Communications Commission posts information on its Web site about phones that it approves for sale, denying Apple the opportunity to control the way people first learned about the iPhone, he said.

Instead, Apple launched the product with a minimum of information, and since January loyalists have flooded Apple-oriented blogs such as AppleInsider, The Unofficial Apple Weblog or MacRumors.com, searching for any scrap of information related to Apple and the iPhone.

Gadget blogs such as Engadget and Gizmodo stoke the fire further with their acerbic takes on the Apple universe. Engadget actually caused a brief plunge in Apple's stock in May when it reported, and then retracted, a story that Apple was planning to delay the iPhone until October.

That was a sure sign that any information related to Apple, and especially the iPhone, is being scrutinized by fanboys and Wall Street investors like perhaps no other product launch. Larger Web sites and media outlets see intense demand for iPhone-related traffic heading to other sites, and are compelled to follow suit.

Apple is launching the iPhone at a time when content aggregation sites like Digg, Techmeme, and even Google News can put a potential customer before hundreds, if not thousands, of possibly interesting stories about the product. All Apple has to do is trickle out information every now and then, as it has done in the weeks leading up to Friday's launch, and watch the frenzy take hold.

Traditional marketing isn't dead yet, however. Apple has been running several television commercials of late on major broadcast and cable networks showing off the user interface of the iPhone, and influential reviewers for dead-tree repackaging outlets such as The Wall Street Journal's Walt Mossberg and The New York Times' David Pogue are likely to devote their Thursday columns to the iPhone.

A two-phase approach
That's because there are two phases to Apple's marketing. It has to satisfy its loyal audience that loves Apple's design aesthetic with ads showing off those capabilities. But to really "revolutionize" the mobile phone industry it also has to win over the broader market, those folks who may own an iPod but are still using an inexpensive phone that came along with their carrier contract because they aren't e-mail addicts dependent on a BlackBerry or Treo.

Apple isn't going after the current smart phone market of business users. It's focusing on regular people who probably don't own a smart phone by emphasizing that the iPhone is a music player, a pocket-size Internet access device, and a phone--with e-mail as just another add-in, Rubin said.

Those people aren't likely to be wowed by speeds and feeds, which Apple has judiciously avoided including in its marketing messages in favor of slick videos that highlight the way an iPhone user checks voice mail, watches videos or browses the Internet.

"It's easy to get the tech enthusiasts to line up, but the mass market consumer, that's another story," Jupiter Research analyst Michael Gartenberg wrote on his blog last week. The last time he could recall consumers--not gamers revved up over new consoles--but regular people lined up for a technology launch, was Microsoft's launch of Windows 95 more than a decade ago.

But Apple appears to have succeeded in attracting the interest of those folks, as lines are forecast to appear at Apple stores around the country. Competitors and those in other industries are attempting to figure out exactly how Apple managed to accomplish that, but in Rubin's mind, it's very simple: when people want what you're selling, it's easier to sell it to them.

"For years, before the announcement of the iPhone, there had been a tremendous amount of speculation and expressed interest from Apple's customer base for a phone by the company," he said.

Now Apple has to make sure that buzz doesn't backfire once people get their hands on the device, and a full accounting of its capabilities and limitations can be complied. After all, some very successful marketing campaigns haven't translated into successful products. A separate set of business students could one day be studying how to manage consumer expectations for a first-generation product if the iPhone fails to deliver.

See more CNET content tagged:
Apple iPhone, Engadget, Apple Computer, fan, blog

Add a Comment (Log in or register) 86 comments (Showing first 20 comments)
The Media = Steve Jobs Neutered Poddles
by john55440 June 25, 2007 3:53 PM PDT
Apple doesn't need a marketing department. Steve Jobs Neutered Poodles in the Media does the company's marketing for them.
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I'm a Fan Yes, but it is about the Product
by dansterpower June 25, 2007 4:08 PM PDT
I am 20 year Apple Junkie, yes.

I use them to make my living in publishing, internet, and
marketing.

I've got my Vista, XP, and 2000 boxes, but really, it does come
down to better products that are easier to use, and more reliable
-- I spend less time working and more time playing.
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iPhone
by cook54po June 25, 2007 6:58 PM PDT
iPhone is a revolutionary new mobile phone that allows you to make a call by simply pointing your finger at a name or number in your address book, a favorites list, or a call log

http://www.iphone-converter.org/convert-iphone/
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Its not always Apple's marketing thats sells the product.
by ServedUp June 25, 2007 7:34 PM PDT
People who say its the marketing and glitz that sells Apple's
products couldn't be more wrong. Its actually quite simple.
It takes hardwork and a lot of planning! Period. I find it amusing
how all these articles try to dissect why Apple is doing so well.
The marketing has very little to do with it. Its probably last on
their list. I would think Apple would believe that once they've
finish making a great product the marketing becomes the fun &
easy part. You only need to have worked in a marketing dept.
to know this.

The hardwork actually requires a great idea, a hardworking
talented R&D department and talented hardworking engineers.
People keep skipping Apple's R&D. I don't know why?
I believe marketing is essential but having a great product to
market, makes it even easier.

If Apple didn't feel the iPhone was such a great product. I don't
think they would be putting all this effort going into the launch.
You only need to look at the Mac, Apple TV and Mac OS X as to
where Apple is placing there importance.

Funny though, that the article mentions Microsoft's Windows 95
campaign without getting into too much detail on why it was
successful. It wasn't Microsoft's R&D that made Windows 95 a
hit. Apple was Microsoft's R&D department then, and still
remains today with VISTA and ZUNE being me too products
milking OS X and the iPOD. The only innovation Microsoft did
with Windows was it created the Start button, had a catchy song
in "Start me Up" for their campaign and desperate Japanese PC
vendors begging to put their not so perfect GUI on their
hardware. And the rest they say is history..

Its ashame that their the industry leader, with such mediocrity
they spew.
Reply to this comment View all 2 replies
iPhone mania
by feranick June 25, 2007 7:48 PM PDT
I am fed up with all this buzz about the iPhone. OK, it is going to be the revolutionary, the next big thing. But unless this thing solves real problems (global warming, world peace), it should be regarded as a tool, regardless how good it is. People worshiping this thing and its producer, is to me beyond comprehension. Again, I am not complaining about how good the phone is (it looks great as far as I am concern), but I cannot bear any more all this talking and talking. I hope Friday will come soon, so people will get their new baby, get excited over the weekend, and finally move on with their lives, so the rest of us can finally get over the tiring effects of this iPhone-mania.
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Is buzz just setup for backlash?
by purpleshorts June 26, 2007 3:30 AM PDT
I'm sure the first iPhone will be great, and the next version even
better. I am a Mac person. But I find all the praise ("Apple's best
marketing campaign ever, and maybe one of the best ever in
American business") a little disturbing. Is this Apple's marketing
campaign we are talking about, or is it the media-obsessed
media?

What is the intent of all this news coverage and build up?
Expectations are being raised in an unsettling way. Could it be
intended to create a backlash next week after the product is
released? It's like one of those movies (think Da Vinci Code, or
Star Wars I) that is written about obsessively, has a huge
expectations on opening day, and then crashes and burns.
Perhaps the hype will lead to disappointment, with another flood
of articles about how we were tricked, etc.

I hope it is just Apple's innovative design that has got all these
journalists writing about each other writing about Apple. Best
marketing ever in the history of America? More like "we can
make you, we can break you."
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Think different?
by Repère June 26, 2007 4:43 AM PDT
Ooooh, THE iphone is here. Battery sucks but you cannot change it (never mind). Only connects to the slow EDGE network (who cares? It?s so pretty). 599 dollars (well, it?s a Steve Job? product, Sir). Screen seems to get damage really fast (yeah, but, but, it?s big!) Morality: a typical Apple product, nice, fancy, expensive, limited, fragile (remember the Cube, anyone?), innovative only in the gadgets, not bad but not really ?different? either. I see a rapid sale start (fanboys), and then, once the limitations and defaults come out, not much. Again: remember the Cube, anyone?
Reply to this comment
An iphone will be nice!
by bureauguy June 26, 2007 7:06 AM PDT
As always....when I read the comments on CNET, the M$ fanboys
are spewing their rabid, jealous, froth-at-the-mouth anti-Apple
crapola....and what's so humorous is they have probably never used
an Apple product (which is usually the case!). But that's OK....I will
be using one of the world's most technically advanced phones
(yes....an iphone!) while they continue spouting their jealous, anti-
Apple banter.
Com'on guys.....quit Apple bashing....we all know that deep
down...you want an iphone too!
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I-N-T-E-G-R-A-T-I-O-N
by jmdunys June 26, 2007 7:29 AM PDT
The iPhone is a champion of integrated applications.

Other phones have some or most of the iPhone's features, but it is much harder to work them all together. I've got a super Vodafone Windows Mobile phone. I don't use 3G (very expensive), but wi-fi as much as I can. Calendar, notes, and email are very important too. On every phone I used (Nokia, Samsung, Sony, HTC, Motorola, etc.) phone/application integration is not very easy at best.

The iPhone promises a good and easy user experience.

Furthermore, I use my Windows mobile in a corporate-like environment, and on top of Office stuff, I use VNC and RDP, although Java implementation sucks. Nevertheless, in all honesty, 100% of all corporate needs (email, calendar, mobile IM, etc.) will be covered by the iPhone combined to Leopard server.

Safari is only the bait for every user, Leopard server is what is going to give the iPhone full credibility in a corporate environment.
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AT&T's faith in the iPhone
by Vegaman_Dan June 26, 2007 8:20 AM PDT
On Saturday while flipping channels in the morning I came across CNN doing a technology interview with an AT&T representative who had been brought onto the show to talk about the iPhone. It was interesting.

They spent a couple of minutes talking about the release, but not about the features or plans. When asked about what the plans would cost, the representative kept trying to avoid the subject, but admitted there would be a slightly higher charge in all services for the iPhone over their other handsets.

The interviewer kept asking more about the iPhone but the AT&T rep instead started talking about their new video to video feature where you could stream video from one phone to another directly. 3 minutes on the iPhone, 20 minutes on this new video feature.

When the interviewer asked about this being on the iPhone, the rep said no, the iPhone didn't have anything like that, but hey, most of the other AT&T phones in their lineup have this nifty new feature!

It didn't look good for CNN to invite AT&T to come talk about their new iPhone and instead they hyped the video feature of all their other handsets and pretty much ignored their own new iPhone product and refused to talk about pricing plans.

Make what you will of that.
Reply to this comment
Apple, AT&T Announce iPhone Service Plans
by bureauguy June 26, 2007 8:26 AM PDT
http://www.pcmag.com/article2/0,1895,2151014,00.asp
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Will Be an Initial Hit...
by ZuneChannel June 26, 2007 8:43 AM PDT
...but, the buzz will fade as quickly as it arose. Looks like a long-term winner, though.

Gene from ZuneChannel.com
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Loosers = Iphone buyers
by Sea of Cortez June 26, 2007 9:31 AM PDT
Sea of Cortez

That is all I can say about people who would buy Iphone set aside stand in a line to do so.

Because who but a brain dead looser would want to look at the web via a 3inch screen! If you want to actually surf/use the web, you need at least a 12-inch screen. And if you want a cell phone, then u don't need to pay $600 for it, set aside stand in the line.

Iphone = more Big media Silicon Valley hype
Reply to this comment View all 3 replies
Phone plans are actually pretty good...
by crue24 June 26, 2007 2:50 PM PDT
First, wow, I can't believe how heated everyone is. I know these
things always turn into mac vs. windows, but this is nuts. So the
guys that buys a Porsche is an idiot because the Vette is faster
and cheaper. If you can find a way to pay for it and you enjoy,
have fun, whatever it is. How can you hate something so much
when you've never even touched it?

I agree the buzz is crazy, but that's the media, not Apple. It's
news articles all over the place, not ads. So why hate apple over
the media writing about every stupid story, (as if anyone cares
that one display company had a problem so apple is buying
more of its displays from someone else).

On to my actual point: the phone plans are a good deal, for
Cingular anyway. My Treo that I'm replacing is 39.99 for 450
minutes and 39.99 for unlimited data and those are the current
rates. So 450 minutes and unlimited data for $60 is $20 saving
a month. And for the earlier poster, data and voice are seperate.
I have been with AT&T since they were originally ATT&T and
then became Cingular and are now AT&T again so I'm very
familiar with there billing. Anyway, point was, they definitely
aren't sticking it to the iPhone customers, in fact it sounds like
they are cutting them a break, unless of course they are
planning to reduce their unlimited data plans to $20 for all
products. My guess though is that they are making a nice profit
on the phone and are using this incentive to help convince user's
to make the switch. It could be could for all because from what
I've seen the other carriers also charge around $40+ for
unlimited data ON A SMARTPHONE (regular phones have cheaper
unlimited data plans). Could lead other carriers to reduce their
unlimited data plans to compete.

Based on my last observation, if it happens, all you iPhone
haters should be thankful for the "piece of junk" iPhone. It just
might lower your monthly data plans on your Treo/WM/
whatever.

And for what its worth, I have a Treo 680. I like it, but it's a little
bulky. Interface is friendlier than Windows mobile and
blackberry in my opinion (I have a Pearl for work), but I can't
resist the iPhone. Must be that evil Apple marketing dept
brainwashing me!

Chill out people, it's just a phone. A cool one that I plan to get,
but nothing worth hating. I don't hate Treo's or blackberry's,
why would you hate the iPhone? It sucks because it's getting too
much media hype?
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Wrong market?
by tombinitaly June 26, 2007 5:25 PM PDT
All the cool things that the IPhone does are, well, cool. But the
voice/data plans Apple has put together with AT&T look like
high-end plans oriented towards business. They are clearly
not.cool.

I wonder if there might be a disconnect between Apple's
coolness and ATT's distinctively un-coolness.

The obvious question is: what is the demographic Apple is
targeting in its marketing? And how much resistance have they
had in marketing their device when linking up with such an un-
cool company as ATT/Cingular? (I'd love to have been a fly on
the wall for those negotiations.)

AT&T/Cingular is the largest GSM provider in the US, so the
IPhone will work (presumably) world-wide. (I assume it's at least
tri-band if not quad-band.) So when Junior runs out of money in
Europe or Khatmandu, there will be an easy (if not inexpensive)
way to I-Phone home.

The big disconnect here is that ATT's core high-end cell phone
business is, well, business. And the plans they have put together
for the I-Phone are, well, expensive.

My son is on his third I-Pod, but he's still on our AT&T/Cingular
shared family plan. I can't imagine him ponying up for the sort
of data plan that would let him watch skateboarding bulldogs on
I-Tube just so he could make calls on the same device.

I also suspect that the sort of people who subscribe to high-end
data plans aren't the sort of folks who'll be selling a house to
some schmuck in Passaic while flipping through their I-Tunes
library.

The news is full of people camping out in front of Apple stores
to get this phone. I wonder how excited they'll be when Apple's
partner takes title to their first-born child.
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Walt Mossberg after 2 weeks use....
by bureauguy June 27, 2007 7:44 AM PDT
"We have been testing the iPhone for two weeks, in multiple
usage scenarios, in cities across the country. Our verdict is that,
despite some flaws and feature omissions, the iPhone is, on
balance, a beautiful and breakthrough handheld computer. Its
software, especially, sets a new bar for the smart-phone
industry, and its clever finger-touch interface, which dispenses
with a stylus and most buttons, works well, though it sometimes
adds steps to common functions.

The Apple phone combines intelligent voice calling, and a full-
blown iPod, with a beautiful new interface for music and video
playback. It offers the best Web browser we have seen on a
smart phone, and robust email software. And it synchronizes
easily and well with both Windows and Macintosh computers
using Apple's iTunes software.

It has the largest and highest-resolution screen of any smart
phone we've seen, and the most internal memory by far. Yet it is
one of the thinnest smart phones available and offers impressive
battery life, better than its key competitors claim."
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Please answer this question: WHY?
by Kings X Rocks! June 28, 2007 5:22 AM PDT
The elite in society MUST evidence this by:
- spending a lot for their things
- buying the "fab" stuff
- elevating themselves in their own eyes
- literally looking down on those less fortunate

Why do Apple owners purposefully try to come off like this?

Apple makes great stuff. Their user-interface(s) are refined and practical.

Windows OS is surely a wannabee from way back...BUT...can promote equal productivity, in the right hands.

The defining asset of an OS is NOT it's succeptibility to malware/being compromised...it's a freaking PERSONAL CHOICE by the person using it.

Now, let's all hold hands and sing "Que Sera, Sera".

:-)
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