Apple Inc (AAPL)

[langostino]

Enderle on iPhone and Leopard

http://www.ecommercetimes.com/story/57883.html

True, Enderle's generally a relatively clueless Softie apologist and Mac basher, but I think this segment on iPhone is actually pretty close the mark -- and for once, seems not to be a Mac hatchet job. He lauds Apple's marketing of the iPhone while dumping on Zune as a "train wreck" and worst-in-class marketing to boot. Says he thinks iPhone will be a long-term winner, but says it will be future versions that matter. I think he's hit that nail on the head.


"iPhone: Generation One Warning

Apple -- and most technology companies -- has a bad history with respect to generation one products. As I've mentioned before, HP is now largely staffed by ex-Apple people, and I had a long chat with one last week about why Apple, in particular, is this way.

According to him -- and he is now one of HP's divisional CTOs and one of the folks who was on the original Mac team -- Steve Jobs doesn't believe in market research, focus groups, or anyone else's opinion about a product. He does believe in sales, and if sales suck, then he will listen to recommendations on how to fix the darned thing.

While it often is the product manager/owner and not the CEO who exhibits behavior like this, it isn't uncommon. For instance, before Zune was announced, Microsoft's leadership ignored plenty of information indicating that it would be a train wreck. Many still argue Zune was a success, suggesting the reality distortion field is hardly unique to Apple.

Still, this means that the first version of a product from Apple -- and most of the technology vendors -- generally is too expensive and too limited, is relatively unreliable, and, well, sucks when compared to the products that will come in the following versions. I've started referring to the iPhone as the "Paris Hilton of cell phones," which I'm sure both Apple and Paris Hilton appreciate.

I do believe Apple has a winner here, but not with version one. It has too many problems, and Apple is evidently rushing a version two to market. That version will likely address many of the shortcomings of the first, including price. If Apple does get it right, it will be follow-on products that will meet the expectations set by Apple's market-leading -- much like what happened with the iPod (the first version was incredibly unreliable).

If you are in marketing, you should compare an iPhone ad to a Zune ad; in five minutes, you will see one of the best and worst examples of marketing in this segment.
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