Apple iPhone

Summer 2007 was a big hit for the Apple community, with the launch of the much-anticipated iPhone. After only 74 days on the market, Apple reduced the price. According to Piper Jaffray’s Gene Munster, “Apple and AT&T (T) were selling an average of 9,000 iPhones a day before the price reduction, which would have put their quarterly sales at 594,000 as of Sept. 5.”

The Apple case is a great example of the Four-Part Public Relations Process, because the research was done efficiently. The questions such as: How much should we charge? When should we launch the iPhone? Should we drop prices in time for Christmas shopping season? were answered. During the planning phase, which is the second part of the process, Apple hyped the phone to be revolutionary. They then, planned the launch and during the communication phase, Apple launched the phone. With much advertisement under their buckle, Apple sat back and collected the revenue. In an effort to increase the buying potential for Christmas, Apple cut the price of the iPhone by $200.00. “In an open letter to iPhone owners, CEO Steve Jobs today promised a $100 store credit to anyone who bought an iPhone from either Apple or AT&T prior to yesterday’s $200 price cut.”

The friction between the utilitarian and a communitarian is truth. Apple hyped the iPhone up to be a new technological revolution. Although Apple never commented on how long the phone would be at a premier price, consumers thought there would be a longer period of time before the priced dropped. The time period why alone is the reason early adopters are so angry. The effect of this decision cost Apple their stewardship, because the brand experience was tarnished. Apple is not portraying their company in an approvable manner.

I can see both sides of the issue, but all in all, iPhone was out for a profit and made it. This case staudy is a great example of a utilitarian's view. If this is not there goal, then I would have waited longer to do a price cut.

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