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Why the iPhone Keynote Was A Mistake
jcatcw writes "Mike Elgan at Computerworld lists six reasons why it was a mistake to make the iPhone keynote at Macworld. He argues that extremely high expectations can only lead to disappointment for consumers and investors. The focus on the phone during the keynote also took away from the Apple TV announcement, put iPod sales at risk, gave competitors a head start, and (perhaps worst of all) ruined the company's talks with Cisco over the iPhone name. From the article: 'The iPhone, despite its many media-oriented virtues and its sweet design, will do far less than most existing smart phones. The problem Apple now faces because of Jobs' premature detail-oriented announcement is that of dashed expectations. When customers expect more and don't get it, they become dissatisfied.'"
I hadn't thought of the iPhone cannibalizing iPod sales. Seems as if they are forcing thier customers to pick on or the other: a lot of features (iPhone) or a lot of storage space (iPod). Perhaps if they offered a much larger capacity iPhone, they wouldn't have that problem. Of course, it'd be $1,000 or something...
Clearly I forgot to equip my +5 Codpiece of Karma.
The seemingly obvious explanation is that Steve Jobs needed a better negotiating position for something. So he announces it, gets a major media circus, half a billion eager buyers, Wall Street ready to punish anybody who doesn't jump on this product launch, and then goes back to his negotiating partner with a much stronger position.
It could be the 3G network - Cringely's written a bit about Cingular insisting on selling its own music store items over 3G, which is why Apple is on EDGE only. Maybe the iPhone trademark... he made a point of boasting about patents (read: patent suit). Maybe something else - I haven't finished watching the whole keynote yet.
Unappreciated gem from the Keynote - Jobs made the audience a point of showing them pictures of penguins on the iPhone. I don't think anything Jobs does these days is uncalculated. Oh, and Mach/xnu is slow...just sayin'.
My God, it's Full of Source!
OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
I was talking to someone pre-iPhone announcement about what cell phones should be.
One of the key features I wanted. make something that doesn't do all of those things I don't want but does the things I do want well. Phones have been developing crazy unusable features like mad for years.
Do less but do what you do well.
-- That which does not kill us has made its last mistake.
"He argues that extremely high expectations can only lead to disappointment for consumers and investors." In that case they shouldn't ever announce any cool products ever again. Seriously, what kind of logic is that? Apple makes cool things so people put unrealistic expectations on them. People do the same thing with Google, but Google still releases new services. The new stuff might not match the hype but Google and Apple can't change how much people obsess about them.
Apple is a public corporation and as such is supposed to put their shareholders first. Jobs announced an actual penetration target for the iPhone that some Wall Street analysts and investors are likely to take as gospel. The stock now has a lot of expectations baked into it. If Apple doesn't succeed wildly with the iPhone, the stock is likely to be punished severely as a result. The target is very aggressive based on pricepoint, lack of features, and Cingulair only distribution.
That's why it's not a good idea to set up such an aggressive target. In terms of Wall Street, they're better off under promising, and over delivering. Time will tell, but I think the article makes a lot of interesting, well thought out, and potentially valid points.
The announcement was fine. Given the breath of reports on this phone (competing phones, trademark disputes, other), to NOT make an announcement is to simply NOT CONTROL the perception of the news when it breaks. Seriously. I can respect that the author of this article sees problems with the announcement, but the benefits FAR outweigh the detriment. To miss that is to miss the point.
1. Cingular gets to gauge consumer interest
2. Customers can plan accordingly with respects to their phone agreements (big point)
3. Customers can plan accordingly with respects to their savings (medium point)
4. They answer HIGH expectations around a new iPod release (big criticism)
5. Accessory makers have 6 months to plan (avoiding the criticised "shock" effect)
6. Customers can educate themselves about product expectations
--And the list goes on. Wait until the phone comes out before prenouncing "what went wrong", especially if there's no indication that anything isn't going according to plan. 6 months is a long time. We're still in month 1. There'll be plenty of time to second guess this month 3-4 months from now.
I think the FCC argument is dubious, to be honest.
Apple needed to have their device approved by the FCC, who'd have made some details of the device public. However, Apple could have had a third party (for example, their manufacturer - Apple doesn't generally make their own products) enter the product, and from the point of view of people watching the FCC lists, all they'd have seen would have been a stylish touchscreen camera phone with EDGE and 802.11, coming from Hon Hai, a company not immediately associated with Apple. Even if people put the pieces together and assumed Apple was involved, the FCC would have published no details of the software, which arguably is the most important aspect of the iPhone concept, and the part Apple needed to keep secret.
Here's what I think. I think Steve Jobs got very excited about a product, far more so than he normally does, and felt MacWorld was the opportunity to reveal it. It's that simple. I think Jobs, in common with much of the media, has overblown the importance of the Apple communicator. It's an original machine, but then original phones come out every year. It's not innovative, in that it will not introduce a technology to a mass audience (the definition of innovative, which is not a synonym for inventive), it's too expensive for that, but it may end up influencing many devices to come. But ultimately, it's a very large phone that, nonetheless, has many nice features but none that the majority of people will see as worth the price tag and Cingular handcuffs, and it'll be relegated to the designer product niche.
Meanwhile someone will popularize the genuine advantages. They'll not produce a product that's as desirable, but it'll be "good enough" and much cheaper and more accessable, just as Microsoft/Commodore/Atari and Palm did to Macintosh and Newton respectively.
But I'm getting off the subject. The point is that Jobs became convinced that this was an important product. That's why it was presented at MacWorld. Not because of the FCC, not because of a lack of other products, but Jobs being overwhelmed with excitement.
You are not alone. This is not normal. None of this is normal.