Reality Check | Ephraim Schwartz » Apple iPhone demonstrates the value of brand

September 06, 2007 | Comments: (0)

Apple iPhone demonstrates the value of brand

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The value of brand is incalculable.

Consider that Apple entered the extremely crowded cell phone handset market and became a major player overnight.

Stats coming in for July sales of Apple iPhones put them as the market leader for the month.

I don't think you can over estimate the significance of brand when you read statistics like that.

The truth is the Apple brand name gets its value from other products that offer a combination of design and utility hard to match in either high tech or, with the iPod, consumer electronics.

But in an industry, telecommunications, where the major players, Nokia, Samsung, Motorola, refresh their lines every six months with dozens of new flashy cellular handsets it is nothing short of amazing that Apple, as a newbie in the market can command both the respect of its competitors, who now claim they have an iPhone killer, and customers who were willing to pay quite a premium to be one of the first to own an iPhone.

Of course some of those customers may be having some regrets now that Apple announced a whopping $200 price reduction just two short months after it was launched.

Nevertheless, I can't think of another brand that has successfully entered a new market with similar success. Neither can I imagine a company that could get away with a huge price reduction so soon after launch.

Kudos have to go to the engineers and industrial designers who were able to leverage past triumphs and create another winning product that adds even more luster to the brand.

With such a string of successes I wonder what Apple might build next?

Posted by Ephraim Schwartz on September 6, 2007 09:29 AM

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