The Psychology
behind the iPhone
How does an over-priced
product with limited functions
become so successful, and
have a devoted fan-base?
A critical review
Prof. Craig Jackson
craig.jackson@bcu.ac.uk
Head of Psychology Division
BCU
Technological Development – Ages of Man
Stone
Iron
Copper
Bronze
Steel
Steam
Gas
Electricity
Silicon
Analogue
Digital
Communication
Post Digital
Nano
Everyone’s a Critic
Technological Development
Speed of product innovation
Almost unstoppable
Unsustainable
Reflect pace of modern life?
Determines pace of modern life?
Future Shock
Context of Technological Development
Do Gadgets make us “frantic” ?
The sexiest words are . . . .
uPGraDe
coNneCteD
Context of Technological Development
Steve Jobs announced Jan 2007 that Apple would sell a
product called iPhone in the year
Born on . . .
iPhone
June 9th 2007
iPhone 3G
July 11th 2008
iPhone 3GS
June 19th 2009
iPhone 4
June 20th 2010
Newton’s Failings
Replaced disastrous Apple Newton
Stylus based
Handwriting recognition dodgy
Learn “new” alphabet
Latecomer
Slow to enter market
Policy of wait and see . . .
iPhone Reviews
Luke warm
Mixed at best
Good but could do better
Still popular with Early Adopters
UK Gadget Sales in 2008
24,000,000 new phones bought
6,000,000 digital cameras
13,000,000 PCs
8,000,000 flat screen TVs
7,000,000 MP3 Players
Consumer electronic sales up 3% on 2007
The First 2.5 Years in the Life of the iPhone
The First 2.5 Years in the Life of the iPhone
iPhone Worldwide Sales
Units sold worldwide (Millions)
iPhone MindMap
1. Functionality
Camera
2MegPixel (3G)
No video, zoom or flash (3G)
iPod
Limited song library
Email
Difficulty with integrated systems
Direct Manipulation
Pinch, Wipe, Zoom
Copy & Paste
Searching
Spotlight search
Browser
No Flash
No Java
Mixed bag
improved
satisfying
could be better
Reasons for using an iPhone
Three Clicks from Anywhere
The real success story of iPod functioning . . .
. . . Absent from the iPhone
Buds
The other real success story of iPod functioning . . .
Technically poor
Aesthetically great
. . . Present with the iPhone
2. Aesthetic
Layout
Cluttered
Limited
No personalisation
Look n Feel
“iPhone black”
Fixed Font
Curved
Solid
Heavy
Package
White wires
Consistent with iPod family
Good
consistent
simple interface
makes digital feel analogues
Packaging
Box
Simple
Clean
Honest
Culturally neutral
Good
consistent
simple
promises content
3. Campaign
Global
Consistent
Creative
“Apple White”
Logo
Young
Rides on the back of successful Apple work
Investing in a stable successful company
Buying into Apple
Faultless
sophisticated
anti-marketing
antithesis of Microsoft
Content of iPhone Adverts
Steve and Bill’s Excellent Adventures . . .
Riding on the back of successful Apple campaigns
UK iPhone Advert Banned!
ASA banned UK iPhone advert
Misleading speed of web connections
“You never know which part of the internet you'll need ...
which is why all the parts of the internet are on the iPhone"
4. Exclusivity
Single network only
Combined with trusted provider
Loyalty
Stability
Cunning
exclusive for 2 years
end exclusivity
reduced price of new models
5. Applications
Content is the future
On-demand
External developers
Excellent
individuality
tailor made
regeneration
Marketing Apps
Ads for Apps more than iPhone itself
How People use their iPhone
Locations where People use their iPhone
Demographic of iPhone Users
Cultural Significance
Cultural Significance
“Podification”
Hooverization – “podcast” is generic term for “download”
Hamburger status
Gadget Porn
“Stuff “
Variety of Apps
Variety of Apps
Mockery
Personification of success
Cultural significance achieved
Flattery of iconic status
Still untarnished
roasting
envy
McDonaldization
Overdone & Overused
Cool versus Functionality paradox
2 markets – iPhone & Blackberry - will converge
Dilution of user-base
Product loses identity
Users look elsewhere
iPhone Product Future
iPhone Product Future
Unquestionable loyalty (for now)
Network exclusivity deal ends in late 2009
Creative imagination of users
200 plus patents in iPhone tech
Pervasive monitoring
Embedded use
Touchscreen tablet Mac coming soon
10 Psychological Rules for Marketing an Apple
1. CEO must own the marketing function: no delegation
2. Marketing department must start small and flat and stay small and flat
3. Face-to-face with customers: direct interaction.
4. Use market research cautiously: prefer grassroots techniques
5. Hire only passionate missionaries
6. Love and respect customers as individuals, not as numbers
7. Create a community of consumers unified by certain brands
8. Rethink the marketing mix: e.g. short, targeted ad campaigns
9. Celebrate common sense and compete via different marketing ideas
10. Be true to the brand: brand integrity & quality
Conclusions
A product launched to luke-warm reviews
A product lacking in many key features
Despite this . . . the future still looks bright
But can only go one way from here. . . industry expert dissatisfaction
Still has wow factor
The right sort of users
Cool perception of uses
Healthy apps development
Neat marketing
Not Microsoft
Analogue feel
Avoided ethical hiccups – manufacturing & exploding batteries
Graduated product roll out
Conclusions
1. The iPhone is pretty
2. It's touchy-feely
3. It will make other phones better
4. It's not a phone, it's a platform
5. It is but the ghost of iPhones yet to come
Weakest Links? - - iTunes & Battery Life
Poor interface. Poor Design. Syncing. Slow. Corporate
Further Reading
Apple Insider. 2007. Apple’s iPhone the No. 4 U.S. handset during third quarter.
October 19. http://www.appleinsider.com (accessed February 9, 2008).
Burrows, P. 2008. Feb. 12. Inside the iPhone Gray Market. BusineesWeek.
Carew, S. 2008. Apple says has sold 4 million iPhones. Reuters.
Eisenmann, T., Parker, G., Van Alstyne, M. 2006. Strategies for two-sided markets.
Harvard Business Review; 92-101.
Grossman, L. 2007. I take the iPhone Home. Time.
Olson, P., Laurent, L. 2007. iPhones Land in London. Forbes.com. (accessed
November 9, 2008).
Wingfield N., Guth RA. 2005. Why Shortages of Hot Gifts Endure as a Christmas
Ritual. The Wall Street Journal. December 2, B1.