Carl Howe on Apple’s iPhone Marketing Strategy:
Carl Howe is a very smart dude:
Consumers value what they pay for. They don’t value things the perceive as free. And that’s the marketing blunder the US mobile phone market has bought into over the last 10 to 15 years. By bundling “free” and generic phones with cell phone service, mobile carriers have devalued both the brand values of the handset makers and their own services.
But at the same time, they have pushed a lot of phones out into the market that would not have made it if people were not enticed by free free free . . . and if this axiom is true, it negates the success of the free software ecosystem, claims that Apple’s developer tools, iTunes, and Safari are worthless, ie have no value.
This is perhaps another example of the illusion of choice: too many choices can actually kill a sale, and if people had more than (say) three plans to choose from as well as every handset on the market with every carrier, I suspect a lot of folks would go with the carrier that made it simpler, even if it cost more in the long run. Gruber talks a lot about design decisions and how Apple, for example, makes decisions that will empower the users of it’s products and it does that by not asking them what they want. People will ask for features they will never use: better for someone who knows the product/service and a bit of human psychology to prune the features down and make implementation accessible.