Friday, October 07, 2011

Did Apple Make a Mistake Naming The New iPhone 4S instead of 5?

Apple announced Tuesday (10/4) of their latest iPhone product, the iPhone 4S. A lot of people anticipated that Apple would release an "iPhone 5" with radical updates from the existing iPhone 4 design. Thus, many called the iPhone 4S a "disappointment".

However, I do think the iPhone 4S is a radical update from today's iPhone 4 (perhaps many would disagree), it's a matter of whether Apple should have called the new phone "iPhone 4S" or "iPhone 5". I believe the outcome of the launch event could be oppositely different in an "imaginary world".

If we look at the following table, prepared by Engadget, the iPhone 4S features a new Application Processor, a new baseband radio, a new camera, and a wholly upgraded operating system. Come on, I think that's basically the entire gut set of a Smart Phone! Even though the form-factor/industrial design of the new iPhone 4S looks quite similar to that of iPhone 4, I'm almost certain that Apple has improved, if not completely solved the antenna reception issue associated with the iPhone 4.




Let me give an alternative example using car models. Given the same model year, a BMW M3 looks the same as a BMW 335 to an "average Joe", who doesn't know much about cars. However, to an auto enthusiast or a professional, a BMW M3 is almost a completely new car, designed from the ground up, compared to a standard BMW 3-series - The tires are different, chassis is different, the engines is different, the transmission is highly tuned, the intake, the exhaust, the interior material, etc., and the list goes on. On the opposite, sometimes automotive manufacturers offer "different year models" using the same car, perhaps with tiny external and internal updates. Porsche 911 is a good example, and more commonly and specifically, a 2008 Camry LE looks almost identical to a 2009 Camry LE - same engine, chassis, tire, etc.

So, what is my point, coming back to the mobile discussion? You see, mobile OEMs like Samsung, they develop a platform mobile design, but they create many mobile models using that platform and sell them at different regions for different prices. This is very common. Even if two models share exactly the same main control board (PCB) inside, they would have different "home" buttons, colors, or slightly distinguished external design. To an "average Joe" or consumer, they are different products. My question is, did Apple make a marketing mistake for not calling the new iPhone "5"?

I think Apple made a "rational" and "engineering based" decision. I guess their internal arguments are Apple is a company strongly focuses on industrial design, but the new iPhone's exterior did not change drastically from today's iPhone 4. (Jonathan Ive, what's up?!) In addition, the new iPhone does not support a brand new 4G LTE cellar network technology, and it also misses the (previously) highly anticipated NFC feature (which is already promoted by both Google for Android and Windows for Windows 8). In the end, Apple's marketing department (i.e. Jobs or Cook or Ive?) decided to follow the "iPhone 3G" to "iPhone 3GS" approach and named the new product "iPhone 4S".

However, I think Apple made a "marketing" mistake that affected the new iPhone's "product positioning". First, people or consumers were expecting "iPhone 5". Like I said above, since Apple has replaced most of the critical components inside the new phone, it's really nothing wrong with calling it the "next generation" product.

Second, I think Apple might have failed to understand (some) consumers' psychology of buying the new iPhone. For example, in the rapid growing China market, some people buy iPhone 4 for showing off because it looks different from iPhone 3GS. (I saw many Chinese used iPhone 4 as a standard mobile phone, taking no advantages of its Apps and "intelligence"!) Similarly, many Chinese are waiting for "iPhone 5", and they "need" the "iPhone 5" to look different from iPhone 4. It's "sad" or weird, but it's quite common among the people who got rich too quickly. I use Chinese consumers as an example because I travel to and do business in China often. However, I think similar cases exist everywhere in the world, only different by how often they occur. Apple can easily meet this expectation by, for example, making the home button square, larger, or shift the back-camera's position. Such little mechanical update is very similar to many mobile OEMs' practices I described above, and it would cause little impact to Apple's supply chain and manufacturing costs.

Third, I think Apple's biggest marketing mistake, which unfortunately is impossible to reverse given today's facts, is that Apple did not have Steve Jobs to present the new iPhone. Steve Jobs is a genius pitch man, bar none! I believe Jobs would have humbly position the new iPhone as a radical improvement from today's iPhone 4 (at least from a software standpoint), although they look similar, they are NOT the same. The new iPhone is a better product massaged to perfection. I believe Apple's executives sort of mentioned these during the product announcement, but they were not as smooth as what Jobs would deliver, not even close.

In summary, I think iPhone 4S is an excellent product. (No, I am not an Apple "fan boy", although I do have and use an iPhone 4.) Its hardware is great (I like my iPhone 4's form factor), the new camera looks awesome, and the new iOS5 features are really attractive. However, I think Apple made several marketing mistakes when they introduced the new iPhone. Very few knows if Steve Jobs was deeply involved and even watched the launch event of iPhone 4S, let alone if there is anyone knows whether he'd satisfied with the outcome. However, in an imaginary world, I wish I would do the following:
  • Make relatively minor exterior design adjustments to the new iPhone, be similar to iPhone 4, but has a distinctive difference that can be identified easily by a consumer;
  • Call the new iPhone as "iPhone 5";
  • Invite Steve Jobs to present the "iPhone 5".
Of course, nothing I said above really matters because whatever happened has done. The only way to evaluate and measure the result of the iPhone 4S launch is to check Apple's iPhone shipment numbers during it's next shareholder update.

I thought about writing this blog on the day of Apple's product announcement. Unfortunately, Steve Jobs passed away on Wednesday. Now, I only wish iPhone 4S would be a fantastic success, for Apple and for Steve Jobs.

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