Two High-Risk Mistakes in Planning the iPhone 10th Anniversary Launch

Two High-Risk Mistakes in Planning the iPhone 10th Anniversary Launch

Apple's iPhone X boasts impressive performance improvements over previous models, but why did the company also release the iPhone 8 series, potentially ruining the celebration?

For months, the concept of an "iPhone 10th anniversary launch" had been a hot topic in the tech world, with any hint about the new iPhone making headlines.

Finally, the mystery was unveiled, leading to a mix of surprise, astonishment, and confusion: Is the record-high price of the new iPhone a good thing or a bad thing? The long-anticipated iPhone 8 ultimately appeared as the iPhone X—what impact will this have on the iPhone brand and sales? Were the series of bold moves in this anniversary launch planning successful? Could there have been a better approach?

With these questions, Chinese and Foreign Management interviewed positioning guru Laura Ries in the United States, who provided clear business judgments on these issues.

Mistake #1 in the "10th Anniversary Launch Planning": iPhone Pricing

Chinese and Foreign Management: As a brand that has been on the market for 10 years, iPhone faces many challenges. What do you think is the biggest challenge for iPhone to maintain its leadership position?

Laura Ries: The biggest challenge is iPhone's pricing. Ten years ago, the first iPhone started at $499. The iPhone X launched this month is priced at $999, double the price of the first iPhone. (The iPhone 8 starts at $699, and the iPhone 8 Plus at $799.)

Most high-tech products follow the opposite pricing trend. Over time, the price of the same tech product tends to decrease, not increase. The first 16-bit desktop PC cost around $3,000, but today you can buy a much better desktop PC for one-tenth of that price.

Mistake #2 in the "10th Anniversary Launch Planning": Launching Two iPhone Models Simultaneously

Chinese and Foreign Management: What brand strategy would you recommend for the iPhone 10th anniversary launch planning?

Laura Ries: It's too late now. If Apple lowers the price of the iPhone X, it would make the phone look like a failure. Negative PR would affect future sales.

But that's not the only mistake in Apple's recent announcement. Another mistake is launching two iPhone models at once: the iPhone X and the iPhone 8.

This is a typical mistake made by "customer-oriented" companies, which often release a range of products to cater to different types of customers.

However, these two products actually confuse customers. The average consumer might think: "The iPhone X is too expensive, and the iPhone 8 isn't the latest or the best."

Many consumers buy high-tech products to impress their friends and family. If they buy an iPhone 8, friends might think they can't afford the iPhone X. If they buy the iPhone X, friends might think they're unwise to spend so much on a smartphone.

Chinese and Foreign Management: According to current reports, due to major changes in the iPhone X, the iPhone 8 and iPhone 8 Plus will go on sale in September, while the iPhone X will be delayed until late October, with shipping in early November. How do you assess the impact of selling the iPhone 8 first and the iPhone X later?