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Apple Casestudy

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Submitted By Magadlene
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Apple's iPhone Launch: A Case Study in Effective Marketing
Kyle Mickalowski, Augustana College
Mark Mickelson, Augustana College
Jaciel Keltgen, Augustana College
ABSTRACT
When CEO Steve Jobs announced in January 2007 that Apple would be releasing a revolutionary iPhone five months hence, consumers waited with bated breath for a phone that would deliver all the features of their iPods as well as a smart phone. Anticipation grew, just as Jobs knew it would, as June approached. The launch would become one of the most heralded technological product splashes Apple, known for its masterful media build-up, had ever planned. How the iPhone was developed, priced, promoted, and distributed is lesson for marketers around the world. Apple investors were pretty happy with the outcome as well.

INTRODUCTION
One year after Apple Inc. CEO Steve Jobs announced the company’s industry-changing iPhone on
January 9, 2007, at the Macworld convention in San Francisco, the share price of Apple’s stock has more than doubled to a January 9, 2008, value of $179.40 (See Chart 1). This stock price incorporates all of
Apple’s business, but a large part of the rise in value can be attributed to the launch of the cutting-edge iPhone, of which four million have already been sold through mid-January 2008 (Carew, 2008). Based on this simple observation of the stock price, the iPhone can so far be declared a success, at least from a shareholder standpoint. This paper will explore both the pre- and post-launch activities surrounding the iPhone to explain why it was such a success for the stockholders and why Apple’s reputation for unparalleled marketing success is deserved.

Chart 1: This chart depicts the astounding growth of Apple’s stock from January 9, 2007, to January
9, 2008.

1

THE ANNOUNCEMENT BY CEO STEVE JOBS
Jobs' announcement was an example of the intelligent

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