Posts Tagged ‘iPhone’

The Back Up Phone

June 22, 2009

by joseph.young.2009

virginmobilephones

Unsubsidized prices of Virgin Mobile phones

I recently went to Cincinnati to visit my family for vacation. While I was out there, I drove over to Paramount’s Kings Island to enjoy the roller coasters. What I didn’t expect at the park was to loose my phone on the very first ride. My iPhone. My personal assistant, phone book, calendar, and primary channel for communication.

Let’s face it, we don’t use the home phone anymore. We consider it a back-up, and only use it when we’re low on batteries, or have bad reception. The cellphone is a personal communication device that has changed society forever. And to be without yours, is a strange feeling.

But I digress. I returned from my vacation without a phone and needed a solution quickly. I had been trying to decide between the new iPhone 3GS and the Palm Pre. Both phones look interesting, and could be a worthy replacement for my iPhone. But my phone would not be defeated. In checking my voicemail tonight, I received a message that my iPhone was still alive and most likely, working. They gave me a phone number to call, and I realized that I didn’t have a phone to call with.

At the end of my second quarter as a Teaching Assistant for our core marketing course, I came across a very interesting case. Virgin Mobile‘s pricing strategy was the students’ final case. Reading through the situation and the decision facing the management, it was interesting to see how carriers and customers have a combative relationship. Consumers want to leave carriers for bad service. Carriers lure consumers in with phones and hidden fees. We’ve spent so long in these contracts, that we don’t blink an eye at 2-year contracts. And here was a new player that identified the pain points for the consumer and created a plan that reduced customer acquisition costs, and protected themselves from high customer churn. This strategy ultimately proved successful for them.

Faced with a need to buy a “loner” phone tonight, I went to Target to go shopping. I was surprised to see so many players in the pay-as-you-go section of the mobile phone aisle. But I can understand why. I see this phone as a one time purchase that provides me with freedom to make calls and text messages. I’m paying $45 for a disposable phone booth that I can carry around with me. The funny part of this situation is that my 200 minutes doesn’t even exceed the 210 minute talk time of a full charge. As the price of products is driven down with innovation (technical, operational, etc.), products become commodotized and I now see this mobile phone as a thow-away product; something I would have ever considered 10 years ago.

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Apple Feats

February 19, 2009

by joseph.young.2009

apple-feats

“Apple Feats is an achievment system for developers of iPhone and iPod Touch applications. The Apple Feats business model is a dual licensing model. Feats is distributed under the GNU public license (GPL) with a clause that allows you to buy out the GPL with a commercial license. By releasing under GPL, Feats increases its distribution and userbase size. It also creates a standard for a rewards system for iPhone/iPod Touch developers who want to reward heavy users of their applications whether they are games, entertainment, productivity, or utility apps. Licensing costs will be used to maintain website and widgets to display users accumulated ‘Feats’ along with other statistics.”

This is not a real product (today). It is an elevator pitch for a new product that would benefit the iPhone/iPod Touch development community to increase user activity while adding a reward system to heavy users. It follows the business model of MySQL which we just covered in our Tech Strategy class. If you have feedback, please leave it in the comments. Let me know your thoughts.

Android = Windows 3.1; Apple Inc. = Apple Computer Inc.

September 16, 2008

For those who haven’t already realized it yet, Android will be the next Windows 3.1. Aka, the dominant operating system on a platform (mobile). People are claiming that the OS X iPhone will be the next major OS for mobile because the iPhone/iPod touch have such great user experiences now. The only problem is that Steve will have the same problem now that he had back in 1991, Mac OS 7 was build for a closed system where Apple controlled both the hardware and software. This created a great user experience, but your audience was reduced because of the system was cost prohibitive for many customers, and because they were forced to live in the Apple ecosystem. Sounds pretty familiar to today eh? (iPod/iTunes/MobileMe/etc). It’s a great strategy if you can control the market. In the iPod case, it’ll be very difficult to dethrown the MP3 player.

But in the mobile space, Google’s Android will take the crown of leading mobile OS. Read the rest of this entry »

Now Rocking My Phone

August 12, 2008

by atremble

Last month Pandora launched an iPhone application that has revolutionized a corner of my world. The service is already the 4th most popular application on the phone (first in music) and it drove a record 3.3 million songs streamed in one weekend to iPhone listeners alone. Yet it has no ads. Given that Pandora’s revenue model depends on clever advertising with high CPMs, how can Pandora afford the royalties and bandwidth? One explanation is to view the launch as a massive—and massively successful—marketing expense until the user base can be monetized.

It’s not yet clear how Pandora and Apple plan to do this. Read the rest of this entry »