iPhone; today's PC?

Of course there is WindowsMobile, Blackberry, Android (or Google phone) and Nokia, and having strategies for these platforms should also be on your consideration list. However, the exponential growth in sales of iPhone is not to be ignored. It is quite interesting to see Apple beating Microsoft at its own game......

You see, while the iPhone is indeed sexy, easy to use and has now achieved cult status (all important aspects for product success). There are, have been and will be equally good or better designed products that might or might not dethrone the iPhone. So why is it that we believe that the iPhone is such a key strategy for any business and why do we say that the iPhone is the new PC.

We do not believe the answer is a technical one. This is not a technical newsletter and in fact it is a newsletter for leaders and great leaders know that a key aspect to successful strategies, is picking the right horses to bet on.

In our opinion, much of the success of Microsoft is unrelated to the quality or indeed effectiveness of their software; and let's not even entertain sex appeal. Many technocrats have for the last 25 years discounted Microsoft technical prowess and in their earlier years, their future fortunes (obviously proven wrong in retrospect). What Microsoft brilliantly did (knowingly or not) are in our opinion, 2 key tactics:

1. They made many people rich
2. They created an industry around them (now known as resellers), many of which became wealthy fulfilling Microsoft's Client's needs; arguably sorting-out difficult to use software.

So, why do we believe that the iPhone is today's PC? Simple:

1. Apple's Appstore is a new channel a virtual chain of resellers, adapted to today's delivery systems and customer needs.
2. A great direct to customer channel of software sales; allowing developers to reap significant rewards.

As a leader:

1. Are you ensuring that your products are being aired to iPhone customers?
2. Are you ensuring that your employees and partners know that they stand to benefit significantly financially from their involvement with your organisation?

A few examples of iPhone successes/strategies:

1. Robert Murray, chief executive of mobile games development studio Firemint, says the iPhone and App Store also helped save the company after the downturn showed them their model wasn't working - http://www.smartcompany.com.au/leisure-and-gaming/20090703-firing-up-the-gaming-industry.html
2. With more than 60 percent of Toyota Motor’s WAP traffic coming from the iPhone, the automaker decided to take a different approach to mobile with the promotion of the newest Prius car model - http://www.mobilemarketer.com/cms/news/database-crm/3636.html
3. Rental resource provider Apartments.com has launched a new iPhone and iPod touch application to complement its online services and claim some territory in the coveted iPhone demographic - http://www.mobilemarketer.com/cms/news/search/3625.html
4. Pernod Ricard’s Absolut Vodka is leveraging the mobile channel for branding, customer engagement, entertainment and affinity. The liquor giant has launched an iPhone application for meant to help it connect with legal-aged drinkers and provide relevant information to this audience - http://www.mobilemarketer.com/cms/news/advertising/3600.html
5. Sam Plowman, head of online banking said: "It was very apparent to us that Apple had developed an interface that would bring forward the use of browser and internet apps on mobiles. We decided we had to be ready with app when the iPhone launched here.'' - http://www.smh.com.au/executive-style/gadgets/business-goes-for-iphone-apps-20090709-de79.html

And finally - According to Clevenger, 44% of businesses that have not yet embraced iPhones plan to do so this year. As one attendee observed, where the one-laptop-per-child initiative failed, one-iPhone-per-child appears destined to succeed - http://searchmobilecomputing.techtarget.com/tip/0,289483,sid40_gci1359509_mem1,00.html?track=NL-315&ad=710878&asrc=EM_NLN_8099263

So if you have been thinking that the iPhone is not the right channel for your products/clients, maybe, as a great leader, you should rethink your strategies! Early adopters will reap the benefits.

Aldo Grech - CxO Consulting