The recent news that five ‘fake’ Apple stores were operating in China was a comical and rather intriguing news story. An American blogger noticed small details which weren’t quite right, the stores had dirty walls and unusual terms on the signage, yet the staff were convinced they worked for Steve Jobs. Though it may have initially alarmed Apple, they should feel assured at the discovery since it is testament to the power, extent and envious nature of their brand. After all, imitation is the sincerest form of flattery. This is a compliment that serves as solace indeed for the electronics manufacturer following the difficulties of the iPhone 4 White release. Ongoing ‘Coming Soon’ campaigns were out of character for a company that prides itself on its efficiency. The delay may have encouraged impatient consumers eager for the latest handsets to be picked up by other manufacturers who subsequently gained a larger portion of the smartphone market share. In the past year Android market share grew from 10.7 to 45.2 per cent with development with Motorola and more recently Samsung crucial to Android success. As well as Android, Blackberry’s market share rose to 22.3 per cent.
Apple have remained tight-lipped about the cause of the development problems but a common theory is ‘light leakage’, where the white case was allowing light into the camera resulting in the phone taking poor pictures. Apple wisely refused to release the phone for almost a year after its intended release date until they were completely satisfied that it was ready and would not be a negative impact on their reputation. After all, product recalls are expensive exercises. Apple were no doubt haunted by the negative publicity surrounding the iPhone 4 design fault resulting in weak signal if the phone was held ‘incorrectly’. On the other hand, many firms rushed to fill the gap too quickly, exposing themselves to major flaws in their products. The Blackberry Playbook was released before Flash could be integrated and last month Nokia announced the N9 running the Meego operating system – while at the same time announcing a partnership with the Windows Phone 7 platform. In the meantime Apple has kept a cool head, asking fans to have patience as they perfect their product. The advertising campaign for the White iPhone simply used the word: ‘Finally’, in typically restrained and minimalist Apple style.
The smartphone marketplace is becoming more crowded, even without a delayed Apple release. David Boston, UK Country Manager of IT & Electronic’s price comparison experts skinflint.co.uk said: “Shoppers have more choice than ever. The iPhone is by no means the only big player anymore, being joined at the high end of the market by heavy hitters like the HTC Sensation and the Samsung Galaxy S2.” The proliferation of smartphones is affecting prices as well as market share. Skinflint.co.uk’s Price History figures show that models of both the black and white 16GB iPhone 4 have dipped below £440. Phones running the Android Operating system in particular are making an increasingly crowded and continually evolving marketplace far more competitive.
The delayed iPhone 4 White release may have pushed back expectations for the release of Apple’s next flagship handset – the iPhone 5. That said, the high-end, cutting-edge smartphone market shows no signs of slowing down in its absence. The LG Optimus 3D was released on July 7th and is available for £422.99 whilst the HTC Sensation (with its portable cinema and sound system) is £420 according to Skinflint. The appetite for strong technology in a smartphone handset is ravenous, and there can be no question that as more users seek to upgrade to a smartphone more reasonably priced options will become increasingly desirable.
Apple may have seemed to lose a little face over the delay of the iPhone 4 White, but even if they push the iPhone 5 release back further, the level of consumer excitement will remain palpable. Apple is now the most valuable brand in the world, valued at $153 billion having overtaken Google this April. Since April, Apple have sold 20 million iPhones and recorded net profit 125 per cent higher than last year. The success of the iPad 2 has more than made up for declining iPod sales, which were down 20 per cent on last year.
The delay of the release of the iPhone 4 White was frustrating for consumers, but whether the delay is unfortunate for Apple is a more arguable question. Apple are remaining muted about the release of the iPhone 5 – allowing keen consumers to whet their appetites with slim rumours and speculation, generating the kind of fan fervour that enabled them to overtake Google as the world’s most valuable brand. Their market share may have slipped, but the iPhone 4 is selling strong – controlling 20 per cent of the smartphone market share through one product. This is no mean feat and it remains the world’s most popular Smartphone, with sales up 142 per cent on last year. The release of an Apple product is always a huge event, and part of that is Apple’s muted, unfussy approach to marketing. The iPhone 5 will be a great success, even if it never comes in white.
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