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News
Adweek: Apple’s Brand Bruised, Not Battered, by iPhone Price Cut
Sunday, September 9th, 2007 at 4:00 PM - by Bryan Chaffin
Apple Inc.’s powerful brand was bruised by the backlash from early iPhone adopters over a US$200 price cut announced last week during a media event, but in the end, the flap will pass forgotten, according to an article by advertising trade journal Adweek. The article looked at the issue in terms of the initial backlash, the fast offer of a $100 credit from Apple CEO Steve Jobs, and the impact these events have and will have on the brand.
"[Apple customers] will be much slower to buy the first release next time," Nigel Hollis, chief global analyst at WPP Group’s Millward Brown in New York, told the magazine. "Moving too quickly to lower the price could prove to be the big misstep, even though the basic strategy makes sense."
While many early iPhone adopters were up in arms after the announcement, angry at the perception of being punished for being early adopters, the brand experts Adweek consulted said that the swift mea culpa and peace offering from Steve Jobs will end up having made all the difference.
"A lot of times a corporate CEO is afraid to say, ’I made a mistake,’" said Kelly O’Keefe, director of executive education at VCU Adcenter. "It was a surprisingly honest letter. It actually talked about the business motivations. [Its candor] is part of a smart turnaround."
Jim Kane of the Brookeside Group agreed, saying, "This will be an absolute blip on the screen among the Apple loyalists."
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