How iPhone’s Value was Artificially Inflated.
July 6th, 2007 by lordJust in case you missed it, Apple launched… err. Have I been drinking in the morning? How can you miss out the launch of iPhone when every man and his dog has reviewed it.
Sure it is the sexiest thing ever and just having it in your hand can get you laid. But how in world did it become so important that every newspaper in the nation had to have its review on the front page?
Some have called it the greatest thing since sliced bread and some have dissed it as shitpot (J — What if M$ Copies iPhone just like they copied iPod? 
). But one thing you have to give to Apple is that they had everyone talking about it.
SO how did they pull this feat? Simple. By using one of the most important Psychological Factors listed by Dr. Cialdini is Influence - Science and Practice.
SCARCITY
And here’s how they did it, Step by Step –
1. They teased the shit of people if it is actually going to be released.
2. They kept them waiting too long before they could actually see a real iPhone and let people speculate about it.
3. They limited the sale only to Two iPhones per Person.
Boy! Steve Jobs sure knows know to do Marketing.
The price is determined by:
* development cost — substantial
* manufacturing
* freight
* marketing
* overheads like retail
* and a margin whacked on top, so you know, they make money
I’m not gonna argue with you about Apple’s marketing. They did a very effective job, but not for the reasons you argue.
1. Prior to it’s official announcement, Apple didn’t make a single statement about the iPhone. Everything else was just ‘rabid’ speculation.
2. They announced it 6 months ahead of release, which was largely dictated by the FCC’s need to test and approve the device. At it’s announcement a good deal of information about the phone and it’s functions were released.
3. Only 2? C’mon, be reasonable. There is really no reason for a single person to have more than one. This is just being practical. It certainly put a stop on scalpers hogging supplies and selling them at inflated prices.
As for the idea that the phone was scarce; they sold something like 700,000 of em! That implies very large supplies, especially for a launch product.
The price wasn’t artificially inflated. You think anyone would buy it cheaper if this marketing evaporated? No, the price isn’t completely arbitrary, it’s good old COGs at play.
Mr eel said this on July 9th, 2007 at 11:41 pm