Is Apple Playing It Safe With New iPhones?

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Sept. 10 (Bloomberg) -- Customer Growth Partners President Craig Johnson, Alan Iny, co-author of "Thinking in New Boxes," and Furious Minds Founder Ashley Swartz discuss Apple's new iPhones on Bloomberg Television's "Taking Stock." (Source: Bloomberg)

Thank you for joining us.

Craig, this is a consumer product.

You can talk about all of the speed and memory, but if you cannot spell it, it does not matter.

What is the strategy behind selling a new version?

It should be to do something that is truly rainy -- truly unique.

It is marginally better, but at the end of the day, it is better than a sharp stick in the eye.

There is a great review.

What do you make of the new release?

It is an incremental innovation.

It does not mean it is bad.

There are a lot of companies, when i think that -- back to the original razor blade, the two and three blade razors are not revolution oh like the original razor was.

Whether you have this razor blade model and you make money, you may not survive as an independent firm.

If a business model is not broke, do not try to fix it.

It is still profitable.

Yes.

The razor blade is a commodity product.

Smartphones in the u.s. is a ledger product.

-- a luxury arctic.

-- a luxury product.

It is a hedge for developing economies that have lower smartphone penetration rates.

It is a luxury good.

You say $199? yes.

That is the head.

The current generation of phones does not necessarily get refurbished in china and places like that.

At the end of the day, it is apples to oranges.

Commodity products cannot be compared to these price points.

The consumer making process is 100% emotional, and not a necessity.

Great?

-- craig?

Most of the markets are unsubsidized.

There the price point for these things is a luxury.

I think it would do much better on a lower price point.

I think prices will come down over time, but to get penetration, that is difficult in some of those markets at that price point.

I want to get your thoughts on the trajectory of innovation.

In a technically advanced situation, you put out a product and know it has problems, but you wait for feedback from the user community to build a better product.

At this point, it seems like apple is not interested in offering any product that is not absolutely 100% tested a four it hits the market.

It seems like they are playing it safe.

They are in the spotlight at the moment.

That -- maybe that is the decision they made.

If you move the trajectory even more forward, what i want to remember if i were running that company or advising someone there, no good idea is good forever.

No matter what it is, no good idea will last forever.

It will have to be replaced in some way, shape, or form.

Finding the right one at the right moment is the job of leadership.

Ashley, the real revenue stream comes from the products you sell through the phone.

Apple is a hard workout buddy.

-- hard-line complete.

-- hard- line conpany.

The reality is the tactics that surround the devices are protectionist.

The reason you are able to innovate , verizon particular, launched their application source.

It is an alternative technology to gsm.

When we launch this, we did the network overlays 10 years ago to the 3gs equivalent.

Verizon deployed their infrastructure.

It performed better.

They were successful in the midterm.

They launched their devices, and they allow people to customize them from their digitalized storefront.

It only pays dividends for a finite.

Of time.

This text has been automatically generated. It may not be 100% accurate.

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