Tuesday, January 16, 2007

Greg Isaacs' Weblog :: Q1 and Q2 misses due to the iPhone

"One of the oldest tricks in the tech product launch book is pre-announcing a product well in advance of actual launch. This tactic is used to freeze potential customers from buying competing products. Apple recently utilized this tactic with the launch of the iPhone. In announcing the iPhone six months in advance of launch, customers of competing products (e.g. Treo, Blackberry Pearl) may put off a purchase and wait until the iPhone hits the market. Apple’s tactic also has a benefit to Cingular as wireless customers may be more inclined to hold off on switching away from Cingular or more rapidly leave a competitor (e.g. Verizon).

This got me thinking...when all these companies (e.g. Nokia, Motorola, Sprint, etc) start missing their Q1 and Q2 Wall Street estimates, will they blame the iPhone. Public companies like to point the finger at uncontrollable factors (e.g. price of oil, natural disaster, etc) that caused them to miss their estimates. I wonder how many are going to point to Steve Jobs as causing their anti-halo Apple effect. "

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