iPhone – the greatest hoax of 2007

The iPhone launch – a great PR campaign based on competitive intelligence

When the iPhone was launched I wrote that it’s just a nice pocket pc. The product will be available much later this year and I wondered why the rush with the great launch.

Well, probably because until the product will be on the market, many mobile phone producers will have similar gadgets in the stores. There are rumors indicating that APPLE had briefings regarding the LG PRADA launch in February (the first real new generation mobile phone). The product is similar to the already well-known iPhone and will be in the stores in a few days. Based on the huge wave of sympathy, Apple announced a revolutionary phone but in fact they just shown an unfinished prototype (not authorized by the FCC, with both battery and software problems) but they received all the credits and all the media coverage. Meanwhile, there are companies loosing money because they already have a functional product and because iPhone announced the $599 – for the 8 gig and $499 – for the 4 gig. The initial plans for the new LG PRADA were to set a superior price as their product is setting new trends but the iPhone launch managed to change the marketing plan in the last month.

The LG PRADA cellular is also a touchscreen handset and is able to combine internet access with the mp3 music – the gadget is smaller than the Apple iPhone, measuring 98,8 × 54 × 12mm (iPhone measures 115 x 61 x 11.6mm). PRADA LG also has a 3 inch display with a 200×400 resolution while iPhone has a 3.5 inch display and resolution of 320×480. PRADA supports tri-band EDGE (900/1800/1900) and has a 2MP camera flash LED, a microSD slot, a 800mAh battery, 2.0 Bluetooth and also support USB.
The interface is based on Macromedia Flash and the software also includes a music player (MP3, ACC, ACC+, WMA, RA), and a video player (MPEG4, H.263, H.264). The phone also has the tools for displaying ppt, doc, xls, pdf, or txt files.
The new LG PRADA will be available in Europe to the end of February with prices beginning from 600 euro (approximately).

Now, if you develop a revolutionary product that will be ready next year and if you have information that the competition will launch the same thing next month, my advice is to go out there today and announce the big event – of course you don’t have yet agreements with the dealers, the FCC approval, the registered mark, but you can call it iCocaCola and can announce the “right price” so that the guys who lunch next month to encounter severe loses. Your stocks will also climb high in the sky while the rival will fall.

In 2002 Steve Jobs was considering the possibility of a mobile handset as an attempt to break into the technology markets. Because the mobile phones with built-in music features had begun to threaten the iPod’s dominance, Steve Jobs saw in phones a new business opportunity. VERY IMPORTANT TO NOTICE IS THAT Apple launched in 2005 an unsuccessful attempt to make iPod-compatible phones with Motorola.

Considering the facts above and if we exclude the great PR campaign, who is really bringing on the market a revolutionary phone: LG or Apple?

On thing is for sure: Apple will be remembered as the company who introduced this type of revolutionary product on the market and Apple shares jumped more than 6% on the day of the iPhone launch, while the stock of rival smart-phone makers plunged.

I called this post the iPhone hoax because:
– The product doesn’t have the FCC approval and Apple can’t force this authority to grant the approval until June;
– The product is not yet finished;
– The “iPhone” trademark is already registered by Cisco;
– Similar products are available on the market;
– specialists claim that the stock market was manipulated;
– Steve Jobs was not sincere in his promises;
– Other reasons that cannot be published 😉

You can read also Eduard’s iEverything post suggesting the same stuff 🙂

11 Replies to “iPhone – the greatest hoax of 2007”

  1. Oh, come on… How is that LG phone the same as the iPhone? It looks like you fail to realize that Apple’s core competency is OS design. The iPhone is not just any phone with a touchscreen… it runs OS X. Not Symbian, not Windows, but OS X. On the iPhone you don’t get “internet access” like you mentioned LG offers, you get real “web browsing” for the first time. And that is just one feature.
    The iPod is feeling threatened by the phones with music features? That statement is hilarious because the iPod having 87% market share means the other portable MP3 players have a very hard time competing, so what are the chances of mobile phones with basic MP3 capabilities to gain market share from the iPod?
    Oh, do I have to remind you that the iPhone is the best iPod ever built? 🙂
    For the sake of saving yourself the embarrassment, do give OS X a try before writing any more posts like this one…

  2. “Oh, do I have to remind you that the iPhone is the best iPod ever built?”

    Is it?
    Ok, first show me this Apple wonder phone/iPod/coffee maker and then we’ll have something to talk about. Until then, the gadget is just a confuse thought in our minds.

    I think that the images below will save me from embarrassment:
    http://www.evaluamos.com/2006/images/Image/6334-3.jpg
    http://www.mac-essentials.de/bilder2006/cisco-iphone.jpg
    This is THE REAL iPhone – made and registered by Cisco

  3. One way or another, Apple will get the iPhone brand.
    All it takes is money. Cisco smelled the opportunity of making some quick cash off Apple because people were talking about an iPhone for years. They quickly launched a phone that’s only different from other by its name. Then they played cool with Apple and led them to believe they were going to share the brand (for a nice amount of cash). Right after Steve Jobs announced the iPhone, Cisco sued because Apple is very unlikely to change the name of an already announced product. Why would Cisco do this? Because they can obtain a lot more money given the circumstances than they could ever get through negotiations before the iPhone announcement.

    The embarrassment is on 😉

  4. 🙂
    I assure you that Cisco is not into the “making quick cash” business – although it’s very funny 🙂

    Let me give you a tip: Cisco filed the trademark application for the “iPhone” name 10 years ago.

    I bet they expected this moment all this time thinking of the “quick cash” 😉

  5. he Cisco iPhone trademark was registered 11/16/1999 (Reg. No. 2293011). In order to keep a trademark registration active, you have to file a Declaration of Use on or before the sixth anniversary of the registration date, in which you state, under penalty of perjury, that you have been using the trademark continuously during that period. The sixth anniversary would have been 11/16/2005.

    Cisco did not file the Declaration of Use by 11/16/2005, which if they had been using the trademark would seemingly have been easy to do. However, the USPTO gives you an extra six months grace period, if you pay an extra fee. This grace period would have expired 5/16/2006. Cisco filed a Declaration of Use on 5/4/2006 which kept their registration active. Had they not filed, their registration would have been canceled.

    With the Declaration, you are required to file a copy of a label or other packaging showing the trademark in use. Cisco filed a picture of the box for the Linksys iPhone. The picture shows a box for the Linksys CIT200 Cordless Internet Telephony Kit, with a sticker showing the word “iPhoneâ„¢” affixed to the back, outside the shrink wrap. The front of the box is not shown, but it doesn’t appear that the word iPhone appears anywhere else on the box.

    A search of product reviews of the CIT200 shows no mention of the word iPhone [1]. The first mention appeared in December 2006 when Cisco unveiled a series of new products bearing the iPhone name. It was not until then that the CIT200 was rebranded under the iPhone moniker [2].

  6. Bogdan,

    After all these months, it sounds like the market buried your comments more than 3 feet below.

    Success is neither about being the first nor being a good “hoax”. It’s about selling and then building. It’s about execution. And that’s what’s occurring right now..

    (I’m not affiliated with Apple in any way or own any Apple products)

    It doesn’t matter if there are copycats or not even if they get cloned. It’s about what the market wants.

    “until the product will be on the market, many mobile phone producers will have similar gadgets in the stores.”

    – Really? Many? Even if it were true, does it matter? you gotta be kidding me! You’re probably the worst forecaster or high-tech business blogger I’ve ever seen.

    Do yourself a favor and waste our time. Find another profession.

    Embarrassment keeps going on…

  7. Since I’m not a high-tech business blogger, I have no reasons to worry about. 🙂
    I’m just a consumer and a smart phone user… for several years now. Of course, I have a Windows Mobile on my phone and I could play movies and mp3 files on my wide screen SPV m1000 since 2005.

    I’m not comparing the iPhone to a phone, I’m comparing it to a smart phone…

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