Launching iPhone: Apple's Entry into the Mobile Phone Market

The company announced that the phone would be launched in Europe in the later part of 2007 and in Asia in 2008. Apple had set a sales target of 10 million iPhones by the end of 2008, which would translate to 1 percent of the total market share for mobile phones.

Some analysts felt that the launch of the iPhone was probably the best ever launch of any product. Between June 29, 2007, and September 29, 2007, the company sold 1,389,000 units.⁷ The buzz that surrounded the launch of the phone, which was referred to as the 'Jesus phone' by bloggers, was unprecedented as far as electronic products were concerned.

The premium price of the product (US$499 for the 4GB version and US$599 for the 8GB version) did not deter Apple's eager fans from buying the product. Analysts felt that branding and promotion of the product were as much responsible for the successful launch of the product as the product itself.

Marketing experts were surprised that Apple had not gone overboard in its promotion of the new brand though it was entering a new market with a new product.

They appreciated the way the company had created a buzz around the product through its low key but highly effective marketing effort...