17 May 2010

Apple Strategies - Making Friends from Foes


The iPhone was first released on June 29, 2007, which caused lines of people in Mac stores across America waiting to be the first to pay $599. Between the Apple fans there were hundreds of developers, hackers, and power users that wanted to get their hands on an iPhone and start unlocking its full potential.

Since the first release of the iPhone people have been “jail breaking” and “unlocking” their iPhones; an iPhone that is “Jailbroken” can allow third party programs to be installed, such as games, karaokie machines, tip calculators, programming tools, and even a pretty stunning simulation of a guitar that could be played on the iPhone.

At a London Apple retail store where Jobs announced, in 2007, the iPhone's Nov. 9 U.K. debut, he responded to a question about whether Apple would put a stop to the unlocking hacking with the line "It's a cat-and-mouse game,", "We try to stay ahead. People will try to break in, and it's our job to stop them breaking in.". Therefore when Apple first learned of the hack they released an update that would render “unlocked” iPhones useless, turning them into very expensive paperweights, but that did not stop the hackers which found a solution within a day.

What Apple has done to help solve this problem is genius. The company decided to apply the Cult Branding golden rule of freedom and embraced their enemy.
Apple announced that they were releasing their SDK (Software Development Kit) to the public for free. But they went a step further too: Developers will receive 70% of the sale from their applications for the iPhone sold through the iTunes stores. Seventy percent represented an unprecedented earnings share and demonstrated a clear alliance with the hacker and development community. By being so generous with the developers Apple is extending their hand to all, they are helping to ensure the iPhone spot as the best handheld computer in the world.

With the release of the 3G iPhone, Apple is allowing the phone to be used in over 70 different countries, and eventually in the U.S with a different carrier other than AT&T. With over 1 million 3G iPhones sold on opening weekend and 70% of all sales, developers are starting to forget their hacking days and welcoming Apple as a new ally.

Apple has turned an enemy into a friend with a generous offer that seems too good to be true by industry standards. Apple is embracing the community that loves their product and all it has to offer. Instead of engaging in an endless battle with developers, Apple has opened the door to them.

There may be times when you might feel consumers are sabotaging your brand. You cringe at the thought of someone tainting your beautiful creation, but in a crisis you must not fear; Make a friend out of a foe.  Transform a saboteur into a brand supporter, keep an open mind, be ready to embrace change, allow your best customers to co-create the future of your brand with you. 
Sandra T

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