Would you buy a phone for $10,000?

Would you buy a phone for $10,000?

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It is a widely held belief that the cost of Apple iPhones is a key causal factor in Apples recent decline. It is forgotten that the first commercial phone the Motorola DyanaTac 8000x cost approximately $10,000 in modern money. This expensive device with limited capabilities sparked a revolution. It won. But why?

It won for the same reason thousands of years ago humans began to decorate their clay pots. It won for the same reason hundreds of years ago gold plating was sought ahead of bronze. It won because owning it allowed the owner to make a statement to the world. It demonstrated to everyone who you were. It said something to everyone around you. It made you feel better as a result. 

The success of the iPhone years later was no different. Jumpstarted by a wave of cool kids on the bus, owning this sleek, luxury, expensive device told everyone around you that you were 'It' and displaying this proudly made you feel just this way. As momentum gathered, continual launches of new models provided an environment of social stacking where peers could joust over the most recent model. To this day just how many people engage in their daily business with AirPods retained in their ears?

No music. No conversation. Just a statement to others.

The iPhone has now become the most popular device on the planet. However with the sharp descent into mass market penetration it becomes increasingly difficult for consumers to make their statement. This is a problem.

If everyone has decorated clay pot. How do I stand out?

Increased quantity and pace of model production demonstrates the pressure to provide short term spikes for board and market appeasement. But it avoids the problem. They are not alone whilst competitors chase sales that apple has lost, blinded still, by their bright shiny 00’s vibes, it is unconsidered why they won to begin with?

Technology is temporary. Human remains constant. Our desire to present ourselves to our world has not changed.

If the next iPhone cost $10,000. Would you buy it?

Grace Mamwa

Manager I Consulting I Business Change and Transformation @PwC UK

5 年

Really interesting piece Daniel

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