Tuesday, November 1, 2011

Hello Siri

On Friday, October 15th, the iPhone 4S, Apple’s newest product, was released. Along with it came an unprecedented 1 million preorders in the first 24 hours, a huge contrast from last year’s 600,000. Every new Apple product has some set of improvements, so why is this one different? The answer has to do with customer expectations. There are the customer expectations about the phone itself, which has evolved since 2007 through customer sovereignty. People are finding it increasingly difficult to put down their phones, especially on the road, so Apple came up with Siri, the voice responsive personal assistant inside every new phone. People see this improvement and believe that their happiness will increase with this product. Additionally, there are the customer expectations about the future of Apple. It was no secret that Jobs, the company’s co-founder, was battling cancer and did not have much time left; this prompted more preorder than usual, and when he died just 10 days before the phone was to be released, enthusiasm for the phone grew. Customers believe that this might be the last product he worked on, and they want to be able to hold that piece of history. Since October 15th, customers have not been disappointed. It is these satisfied customers that will line up again for the next product because Apple continues to give them what they want from their electronics.
Morgan K

2 comments:

Paxton S said...

I found this post both informative and interesting. The iPhone 4S is a great example of a product with deep incentives to purchase it and, most would say, utility-maximizing features. The immense number of phones ordered is proof of how popular the phones are and how much they affect the economy. I feel like this post covered most economic terms related to this article except for changes in demand. Commenting on how factors like Steve Jobs' passing, or Siri shifted the demand for the new phone would be the only missing piece to this post

Anonymous said...

I used customer expectations to show demand, but yes, they also did help to tremendously shift the demand. I'm glad you found it interesting!
Morgan K