Life after Steve Jobs: Apple iPhone5 the major test

By Duncan Craig | 11 September 2012
 

Expect to see the world's media engage in another frenzy when Apple lifts the lid on the iPhone5 in San Francisco tomorrow, with the launch seen as the first major brand test post-Steve Jobs.

As usual, the rumour mill is in overdrive. Pundits in the US are speculating that Apple will haul a celebrity on stage to add fizz to the launch, while Apple will also introduce a larger 4-inch screen display as consumers demand better video experiences.

At the same time Samsung is aggressively building market share with its S3 range of larger-screen smart-phones.

“It's a watershed moment in the brand's history,” said Taby Taylor-Ziane, strategy director at brand agency Landor. "It's post-Steve so everyone will be watching it closely. Samsung is really stealing some share and thunder so Apple really needs to own that innovation space.”

Apple will likely launch a brand new television advertisement, inject millions into the billboard market, and rely on the media to publish a ton of stories about the new device. Its likely to be the start of a fourth quarter onslaught as Apple looks set to launch an iPad Mini, new iMacs, and a 15 inch MacBook Pro with retina display.

The way in which Apple CEO Tim Cook launches its new smart-phone will be a major focus of attention, especially since Steve Jobs created an expectation that every major product launch would have a wow factor.

“They should do something extraordinary and not make it look too much like a stunt,” said Taylor-Ziane. “The launch should relate back to the brand and its values. Expectations are high and the question is, can the brand surpass the man?”

The iPhone5 is being billed as the biggest consumer electronics launch of all time, and is tipped to sell nearly six million units in its first weekend, and 250 million in its entire lifetime. As media consumption explodes on smart-phones, commentators expect the new Apple phone to accelerate the switch to phones being the primary device for communication, information and entertainment.

The surprise factor could be muted as much of the iPhone5 features have leaked, including screen shots showing a larger screen and slimmer unit, but it could contain breakthrough elements, such as near-field communications (NFC) technology, which enables mobile payments.

“The iPhone5 is going to deliver the bigger screen, kick off the NFC revolution, and there will be a stack of things we don't know about,” said Alez Zaharov-Ruett, a long-time Apple watcher and technology journalist. “Apple will sell squillions of the device and it will be their biggest strike back against all of the recent Android improvements.”

Apple was panned recently for the low quality of its new Genius television commercials in the US, and after a less than startling brand launch of its new Mac computers earlier this year, some Mac analysts suggested the absence of Steve Jobs was resulting in less than perfect brand promotion. Mac users even criticised the packaging, media tactics and lack of surprises.

Apple is also expected to launch an iPad Mini in October and further advance the portable small screen market, putting more pressure on brands and advertisers to create content and ads for the tablet market. However, some analysts believe that while the iPhone5 will be a raging success, the cash-conscious younger generation may hold off from buying it right away.

“The people most reluctant to spend money at the moment are those in the 18-24 age bracket,” said Charlie Nelson, managing director of Forseechange, which tracks media and retail spending in Australia. “They are determined to save money and the iPhone5 would have to pretty good for there to be immediate massive take-up.”

The biggest impact for the Australian market could be if the iPhone5 has 4G capabilities. Telstra recently announced it was doubling the size of its 4G network in the next year, and faster mobile speeds on the iPhone5 could see it take considerable market share from its rivals.

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