The Apple brand bets its future on the performance of another. Stay tuned.
Friday, June 29th, 2007By: Allen Adamson
The only recent news story that may have gotten more press coverage than the release of Apple’s iPhone is the release of Paris Hilton. I’m not here to weigh in on that particular item. Rather, I would like to toss a brand question into the ring regarding the iPhone. What happens when one brand bets its future on the performance of another? By choosing AT&T as its exclusive carrier for the next two years Apple may be doing just that. Apple selected AT&T in part because the company allowed it to change everything people hated about cell phones. The problem is, one of the biggest things people hate about cell phones is still in AT&T’s arena: Its network and its reputation for inconsistent signals. While AT&T is working hard on next generation technology to remedy this, the brand’s reputation relative to call quality could have a negative effect on Apple’s grade-A reputation as a brand. The incredibly positive aura associated with the Apple brand could be diminished if the calling experience with the iPhone is less than Apple grade.
Now, generally, no one blames problems with their cell phone on the hardware. If there’s a problem, they assume it’s the carrier. This may mitigate any fallout to the Apple brand should the call experience with the iPhone be less than wonderful. While any brand partnership is a challenge, what remains to be seen in this case is whether Apple loyalists will be any less loyal if every aspect of the iPhone experience doesn’t live up to their expectations. Apple is, in a way, releasing the product with one hand tied behind its back.
And although the iPhone can be used one-handed, the brand may need both to defend itself against any less than stellar performance on its partner’s part. Stay tuned.

I talk in my book,
With store interiors designed to include the spaces where people feel most comfortable eating cereal - kitchens, living rooms and dining rooms, Cereality retail outlets have become popular with cereal aficionados from coast to coast. It’s a perfect example of brand innovation at its best. Take something so simple, so obvious and get people to say, “Hey, why didn’t I think of that.” Well, David Roth and Rick Bacher did think of it. They looked at something as ordinary as breakfast cereal and found a different way to serve it up. By the way, I’ll have Wheat Chex with Fruity Pebbles and soy milk, please. Let me find out what Jerry’s having.