The Launch: The iPhone Goes on Sale

There is a launch that happened today, and the launch is the phone: the iPhone that went on sale in the United States on June 29, the device announced at Macworld in January, the phone with a multitouch screen and no physical keyboard. The launch is the Friday story: the lines that formed days early, the stores that opened with staff applauding buyers, the AT&T contract every purchase required, the 499 and 599 dollar prices the analysts debated. The skeptics laughed, the analysts predicted failure, and yet the lines grew. The launch is the June 2007 story, and the story is the lesson: the product that changes the rules, the interface that rewrites the phone.

The Launch is the subject of this article: the phone announced in January, the hype that followed, the prices, the lines, the stores that opened, the engineering that made the skeptics wrong.

1. The Phone

The phone is the device, and the device is the claim: the iPhone that Apple announced on January 9 at Macworld, the product described as three devices in one, the iPod that plays music, the phone that makes calls, the internet communicator that browses the web. The phone is the interface: the multitouch screen that covers the face, the keyboard that is not there, the glass that answers the finger, the software that is the whole design. The phone is the January answer: the touch that replaced the buttons, the screen that replaced the keypad, the device unlike anything on the shelf.

The phone is also the software: the Safari browser that brings the real web, the YouTube that plays the videos, the visual voicemail that shows the messages, the maps that the finger can pinch and pull. The phone is the integration: the music library that syncs from iTunes, the calendar and the mail, the notes and the photos, the pocket that now holds the desktop. The phone is the engineering: the sensor that turns the screen, the accelerometer that knows the tilt, the software that makes the hardware disappear. The phone was the gamble, and the gamble was the design.

2. The Hype

The hype is the noise, and the noise is the name: the Jesus phone that the press called it, the anticipation that built for months, the cover stories and countdown pieces, the device supposed to change everything. The hype is the January to June arc: the keynote that stunned the audience, the demo that worked on stage, the June date that was promised, the wait that stretched through the spring. The hype is the fever: the rumors that multiplied, the blogs that speculated, the price guesses that ran wild, the expectations that could only grow, the buzz that fed itself.

The hype is also the doubt: the analysts who predicted failure, the skeptics who called it a toy, the executives who dismissed the price and the keyboard, the carriers who doubted the plan. The hype is the Microsoft moment: the chief executive who laughed at the phone, who said it had no chance, the quote that the whole industry repeated all spring. The hype is the split: the believers who camped outside the stores, the doubters who waited for the sales numbers, the argument that filled the comment sections. The hype was the pressure, and the pressure was the test.

3. The Bet

The bet is the company, and the company is the iPod: the Apple that transformed the music business with the iPod and iTunes, the maker of white earbuds, the leader of digital music, the firm that now steps into phones. The bet is the new arena: the market that Nokia, Motorola, and RIM owned, the Windows Mobile devices that filled the shelves, the incumbents with decades of experience. The bet is the ambition: the stated goal of one percent of the phone market in 2008, the ten million units that would prove the point, the modest number that still seemed huge.

The bet is also the risk: the phone business that runs on contracts and subsidies, the hardware that must be manufactured at scale, the supply chain Apple had never run, the distribution that depended on one carrier. The bet is the culture: the company that controls the whole experience, the hardware, the software, the store, the vertical stack the industry had never seen. The bet is the meaning: the computer company that sells music players, the music company that builds a phone, the phone that is really a computer. The bet was the pivot, and the pivot was the future.

4. The Price

The price is the number, and the number is the question: 499 dollars for the 4GB model, 599 dollars for the 8GB, the two year AT&T contract that every buyer must sign, the cost the industry debated all week. The price is the comparison: the phones that sold for less, the subsidies that hid the real cost, the monthly bills that would follow, the total that a customer would pay over two years. The price is the bet: the premium that Apple demanded, the value that the company claimed, the market that will decide whether the phone is worth it.

The price is also the strategy: the margins that Apple needed, the position far above the commodity, the message that this was not just another phone, the luxury that the brand had built. The price is the debate: the analysts who said it was too high, the fans who called it a bargain, the competitors who priced lower, the carriers who watched. The price is the Friday reality: the customers who lined up anyway, the cards that were swiped, the 499 and 599 price points that the registers printed. The price was the barrier, and the barrier was the statement.

5. The Lines

The line is the verdict, and the verdict is the street: the queues that formed days early, the campers who slept on the pavement, the chairs and the tents and the sleeping bags, the crowds that the stores had never seen. The line is the Thursday night: the online orders that opened at six in the evening on June 28, the website that strained under the traffic, the buyers who clicked before the stores opened, the orders that guaranteed the phone. The line is the Friday morning: the news crews, the interviews, the filled blocks, the spectacle the launch became.

The line is also the proof: the demand that the doubters said would not come, the willingness to wait that the analysts had not predicted, the enthusiasts who voted with their feet and their wallets. The line is the community: the strangers who shared the pavement, the forum members who met in person, the countdown that they all watched, the moment they all waited for. The line is the signal: the product that people queue for, the brand that inspires the vigil, the launch that turns customers into witnesses. The line was the demand, and the demand was the answer.

6. The Store

The store is the stage, and the stage is the glass: the Apple Stores that opened on Friday, the staff who applauded every buyer, the applause that greeted each purchase, the theater the company designed. The store is the ritual: the activation that happens at the counter, the contract that is signed in the store, the phone set up before it leaves, the customer who walks out with a working device. The store is the experience: the tables and demo units, the staff who answer questions, the queue that snakes past the displays, the moment the box is handed over.

The store is also the channel: the AT&T stores that sold the phone too, the carrier that signed the contracts, the two year commitments required, the exclusivity that made AT&T the only network. The store is the control: the company that sells its own hardware in its own building, the retail chain Apple built, the counter that manages the activation, the process no other phone maker had dared. The store is the message: the launch that is choreographed, the applause that is earned, the product that is an event. The store was the stage, and the stage was the sale.

7. The Exclusivity

The exclusivity is the deal, and the deal is the carrier: the AT&T partnership that made the iPhone a one network phone, the agreement that was announced in January, the months of speculation about which carrier would win, the prize that AT&T claimed. The exclusivity is the trade: the iPhone that comes only to AT&T subscribers, the two year contract that locks the customer, the revenue that the carrier shares, the control that Apple kept. The exclusivity is the break: the carrier that usually rules the phone, the manufacturer that usually bows, the balance of power shifted in this deal.

The exclusivity is also the risk: the customers who will not switch carriers, the millions who are stuck with other networks, the market that Apple gives up, the bet that one partner is enough. The exclusivity is the negotiation: the Apple that demanded the terms, the AT&T that accepted them, the subsidies that were not offered, the price that the customer pays in full. The exclusivity is the debate: the analysts who called it a mistake, the fans who wanted other carriers, the plan that only time will judge. The exclusivity was the constraint, and the constraint was the design.

8. The Lesson

The lesson is the interface, and the interface is the finger: the multitouch screen that replaces the keyboard, the software that is the product, the phone that is really a computer with a radio. The lesson is the method: the Apple that controls the hardware and the software, the integration no competitor can copy quickly, the experience that comes from the whole system. The lesson is the engineering: the glass that must not break, the battery that must last, the antenna that must fit, the sensor that must know the tilt, the thousand details that make the phone feel inevitable.

The lesson is also the perspective: the skeptics who laughed this spring, the lines that formed this week, the launch that happened today, the judgment that belongs to the customers who waited in line. The lesson is the June 29 meaning: the phone that went on sale today, the story that begins at the store counter, the industry that watches and waits, the bet that the market will now decide. The launch is the June 2007 story, and the story is the lesson: the product that is an event, the interface that is the future, the day that the phone changed.

Tags

#engineering #technology