Apple’s Dirty Little iPhone Secret

Mac sales are off 3%. What will Apple do???

It’s not just the Mac, Microsoft just had their first quarterly decrease (6%) since they went public 23 years ago, blaming it on slow PC sales.

It’s the recession. It’s the economy. People aren’t buying computers anymore.

<PAUSE>

Let me take you away from Katie, Brian (etc) and the TV news for a minute, OK?

The missing puzzle piece

What did I leave out of that picture? A couple of things.

First, let’s look at Apple.

If you ignore the 3% downturn in Mac sales, there was a bit of good news from Cupertino recently.

First, the one billionth iPhone application was downloaded from Apple’s iPhone AppStore this week.

Look hard at that number. ONE BILLION mobile applications.

Even if 500,000,000 of these downloads are the iFart application, that’s still a really big number. In fact it’s enough to provide one iPhone app for every human being in the United States, Canada and Mexico combined.

If you use the one billion number, that’s one iPhone app for everyone in the United States, Canada, Mexico and Europe, combined.

Next, despite the 3% drop in Mac sales, the first quarter of 2009 (January 1 through March 31) was Apple’s best month EVER.

Best ever for revenue, best ever for profit. Best Ever. Not in the last few years. For the company’s entire lifetime.

What’d I leave out?

On April 20th, CNet’s article about Apple’s upcoming quarterly financial report was titled “Apple’s Recession report card arrives Wednesday“.

Seems like they’d already decided what was gonna happen.

When Apple announced results, it indicated that iPod sales were up 3% vs. the first quarter of 2008 (1Q2008) so that was kinda good news, but Mac sales were down 3%. Uh oh.

One more thing. Almost forgot… iPhone sales were up 123%.

Someone apparently forgot to send a memo to Apple about the “economic gloom”.

If you dig around a little, you find stories talking about the decline of the computer market and how Mac sales are off 3%, thus illustrating that it isn’t just limited to the Windows-based PC and it’s all because of the state of the economy.

But they forget one little thing: Left out of the sales numbers were 3.79 million Macs.

Shhh. It’s Apple’s dirty little secret

3.79 million iPhones, that is.

See, the iPhone is a small form factor Mac, not just a phone. It’s a computer.

Ask 100 people who sell mobile phones if the iPhone is their competitor and they will all likely say yes. Ask 100 people who sell computers if the iPhone is their competitor and I’ll wager that almost none of them will say yes. They’re dead wrong.

Meanwhile, Apple understands that the job of making a sale is to get a customer, not the reverse. They know that once you buy a Mac, you’re likely to be hooked.

The iPhone lowers the bar and entry objections by providing a nifty computer with applications that you can easily install. Oh and it just happens to be a phone too.

They teach you – in fact, prepare you – for owning a Mac using their phone.

They teach you the same thing using the iPod Touch, which is basically an iPhone without the cell phone, camera and microphone.

Job of a sale: To get a customer

Ask anyone you know who has an iPhone. I’ll bet none of them use it just as a phone.

Ask them if they’ve bought their first Mac yet. If they haven’t, do they say they’re thinking about it? I’ll bet you get a “Yes” to one of those questions.

With Mac’s now having dedicated retail space in Best Buy stores nationwide, that purchase will become easier.

Steve Jobs has to be laughing.

What about you?

Your job is to figure out how to get a customer. You know that once you get them to be your customer, they’ll love what you do so much that they’ll never leave.

All you have to do is get them into the family. It’s OK to start with baby steps like Apple does.