College of Business: University of Illinois at Urbana-Champaign

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Audio: Otnes Dissects Apple's iPhone Price Drop


Cele Otnes, Professor of Business Administration, discusses Apple's recent decision to drop the price of its iPhone in this edition of the Illini Business Podcast. Otnes touches on a variety of marketing topics, including Apple's reputation as a "merchant of cool", customer loyalty, early adopters, and the difficulties associated with entering new markets.

Listen or Download (MP3): Apple's iPhone Price Drop

Interview Date: September 20, 2007

Length: 16 minutes

Topics Covered:

  • How Apple built its reputation as a marketing innovator.
  • Substance and context of Apple's announcement to drop the price of the iPhone.
  • Examination of the negative response by early adopters - those who already bought an iPhone.
  • Evaluation of Apple's response, including its decision to offer a store credit to early adopters.
  • What will this episode mean for Apple in the long term?

Produced By: College of Business, Communications Office

Related Information: Cele Otnes, Faculty Profile

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