The September 5th that should have been.
When American Express launched its Platinum card in 1984, it was a revelation. The first, super-premium card, it was invitation only and required a (then mindblowing) fee of $200. Its users got more than a charge card. They got status, a feeling of privilege which was reinforced by the card’s rich services.
When in 1999, Amex killed the invitation only aspect to the Platinum card, they simultaneously launched the Centurion or Black card to take its place. They migrated many Platinum customers to Black. They didn’t penalize their best and most loyal customers, instead they rewarded them and made them feel even more special. This was brilliant management of its most important portfolio – its customer base.
Fast forward to June 29, 2007 (you may know where this is going already). Apple launched a mobile revelation. Priced at $600 it was a fairly mindblowing cost for an item often given away for free with a service contract. Its buyers got more than a smartphone, they got status, a feeling of privilege that’s reinforced every time someone oohed and aahed over their device.
When, a paltry 2 months later, Apple reduced the price by $200, Apple had the opportunity to reward its best customers, its early adopters through creating a new level of exclusivity. It could have created premium iPhone services, available only to original owners, or for people willing to pay $600. And then it could have made a basic model available for $400.
Like the Starbucks deal, Apple could have created a suite of location-based services that made the experience of using the iPhone even better. They could have fanned the flames of love emanating from its existing user base (who are probably also the most influential) and driven them into a higher frenzy of Apple devotion.
That’s the September 5th that should have been…
UPDATE: On September 6, someone came to their senses.
UPDATED UPDATE: American Express is coming to the salvation of its customers by extending their price protection to cover the iPhone. Brilliant move.