AT&T Taps Into Apple's Lower-Case 'I' For 3G Campaign

AT&T on Tuesday released the pricing structure and several voice and data plans for the iPhone 3G expected in stores next week. As part of the marketing message, the carrier taps into Apple's use of the lower-case "i" to outline tips on becoming "iReady" for the launch.

The "Get iReady" tips and FAQs found at att.com/iphone outline pricing for the iPhone 3G at 8GB for $199 and 16GB for $299 and enable consumers to check upgrade eligibility and other wireless account information.

The prices provide an incentive to purchase the iPhone, but the discount doesn't come without restrictions. AT&T requires subscribers to sign a two-year contract. Customers who purchased an iPhone before July 11, those activating a new line with AT&T, and existing AT&T customers eligible at the time of purchase for an upgrade discount can also take advantage of the lower prices.

While the Web site's tag reads "Twice the speed, half the price," Brad Mays, AT&T spokesman, says the carrier will focus marketing efforts on the speed of the 3G network rather than the price. The faster network is available in 280 major cities across the United States, reaching 350 by year's end. Consumers can log on to wireless.att.com/coverageviewer/ to find the cities that support the 3G network.

advertisement

advertisement

On top of the price for the phone, it costs $18 for existing customers to upgrade. New AT&T customers will pay the standard $36 activation fee. AT&T customers who are not currently eligible for an upgrade discount can purchase the iPhone 3G with 8GB for $399 or 16GB for $499. Both options require a new two-year service agreement. In the future, AT&T will offer a no-contract-required 8GB option for $599 or the 16GB for $699.

Al Ries, founder at consulting firm Ries & Ries, says success depends on more than the marketing campaign. Advertising focuses on the product, he says. Marketing and public relations require a person to personalize the brand. "Products don't talk; someone has to speak for them," he says. "The products may be good, but Apple has achieved success making Steve Jobs a celebrity."

Jobs fits into the celebrity category, alongside Virgin's Richard Branson and Microsoft's Bill Gates. Marketing teams have built the company brand around the importance of what these men say in public, from media events to conferences, he says.

Similar to eBay, which created a cottage industry for software developers who design mobile marketing applications, Apple now provides an open developer platform that has spawned apps from companies like MuseStorm that allow marketers to create widgets that can target the more than 10 million iPhone users expected by year's end.

The iPhone's large screen display and GPS capabilities give marketers an advantage, says Tina Teng, wireless communications analyst at iSuppli, who estimates Apple will sell 8.8 million 3G iPhones and 2.4 million 2G iPhones in 2008.

AT&T will offer FamilyTalk plans, with bundled voice and unlimited data, starting at $129.99 a month for two iPhone 3G lines. Up to three additional iPhone lines can be added for $39.99 each. Consumers can add unlimited text messaging for $20 per month, or $30 for FamilyTalk plans of up to five lines; $15 for 1,500 messages, or $5 for 200 messages.

Next story loading loading..