Again, Happy New Year to all!!!

Question of the week: Is Apple’s premium pricing and margin on the iPhone sustainable in the face of competition from Android, etc?

This question was based on a WSJ article which argued that “Apple Should Be Paranoid About Android” WatchOut4Droid An interesting (certainly to me..) discussion ensued between @rossahall, @DrGustafsson (famous researcher in service innovation – the power of twitter!), @createtheinno, and me.

@rossahall asserted that the key was brand management – sustaining a premium brand, while @DrGustafsson said that continuing innovation was key to sustaining that image.

As in most such discussions the most interesting takeaways are questions… Brands such as BMW and Rolex were cited, which led to my question:

Q1: Part of the allure of the brands of BMW and Rolex are their assumed manufacturing quality – German & Swiss craftmanship. Can an enduring  premium be sustained in a product (iPhone) slapped together in a Foxconn northern Chinese sweatshop?

[Part of this dilemma is shown in a posting from @peterklamka Green group accuses Apple of lax supplier oversight DoLessEvil ]

A question was raised by @DrGustafsson:

Q2: Is it more difficult for a pure service firm to maintain a premium brand?

Other questions that arose:

Q3: What is the difference between fashion and brand image?

Q4: Does outsourcing production hinder innovation? Do you need to more personal touch for service image [American Airlines current fight might be instructive SabreRattling ]

The discussion continues… join in if you have thoughts. Thanks to @rossahall, @DrGustafsson, and @createtheinno !

Innovation Highlights

Innovation with Strangers–it has its advantages: StrangersIASL 

What Cardiovascular Marketers Can Learn From the Grateful Dead TieDying via  @JulieRobinsonKW

A Lynchburg, VA company won a contest to build a working 4-passenger car that gets the equivalent of 100 mpg. #Edison2 -named because they initially planned to use a hybrid engine – achieved optimal mileage/emmission/range achieved with gas engine! Edison2

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