Phil Schiller on History of the iPhone, Advertising, and Market Research

phil schillerPhil Schiller is currently on the witness stand in the trial of Apple versus Samsung, and Apple's marketing chief is offering a bit of insight into the history of the iPhone, making the argument that Apple revolutionized the smartphone industry with its contributions. AllThingsD has a summary of Schiller's comments, which reveal Apple's wide-ranging thoughts on what project to pursue following the success of the iPod.

People suggested all kinds of things Apple could do, Schiller recalled: “Make a camera, make a car, crazy stuff.”

Schiller said the company had been working on the tablet computer that would later become the iPad, but decided to shift its attention to the phone.

“At the time, cellphones weren’t any good as entertainment devices,” Schiller said.

As part of his testimony, Schiller was led through a number of public reviews and comments about the iPhone and iPad, demonstrating how the devices were considered revolutionary but that many observers believed Apple would fail in its efforts.

Schiller also revealed a bit of information on iPhone marketing, noting how the company's U.S. iPhone advertising budget expanded from $97.5 million in fiscal 2008 to $173.3 million in fiscal 2010. As Apple has previously revealed in public filings, the company's overall advertising budget in fiscal 2010 came in at $691 million and grew substantially to $933 million in 2011. Still, Apple's booming sales have typically meant that the company's marketing expenditures have been shrinking as a percentage of revenues.

CNET also highlights Schiller's comments on how Apple uses targeted market research surveys, which have shown how important design is to Apple's customers.

Of note, Schiller also went into how the company performs market research, a controversial topic given the fact that late Apple co-founder Steve Jobs once pooh-poohed such studies, saying the company would design products people didn't even know they wanted yet. Apple brought up market research in this case to point out how important design is to consumers, 85 percent of whom, according to Apple's own 2011 study, said design and appearance were important.

Schiller did his best to finesse how these surveys came to be, saying they did not go out to random people but to customers who had already purchased one of the company's devices. Schiller also said that Apple purchases third-party reports of market trends and other data.

As CNET noted earlier today, Schiller will be followed on the witness stand by Scott Forstall, Apple's head of iOS software. Other Apple-called witnesses will include Samsung executive Justin Denison, Samsung engineer Wookyun Kho, Apple's early icon and interface designer Susan Kare, and a pair of independent expert witnesses.

Update: Samsung's lawyers asked Schiller whether the design of the iPhone would be changing with the next version of the device, but he declined to comment on future products and Samsung apparently declined to press the issue further.

Top Rated Comments

kolax Avatar
135 months ago
If only Steve were here to be in the witness stand.
Score: 18 Votes (Like | Disagree)
Technarchy Avatar
135 months ago
If only Steve were here to be in the witness stand.

Now that would be something...it might even border on Epic.
Score: 15 Votes (Like | Disagree)
theBB Avatar
135 months ago
Update: Samsung's lawyers asked Schiller whether the design of the iPhone would be changing with the next version of the device, but he declined to comment on future products and Samsung apparently declined to press the issue further.
I guess Samsung lawyer is waiting for iPhone 5 to replace his smartphone. :)
Score: 4 Votes (Like | Disagree)
samcraig Avatar
135 months ago
Schiller did good with Apple's lawyers. But it appears (in my opinion) that Samsung is doing a good job with their cross - getting Schiller's to bury himself. The survey, the home button, etc.

I wonder if this trial will be made into a TV movie or something...
Score: 4 Votes (Like | Disagree)
samcraig Avatar
135 months ago
Samsung's lawyers also got confused by the look-alike Samsung phones.
They handed the wrong one to Schiller. Courtesy of 9 to 5 Mac's trial-related Twitter posts:
Yes. they mixed up their own phones. They didn't hand Schiller an iPhone.

ETA: I wouldn't take too much of The Verge seriously anyway - based on Forbes' account - The Verge is leaving out quite a bit while also adding their own sensationalism.

Fine if you want to be entertained. Not so much if you're looking for truth.
Score: 3 Votes (Like | Disagree)
KnightWRX Avatar
135 months ago
Forstall says he has 1,000 people reporting directly to him. Really? I find that hard to believe.

Apple is a 20,000 employee company in corporate. Scott is a senior Vice President. I'm quite sure there's 1000 employees under his vice-presidency. Heck, our director has close to 200 people under him where I work and he's just that, a director. He has an higher level director above him before the vice-president. Our director's director probably has close to 800 or so people under him, and the vice-president has like 3-4 directions like this under him... so 1000 is actually quite small for a vice-presidency.
Score: 3 Votes (Like | Disagree)

Popular Stories

maxresdefault

Can't Get an iPhone 14 Pro? Here's Why You Should Wait for the iPhone 15 Ultra

Monday December 5, 2022 11:44 am PST by
Due to production issues at Apple supplier factories in China, the iPhone 14 Pro and iPhone 14 Pro Max are backordered and basically out of stock at every store. If you were planning to gift or receive an iPhone 14 Pro model for the holidays and didn't already get one, you're basically out of luck because they're gone until late December. Subscribe to the MacRumors YouTube channel for more ...
General iOS 16 Feature Yellow

iOS 16.2 for iPhone Launching This Month With These 8 New Features

Thursday December 1, 2022 8:44 am PST by
Apple plans to publicly release iOS 16.2 for the iPhone in mid-December, according to Bloomberg's Mark Gurman. The update remains in beta testing for now, with at least eight new features and changes already uncovered so far. iOS 16.2 introduces a number of new features, including Apple's new whiteboard app Freeform, two new Lock Screen widgets for Sleep and Medications, the ability to hide...
Apple car wheel icon feature yellow

Apple to Charge Under $100,000 for Apple Car, Launch Planned for 2026

Tuesday December 6, 2022 2:31 pm PST by
Apple is aiming to launch an Apple-branded consumer-oriented vehicle by 2026, and its goal is to hit a price point under $100,000 to make the car appeal to a wider range of customers, reports Bloomberg. Apple initially planned to design a car that might look similar to Canoo's Lifestyle Vehicle, where passengers could face one another in a limousine-style car with no steering wheel or...
iPhone Measure Height

Newer iPhones Allow You to Measure Someone's Height Instantly — Here's How

Saturday December 3, 2022 10:23 am PST by
iPhone 12 Pro and Pro Max, iPhone 13 Pro and Pro Max, and iPhone 14 Pro and Pro Max models feature a LiDAR Scanner next to the rear camera that can be used to measure a person's height instantly in Apple's preinstalled Measure app. To measure a person's height, simply open the Measure app, point your iPhone at the person you want to measure, and make sure they are visible on the screen from...
introducing apple music sing

Apple Music Adding a Karaoke Experience With Apple Music Sing

Tuesday December 6, 2022 7:09 am PST by
Apple today announced Apple Music Sing, a new feature in Apple Music that lets users sing their favorite songs with adjustable vocals and more. Apple Music Sing will utilize Apple Music's real-time lyrics to allow users to sing to their favorite songs using adjustable vocals, background vocals, and duet view to allow more than one singer.Apple Music Sing includes: Adjustable vocals: Users...
14 vs 16 inch mbp m2 pro and max feature 1

Major RAM Upgrade Coming to Next-Generation MacBook Pro

Friday December 2, 2022 2:03 am PST by
The next-generation MacBook Pro models could feature faster RAM, according to a recent report from a reliable source. MacRumors Forums member "Amethyst," who accurately revealed details about the Mac Studio and Studio Display before those products were announced, recently provided information about Apple's upcoming 14- and 16-inch MacBook Pro models. The new machines are expected to feature...
nothing phone 2

Nothing Plans to Launch Smartphone in US to Take on Apple's iPhone

Monday December 5, 2022 12:38 am PST by
UK-based tech company Nothing plans to launch a smartphone in the US to directly compete with Apple's iPhone, according to a new report out today. In an interview with CNBC, Nothing CEO Carl Pei said the startup is in "early conversations" with American cellular carriers about launching a new phone in the US, but he stopped short of naming any of the carriers or the phone model. Nothing...
apple ar headset concept 1

Kuo: Apple Headset Shipments Potentially Delayed Until Second Half of 2023

Sunday December 4, 2022 7:38 am PST by
Mass shipments of Apple's long-rumored AR/VR headset may be delayed until the second half of 2023 due to unspecified "software-related issues," according to the latest information shared today by tech analyst Ming-Chi Kuo. Apple headset render by Ian Zelbo Kuo said mass shipments of components for the headset are still likely to begin in the first half of 2023, but he believes that mass...
iOS 16

When Will iOS 16.2 Launch?

Friday December 2, 2022 2:13 pm PST by
Apple in late October began testing iOS 16.2 and iPadOS 16.2 updates, providing betas to both developers and public beta testers. As of now, we've had four total betas, with the fourth beta having been released earlier this week. iOS 16.2 and iPadOS 16.2 are expected before the end of the year, and we thought we'd try to narrow down the launch timeline. With only four betas released since...