European iPhones, Starbucks and Pavarotti: A Perfect Apple Combination?

[My apologies to the memory of Pavarotti, but I just couldn't resist]

Reuters says that Apple (AAPL) has called a UK press conference for Tuesday, September 18. The big buzz is that this is the beginning of the iPhone Europe barrage, whereby we find out which carriers -- the current favorite in the UK is O2 -- and which stores will carry Apple's flagship phone/ipod/internet communicator. But you never know with these special events. Given the love Steve Jobs was passing out for Starbucks (SBUX) at the iPod special event, perhaps, we'll be getting an announcement of the iLatte.

Personally, I am intrigued by an idea passed on by reader Paul Rudé, who suggested that Apple perhaps might want to use its Starbucks relationship as a new vehicle for selling iPods and iPhones in Europe. Given my prior observation concerning Apple's lack of retail stores and Genius Bars in Europe, having a channel relationship with Starbucks could extend Apple's reach into European retail. Such an arrangement might be particularly effective with some type of "Mobile Genius" support, where Apple Geniuses would hold scheduled service sessions at local Starbucks shops and thereby provide some of the on-the-ground support that customers look for at Apple Stores, and do so in a friendly, neighborhood environment. Yes, it would be a huge undertaking and would require a deep relationship with Starbucks in terms of logistics, training, and compensation. But on the other hand, if Apple can manage to create stores-within-stores in Best Buys (BUY)in the US, the idea may not be completely crazy. And for those worried about disconnect between the prices of expensive Apple electronics and Starbucks coffee, don't forget that Starbucks already sells $1,000 expresso machines here in the US.

In Paul's note, he also suggested another exciting idea to Apple Europe: Apple should buy the video rights to the full Pavarotti funeral mass and sell video copies via the iTunes store. In Europe, where opera fans are much more common than here in the US, such a video program could be very popular, and there are no conventional sources for that content. Without the constraints of shelf space, the iTunes store is the ideal venue in which to sell such a program. And it would further demonstrate to international Apple customers that Apple appreciates their interests as much as US ones. It would be a very smart marketing tactic in Apple's iPhone launch into Europe; I think Apple should pick up on it.

Comments

[Andrea Di S...:]

Dear Carl,

honestly I have always found your articles to be sharp, interesting and financially sound but let me just say that "[My apologies to the memory of Pavarotti, but I just couldn't resist]" is not enough.

This is just bad taste and lack of that minimum level of respect every man deserves.

BTW that opera idea just *sounds* like trash.

Sincerely, Andrea

Milan - Italy

2007 Sep 16 01:07 PM

[PRAVANTI:]

Hello Andrea,
Your comments about 'opera' and 'trash' brings up a couple of serious questions and some issues. What does your reference to 'opera' really mean? The only reference in this article to opera is in the context of opera being generally more appreciated in Europe than in the U.S.... which actually is true. Luciano Pavarotti was not only an international Italian opera tenor, he was an Italian superstar and the world will never forget his unique personality and talent and unmistakable voice - this is a FACT, even small children around the world appreciated and loved him, and will remember him with or without a visual remembrance of his final tributes. But the world would probably have liked to have seen much more of his memorial service and if you were not able to catch it live on television, there was not much to see on the news coverage (about 2 minutes! all channels). Because of the person that he was, I believe that the world deserves to have the opportunity to be more in touch with that most significant event which can be considered as his last moments with his immense public. If you are thinking that a video of the service is trash, then I am wondering if you are an opera lover, or just an Italian national that only sees things from an Italian point of possession. (by the way, Luciano Pavarotti was known for his incredible sense of humor and I do not believe that the image shown by Carl could offend him which certainly was not the intention). O.K.

2007 Sep 16 06:24 PM

[Andrea Di S...:]

Hello Pravanti,
thanks for your message.

I find that image and the idea of selling Luciano Pavarotti's funerals video (although maybe market valid) labeled as "another exciting idea" to be a lack of respect.

We are still close to this event and seeing it pulled commercially in such a way hurts: I think you can understand.

My "trash" adjective was meant not on the opera facts you mention but on the idea that in order to raise iPhone sales one should use Luciano's funerals ...

Anyway let's not make this bigger than it is ... I always read Carl's articles as I said, I always find them valid: it just felt bad looking at that picture and reading that idea also knowing Carl from his articles.

Andrea

2007 Sep 17 02:48 AM

[PRAVANTI:]

Hello Andrea, yes let's not blow this out of proportions but I would just like to add another view on the 'image' of Luciano with the iPhone. There are always differing views on things, and a picture is always worth a thousand words as such. Barring the 'commerciality' of the image, there is a sensitive side to this image which could very well be interpreted as Luciano cheerful and happy that the digital world enables many to hold him close to their heart and ears thanks to such a pocket device as the iPod or iPhone - (or other such devices of another brand). Regarding the day of his funeral ceremony, Apple very respectfully billboarded the memory of Luciano on iTunes. From where I was observing, I juxtapossed this to the lack of TV news coverage (on all channels of the world) after the live event, as usual more coverage to the horrors and negative events of the day. But that is the unfortunate world we live in. Carl Howe has proven to be someone who has an excellent pulse on IT, and I think that his article could very well be a harbinger of good things that could happen for the digital world of culture and community sharing. Thanks for your input Andrea.

2007 Sep 17 08:31 AM