Creating value : the case of iPhone's launch on the French market

Major theoretical contributions have recently advocated a paradigm shift to a "new dominant logic for marketing", integrating customer-to-customer interactions and balancing "high tech and high touch" services. In this paper we attempt to illustrate the relevance of such a framework to understand the take-off of mobile value-added services after the launch of the "iPhone" on the French market. Major theoretical contributions have recently advocated a paradigm shift to a "new dominant logic for marketing", integrating customer-to-customer interactions and balancing "high tech and high touch" services. In this paper we attempt to illustrate the relevance of such a framework to understand the take-off of mobile value-added services after the launch of the "iPhone" on the French market. Our analyses suggest that (1) an important gap existed between the value proposition made by traditional French telecommunication operators and the consumers' needs before the iPhone was launched, (2) Apple has been able to embed new communication skills in a user-friendly and efficient device that allowed the market to take-off in 2008, (3) customers' networks play a major role in the value creation of mobile services. This study provides insights as to the co-creation of value by three stakeholders (the operator, the brand of the device and the customers' community) and stresses the role of the latter. Consumer-to-consumer interactions create value not only through the sharing of technical advice but also by sharing experiences and dreams about the brand.