Apple Computer, Inc.: Silhouette campaign

Kevin Teague



OVERVIEW

Released by Apple Computer, Inc., in November 2001, the iPod rapidly grew in sales and by 2005 had become the world's top-selling MP3 player. With a 1,000-song capacity, the first iPod worked only with Apple computers and retailed at $400. From 2003 to 2005, however, Apple ferociously promoted five new Windows-compatible iPod models, along with the company's digital music store, iTunes. In an attempt to define the fun associated with the iPod brand and to steer advertising away from the Apple computer, the company released its "Silhouette" campaign. Not only did "Silhouette" earn TBWA\C\D a Global Effie from the New York American Marketing Association and a Kelly Award from the Magazine Publishers of America, the agency was nominated as the U.S. Agency of the Year for 2004 by Adweek. Even though analysts' early forecasts for iPod sales were $400 million, product improvement and the "Silhouette" campaign helped Apple reach an incredible $1.2 billion in net sales during the first quarter of 2005 alone. Despite the fact that iPod's market share had dropped from 92 percent in October 2004 to 87 percent by March 2005, demand still overshadowed supply.

HISTORICAL CONTEXT