Tech

Here's The Evidence That Apple's Gold iPhone Shortage Is Actually Deliberate

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gold iphone 5s
tldtoday / YouTube

Do you own a gold iPhone 5S?

No, of course not.

That's because there aren't any.

Let's qualify that: Gold iPhones exist. They are just very rare.

And you don't have one.

At Business Insider, we've got a new iPhone 5S and an iPhone 5C. But the 5S is black (sorry, "space gray"), not gold. And the 5C is blue, because it doesn't come in gold. Everyone wants to see the gold iPhone 5S but ... they don't seem to exist in real life.

There are good reasons to believe this is a deliberate marketing ploy by the geniuses at Apple.

The business press is abuzz with the gold iPhone "shortage."  There has been talk of a "supply" problem.

This, of course, is nonsense. The gold iPhone is NOT made of real gold, it's made of anodized aluminum colored gold. The price of aluminum has actually declined during the year in which Apple began planning for its gold iPhone supply — so the idea that there might be a shortage of gold-hued aluminum is just silly.

Aluminum aluminium
InfoMine

Apple's marketing people are not dummies. They can estimate demand prior to a new product launch.

Pointedly, there is not a shortage of plastic iPhone 5C's. No one is complaining that they can't get the blue one.

plastic prices
The Plastics Exchange

The price of industrial plastic contracts has actually risen over the same time period (see chart at right). Contracts for polycarbonate, which the iPhone 5C is made of, are trading at no more than $7 per pound. Somehow Apple still managed to meet the demand.

And yet if you want a gold one, good luck. Consider:

At this point, only the most hopeless Apple fanboy would argue that Apple's brand managers seriously believed that the sum total of demand for new gold iPhones among Wall Street, Australia and O2 subscribers would be zero phones.

So the alternative explanation is that Apple has screwed this up.

How likely is it that Apple simply made a mistake? This is Apple, the company that is routinely heralded as the premier marketer of the entire world. The same Apple that is the subject of 668 Harvard Business School case studies.

Sure. It's an embarrassing supply chain miscalculation. Whatever. (We emailed Apple for comment but did not hear back.)

In the meantime, the conspicuous absence of gold iPhones is creating more positive publicity than Apple could ever buy in advertising. Gold iPhones are already selling for $1,800 on eBay. The Atlantic has noted that gold iPhone ownership has already become — after only 24 hours on sale — about social "showmanship." (And Business Insider predicted last week that the gold iPhone would divide the world into the haves and have-nots.)

This is about "velvet rope" marketing. If you've ever been to a nightclub you'll know what this means: Nightclubs tend to be very similar. Even at the highest level, you're basically paying to enter a large, dark, crowded, noisy space with flashing lights and expensive drinks. It's often not that much fun. But if there's a long line outside — because it's difficult to get in — and a bouncer controlling access behind a velvet rope, then the club suddenly seems very enticing indeed.

That's what is going on with the gold iPhone. You can't have one. And that's why you want one. Here's the quote-of-the-day that proves the case, from ABC:

Anna Prymak, who was eighth in line at the Fifth Avenue Apple Store in Manhattan, also said she was there for the gold iPhone, which she had heard was going to run out first. "I want the gold one and everyone wants the gold one," she said.

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Jim is the former editor-in-chief of Insider's news division.Previously he was the founding editor of Business Insider UK.He has also been managing editor at Adweek, an advertising columnist at CBS Interactive, and a Knight-Bagehot Fellow at Columbia Business School. His work has appeared in Slate, Salon, The Independent, MTV, The Nation and AOL.His investigative journalism changed the law in the US First Circuit Court of Appeals (U.S. v. Kravetz), the Third Circuit Court of Appeals (North Jersey Media v. Ashcroft), New Jersey (In Re El-Atriss), and New York State (Mosallem v. Berenson).The US Supreme Court cited his work on the death penalty in the concurrence to Baze v. Rees, on the issue of whether lethal injection is cruel or unusual.He won the Neal award for business journalism in 2005 for a series investigating bribes and kickbacks in the advertising business.Here's a selection of his past stories:   • The alleged betrayal in these photos, texts, and emails cost Snapchat $158 million   • Inside the conspiracy that forced Dov Charney out of American Apparel   • The Evolution of Ev: The creator of Twitter, Blogger, and Medium has a plan to fix the mess he made of the internet   • THE "KNOCK-IN SHORT": Nigel Farage and the massive bet against the pound on the night of the Brexit vote   • eBay worked with the FBI to put its top affiliate marketer in prison   • How Dunkin Donuts ended up hiring a psychotic credit card thief as director of communications   • BEJEWELED: The definitive, illustrated history of the most underrated game ever   • The CEO of Publicis told us how he stared down a furious internal rebellion to bet the future of his $11 billion company on artificial intelligence   • FBX: The billion-dollar Facebook business that never happened   • The €150 million check-kiting scam that bankrupted Leo Burnett in Greece   • My Polaroids of the September 11 attacks led me into America's secret court system for terrorist suspects   • YouTube deleted 130 rap videos to help police fight street gangs responsible for thousands of stabbingsDisclosure: I own shares of Twitter (TWTR).