Trung Phan Profile picture
Oct 27, 2021 23 tweets 10 min read Read on X
Apple has sold ~2B iPhones.

With a clear understanding of human psychology, Apple designed its packaging to make these ~2B new iPhone unboxing experiences very memorable (and prob why you can't get rid of the box).

Here's a breakdown 🧵
1/ Steve Jobs announced the first iPhone in January 2007.

During the presentation, he noted that Apple had filed or been granted 200+ patents for the device.

One of the patents: the iPhone case. Image
2/ Jobs and Jony Ive long understood the value of packaging.

As Ive recounts: "Steve and I spend a lot of time on the packaging. I love the process of unpacking something. You design a ritual of unpacking to make the product feel special. Packaging can be theater." Image
3/ As the last thing someone feels before seeing their phone, Apple put in 1000s of hours perfecting the package.

There's literally a "packaging room" where a design employee will spend months opening up 100s of protoypes (w/different materials + shapes) to nail the experience. Image
4/ What are they looking for?

Lux-feeling boxes w/ the right friction and drag to create a brief pause when you open it (air pockets have to be *just right*).

Like the moment before a magician's reveal, Jobs knew the power of anticipation and designed it into iPhone packaging.
5/ There's a reason why unboxing videos on YouTube get billions of views a year.

The anticipation -- even when we know what's coming -- plays right into the curiosity gap: our psychological need to close the information deficit between what we know and what we *want* to know. Image
6/ iPhone openings are also a multi-sensory experience:

◻️You *see* the box
◻️You *feel* the opening as you pull against friction
◻️You *hear* the whoosh of air rushing out

This adds to the theatre and creates a powerful memory recall effect like this:
7/ Small details at every step make bring about the "ritual" Ive spoke about:

◻️Pulling the box's plastic off with a tab
◻️The entire opening experience
◻️Peeling back the screen protector
◻️Inspecting cords/earbuds held in origami paper

All of this before turning the phone on. Image
8/ Even if you're not a fan of Apple, it's easy to see how a customer can use the heuristic: "Wow, if they're spending *this* much time on the packaging, the rest is probably pretty good too."

The detail in Apple's packaging is a great example of Jobs' "back of the fence" story: Image
9/ Apple's packaging in general has a clear understanding of human psychology and how people shop.

The designs give all relevant info in an eye-catching and quick-to-process manner:

◻️Pictures > words
◻️Image sizes are "as in real life"
◻️Clean/minimalist so as not to overwhelm Image
10/ In another patent application for *iPod* cases, Apple writes:

"It may diminish from the aura of a well-designed product to present it to consumers in a standard cardboard box. A package that is more fitting of the high-tech design of the product is what consumers expect.” Image
11/ In the surest sign that Apple's packaging has reached a new level vs. other consumer tech products, people hoarding iPhone boxes is a meme.

With all the effort Apple's team put into it, not really a surprise. Image
12/ If you enjoyed that, I write threads breaking down tech and business 1-2x a week.

Def follow @TrungTPhan to catch them in your feed.

Here's one you may enjoy:
13/ I discuss interesting topics like this once a week (with a healthy dose of dumb jokes) on the Not Investment Advice (NIA) podcast.

🔗 linktr.ee/notinvestmenta… Image
14/ Sources

Packaging New: packagingnews.co.uk/news/apples-ip…

Cult of Mac:
cultofmac.com/13435/steve-jo…

9to5 Mac:
9to5mac.com/2011/10/24/isa…

Linkedin: linkedin.com/pulse/experien…

The "Inside Apple" book has the best detail on iPhone packaging (and a great read): amazon.com/Inside-Apple-A… Image
14/ This was pretty funny: back in the early 2000s, Microsoft employees mocked themselves by creating "Microsoft-themed" packaging for the iPod:

🔗nuvonium.com/blog/view/paro… Image
15/ Here's a meme for all the Apple haters lol Image
17/ My Apple box hoarding isn’t too bad Image
18/ Former Apple employee told me the iPhone box-opening *whoosh* can also be thought of as sound signature (comparable to Netflix “ta-dum”)
19/ Received this DM regarding Jony Ive and “the reveal” Image
21/ An example of Steve Jobs emphasis on good packaging from the 1980s (for Macs).

Via @ShaneAParrish podcast ()

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More from @TrungTPhan

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Norway discovered off-shore oil in 1969. It launched its sovereign wealth fund with $300m in 1996.

It’s since grown 6,000x to $1.8T or $327,000 per Norwegian (5.5m people).

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Norway’s SWF roughly is 65% equity, 25% bond, 10% real estate/infra (all global).

Unsurprisingly, its largest holding is Apple ($47B, or 1.4% of the entire company).

On a related note, here is my deep dive podcast on Steve Jobs and making of the iPhone: podcasts.apple.com/us/podcast/caf…
Norway spared no expense on its SWF website. Look at that carousel!
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PayPal’s bland logo redesign was inevitable
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If you are the person that did the un-aligned letters for the previous eBay logo, please contact the research app team. We are huge fans of how un-aligned the “e” is with the “y”.Bearly.AI
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Sep 1, 2024
Berkshire Hathaway board member Chris Davis once asked Charlie Munger why Costco didn’t drop the membership card.

Let anyone shop and raise prices by 2% (still great value), thus making up for lost membership fees (and more).

Munger said the card is important filter:

▫️“Think about who you’re keeping out [with a membership card]. Think about the cohort that won’t give you their license and their ID and get their picture taken.

Or they aren’t organized enough to do it, or they can’t do the math to realize [the value]…that cohort will have a 100% of your shoplifters and a 100% of your thieves. Now, it’ll also have most of your small tickets.

And that cohort relative to the US population will probably be shrinking as a % of GDP relative to the people that can do the math [on Costco’s value].”▫️

I have a membership but have been guffing on the math for a few years tbh. They keep telling me to upgrade from Gold to Business but I’m too lazy (even if the 2-3% Cash Back on Business pays back after a few trips).

This is a long way of saying Costco’s membership price hike effective today — its first in 7 years — is annoying but when I decide to do the math in a few months, it’ll be worth it.

***

Chris Davis’ remarks from this episode of The Knowledge Project: open.spotify.com/episode/6fJYHF…Image
Anyway, here is something I wrote about Costco’s $9B+ clothing business my affinity for Kirkland-branded socks and Puma gym shirts. readtrung.com/p/costcos-9b-c…
Two notes:

▫️Meant “Executive” (not “Business”) membership
▫️Chris Davis was doing a pure thought experiment. Costco membership obvi high margin (on~$5B a year) and accounts for majority of Costco profits. Retail margin is tiny on ~$230B of annual sales (Costco would need like another $150B+ from letting anyone shop to make up membership profits)Image
Image
Read 5 tweets

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