What is the relationship between virtual products and the physical product on which they operate? How do you decide on pricing policies when sales of one product such as iPhones impact on the sales of another such as the App Store?

The original Apple iMac (G3), with its teardrop or gum-drop shape, was designed by Jonathan Ive, a bathroom designer who rose to become chief design officer at Apple. It was launched by Steve Jobs in 1998 less than a year after his return to Apple. It was the first Macintosh computer to have a USB port but no floppy disk, allowing other hardware manufacturers to make peripherals that were compatible with the Mac. More importantly, however, its friendly, translucent candy-colours and futuristic form made it stand out from other desk-top computers of the time with their pervading beige colours. It quickly became a design icon, more of a ‘futuristic home appliance’ than an office machine. It was something to be admired –
a bold statement and talking point that started to affect the things with which the home-owner surrounded it, things like lighting and furniture. It changed how people perceived computers and created demand because of its form rather than just its function. This was a classic instance of design driving innovation and creating a paradigm shift.