Mobile phone Market :

Mobile phone Market In 2007 iPhone was launched

Major competitors :

Major competitors BlackBerry HTC Microsoft mobiles Nokia Motorola

Technology :

Technology The Touch screen The sensors The Internet Mac OS X

Objectives :

Objectives I year objectives - aiming for 2%market share of US & UK - unit sales volume
4,45000 II year objectives - achieve 10% market share - unit sales volume 12,45000

Marketing Mix :

Marketing Mix June: Major market rollout at AT&T and Apple stores August: Availability
will expand to mass vendors November: New Ad campaign for holidays Early 2008: Build
buzz for next generation iPhone 2009: Major technical upgrades, e.g. 3D ability 2010: Goal
of at least 50% market share

What happened :

What happened In September’ 2007, barely 10 weeks after the launch of iPhone, Apple
announced a steep price cut for the product. The 4GB version was made inoperable while the
8GB version was available at US $ 399 and a 16 GB version was to be introduced at US $
499. The early adopters who had waited in queues to buy the product at a much greater price
were discontented and annoyed and they therefore took a legal action against Apple and
AT&T for the price cut. This issue had a negative effect on Apple’s share prices.

Financials :

Financials First year sales revenue : $ 2.5 billion avg. Wholesale price $500 per unit, Variable
cost $250 Total volume: 10 million $50 million fixed cost Break even at 200,000 units After
Break even Apple will make profit of $1.25 billion minus $50 million fixed cost
Apple’s market share declined 1.3% according to ComScore. Unsurprisingly, Google took a 5% gain as
Android hit more handsets and more carriers during that time, like the HTC EVO 4G.