Mobile phone Market

In 2007 iPhone was launched

Major competitors
 BlackBerry  HTC Microsoft mobiles  Nokia  Motorola

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Your Life in your pocket .

0 iPhone OS 4 960 x 640px.0 iPhone OS 3.0 iPhone OS 2. 480 x 320px (HGVA) Display Storage/memory 4.specifications iPhone iPhone 3G iPhone 3G S iPhone 4 OS iPhone OS 1.5 in. 800:1 contrast ratio 3.2 GHz Processor 620 MHz Samsung 32-bit RISC ARM .8 & 16 GB/ 128MB DRAM 8 & 16 GB/ 128MB DRAM 8GB/ 256MB DRAM 833 MHz 16 & 32GB/ 512MB DRAM 1. 265 k colors. 3:2 aspect ratio.

Novatek Catcher. TMD Samsung Balda Cambridge Silicon Radio TSMC. Sharp. Foxconn Tech Largan Precision Altus-Tech. Entery USA USA USA US. Mechanical parts Camera lens Camera module Battery Charger Timing Crystal Passive components Connector and cables Broadcom Micron Intel. UMC Infineon Technology Marvell Taiwan Japan Korea Germany UK Taiwan Germany USA Touch screen control chip CMOS chip NOR Flash ICs Display Driver chip Case.iPhone Primary Contractors Software and design Apple USA Assembly TFT-LCD Screen Video processor chip Touch screen overlay Bluetooth chip Chip manufacture Baseband IC WIFI Chip Foxconn Sanyo Epson. TW Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan . Lite On Delta Electronics TXC Cyntec Cheng Uei. SST National Semi. Primax.

Technology • • • • The Touch screen The sensors The Internet Mac OS X .

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

Target Market .

Vodafone .Circuit city • Distributors in INDIA .Distribution • AT&T and major cellular providers like Verizon • Apple online & Apple stores • Major third party online retailers like Amazon.Best Buy .wall mart .com • All major electronics retailers .Bharti Airtel .

1 2 3 4 5 6 Date 29 June 2007 9 Nov 2007 9 Nov 2007 29 Nov 2007 14 Mar 2008 14 Mar 2008 Country United States Germany UK France Ireland Austria Carrier AT&T T-Mobile O2 Orange O2 T-Mobile Flag A-1-1 A-2-1 A-3-1 A-4-1 A-5-1 B-1-1 .Carriers No.

Communication • Emphasize on brand prominently • Associate iPhone with iPod’s groundbreaking lineage • Massive TV campaign in June • Newspapers • Social Networking sites • Apple sites .

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 .

Skim the greatest possible margin .Market Penetration Pricing strategy Market skimming .Repeat this until stable price with acceptable margin is determined .Once sales volume begins to decrease at the original price .Release new product at high premium .Incrementally lower the price to increase sales .

 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. barely 10 weeks after the launch of iPhone.  This issue had a negative effect on Apple’s share prices. Apple announced a steep price cut for the product. .What happened  In September’ 2007.  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.

SWOT Analysis • First mover advantage • Ownership of technological patents Strengths • Apple is one of the most established brand • Customers loyalty • Cultural. fashion identity • Dependence on third party provider: • AT&T. Application provider Weaknesses • Less appeal to corporate customers • Technological complication • Gorilla arm . Content Provider.

• Sharp rise in consumer demand • 56% of smart-phone buyers prefer iPhone • New target market – • price reduction attract • more customers • High Potential Software –upgradable. can add new features • 3G Apple iPhones to captivate business demand worldwide Opportunities • New powerful entrant – Google Threats • Many similar or substitute products • Intense competition with major rivals • Increasing bargaining power of buyers .

USER EXPERIENCE .CORE COMPETENCY --.

Organizational Hierarchy .

Targeting and Pricing effectiveness . faster.A strong network of .Internet driven .Value added .Market .Replacing than the alternatives) .Key Success factors Consumer-oriented Factors Technology ------------------- Marketing ------------------- Skill and Capability ------------------- Distribution -------------------- .Fast introduction communication tools .Well-know and (cheaper. force wholesale well-respected brand more convenient distributors/ dealers name .Design and and application of segmentation .Next generation innovation expertise services experience .

• Wholesale price $500 per unit.000 units • After Break even Apple will make profit of $1.Financials • First year sales revenue : $ 2. Variable cost $250 • Total volume: 10 million • $50 million fixed cost • Break even at 200.25 billion minus $50 million fixed cost .5 billion avg.

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OS used in smart phones in 2005 .

OS used in smart phones in 2010 .

Numeric with T9.3mp Sony Ericsson P990 Symbian OS 162cc 150g 240x320 Full Qwerty.2mp Accelerometer. Soft 2mp Sony Ericsson W950i Symbian OS 86cc 112g 240x320 Numeric with T9.3mp RIM BlackBerry 8700c Blackberry OS 149cc 134g Full Qwerty No RIM BlackBerry 8800 Blackberry OS 105cc 134g Full Qwerty No Samsung SGH-i607 BlackJack Windows Mobile 76cc 106g 320x240 Full Qwerty 1. Soft No . Multimedia Full Qwerty 2mp 2mp 3. heart rate features GPS Nokia N95 Palm Treo 700p RIM BlackBerry Pearl Symbian OS Palm OS 5 Blackberry OS 110cc 151cc 77cc 120g 180g 90g 240x320 320x320 240x260 5mp 1.3mp GPS Numeric with SureType 1.Comparison Model Apple iPhone HTC P3300 Motorola RIZR Z8 Mac OS X Windows Mobile Symbian OS OS 81cc 105cc 77cc Size 135g 130g 112g Weight Screen resolution 320x480 240x320 240x320 Soft Soft Keyboard 2mp 2mp 2mp Camera Other Accelerometer GPS Numeric with T9 Nokia 5500 Sport Nokia E61i Nokia E90 Communicator Symbian OS Symbian OS Symbian OS 87cc 114cc 150cc 103g 150g 210g 208x208 320x240 800x352 & 240x320 Numeric with T9 Full Qwerty Full Qwerty and Numeric with T9 Numeric with T9.

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