Apple iPhone

I-224 March 21, 2007

Smart Phone
• • •

Calls by Touch

Voicemail
SMS


Photos
Calendar

Smart Phone iPod (Widescreen) Wireless Internet Communication Device PDA • • Qui ckTi me™ and a TIFF (Uncompressed) decompressor are needed to see thi s pi cture. Computer (OS X) Camera • .Apple iPhone • • • QuickTime™ and a TIFF (Un compressed) decompressor are neede d to see this picture.

• • • Touch Controls 3.iPod (Widescreen) • Tunes Library Access • • • • Videos Songs Movie Previews Lyrics Album Artwork QuickTime™ and a TIFF (Un compressed) decompressor are neede d to see this picture.5 inch screen iPod with touch screen controls .

11b/g) • Rich HTML email Widget Applications • • Bluetooth stock quotes sports scores weather reports traffic updates GSM • • • Cingular’s EDGE • • Full Feature Browser Syncs automatically with a Mac or a PC • • .Wireless Internet Communication Device • Wi-Fi enabled Internet Device • • Internet email • Auto Wi-Fi detection (802.

PDA. Computer and Camera • • Apple’s OS X running Widget’s Java based software PDA features: appoint calendars. contact lists. emails and documents Built-in camera takes pictures at 2 MB resolution that can be stored in 4 GB or 8 GB flash memory • . photos.

11b/g) + EDGE + Bluetooth 2.Up to 16 hours Multi-touch OS X 3.Technical Specifications Screen size Screen resolution Input method Operating system Storage GSM Wireless data Camera Battery 4GB or 8GB Quad-band (MH z: 850.Up to 5 hours Audio playback . 1900) Wi-Fi (802.8 ounces / 135 grams .5 inches 320 by 480 at 160 ppi Dimensions Weight 4.6mm 4. 1800.5 x 2.4 x 0.0 mega pixels Talk / Video / Browsing .0 2.46 inches / 115 x 61 x 11. 900.

5-inch touch screen display Built-in speaker Finger commands interface Bluetooth (stereo) transmission 25.iPhone Design Audio • Display Screen Headphone jacks • • • • 3.000 pixels per inch resolution Ambient light sensor .

Software OS X Capabilities •Full OS X •Multi Tasking •Networking •Syncing •Low Power •Security •Video •Cocoa •Core Animation •Graphics •Audio •Widgets •Applications .

e i iPhone Q ui kTi e™ and a c m TI FF ( Uncom pr ess ed) decom p r essor ar e ne eded t o see t hi pi t ur e . e s c Q ui kTi e™ and a c m TI FF ( Uncom pr ess ed) decom p r essor ar e ne eded t o see t hi pi t ur e . e h c Q uic kT im e™ a n d a T IFF ( Un co m pr e ss e d) d ec o mp r es s or a re n ee d ed to s e e th is p ictu r e.Phone Market Position Smart Q ui kT e™ and a c i m TI FF( Uncom pr ssed ) d com pr es or e e s ar e n e ded t o see t hi pi t ur e. s c Qu i k Ti me ™ a d a c n TIF (Un co m p r s s e ) d e co m p r s s o r F e d e a re n e e d d to s e e t i s p i tu re . s c E62 M ot o Q Bl ckbe r r y a Tr eo Complex Easy To Use Q ui ki e™ anda cTm TI FF( U ncom pr esed) decm pr essor s o ar e neded t o se t hi pi ur e. s c Q ui kTi e™ and a c m TI FF ( Uncom pr ess ed) decom p r essor ar e ne eded t o see t hi pi t ur e . s Noki a Basic Phone . s c Q ui kTi e™ and a c m TI FF ( Uncom pr ess ed) decom p r essor ar e ne eded t o see t hi pi t ur e . Q uic kT ime ™ a n d a T IFF (U n co mp r es s ed ) de c om pr e s so r a re n ee d ed to s ee this pic tu re . e e s c t Q uic kT ime ™ a n d a T IFF ( Un co m pr e ss e d) d ec o mp re s so r a re n ee d ed to s e e th i p ictu r e. Qu i k Ti me ™ a d a c n TIF (Un o m p s s e ) d e o m p s so r F c re d c re a re n e e d d to s e e th i s p c tu re e i . s c Q ui kTi e™ and a c m TI FF ( Uncom pr ess ed) decom p r essor ar e ne eded t o see t hi pi t ur e . Qu i k Ti me ™ a n a c d TIF (Un co m p re s e d d e c o p re ss o r F s ) m a re n e e d d to se e th s p i ctu re . e s c Q ui kT e™ and a c i m TI FF( Uncom pr ssed ) d com pr es or e e s ar e n e ded t o see t hi pi t ur e.

Score (10 = highest) 10 0 2 4 6 8 Af fo rd ab le Ea sy of us e Fa sh io na bl e Em W eb br ow sin g M ed ia Pl ay er Ca rri er a va ila bi lit y Sc re en PC fu nc t io na lity ai l iPhone vs. the competition Factors of Competition Blackberry Pearl Motorola RAZR iPhone differentiation iPhone .

sales will be gated by network and price • .Customer segments • Enterprises are unlikely to buy iPhones • • Price ~40% higher than Blackberries’ Blackberries have top-notch push-email • iPhone has features that appeal to mass consumer market However.

Marketing decisions (I) • Pricing • • • Skimming strategy Typically cell phone prices drop rapidly Expect Apple prices to fall slowly • Product • • Add functionality. maintain price Versioned iPods for price-sensitive segment .

Marketing decisions (II) • Distribution • Restricted availability to Cingular and Apple stores New iPhones will open channels & drive sales • • Promotions • Cingular iPhone discounts unlikely • Expect iPhone voice / data plans .

Early adopter market ~8.7m • • • • Cingular customers Cingular subscribers with iPod Cingular subscribers with iPod 58m 30% 17.7m • . uptake by Cingular iPod customers in 1st year 8.4m Uptake rate from Cingular iPod customers in 1st year 50% assumption Est.

Mobile Device Market World Sales Millions of Units .

Analyses .

Porter’s Five Forces New entrants Bargaining power of suppliers Rivalry within industry Bargaining Power of customers Threat of substitutes .

SWOT Analysis strengths Style/Brand Sensors User base Rich UI Hype No UMTS First mover weaknesses High price / high end Limited distribution channels Unsafe for corporate use? Missing features Migrate people to Apple Port existing apps New social device Distribute iTunes content Similar devices Highly developed market opportunities threats .

Recommendations .

Open up the OS to third party developers .

support Voice over IP .

iDream (The Future) .

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