Apple iPhone

I-224 March 21, 2007

Smart Phone
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Calls by Touch Voicemail SMS Photos Calendar

Apple iPhone ‡ ‡ ‡ QuickTimeŒ and a TIFF (Uncompressed) decompressor are needed to see this picture. ‡ . Smart Phone iPod (Widescreen) Wireless Internet Communication Device PDA Computer (OS X) Camera ‡ ‡ QuickTimeŒ and a TIFF (Uncompressed) decompressor are needed to see this picture.

iPod (Widescreen) ‡ Tunes Library Access ‡ Videos Songs Movie Previews Lyrics Album Artwork ‡ ‡ QuickTimeŒ and a TIFF (Uncompressed) decompressor are needed to see this picture. ‡ ‡ ‡ ‡ Touch Controls 3.5 inch screen iPod with touch screen controls .

Wireless Internet Communication Device ‡ Wi-Fi enabled Internet Device ‡ ‡ Internet email ‡ Auto Wi-Fi detection (802.11b/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 .

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

0 2.6mm 4. 1800.5 x 2.8 ounces / 135 grams .5 inches 320 by 480 at 160 ppi Dimensions Weight 4.Up to 5 hours Audio playback .Technical Specifications Screen size Screen resolution Input method Operating system Storage GSM Wireless data Camera Battery 4GB or 8GB Quad-band (MHz: 850.Up to 16 hours Multi-touch OS X 3. 900.0 mega pixels Talk / Video / Browsing .11b/g) + EDGE + Bluetooth 2.4 x 0. 1900) Wi-Fi (802.46 inches / 115 x 61 x 11.

000 pixels per inch resolution Ambient light sensor ‡ .5-inch touch screen display Built-in speaker Finger commands interface Bluetooth (stereo) transmission 25.iPhone Design Audio ‡ Display Screen Headphone jacks ‡ ‡ ‡ 3.

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

QuickTimeŒ and a TIFF (Uncompressed) decompressor are needed to see this picture. QuickTimeŒ and a TIFF (Uncompressed) decompressor are needed to see this picture.Phone Market Position Smart QuickTimeŒand a TIFF (Uncompressed) deco mpressor are needed to see this pictu re. Nokia Basic Phone . QuickTimeŒ and a TIFF (Uncompressed) decompressor are needed to see this picture. QuickTimeŒ and a TIFF (Uncompressed) decompressor are needed to see this picture. QuickTimeŒ and a TIFF (Uncompressed) decompressor are needed to see this picture. iPhone E62 Moto Q Blackberry Treo Complex Easy To Use QuickTimeŒ and a TIFF (Uncompressed) decompressor are needed to see this picture. QuickTimeŒ and a TIFF (Uncompressed) decompressor are needed to see this picture.

the competition Factors of Competition PC Sc re fu n ct io en na lit y iPhone differentiation iPhone Blackberry Pearl Motorola RAZR .Score (10 = highest) 10 0 rd ab le us e le Em W eb l br ow si ng M ed i a Pl a ye r Ca rri e ra va i la bi lit y ai 2 4 6 8 Af fo Ea sy of Fa s hi on ab iPhone vs.

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 ~8.4m ‡ ‡ ‡ Uptake rate from Cingular iPod customers in 1st year 50% assumption Est. uptake by Cingular iPod customers in 1st year 8.7m ‡ .7m ‡ Cingular customers Cingular subscribers with iPod Cingular subscribers with iPod 58m 30% 17.

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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