Apple iPhone I-224 March 21, 2007 I-224 March 21, 2007
Smart Phone Calls by Touch Voic SMS Photos Calendar
Smart Phone iPod (Widescreen) Wireless Internet Communication Device PDA Computer (OS X) Camera Apple iPhone
iPod (Widescreen) Tunes Library Access Videos Songs Movie Previews Lyrics Album Artwork Touch Controls 3.5 inch screen iPod with touch screen controls
Wireless Internet Communication Device Wi-Fi enabled Internet Device Auto Wi-Fi detection (802.11b/g) Bluetooth GSM Cingular’s EDGE Full Feature Browser Syncs automatically with a Mac or a PC Internet Rich HTML Widget Applications stock quotes sports scores weather reports traffic updates
PDA, Computer and Camera Apple’s OS X running Widget’s Java based software PDA features: appoint calendars, contact lists, photos, s and documents Built-in camera takes pictures at 2 MB resolution that can be stored in 4 GB or 8 GB flash memory
Technical Specifications
iPhone Design Display Screen 3.5-inch touch screen display Finger commands interface 25,000 pixels per inch resolution Ambient light sensor Audio Headphone jacks Built-in speaker Bluetooth (stereo) transmission
Software OS X Capabilities Full OS X Multi Tasking Networking Syncing Low Power Security Video Cocoa Core Animation Graphics Audio Widgets Applications
Phone Market Position
iPhone vs. the competition
Customer segments Enterprises are unlikely to buy iPhones Price ~40% higher than Blackberries’ Blackberries have top-notch push- iPhone has features that appeal to mass consumer market However, sales will be gated by network and price
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 customers58m Cingular subscribers with iPod30% Cingular subscribers with iPod17.4m Uptake rate from Cingular iPod customers in 1st year50% assumption Est. uptake by Cingular iPod customers in 1st year 8.7m
Mobile Device Market World Sales Millions of Units
Analyses
Porter’s Five Forces New entrants Bargaining Power of customers Bargaining power of suppliers Threat of substitutes Rivalry within industry
SWOT Analysis strengths weaknesses opportunities threats Style/Brand Sensors Rich UI User base Hype First mover No UMTS High price / high end Limited distribution channels Missing features Unsafe for corporate use? Port existing apps Migrate people to Apple New social device Distribute iTunes content Similar devices Highly developed market
Recommendations
Open up the OS to third party developers
support Voice over IP
iDream (The Future)