Apple's App Store: Strengthening the iphones’ Competitive

Position

Abstract:

The case discusses the role of Apple's App Store

in increasing the demand for the iPhone. It begins
with a brief overview of Apple's history and the
several innovative products it introduced into the
market. Later, it describes the launch of the
iPhone, the subsequent development of apps for
the phone, and the creation of the App Store to
distribute these apps.

The case also discusses some of the reasons for

the amazing success of the App Store and the role
played by the apps in increasing the demand for
the iPhone. It concludes with an overview of the
competition being faced by the App Store and a
brief discussion on its future prospects.

Issues:

» Identify the forces driving change in the global cell phone industry.

» Assess the role played by apps in increasing the sales of the iPhone.

» Recognize the role of innovation in creating new markets.

Exhibit I: Growth of iPhone Apps over Time

Exhibit II: Features of the Three Generations of the iPhone

Exhibit III: Worldwide Smartphone Sales to End Users - Q1 2008 and Q1 2009

Exhibit IV: iPhone Sales per Quarter

Keywords:
Apple, iPhone, iPod, iTunes Music Store, App Store, smartphone, Steve Jobs, iPhone apps,
AT&T Mobility