Apple iPhone

I-224 March 21, 2007

Smart Phone

Calls by Touch Voicemail SMS Photos Calendar

Apple iPhone

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Smart Phone iPod (Widescreen) Wireless Internet Communication Device PDA Computer (OS X) Camera

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iPod (Widescreen)

Tunes Library Access

Videos Songs
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Lyrics Album Artwork

Touch Controls 3.5 inch screen iPod with touch screen controls

TI

Movie Previews

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

Cingulars EDGE

Full Feature Browser

Syncs automatically with a Mac or a PC

PDA, Computer and Camera

Apples OS X running Widgets Java based software PDA features: appoint calendars, contact lists, photos, emails 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
Screen size Screen resol tion Inp t metho peratin s stem Stora e SM ireless ata amera atter Talk / i eo / ro sin - p to udio pla ack p to 6 hours Qua - an (MHz: i- i ( . / )+ ,9 , or , 9 ) lti-to ch S . inches at 6 ppi

+ luetooth . . me a pixels hours

imensions ei ht

. x . x . 6 inches /

x6 x

.6mm rams

. ounces /

iPhone Design
Audio

Display Screen Headphone jacks

3.5-inch touch screen display Built-in speaker Finger commands interface Bluetooth (stereo) transmission 25,000 pi els 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

Phone Market Position

Smart
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iPhone

E 2

Moto

Comple

Blackberry

Treo

Easy To Use

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Nokia

Basic

Phone

iPhone vs. the competition

iPhone differentiation
Score (10 = highest)

iPhone lac berry Pearl otorola R ZR

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Factor of Competition

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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, sales will be gated by network and price

Marketing decisions (I)

Pricing

Skimming strategy Typically cell phone prices drop rapidly E pect 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 E pect iPhone voice / data plans

Early adopter market ~8.7m

Cingular customers Cingular subscribers with iPod Cingular subscribers with iPod

58m 30% 17.4m

Uptake rate from Cingular iPod customers in 1st year 50% assumption Est. uptake by Cingular iPod customers in 1st year 8.7m

Mobile Device Market

World Sales

Millions of Units

Analyses

Porters 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 e isting 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)