Apple iPhone

I-224 I-224 March 21, 2007 March 21, 2007

Smart Phone

Calls by Touch Voicemail SMS Photos Calendar

Apple iPhone

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

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 resolution Input method Operating system Storage GSM Wireless data Camera Battery 3 or 3 B GB G Quad-band (MHz: 3 3 3 3 3 3 , 3 3 ) 3, 3, 33 33 Wi-Fi (3 3 3 3 .3 b/g) + EDGE + Bluetooth 33 . 33mega pixels . Talk / Video / Browsing - Up to 3hours Audio playback - Up to 3 hours 3 Multi-touch OS X 33in ches . 3 3by 3 3at 3 3ppi 3 3 3

Dimensions Weight

33x 33x 33 . . . 3inches / 3 3x 3 x 3 .3 3 3 3 mm 33o unces / 3 3grams . 3

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

Score (33 highest) = 3 3 3 3 3 3 3

Af fo rd ab le Ea sy of us e Fa sh io na bl e Em ai l br ow sin g

W eb M ed ia Pl ay er Ca rri er a va ila bi lit y Sc re en PC fu nc t io na lit y

iPhone vs. the competition

Factors of Competition
Blackberry Pearl Motorola RAZR

iPhone differentiation

iPhone

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 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

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 existing apps New social device Distribute iTunes content

Similar devices Highly developed market

opportunities

threats

iDream
(The Future)