Synopsis

Customers’ Perception and

Comparative Analysis of i-phone with
its major competitors in India

Introduction
Mobile users today want their handsets to be converged
devices handling multiple functions, entertainment being
the most important among them. They want their mobile
to be fully loaded with top-end features, but they want all
that at affordable costs. Integrated digital camera, music
player and stereo FM radio are the three main features
which would drive users towards upgrading their
handsets. These features are available in mid range and
high-end handsets so far, and the common user now
demands these features in ordinary handsets which can
be affordable. On the other hand, MMS has failed to catch
the fancy of the masses due to its high costs of
transmission over the networks and relatively cheaper
alternate modes of downloading videos available through
Internet. Other features like Games, Calculator,
Reminders/Scheduler/Organizer, Polyphonic ringtones etc
have become hygiene features and are a must for any
handset. None of these features is a have become
hygiene features and are a must for any handset. None of
these features is a differentiator anymore. Apart from
Integrated Camera, Music player and Stereo FM radio, a
Speaker phone is another feature that emerges as the
driver for replacing the current handset. This feature can
be a most cost effective differentiating feature for the low
end phones. Most handset vendors have been bringing
out new models at fairly regular intervals. The maximum
activity takes place at the high end, where the launch of
a newer model makes the older model cheaper, shifting it
to the mid segment. The handset vendors need to
address these expectations of the mass market to be able
to entice them towards their products.
3G is the Third Generation of mobile phone standards and
technology, superseding 2.5G. It is based on the
International Telecommunication Union (ITU) family of
standards under the IMT-2000. 3G networks enable
network operators to offer users a wider range of more
advanced services while achieving greater network
capacity through improved spectral efficiency. Services
include wide-area wireless voice telephony, video calls,
and broadband wireless data, all in a mobile
environment. Additional features also include HSPA data
transmission capabilities able to deliver speeds up to
14.4Mbit/s on the downlink and 5.8Mbit/s on the uplink.
Unlike IEEE 802.11 (common names Wi-Fi or WLAN)
networks, 3G networks are wide area cellular telephone
networks which evolved to incorporate high-speed
internet access and video telephony. IEEE 802.11
networks are short range, high-bandwidth networks
primarily developed 3G technologies enable network
operators to offer users a wider range of more advanced
services while achieving greater network capacity
through improved spectral efficiency

Apple iPhone and the Telecom Industry

The story of how Steve Jobs redefined the digital music industry,
through the 2001 launch of an innovative music digital player, iPod, and
associated online music store, iTunes, is the stuff of legend. So when the
same Steve Jobs announced in January 2007 the launch of a new mobile
telephone, iPhone, an unavoidable question was raised: will the iPhone
revolutionize the mobile telecom industry?
It is still early to pass definite judgment on a product which, at the time
of writing, is not yet even on the market (it will launch in the US in the
early Summer 2007). However, based on an analysis of the iPod
experience and the appreciation of the current competitive landscape of
the mobile telecommunications, we doubt that iPhone will profoundly
transform the mobile industry. Actually, we believe that in order to
succeed in this market, Apple will have to substantially adjust its
strategic approach.
The iPod's success can be attributed to three major strategic factors: *
Focus on aesthetics and fashion in product design rather than on
extensive functionality. * Innovative approach to the marketing of
musical downloads: a network of copyright agreements with music
suppliers, a single price for a download (99 cents per song) and, less
visible but just as important, a robust and restrictive Digital Rights
Management (DRM) policy. * Astute reversal of the classic razorblades
business model. Instead of selling cheap razors and expensive blades (or
like Hewlett-Packard, cheap printers and expensive cartridges), Job
decided to sell cheap songs and expensive players. Apple revenues from
selling iPods are six times higher than those from iTunes downloads.
In mobile telecommunications, fashion-oriented design has already been
adopted by major players (Nokia, Motorola and LG) and therefore
cannot really constitute a main differentiation factor.
As for the marketing of content, the one-size-fits-all approach is unlikely
to work. A mobile telephone is a multi-functional device to begin with.
And as wireless broadband becomes widespread, content transmitted
over the mobile will become ever more diversified. Video, still pictures,
and various kinds of music cannot be priced in the same way.
Furthermore, this diversity of content cannot be accommodated by
overly restrictive and rigid DRM policies. Those conclusions are not
purely theoretical. They are based on the previous venture of Apple into
mobile telephony through the launch of a hybrid mobile phone with iPod
capability, ROKR, in association with Motorola. The ROKR was a
resounding failure, mainly because of the restrictions imposed by Apple
on musical downloads.
This experience may explain why Steve Jobs recently made an apparent
U-turn and came out against the general use of DRM, which he now
considers as an obstacle to a speedy dissemination of digital music.
In its presentations so far of the iPhone, Apple has adopted a reverse
razorblade model and set the price of the unit at 600 dollars. Contrary to
widespread practice for high-end terminals, the iPhone will not be
bundled at a cheaper price with network subscription fees (despite the
fact that it will only be marketed by a single network operator per
geography). It remains to be seen whether this rigid attitude will stand
the test of time and market reaction.
Apple and Steve Jobs have been highly successful by developing closed
eco-systems, tightly controlling their various elements (hardware,
software, distribution, maintenance). Such control will be difficult to
achieve within the mobile telecommunication eco-system. Will Jobs
adjust his strategy or seek to exploit the forthcoming transformation of
the mobile telecom industry and develop a new eco-system?

Highdeal Point of View

Apple has a brilliant knack for combining the talents of
the best industrial and user interface designers on the
planet to come up with products that "just work." In an
industry still obsessed with geeky feature lists-speeds
and feeds-the Apple brand promises a 10x better end-
user experience. With its solid reputation and cult like
following, Apple will appeal to a wide range of customers
who are tired of broken software and hard to use
technology products and is well positioned to persuade
them to try something different.
While mobile phone manufacturers and their operator
partners already deliver on this same promise for basic
communications: mobile voice and simple messaging
"just work" and are ubiquitous, the mobile industry has
failed to deliver on the promise of advanced mobile
communications. The blame for this is shared: user
interfaces on high-end phones are way too complex for
advanced services, many leading smartphone operating
systems are notoriously full of bugs, and operators have
not yet figured out how to build, promote, price and
bundle mobile-friendly content and services. Whereas,
Apple already has an exisiting global reputation with iPod,
iTunes, and their computers, for having these abilities
and strengths.
The 600 dollar price tag for the iPhone was also most
likely set by Apple to ensure that they were not
competing with the iPod which retails for around 250-350
dollars, but the iPhone is clearly not targeted at a mass
market. Apple has announced that their goal is to take 1
percent of the world market for mobile phones by the end
of 2008. This may seem like a modest amount, but with a
billion handsets sold worldwide last year, it would mean
10 million iPhones sold-a healthy supplement to the 39
million iPods that Apple sold in 2006.
High-end phones and smartphones represented less than
10% of all mobile devices sold in 2006 and operators are
not generating great revenues from these devices. Data
ARPU figures for operators are still only growing
sluggishly and the history of 3G service rollouts is littered
with failures. The entry of Apple into this market
consequently makes great sense for them: there is a
situation that is ripe for their brand promise at the high
end of the mobile phone market.
Apple does indeed have to prove that they can figure out
a better way to structure and manage the mobile
ecosystem, but they are building on their existing
reputation for doing just this. If they succeed in making
significant numbers of consumers comfortable with
advanced mobile communications and if Apple
competitors can learn from this success then the overall
market will be greatly expanded and everyone will
benefit.

Apple i-Phone
This was the most awaited phone in the Indian market. It
is now here, but not before it became famous throughout
the rest of the world. Renowned for its chic design and
easy-to-use functions the iPhone has tremendous
features such as its wide and clear screen, iPod, internet
capability with classic web browser, GPS mapping, and
last but not lease, a phone.
Apple iPhone is being offered in the USA for the price of
$199, so the awaiting buyers in India expected the same
price. Unfortunately, that is not what happened. To grab
hold of this hot item, you will have to shell out Rs.31,000
for the 8GB and Rs. 36,100 for the 16GB. If you want to
pick up more than one, you may consider flying overseas
to make your purchase. Even with airfare included, you
may just save a few rupees!
It’s three devices in one.
iPhone is more than just a phone. It combines three
devices in one: a revolutionary mobile phone,
a widescreen iPod, and a breakthrough Internet device.
All that and more makes it the best phone you’ll ever use.
Revolutionary Phone
With the Multi-Touch interface on iPhone, you can make a
call simply by tapping a name or number in your contacts
or favorites list, your call log, or just about anywhere.
Visual Voicemail lets you select and listen to messages in
whatever order you want — just like email.
Widescreen iPod
iPhone shows off your content — music, movies, TV
shows, and more — on a beautiful 3.5-inch display. Add
to your collection by downloading music and video
wirelessly from the itune store. Scroll through songs and
playlist with touch of a finger,.
Breakthrough Internet Device
iPhone uses fast 3G and Wi-Fi wireless connections to
deliver rich HTML email, Maps with GPS, and Safari — the
most advanced web browser on a mobile device. It has
Google and Yahoo! search built in. And since iPhone
multitasks, you can make a phone call while emailing a
photo or surfing the web over a Wi-Fi or 3G connection.
It opens a whole new
world of applications.
iPhone comes with some amazing applications. And you
can choose from thousands more on the App Store and
download them with a tap. Your iPhone gets even better
with every new app. Play games. Be more productive.
Keep yourself entertained. No matter what you want to
do on iPhone, there’s an app for that.

HTC Diamond Touch

This is the most talked about phone among the corporate
and business people of India. Loaded with tons of great
features, it is one of the slimmest phones in the touch
category. It boasts of the most famous business platform
out there Windows Mobile. This slim trim companion
comes with Windows Mobile 6.1 Professional, it weighs a
mere 110 g (with the battery), it is GPS enabled, has a
2.8-inch touch screen, 4GB internal usage, and will even
tell you the weather reports with HTC Weather. No, an
umbrella is not included. So if you are not mobile savvy
but care about the Windows Mobile Platform and the
business related apps then go for HTC Diamond Touch.
This one truly is a diamond in the rough!

NOKIA N96
Finally it’s time to talk about one of the most famous
brands on the planet, Nokia. Nokia N96 is great
improvement on the already excellent N95. People are no
longer calling it a mobile but rather, a new multimedia
computer as it has virtually everything a computer should
have.
Easily accessing internet videos is a highlight of this
sophisticated phone. In select markets, the integrated
DVB-H receiver offers live broadcast TV with an
automatically updating program guide. It also boasts of a
5 megapixel camera, GPS, Bluetooth wireless technology,
WLAN, and a DVB-H Receiver.
BlackBerry Storm 9500
The highly anticipated BlackBerry Storm 9500 today
made its first official appearance, popping up on German
Vodafone web site. Images and specs of the first
touchscreen RIM-manufactured device have been floating
around the net for what seems like ages but it hasn’t yet
been officially announced. If all the rumored features are
confirmed when the device actually sees daylight then
the Apple iPhone 3G might be up for quite a challenge.
The specifications of the BlackBerry Storm 9500 that are
already known include a 3.3” touchscreen with a
resolution of 360 x 480 pixels. The tri-band 3G with
HSDPA and the quad-band GSM support makes it capable
of global roaming. The Storm 9500 is running on a 624
MHz CPU and has 192 MB of RAM and utilizes a new
version of the BlackBerry OS, optimized for touchscreen
input.
Samsung i8510 INNOV8
It is an imaging powerhouse, with its 8 megapixel
autofocus camera that offers image stabilization and
blink, smile, and face detection, for perfect photos. The
camera also features the ability to take panoramic
photographs, and uses the handset's built-in GPS receiver
to geotag photos with location information. The i8510
INNOV8 is capable of recording QVGA video at up to 120
frames per second and VGA-resolution video at up to 30
frames per second, with a full video editing suite on
board. Music is not forgotten on this workhorse, with a
built-in FM radio, 3D surround sound, and a standard
3.5mm audio port. The i8510 INNOV8 offers 16GB of
built-in memory in addition to a microSD card slot for
even more storage options. Bluetooth 2.0 with A2DP
support for stereo headsets makes wireless music
possible also.

Sony Ericsson XPERIA X1

This phone is based on the Windows Mobile 6.1
Operating System which means it has a full suite of
applications to offer to the user. The Sony Ericsson Xperia
X1 is promoted by the company as offering a
convergence of communication features and
entertainment features; this convergence is exactly what
people are seeking from a smart-phone in today’s highly
mobile world and allows this new lineup of phones to
compete in the global marketplace.
What is really impressive about the Sony Ericsson Xperia
X1 is the fact that this phone excels in so many different
areas. Some phones really do well only as a niche phone
but very few phones really meet all of the diverse needs
of a single user. The Sony Ericsson Xperia X1 manages to
achieve this rarely-met goal. It has great Internet and
communication services as well as a plethora of
entertainment options. It has a built-in camera and other
great standard features expected of today’s advanced
phones. And it really stands out in the area of design.
Combined together, these features make this mobile
phone a truly well-rounded cutting-edge phone intended
for the smart-phone fan who wants to have it all

Objective:
The objective of the project is to explore the perception of
the customer towards i-phone and its major competitors
HTC Diamond, Samsung F490, Sony Xperia x1, Black
berry thunder, and Nokia N75 and to do a comparative
study of these mobile handsets in India.
 In the first part of my objective, I will try to find out the
customer perception towards the 3G phones and will try
to find the important features which the customer prefers
over all the other features available in the handset. and,
regarding features, brand, range etc.

 Second part of the study will be focused on the

comparative study of i-phone and its major competitors
HTC Diamond, Samsung F490, Sony Xperia x1, Black
berry thunder, and Nokia N75. This analysis will be done
on the basis of the features which customer prefers more.
Methodology
There are nearly 120 million consumers of mobile
handsets making the telecommunication sector one of
the most lucrative markets for global mobile phone
manufacturers & cell phone providers. For this research I
have taken a random sample of 100 mobile phone users
in Different parts of India. The methodology to conduct
the study was composed of different tasks as follows:
1. Review of literature: A review of literature on
consumer satisfaction in telecom industry was
undertaken in order to define the comprehensive scope
of the study and ensuring its objectivity.

2. In- Depth interviews: IDIs were conducted across 10

people. 4 of these were students from the AIM campus
and 6 were executives from different companies. The
purpose of these interviews was to understand the user
of 3G mobile phone, to know their buying process for
these phones, to understand the attributes important for
the phones and to know what the users considered as an
important
3. Questionnaire: The inputs from the above two helped
us in the questionnaire formation. Important attributes
were identified and incorporated. Also, the research
objectives helped us identify the nature of questions we
needed to ask

Need for the study

Recently Apple launched i-phone and expectations of people with
i-phone were very high. Even mobile phone manufacturers in
India were ready with their counter attack. This research is being
conducted as to know whether the expectations are being fulfilled
or not on the customer end and also to know whether its
competitors are able to neutralize the effect of i-phone by their
newly launched mobile handsets.

Sampling Data
1. Target Population: Men and women all the age group.

2. Sampling frame: High End Customer from all over India

3. Sampling Technique: Convenience sampling.

4. Sample Size: 100

Bibliography

www.idcindia.com

 www.india-cellular.com

 www.trai.gov.in

 www.wikipedia.org

 www.gsmarena.com/htc_touch_diamond-2368.php

 www.gsmarena.com/sony_ericsson_xperia_x1-
2246.php