Executive Summary: Blackberry 8820, Nokia N78, Nokia N81, Nokia N95, Nokia E65, Nokia N70 and So On

ATW 241 Principle of Marketing1
1. Executive Summary
Apple’s ability to enter the Malaysia mobile market is of crucial importance to the
companies’ future success. Conventionally, Apple has not been very successful
in this market due to social, economic and cultural differences. The Malaysian
government is known for their soft authoritarian control over both consumers and
businesses. This is position that Apple is not comfortable with it.
The following report outlines the core strengths and weaknesses of Apple when
entering the Malaysia market while paying attention to their competitors in an
environment. Finally, a marketing plan is proposed that will successfully position
Apple in the market.
2. Introduction
A smartphone is a mobile phone offering advanced capabilities with Personal
Computer (PC) like functionality as known as PC-mobile handset convergence.
Some of smartphone are runs complete operating system software that is
providing a standardized interface and platform for application developers.
Nowadays, there are many smartphone in mobile market , such as iPhone 3G,
Blackberry 8820, Nokia N78, Nokia N81, Nokia N95, Nokia E65, Nokia N70 and
so on.
Apple Inc. designs, manufactures and markets personal computers, portable
digital music players, and mobile communication devices and sells a variety of
related software, services, peripherals, and networking solutions.

What is the iPhone?
iPhone is an Internet-connected, multimedia smartphone designed and
marketed by Apple Inc. It combines the features of a mobile phone, wireless
Internet device and iPod into one package. The introduction of the original Apple
Macintosh has a product introduction been met with so much anticipation. The
Apple iPhone is an elegantly designed information communicator forged from
silicon and steel that runs pioneering software under Apple’s OS X in a Unix
Kernel. The iPhone combines smartphone capabilities with a simplicity of use
graphical interface projected on a ‘multi-touch’ display. Apple has created a
Macintosh computer with mobile phone capabilities with bundled within an
Internet enabled PDA and an iPod body.
The iPhone is available in 88 different countries throughout the world,
representing an addressable market of 760 million users. However, Apple have
been unsuccessful in bringing the iPhone to Malaysia. Maxis Communications
Berhad is the one of the huge mobile service providers is partner jointly with
Apple iPhone in Malaysia. On the others hand, Axiata Group Berhad's Celcom is
the third huge mobile service is partner jointly with BlackBerry. Maxis
Communications Berhad will offer a range new tariff plans, starting at just RM100
per month, especially for iphone users . Besides, Maxis Communications Berhad
will offer the 8GB and 16GB iPhone 3G models with four specially designed
postpaid plans, which called iValue, all of which are voice-data bundled price
plans, starting from RM100 per month. However, the market shares of iPhone in
this country still small.

3. Situation Analysis
While regular phones these days can do lots more than just make calls, our
research shows that smartphones too have become even smarter. The first
smartphone was designed by IBM in 1992 with the name Simon. Since then the
industry has grown by leaps and bounds and most mobile phone manufacturers
market their versions of smartphones. Interestingly, the specifications of an
average smartphone today easily eclipses by many times the speed, memory
and storage of personal computers in the eighties.
In smartphones’ market, competition is more rigorous even as demand flattens,
industry consolidation continues and pricing pressures squeeze profitability. In
worldwide, Nokia is the smartphone leader, holding 45 percent of the world
market. The runner-up is BlackBerry, with 13 percent of the global market.
A new Gartner study reports that the iPhone's market share doubled from 5.3
percent in quarter 1 2008 to 10.8 percent in quarter 1 2009. That's amid a 12.7
percent gain in smartphone sales to 36.4 million worldwide, and an overall drop
of 8.6 percent for all cell phone sales during the same period. Research in
Motion, makers of the BlackBerry, also saw tremendous gains, from 13.3 percent
share in quarter 1 2008 to 19.9 percent in quarter 1 2009. Meanwhile, Nokia saw
a mild drop in smartphone sales from 45.1 percent to 41.2 percent worldwide,
according to the report. That latter figure is always a surprise to marketing
viewers.
3.1 Stakeholders
Apple’s strategy of adopting exclusive partners has enabled them to aggressively
negotiate with carriers in each country. Traditionally, the mobile carriers hold all
the cards and the mobile manufacturers are at their mercy. This could not be
more true in Malaysia where there exist several mobile carriers such Maxis, Digi,
Celcom and so on.
Maxis are benefiting from a near monopoly in the mobile market before couple
year ago. Recently, the major competitors to Maxis are Axiata Group Berhad's
Celcom, Packet One Networks , U Mobile and DiGi Communications Berhad.
A partner for Apple would be Maxis Communications Berhad. However, there are
several reasons why this would be an unwise decision. Maxis Communications
Berhad now has facing great competitors from Digi and Celcom. More mobile
service users shift their choice from Maxis to other mobile service providers.
Then, Maxis Communications Berhad have adopted an alternative strategy of
becoming a "world-leading broadband communications and information service
provider”3. This change in strategy represents a significant risk for Apple in
choosing Maxis Communications Berhad as their exclusive partner. By the way,
there also have several good reason partners with Maxis Communications
Berhad.
Hence, Maxis Communications Berhad would be the most appropriate exclusive
partner for Apple. There are many synergies between the two companies that
would be mutually beneficial. Apple have designed the worlds most popular
smartphone whilst Maxis Communications Berhad have the worlds largest

subscription base and strengthening control over the worlds largest mobile
market in Malaysia.
3.2 Environment Analysis

The Malaysia mobile market has the more number of mobile subscription users
in the Asian and is growing at over 20% to 30% per annum. The population of
Malaysia is 26.1 million and if mobile penetration is 30%, this represents a
significant growth opportunity for Apple.
3.2.1 Political & Legal Environment

Malaysia scores above the world average in eight of the 10 economic freedoms.
The income and corporate tax rates are moderate. Meanwhile, the overall tax
burden is low as a percentage of GDP. Malaysia government also weak in
protection of intellectual property rights and. Then, Apple Inc. must cautions in
entering this market as Malaysia government exert the import restrictions, import
and export licensing, non-transparent regulations and standards and non-
transparent government procurement policies. Besides, private property is
protected, but the judiciary is subject to political influence.
For examples, The International Intellectual Property Association estimates 2005
piracy-related industry losses at $147.3 million. The manufacture and sale of
counterfeit products have led to serious losses for producers of consumer
products and pharmaceuticals.

3.2.2 Economic Environment

The economy of the Malaysia is ranked 58th in the world. In the Asia-Pacific
region, Malaysia is ranked 9th out of 41 countries in with a GDP of $327.4 billion
(2009).The Malaysian economy has continued its steady economic growth over
the past five years and with an average annual GDP growth rate above 5.9%
3.2.3 Social & Cultural Factors

Malaysia is a multi-racial country whose social integration. Contemporary
Malaysia represents a unique fusion of Malay, Chinese, and Indian traditions,
creating a pluralistic and multicultural nation. The Malaysia demographic
statistics are of ethnicity which are 60 percent are classified as Malay, 25 percent
as of Chinese descent, 10 percent of Indian descent and 5 percent as others.
The pluralistic and multicultural in Malaysia has serves several problem to Apple
Inc. This is because different types of people, different types of needs. This
matter is a challenge situation for Apple Inc.
Gross and disposable income has increased rapidly over the past 10 years. In
2005, the annual gross income is US $ 92,271.89 million. This amount is
increasing to US $ 141,793.09 million in 2009. Besides, consumer expenditure
also shows an incremental from 2005 to 2009, which is from US $ 60,953.33
million to US $ 96,976.36 million. This statement is proved that Malaysian
consumer have affordable to consume more in product market.

3.2.4 Technological Environment

Malaysia has developed its own satellite network -MEASAT1 in January 1996.
The result was the immediate and simultaneous point to point and point to multi-
point telephone is presently available throughout Malaysia’s islands.
Planning for 3rd Generation (3G) Mobile in Malaysia commenced in May 2000.
The mobile service providers such as Maxis, Digi and Celcom are launching 3G
network in operation since a few years ago. The launch of 3G mobile networks in
late 2005 initially saw slow growth in next generation subscriptions. However,
there were 4.4 million 3G subscribers signed up in end of 2008. That means its
already comprising 16% of the total mobile subscriber base by that stage.
4. Product Review
The Apple Inc. offers the following elegant design and standard features:
- Creativity Design. iPhone 3G has a 3.5 inch colour touch screen display and it
well-equipped for video, music, web access, calendar, file and contact
management functions. A user can navigate seamlessly through iPhone’s
features by using only finger commands. Its picture quality for videos and photos
are astonished because the resolution of over 25,000 pixels per inch. An ambient
light sensor will adjusts automatically the iPhone’s display brightness which can
improve visibility and saving battery power. Its global positioning system
technology can pinpoint a user’s location. In additional, users can delete data
with a remote command if the smartphone is lost or stolen.

- Intelligence Phone. iPhone touch-based technology allows users to make calls
by simply pointing to a name or number in an address book or by dialing through
a touch pad keyboard. iPhone’s features are included conference calling, a
speakerphone, text and multimedia messaging. The iPhone’s proximity sensor
detects when a user lifts the device near the ear and immediately turns off the
display to save power. Besides, its uses a quad-band (GSM 850/900/1800/1900)
spectrum and utilizing 2.5G EDGE networks which a predominate standard used
in Europe and Asia.
- Wireless Internet Communication Device. The iPhone serves as a Wi-Fi
enabled Internet device that utilizes Apple’s Safari browser to access internet
email, web sites, online maps, and search engines. The device’s full web
capabilities offer a rich HTML email client with imbedded images that syncs
automatically with either a Mac or a PC. The iPhone also provides Google Maps
directions, free push Yahoo email message forwarding and Apple widget
applications connectivity on Java based applets which are provide updated
information on stock quotes, sports scores, weather reports, traffic conditions
and other services. Auto Wi-Fi detection, Bluetooth, GSM and Cingular’s EDGE
network are also supported.
- iPod. Imagination the iPhone as a 3.5-inch widescreen iPod with touch screen
controls. Through the iTunes Library including music, audio books, videos, TV
events, and movies are now accessible through a display interface. Videos,
controls, previews, songs, lyrics and album artwork are presented on the screen.
- PDA, Computer and Camera. The iPhone is ability to provide PDA features
such as calendars, contact lists, photograph, emails and documents with a touch
of a ‘virtual’ button by using Apple’s OS X running Widget’s Java based software.
The iPhone’s built-in camera takes pictures at 2 MB resolution that can be stored
in memory cards and also can send to a buddy, family member or colleague. An
internal accelerometer detects when the device is rotated and automatically
changes the contents display appropriately.
5. Competitive Review
The emergence of unique functionality smartphones, including RIM’s BlackBerry,
has increased competitive pressure. Competition from lower-priced also is a
major factor as well. Nokia, RIM, Motorola and so forth are our potential
competitors.
1. Nokia
Nokia is the market leader in smartphones. Nokia offers a wide range of
products for consumers. There are several series of Nokia smartphones,
that is Nokia N70, N76, N81 and N95. Nokia purchased the maker of the
Symbian operation system and made it into a separate foundation
dedicated to improving and promoting this mobile software platform. Many
of Nokia’s smartphones offer full keyboards, similar to Research in Motion
models, but stripped-down models are available for users who do not
require the full keyboard and full multimedia capabilities.

2. RIM
Research in Motion makes the lightweight BlackBerry wireless
multifunction products that are especially popular among corporate users.
RIM’s continuous innovation and solid customer service support clearly
strengthen its competitive standing as it introduces smartphones with
enhanced features and communication capabilities. RIM’s newer
smartphones come equipped with the BlackBerry OS.
3. Motorola
Motorola has been losing worldwide market share to Apple and RIM. This
is because it has slowed the pace of new product introduction. One of its
top smartphone models is slender, lightweight quad-band Q, which
incorporates email and test message functions, photo caller identification,
a full keyboard, camera with flash, removable memory, updated
multimedia capabilities, dual stereo speakers and so on.
4. Samsung
- Samsung is a strong competitor which offering a variety of value, style
and function smartphones for consumer and business segments. Some of
its smartphones are available for specific telecommunications carriers and
some are “unlocked”, ready for any compatible telecommunications
network. Its Instinct is a smartphone with features similar to the iPhone.

6. SWOT Analysis
6.1 Strengths
6.1.1 Innovation and Control from Day to Day
The mobile market is a highly dynamic market which always changes at a rapid
pace. Apple is famous innovative mobile company in the worlds and their ability to
innovate at the cutting edge of technology. Apple’s tight control over every aspect of
their products development for award a distinct advantage over their competitors.
Control on both software and hardware design enables Apple to rapidly innovate and
create seamlessly integrated products.
6.1.2 Upgradeable
Software on the iPhone can be updated to the latest version from times to times.
Then, it also allows new exciting features to be brought in which take advantage
of the touch screen ability. The iPhone user can add new application through App
Store. By the way, future versions will also be hardware upgradeable.
6.1.3 Strong Relationships with Third Party Manufactures

Apple hires third party manufacturers to create and design the iPhone. Apple has
developed strong relationships with companies likes Foxconn. As a specialist
manufacturer of high quality electronic devices, Apple’s relationship with Foxconn
builds on their list of strengths.

6.2 Weaknesses
6.2.1 Apple’s Weak Brand for Purchase in Malaysia
In Malaysia, most of consumers know about Apple brand. However, Malaysian
consumers unaffordable purchase the Apple products. This is because the price
of Apple products mostly are exorbitant if compare to others company products.
In mobile market, Nokia is the strong brand in Malaysian consumers’ minds.
Nokia products are affordable to purchase its products and satisfying consumer’s
needs. Apple has relied on their loyal consumers’ base when launching the iPhone in the
United States and Europe region. This strategy is impossible to hold in Malaysia.
Therefore, Apple must ensure the iPhone appeals to consumers for purchase its product.
6.3 Opportunities
6.3.1 iPhone as Substitute PSP
Apple iPhones’ have potential to become game platform as substitute PSP.
iPhone has all the tools of being an fabulous gaming tool. This is because its
have touch screen controls, GPS & accelerometer which enable others party
developers to create highly performance games that have not been seen before
in the gaming industry. Therefore, Apple not only makes investment in mobile
market and also can invest in gaming industry. So, Apple has the potential of
winning a large portion of gaming market with iPhone’s unique feature and
functionality. in the future, Apple have become a threat to Sony and Nintendo by
an array of high quality low priced games.
6.3.2 iPhone as a Hub

Initially, the iPhone was marketed as a device. The Apple marketing division
focused on the iPhone’s unique features such as multi-touch. The second
version of the iPhone was marketed as an application platform. For instance,
advertising slogans such as “25,000 apps and counting” focused on the App
Store as its main source of differentiation. Besides, the iPhone will be as a digital
hub. The new iPhone software enables developers to integrate the iPhone with
3rd party devices. For example, an iPhone accessory called DiabetesLog
enables diabetics to check and record their blood sugar levels directly on their
iPhone. This integration will open up a vast range of additional markets.
6.4 Threats
6.4.1 Competition from others competitor
Nowadays, there are many smartphones brand in anywhere. There are Samsung, Nokia,
Sony Ericsson and others. In additional, the smartphones market is growing a rapid rate.
As barriers to entry decrease, expect new entrants to pose significant challenges to Apple.
For example, Google have changing strategy of developing smart phone software and
allowing smart phone manufacturers to use it for free. This is such disruptive strategies
need to be carefully followed.
6.4.2 iPhone cloning from China

In Malaysia, consumers have alternative choice to purchase the iPhone cloning
from China in black market. The price of iPhone cloning is cheap as low as RM
300 to RM 600. However, the Apple iPhone’s price is above RM 2000 in market.
The existences of iPhone cloning are threats to Apple on several strategies. They could
reduce Apple’s sales, affect on Apple’s pricing strategy and the most serious is spoiling
Apple’s brand reputation.
7. Objectives and Issues

We have prepared achievable objectives for first three month and 1 year of
marketing entry:
7.1 First Three Month Objectives

During the Apple iPhone’s first year on the Malaysia market, Apple Inc. is aiming
for unit sales volume of 25,000 and keeps first 3 month losses to less than RM
30,000
7.2 First Year Objectives

Apple Inc’s first year objectives are to achieve a 35 percent share of Malaysia’s
mobile market through unit sales volume of 100,000 and break-even as fast as
possible.
7.3 Issues
Apple Inc. is concern about brand in Malaysia. Although Malaysia consumers
know the Apple brand, but still have a few consumers purchase iPhone. Apple
Inc must building meaningful positioning. Thus, Apple will have to invest heavily
in marketing to create a unique and differentiation brand image by projecting
innovation, quality and value. In addition, Apple will measure awareness and
response in order to make adjustment to marketing campaign as necessary.

8. Market Description
The Apple iPhone’s market consists of consumers and business users who
prefer to use a single device for communication, information storage and
exchange and entertainment on the go. The Apple iPhones’ specific segments
being targeted include corporations, entrepreneurs, professionals, students and
medical users. The iPhone has a broad range of market segments in the United States
and Europe. According to market research by Solutions Research Group, the general
trend amongst consumers can be represented as follows:
Figure 1: Purchasing Desired by Age Figure 2: Purchasing Desired by Gender
9. Marketing Strategy
Apple has adopted a price skimming strategy when enters new markets before that. But,
the environment and circumstances surrounding the Malaysian market are entirely
different to any previous market Apple has entered. Firstly, Apple does not have a strong
brand within Malaysia, as cheap digital music players and laptops are very popular.
Secondly, iPhone clones from China could damage Apple’s brand and competitive
position by placing downward pressure on their pricing strategy. If iPhone want to
successfully get a place from the market, Apple has to differentiate their product
which is iPhone from the PDA’s market that already exist for many years.
Apple iPhone will have two level of customers’ target that will use iPhone as the
main smart phone in future. Theirs first target levels that are their main targets
are professional such as lecturers, doctors, engineers and others. Professionals
need some special device to plan their time and their busy schedules, to contact
their family and friends easily and be entertained when boring or stress. The
second target is students and teenagers. The iPhones’ unique features and
functionality will attractive them.
Beside customers’ target, we also aim the business target. Some corporate users
purchase the iPhone to increase the effective of their jobs and have the latest
update of the company especially for managers and executives. The targets are
the large and middle sized corporations.
9.1 Positioning
The meaning of positioning is built on meaningful differentiation, supported by
appropriate strategy and implementation, can help the company build competitive
advantage. For iPhone, the main strength is the functionality and design of the
smartphone. The iPhone is one device, but contains communication,
entertainments and information such as camera, video, music, pictures, Internet
access, GPS and games. For personal and professional use, iPhone is very
suitable because it convenient, versatile, easy to use. With all the strength that
stated above, iPhone absolutely has the power to grab some place in the market.
9.2 Product
We suggest that the iPhone will provided five years warranty which is a very long
period and its will package beautifully. The features of the iPhone will be kept on
update and publish 4 new series of iPhone in a year. The 4 new series are
designed based on 4 seasons in a year and made available in a range of colours. As
we know the Malaysia is not season country, but the consumers are so desire
about it.
In a purpose to further differentiate the iPhone from its competitors, the iPhone software
should enable the user to input Malay language characters on the multi-touch screen. As
this process has historically been very difficult and costly, it should act as a useful
promotional tool.
9.3 Pricing
Apple have three types of iPhone, the functions are the same. The difference is
the disk storage capacity. The three types have difference capacity which is 8
GB, 16 GB and 32 GB.
iPhone with difference storage Pricing

8 GB RM 1990
16 GB RM 2490
32 GB RM 2990
In additional, Apple must consider its overall iPhone strategy when pricing the
iPhone in Malaysia. The low price is a strategy to attract more customers
purchase iPhone. We suggest that Apple should hold a price adjustment from
higher to lower price in Malaysia market. As we know, the race has begun
amongst Nokia, RIM, Palm, Microsoft and Google to capture developer

resources as applications is the key driving forces behind future iPhone sales. So,
capturing developer resources is the vital for iPhone’s long term strategy. Apple should
aggressively price the iPhone within Malaysia with to establish a large user base for
Malaysian application developers to target.
9.4 Distribution (Place)

Choice of distribution in Malaysia is a vital decision. Conventionally, Apple has
maintained a tight control over the marketing and distribution channels of it’s products.
However, they will need to change this strategy when enters Malaysia market. Apple has
special selling store in several place, hence they will need to find appropriate retail
partners. For examples, the partners company, Maxis sells the iPhone with their
package only.
The strategy to distribute the iPhone also can use online order and distribute at
the popular stores. In website, all the information and details for iPhone will be
describe clearly. Customers can places their order through the website by using
credit card or bank in.
9.5 Promotions
When the iPhone is just launch, the popularity is not so hot. So, we will have
some strategy to give people know what is the iPhone. First, the detailed
handouts will be given out to every house or company together with the
newspapers. Advertisements will be place on the popular website such as
Facebook, Youtube and Google. There are advertisements in the newspapers
too. Video clips which describe the iPhone will be place in the most popular video
website which is Youtube. Besides, Apple should ensure iPhone website can be
easily search when customers key in iPhone into the search engine such as
Google, Yahoo and MSN. Advertisements in radio channel, TV channel cannot
be ignored also because nowadays TV and radio still have the popularity and it
brings relation to the sales of iPhone.
Besides, the demonstration products and professional employees will give details
explanations to customers when customers walk into the stores also is a
technique to promote the Apple iPhone.
9.6 Marketing Communications
Apple needs integrate all the message of the revolution in communication, visual
and audio in our media advertisements. Besides, Apple will reinforce the brand
name and the points of product differentiation. In additional, research about
media consumption will be done, so that iPhone advertising chose suitable media
and timing to reach the effects before and after the product introduction. With that
strategy, the advertising will be appearing regular to maintain the popularity of
iPhone and the brand to several targets of customers.
10. Action Programs

Apple’s iPhone will published in December of 2009. In five months, our company
will do a series of planning and strategy such as advertising and promotion to
increase the popularity of the iPhone.
November We will start launch few exhibition, road show and campaign to let
people know iPhone will be publish within a month. The costs for the above
events need around RM 50,000. Besides, there will be advertisements at the
popular website. The advertisements will create some mystery to people.
December The iPhone will be publishing. So, we need to advertise as much as
possible to let people know this product and increase the sales. Handouts will be
giving to every house together with the newspaper once a week. Through TV and
radio channel, advertising will be done every hour. Professional staff at NIC
Company and Maxis will work at the store and explain the iPhone details,
benefits and advantages to walk in customers.
January-February We will post the videos to our website and popular website
such as Youtube, to show how the iPhone works. Besides, iPhone can be order
though the website.
March There will be promotion of iPhone at the website and our stores to create
more sales. We will give discount and gifting to the iPhone purchaser. Then, we
will use RM30, 000 to make a new series of advertisement at TV, radio channel,
website and handouts.
11. Controls
Apple Inc. need to tight control measures to closely monitor via quality, design,
features, functionality, customer service satisfaction and create customers
values. Implement control on iPhone does ensure Apple inc. could swiftly
correcting problems that may incur. Apple’s tight control over every aspect of their
products development for award a distinct advantage over their competitors. Control on
both software and hardware design enables Apple to rapidly innovate and create
seamlessly integrated products. Besides, other early warning signals will be monitored
for signs of deviation from the plan included monthly sales and expense. Apple also has
building contingency plans to address the environment changes such fluctuation demand.
12. Conclusion
Entering the highly competitive mobile market is clearly a complex problem.
Apple must consider the political differences when choosing an exclusive partner.
In Malaysia, nothing is certain as the government always have the final say.
Marketing the iPhone in Malaysia will require adaptation by Apple on a number of
fronts. They cannot rely on their loyal user base to drive initial sale. They must
find a way to appeal to the Malaysia culture. Fundamentally, the Malaysians’
market is different to Europeans’ and Americans’ market. They use their mobile
in different ways. Apple must focus on the iPhone’s unique features that will
resonate with Malaysian consumers. Furthermore, Apple needs to market the
iPhone as an application platform so as to differentiate itself from copycat
competitors.
The importance of gaining access to the Malaysians’ market goes beyond
revenue generation for Apple. The iPhone is a fantastic product that will help
build strong brand recognition and undoubtedly lead to future sales of additional
Apple products. As Apple have experienced in other countries, the “halo effect” of
the iPhone is a powerful means of driving future sales & creating brand loyalty.
13. Bibliography
13.1 Publications
Kotler, P.; Armstrong. G. (2008). Principles of Marketing, 13th Edition. New
Jersey: Pearson Prentice Hall.
13.2 Webpages
Apple’s Online. (2009). iPhone. Retrieved August 2009, from
http://www.apple.com/iphone/
Maxis’s Online. (2009). iPhone 3GS. Retrieved August 2009, from
http://www.maxis.com.my/personal/iphone3gs/index.asp
Celcom’s Online. (2009). About us. Retrieved August 2009, from
http://www.celcom.com.my/cep/
Digi’s Online. (2009). About us. Retrieved August 2009, from
http://www.digi.com.my/aboutdigi/index.do
iPhone Fans’s Online. (2007). iPhone Marketing Plan. Retrieved August 2009,
from http://www.iphonefans.com/general-iphone-discussion/268-iphone-
marketing-plan.html
About’s Online. (2009). Apple iPhone 3GS Review. Retrieved August 2009, from
http://ipod.about.com/od/iphoneproductreviews/fr/iphone-3gs-review.htm
Wikipedia’s Online. (2009). File: iPhones Sales per Quarter. Retrieved August
2009, from http://en.wikipedia.org/wiki/File:IPhone_sales_per_quarter.svg

Euromonitor International’s Online. (2009). Malaysia Statistics. Retrieved August
2009, from http://www.euromonitor.com/FactFile.aspx?country=MY
Department of Statistics Malaysia’s Online. (2009). Gross Domestic
Product/Gross National Income. Retrieved August 2009, from
http://www.statistics.gov.my/eng/index.php?
option=com_content&view=article&id=379:gross-domestic-product-gross-
national-income&catid=38:kaystats&Itemid=11
Malley.A. (2009). Apple, AT&T Neophytes to Define iPhone Audience – Report.
Retrieved August 2009, from
http://www.appleinsider.com/articles/07/06/06/apple_att_neophytes_to_define_ip
hone_audience_report.html
Heritage’s Online. (2009). Index of Economic Freedom -Malaysia. Retrieved
August 2009, from http://www.heritage.org/Index/Country/Malaysia
Expat’s Online. (2009). Maxis offers iPhone 3G in Malaysia. Retrieved August
2009, from http://www.expat.com.my/Maxis%20Malaysia%20offers%20iPhone
%203G.htm
14. Appendix
Figure 3: iPhone
(Source:
http://www.newlaunches.com/archives/apple_iphone_is_official_runs_mac_os_x.php)
Figure 4: Total iPhone Sales Chart
(Source: http://en.wikipedia.org/wiki/File:IPhone_sales_per_quarter.svg)
Figure 5: iPhone Sales Chart
(Source: http://en.wikipedia.org/wiki/File:IPhone_sales_per_quarter.svg)
Figure 7: Malaysia Demographic Trends
(Source: http://en.wikipedia.org/wiki/Demographics_of_Malaysia)

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ATW 241 Principle of Marketing1

businesses. This is position that Apple is not comfortable with it.

entering the Malaysia market while paying attention to their competitors in an

environment. Finally, a marketing plan is proposed that will successfully position

Apple in the market.

Computer (PC) like functionality as known as PC-mobile handset convergence.

Some of smartphone are runs complete operating system software that is

providing a standardized interface and platform for application developers.

Apple Inc. designs, manufactures and markets personal computers, portable

related software, services, peripherals, and networking solutions.

What is the iPhone?

iPhone is an Internet-connected, multimedia smartphone designed and

marketed by Apple Inc. It combines the features of a mobile phone, wireless

Apple iPhone is an elegantly designed information communicator forged from

Kernel. The iPhone combines smartphone capabilities with a simplicity of use

graphical interface projected on a ‘multi-touch’ display. Apple has created a

Macintosh computer with mobile phone capabilities with bundled within an

Internet enabled PDA and an iPod body.

The iPhone is available in 88 different countries throughout the world,

representing an addressable market of 760 million users. However, Apple have

been unsuccessful in bringing the iPhone to Malaysia. Maxis Communications

this country still small.

market their versions of smartphones. Interestingly, the specifications of an

and storage of personal computers in the eighties.

In smartphones’ market, competition is more rigorous even as demand flattens,

industry consolidation continues and pricing pressures squeeze profitability. In

worldwide, Nokia is the smartphone leader, holding 45 percent of the world

market. The runner-up is BlackBerry, with 13 percent of the global market.

according to the report. That latter figure is always a surprise to marketing

Celcom and so on.

Celcom, Packet One Networks , U Mobile and DiGi Communications Berhad.

several reasons why this would be an unwise decision. Maxis Communications

Then, Maxis Communications Berhad have adopted an alternative strategy of

becoming a "world-leading broadband communications and information service

provider”3. This change in strategy represents a significant risk for Apple in

choosing Maxis Communications Berhad as their exclusive partner. By the way,

Hence, Maxis Communications Berhad would be the most appropriate exclusive

smartphone whilst Maxis Communications Berhad have the worlds largest

3.2 Environment Analysis

Malaysia is 26.1 million and if mobile penetration is 30%, this represents a

significant growth opportunity for Apple.

3.2.1 Political & Legal Environment

burden is low as a percentage of GDP. Malaysia government also weak in

and export licensing, non-transparent regulations and standards and non-

transparent government procurement policies. Besides, private property is

protected, but the judiciary is subject to political influence.

For examples, The International Intellectual Property Association estimates 2005

piracy-related industry losses at $147.3 million. The manufacture and sale of

counterfeit products have led to serious losses for producers of consumer

products and pharmaceuticals.

3.2.2 Economic Environment

3.2.3 Social & Cultural Factors

Malaysia represents a unique fusion of Malay, Chinese, and Indian traditions,

creating a pluralistic and multicultural nation. The Malaysia demographic

as of Chinese descent, 10 percent of Indian descent and 5 percent as others.

matter is a challenge situation for Apple Inc.

2005, the annual gross income is US $ 92,271.89 million. This amount is

increasing to US $ 141,793.09 million in 2009. Besides, consumer expenditure

also shows an incremental from 2005 to 2009, which is from US $ 60,953.33

million to US $ 96,976.36 million. This statement is proved that Malaysian

consumer have affordable to consume more in product market.

3.2.4 Technological Environment