The iPhone (pronounced is a line of Internet

and multimedia-enabled smartphones designed and

marketed by Apple Inc. The first iPhone was
introduced on January 9, 2007.[1]
An iPhone functions as a camera phone,
including text messaging and visual voicemail,
a portable media player, and an Internet client,
with e-mail, web browsing, and Wi-Fi connectivity.
The user interface is built around the device's multi-
touch screen, including a virtual keyboard rather than
a physical one. Third-party applications are available
from the App Store, which launched in mid-2008 and
now has well over 300,000[2] "apps" approved by
Apple. These apps have diverse functionalities,
including games, reference, GPS navigation, social
networking, and advertising for television shows,
films, and celebrities.
There are four generations of iPhone models, and
they were accompanied by four major releases
of iOS (formerly iPhone OS). The original
iPhone established design precedents like screen size
and button placement that have persisted through all
models. The iPhone 3G added 3G cellular network
capabilities and A-GPSlocation. The iPhone
3GS added a compass, faster processor, and higher
resolution camera, including video. The iPhone 4 has
two cameras for FaceTime video calling and a higher-
resolution display. It was released on June 24, 2010.
Development of the iPhone began with
Apple CEO Steve Jobs' direction that Apple engineers
investigate touchscreens. Apple created the device
during a secretive and unprecedented collaboration
with AT&T Mobility—Cingular Wireless at the time—at
an estimated development cost of US$150 million
over thirty months. Apple rejected the "design by
committee" approach that had yielded the Motorola
ROKR E1, a largely unsuccessful collaboration
with Motorola. Instead, Cingular
gave Apple the liberty to develop
the iPhone's hardware and
software in-house.
Jobs unveiled the iPhone to the
public on January 9, 2007
at Macworld 2007. Apple was
required to file for operating
permits with the FCC, but since
such filings are made available to
the public, the announcement came months before
the iPhone had received approval. The iPhone went
on sale in the United States on June 29, 2007, at
6:00 pm local time, while hundreds of customers
lined up outside the stores nationwide. The original
iPhone was made available in the UK, France, and
Germany in November 2007, and Ireland and Austria
in the spring of 2008.
On July 11, 2008, Apple released the iPhone 3G in
twenty-two countries, including the original six. Apple
released the iPhone 3G in upwards of eighty
countries and territories. Apple announced the iPhone
3GS on June 8, 2009, along with plans to release it
later in June, July, and August, starting with the U.S.,
Canada and major European countries on June 19.
Many would-be users objected to the iPhone's
cost, and 40% of users have household incomes over
US$100,000. In an attempt to gain a wider market,
Apple retained the 8 GB iPhone 3G at a lower price
point. When Apple introduced the iPhone 4, the 3GS
became the less expensive model. Apple reduced the
price several times since the iPhone's release in
2007, at which time an 8 GB iPhone sold for $599. An
iPhone 3GS with the same capacity now costs $99.
However, these numbers are misleading, since all
iPhone units sold through AT&T require a two-year
contract (costing several hundred dollars), and a SIM
lock.
Apple sold 6.1 million original iPhone units over five
quarters. The company sold 3.8 million iPhone 3G
units in the second quarter of fiscal 2009, ending
March 2009, and 12.6 million 3G and 3GS combined,
totaling 33.75 million iPhones sold to date (Q4
2009). Sales in Q4 2008 surpassed temporarily those
of RIM's BlackBerry sales of 5.2 million units, which
made Apple briefly the third largest mobile phone
manufacturer by revenue, after Nokia and Samsung.
Approximately 6.4 million iPhones are active in the
U.S. alone. While iPhone sales constitute a significant
portion of Apple's revenue, some of this income
is deferred.
The back of the original iPhone was made of
aluminium with a black plastic accent. The iPhone 3G
and 3GS feature a full plastic back to increase the
strength of the GSM signal. The iPhone 3G was
available in an 8 GB black model, or a black or white
option for the 16 GB model. They both are now
discontinued. The iPhone 3GS was available in both
colors, regardless of storage capacity. The white
model was discontinued in favor of a black 8 GB low-
end model. The iPhone 4 has an aluminosilicate glass
front and back with a stainless steel edge that serves
as the antennae. It is available in black; a white
version was announced, but has as of October
2010 not been released.

Features

Multi-tasking
Now you can run your favorite third-party apps
— and switch between them instantly — without
slowing down the performance of the
foreground app or draining the battery
unnecessarily. So you can listen to a ball game
while emailing.

Folders
 Drag and drop to organize apps into folders on
your Home screens and get fast access to your
favorites.

iBook
More than a full-color ebook reader, iBooks is
also an amazing place to browse and
shop for books anytime you feel like it.2 It
works with
PDFs that you can sync using iTunes on your
Mac or
PC. And you can customize iBooks to suit the
way you
Read and adjust the brightness, change the
text size, and
more.

Phone
On iPhone, making a call is as simple as
tapping a
name or number. And Visual Voicemails lets
you play
messaged in any order.

Mail
A unified inbox and other new features make
mail more
power than before.
 Safari
The most advanced web
browser on a mobile
phone.

iPod
Play music and
watch video in vivid color.

Camera
A 3-megapixel autofocus camera for
capturing friend

Product life cycle

Every product has a limited life. Product life cycle des

cribes the profit and
sales earned by a product over its whole life. The life
of a product is the period over which it appeals to
customers. The sales performance of any product
rises from nothing when the product is introduced to
the market, reaches a peak and then declines to
nothing again.
There are five stages:
 Product development,
 Introduction
 Growth
 Maturity and
 Decline
iPhone is a new technology advance and it has alread
y gained a favorable result
in the market. Therefore, it should be in the growth st
age now.
 Introduction Stage

After a long period of development, iphone was

finally made available and came into the
introduction stage. In this stage Apple had to raise
awareness of public and attract more customers.
On January 9th Apple introduced the functioning of
the iphone at the Macworld Convention and
invested lots of money in posters and TV
commercials. The costs involved here are obviously
higher because lots of expenditure goes into
advertising the product. The first iphone was
launched in 2007. It was called the iphone 3 which
had an ibuilt memory of upto 8GB.It was very well
received and more than 1,500,000 units were sold
over the first weekend of its release.

Growth stage

The iphone is now in the growth stage and will

continue to
remain there for a couple of years or more as
Apple plans on
introducing more models of the iphone into the
market.
On 5th February 2008 the iphone 3GS was
launched.
This came with an inbuilt memory of upto
16GB which was
far more than the memory storage of the
iphone 3. It was also
announced that the iphone 3GS would
support 3G
 networking and would also support GPS
navigation this
shows an improvement in the features of the
iphone. The
overall software capabilities were also
revised and improved.
The iphone Apps were also launched at this
time. Apple
recently launched the iphone 4, which had
more than a 1000
iphone Apps. Apple also plans to introduce
newer models in
future and so it remains in the growth stage.

Market survey

1) Sales
Apple sold 6.1 million original iPhone units over five quarters. The company
sold 3.8 million iPhone 3G units in the second quarter of fiscal 2009, ending
March 2009, and 12.6 million 3G and 3GS combined, totaling 33.75 million
iPhones sold to date (Q4 2009).

3) Value proposition
Intended for style-conscious cell phone consumers who would like to browse
the Internet and enjoy entertainment to-go, the iPhone is a smart phone
that combines a web browser, email, iPod and personal computer into a single,
fashionable, easy-to-use device.

The following strategy canvas illustrates how the iPhone is differentiated

from the BlackBerry Pearl (a smart phone) and Motorola’s RAZR (a popular,
stylish consumer phone)
3) Value proposition
Intended for style-conscious cell phone consumers who would like to browse
the Internet and enjoy entertainment to-go, the iPhone is a smart phone
that combines a web browser, email, iPod and personal computer into a single,
fashionable, easy-to-use device.

The following strategy canvas illustrates how the iPhone is differentiated

from the BlackBerry Pearl (a smart phone) and Motorola’s RAZR (a popular,
stylish consumer phone)
Product
The iPhone will have a full year warranty along with an optional three-year
Apple Care warranty. Apple package the iPhone as tastefully as all Apple
products agree. Special editions of the iPhone will also be introduced
including higher hard disk capacity versions as 32GB and 64 GB. Apple will be
shipping in 2010 a cheaper less advanced iPhone along more advanced version
of the iPhone designed for professionals with these additional features:
 Larger, removable disk storage capacity – support for USB memory
sticks, digital camera memory cards, external hard drives.
 Lower weight and thinness – should fit into a wallet or become the
wallet (with features to act as a credit or debit card).
 Significantly longer battery life – should play movies for twice as long;
battery should be easily replaceable.
 4G wirelesses – even faster, more incredible speeds than ever offered
on this sort of device. This will leapfrog the competition.

Pricing
 Apple set their base model 4gb at a low $567 dollars.
 Larger 8gb models will be listed at $800 dollars.
 High technologically developed “S” versions (16gb and 32gb) will be
sold more expensive. Iphone 3GS 16GB model will be sold as $1100
dollars.
  And the most advanced model of today will be sold 3GS 32GB as
1334$.

Distribution

We are aiming for massive rollout worldwide at all reputable major retailers
online and brick n mortar stores along with cellular phone providers. All Apple
Stores the Apple website will dedicate themselves to the iPhone and also
provider channel partners by providing product demonstrations. Eye catching
displays will be found at all physical stores featuring the iPhone to make the
product stand out from the pack. Apple Stores will have the iPhone on display
a full month before its worldwide release. This is designed to lure consumers
into Apple stores and see the whole range of products Apple can offer.

Promotion
  Apple will integrate their message of revolutionary communications
and audio/visual experience together in all of their media
advertisements.
 Prominently featured to differentiate their product against others is
the touch screen functionality.
 Apple will also emphasize their brand prominently and associated the
iPhone with the iPod’s groundbreaking lineage.

SWOT Analysis

Strength's

The iPhone has several features that add to the strength of the product.
These include its unique look and feel accompanied by a mobile operating
system. It has phone sensors that work with the multi-touch screen, which
is a new patented technology. These new features are presented to a large
and loyal user base that Apple has accrued over the years. Additionally,
marketing was given support from all over the internet, saving the company
over 400 million in advertising fees. Finally, the fact that the company is
first to deliver in this arena of computer phones is one of its greatest
strengths.

Weaknesses

Like every new product, there are is a set of weaknesses. The iPhone is not a
3G device and will not work in technologically advanced countries such as
Japan and Korea. All of their phones are 3G compliant. Several of the
iPhone features are also not particularly impressive. These include the fact
that it has a sub par camera, standing at about 2 megapixels as well as its
memory not being removable. The phone is priced around 500 to 600 dollars
and surveys have shown that 52% of consumers are happy with their current
mobile device; essentially, this phone is geared towards the high end
consumers. Apple’s choice of distribution channel has also been construed as
a weakness as they’re limiting it to only Cingular and Apple retailers. Finally,
its purpose is to be questioned – does the phone fulfill corporate duties or is
it just an entertainment system.

Opportunities

There is quite a demand for a better mobile computing experience. The

iPhone tries to combine both powerful computing as well as entertainment
into one system. People have also noted that the Mac OS applications for
desktop can be seamlessly adapted for the iPhone. Also, this is the first
step towards an Internet Protocol-based network. The emergence of Wi-Fi
networks is pushing for there to be visitor fees instead of having a provider
lock in users. It is very likely for the device fees and pay-per-view system
to take flight, eliminating the month to month subscription fee.

Threats

The majority of threats come from other companies including Nokia, Sony,
and Google with their respective products. Smart phones are one popular
example that stands to compete against the iPhone. The fact that these
phones run on the 3G network also puts iPhone behind in the speed race.
Although the economy is no longer in its volatile stages, the release of the
iPhone is still in a time where people are cautious of spending money. The
last threat is the Cisco vs. Apple trademark-infringement lawsuit that may or
may not have taken away from the product launch.