INTERNATIONAL INSTITUTE OF BUSINESS STUDIES

A RESEARCH ON I- PHONE MARKET

INTERNATIONAL INSTITUTE OF BUSINESS STUDIES

{Affiliated to Punjab Technical University, Jalandhar}

In Partial fulfillment of requirement of degree of

MBA (2009-2011)

SUBMITTED TO: SUBMITTED BY:

Mr. Prof. Commander Prakash RAHUL KUMAR SINGH

(Project’s Guide) MBA-2 nd SEM.

Roll no. 45

Sec. - C

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ACKNOWLEDGEMENT

I take this opportunity to express my acknowledgement and deep sense of gratitude for
rendering valuable assistance and guidance to me by following personality for
successful completion of my project.

I am highly obliged to my project guide Prof. commander Prakash for his personal
encouragement, prompt assistance and help provided to me in completion of my project.
He has helped me a lot by giving suggestions and guidance whenever needed. His
contribution has been extremely useful and is greatly appreciated. I honor his knowledge
and competence in the field of management.

RAHUL KUMAR SINGH

MBA-2ndSEM

ROLL NO- 45

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Title page

Serial No. Particulars Page No.

1. Executive summary 4

2. Introduction 16

3. Objective 18

4. Research Methodology 23

5. Findings 25

6. Limitations 28

7. Conclusions 30

8. Recommendations 31

9. Bibliography 32

10. Appendices 33

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EXECUTIVE SUMMARY
The iPhone: its sleek design, always-on connectivity, enterprise support, application
platform, quirky third party apps and the fact that it’s made by Apple keep the iPhone in the
headlines. Those who have one say they’d never go back, and the iPhone wins hands down
in comparisons with other ‘smart’ phones. The iPhone is rapidly expanding in global
markets; already in 80 countries, it’s set to be in 84 countries soon. The iPhone 3G launched
in the UK in July 2008 is even more popular than the original iPhone having already sold
over 17m units worldwide (1 million in the first weekend it went on sale). The ‘device’ itself
seems to transcend mobile phones; creating a new product genre; it sure is asmart phone,
but it’s a smart phone that appeals way beyond the traditional smart phone market. iPhone
is first and foremost a phone (you can make phone calls with it); and whilst there’s arguably
relatively little innovation to be made in terms of voice, Apple has indeed innovated
everywhere; including in voice, as you might expect. iPhone boasts a fully featured web
browser via Safari, email via Mail, Events and Calendars via iCal as well as great Utility apps
from a calculator, to Address Book, to Notes. Oh, and of course all of your mobile ‘stuff’ is
synched to your computer via Mobile Me; even PC users get great synchronisation
capabilities. When you’re not at work there’s YouTube to play with, and it’s an iPod; so it
holds all your music, and TV shows. Oh, and all of that just comes as standard in a super-
easy-to-use interface.

It seems you either love it, or you love it, unless you haven’t actually held one yet, in which
case you should, so you can make up your own mind. It’s not just the iPhone device though
that’s being described as a ‘game changer’ heralding in Mobile 2.0; there’s more to it than
that. iPhone comes with its own marketplace; the App Store where third party developers can
distribute their software. The App Store, controlled by Apple enables anyone the chance to
either distribute an application for free, or to charge for each download. Whilst Apple takes
30% of sales revenues, the 70% revenue to the developer is appealing and previously unheard
of in the mobile applications business. Whilst Apple moderates what goes into the App Store;
essentially it is far more open that any other mobile ecosystem to date. Anyone can create an
application and apply to become an official iPhone SDK developer, anyone can submit an
application to the App Store and if successful, as most are, anyone can sell their application
to a consumer base that is easy to target with one point of sale. Even niche services can reach
their longtail audiences via the App Store.

Apple has not only created a new breed of phone, and marketplace, but a new way of
thinking about mobile content and what makes a good mobile service or application. Unlike
any other previous mobile platform, Apple is enabling the consumer to decApple has not only

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created a new breed of phone, and marketplace, but a new way of thinking about mobile
content and what makes a good mobile service or application. Unlike any other previous
mobile platform, Apple is enabling the consumer to decide. Whereas previously, application
developers would need to do deals with either handset manufacturers or network operators to
get their apps pre-installed on phones or accessible via a list of ‘recommended apps’, now,
the field is much more open to all. ide. Whereas previously, application developers would
need to do deals with either

The iPhone App Store is a groundbreaking strategy for a handset manufacturer; enabling
third parties to create great content and applications for your device; building yet more
appeal for consumers; and more revenue. The App Store launched in June 2008; it already
boasts over 20,000 Apps and over 500 million downloads and is as diverse as the capabilities
of the device itself. You’ll find high quality games, addictive time-wasters, city guides, social
networking and location aware apps, music recommendation apps, health and fitness aids
and productivity tools. And unlike traditional mobile applications, the experience is in a class
of its own. iPhone does things other phones don’t do (yet); it comes with GPS location
awareness built in delivering a new plethora of ‘Location BasedServices’. iPhone also has a
touch screen meaning previous keypad restrictions on handsets are effortlessly overcome;
making for a much more intuitive user experience. It comes with an ‘accelerometer’
meaning you can make applications based on gestural input (such as motion, vibration and
tilt) - enabling really fun games. The SDK (Software Development Kit) enables developers to
access various parts of the device; for example the cameraand the photo albumand location
based services, so it’s possible to create feature rich integrated applications, (an app that
takes pictures, geo-tags them with your location and allows you to see other photos taken
‘nearby is just one example)’. Most iPhone owners have downloaded a range of
applications; some for work, some just for fun, and the App Store is fast becoming a
showcase of mobile application innovation. High-end games sell for £5.99 or more whereas
other apps are selling for 59p; and many are free. The attraction for developers is clear;
even at 59p (the 99 cent equivalent) the App Store offers a powerful way to reach your
consumer base; just 10,000 downloads offers developers a healthy ‘carrot’ to develop new
innovative applications.

So is the iPhone platform creating an explosion of developer-entrepreneurs; all looking to

make a fast buck? Well, yes and no. Like the web, developers have no, or low barrier to
entry; in theory anyone can now make a mobile app, and there are plenty of ideas out
there. Unlike the web however where you can develop web applications in a variety of
programming languages, the skills required for iPhone development are more specific; and
arguably harder to come by. Developing an application for iPhone requires skills in
Objective-C programming; although other Mac development experience from Cocoa to
WebObjects also comes in handy. There are plenty of PHP and Ruby on Rails programmers
out there who would love to make the most of this platform but who don’t (yet) have the
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skills. A quick search for iPhone developer positions vacant will confirm that the few
developers who are skilled in this area are in serious demand. Hot on the heels of this new
breed of mobile developers will doubtless come iPhone strategists and iPhone designers;
the platform indeed requires a new way of thinking about mobile services.

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The iPhone opportunity is appealing across the board, and not just to independent
developers; games companies are developing special versions of their games for iPhone,
web services are going mobile on iPhone, brands want to be in your pocket (on iPhone); the
possibilities seem endless. Corporations are building in-house development teams to create
corporate applications, brands are commissioning independent developers, and web design
agencies are branching out, adding iPhone development services to their offering. For small
businesses too, iPhone offers a way to reach a new, content-hungry audience; for many,
creating an iPhone App is the new way of looking at ‘online and mobile marketing’.

Whilst iPhone is redefining the mobile landscape and taking the world by storm, it is still
very new; in its infancy. We’ve yet to see the market for apps saturated and there’s still
plenty of room for innovation. Everyone working in this area is indeed still learning: what
makes a great app how to monetise an app, how to take web based services mobile. And
iPhone represents a significant investment opportunity; US based venture firm KPCB
announced iFund1, offering $100 million worth of investment.

The Amazing iPhone project is a report (and accompanying events) on the iPhone device,
platform and opportunity for bothusing iPhone and for creating apps for it. In this report we
will cover the basics from development and business perspectives. We have been watching
the iPhone space, from the device, to the apps, to the developers, to industry reactions, and
will share this insight alongside direct experience of developing an application for iPhone.

The Amazing iPhone report is aimed at business owners and strategists and at technologists
and developers. The report aims to give an overview of the space for iPhone new-comers
and useful guidance for those wishing to move into iPhone development. We’ll point you at
iPhone related events, iPhone news, iPhone development tools and training and iPhone
developers themselves.

The author of this report is Kisky Netmedia is a consultancy based in Liverpool, UK, which
specialises in Social Mobile Strategy; advising businesses and public sector clients how to
harness new and emerging technologies and platforms.

This report was commissioned by the International Centre for Digital Content (ICDC) in Q3
2008. Liverpool John Moores University’s International Centre for Digital Content is a centre
of excellence for the research and commercial exploitation of digital content. ICDC is
supported by both the European Regional Development Fund under Objective One for
Merseyside, as well as the North West Development Agency.

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iPhone Rocks!
Before we get into the hard facts; the statistics and projections, we thought we’d start with
explaining a little about the cult of iPhone. From the outlandish claims that the iPhone is
indeed ‘magic’, or ‘the Jesus Phone2’ to the many ‘homages to iPhone’ videos on YouTube,
it’s clear iPhone owners are passionate.

3Marco Tempest’s “iPhone Magic” Video on YouTube4, uploaded in June 2007 is not only
funny, but eerily spot on. Apparently uploaded at the iPhone launch event, Marco manages
to foretell a few future apps way ahead of the launch of the App Store. Marco pokes fun at
the cult of iPhone - ‘can it do no wrong?’ whilst demonstrating just why iPhone is seen as
cool by so many.

Watched over 5 million times, Marco’s iPhone Magic video is much better than a lot of them
but it’s not just Marco who’s made an iPhone film. The less creative, (or magical), focus on
the real features of iPhone; the apps, and of course why they ‘just love it’! Taking an
objective view can be hard in this sea of iPhone enthusiasm.

The cult of iPhone seems to have permeated every corner of the world. Whilst the iPhone
owner demographic was initially made up of high income households (due to the originally
higher price tag) iPhone’s appeal is spreading. We’ll focus more on who’s buying iPhones
later, for now we want to focus on the iPhone passion; in an attempt to enthuse and inspire.
After all, this is a marketeer’s dream; Apple has harnessed a smart consumer willing to tell
their friends; tell the world even of their iPhone love and devotion.

iPhone Sucks!
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Of course not everyone’s a fan of iPhone and not everyone’s a fan of Apple Inc. Traditionally
Apple attracted a certain type of consumer. ‘Smart’ or not, they came from higher income
households and were prepared to pay more for an Apple computer than a PC made by
someone else. This consumer is interested in design and functionality over cost; and is
extraordinarily loyal. The term ‘Switching’10 in modern day computer terminology has been
adopted by Apple to mean ‘someone switching from a PC to a Mac’. There’s no backwards
application of the term; it’s not also used to mean a Mac user who feels like a change so
moves to a PC

Apple has its customers hooked; and perhaps it is this devotion which alienates some of
those who are not Apple customers. Ads like ‘I’m a PC and I’m a Mac (left)11, point a finger
of fun at PCs. The ads portray PCs as ‘a bit stupid’ compared to Macs. It’s not surprising then
that amongst the army of consumers worldwide there are a few ‘non believers’, those that
don’t want to believe they’re using inferior technology. Apple inspires passion; from
customers who love their products to the people (who are often not Apple customers) who
hate them. This inspires heated discussion on blogs and user communities; in which often
neither side takes a particularly balanced view.

It is often hard to know if what you’re reading is balanced journalism, orbiased or ill
informed opinion. Offering insight into the technologyplatform, the mobile industry, or
marketplace requires a significant amount of skill and experience, in considerably complex
areas. iPhone has forced many parties to sit up and take notice; to weigh up pros and cons,
to identify and quantify markets and opportunities. And as with anything online, in 2008 at
least, you’ll most probably be reading commentary from many authors in one space. Several
voices, perhaps some are tech journalists, pro or amateur bloggers, some may be users and
owners, some may even be competitor plants. What you can be sure of is that by launching
such a game-changing device, backed up by a revolutionary business model, Apple has not
only grabbed market share, but also considerably ‘ruffled feathers’. Not everyone likes a
success story, and occasionally this results in unbalanced reporting. Don’t believe everything
you read about iPhone! not everyone; even technology pundits get it right all of the time, or
offer you a balanced article from which to make up your own mind.

Before iPhone

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iPhone is emotive: both its supporters and naysayers are passionate and noisy, and many are
relatively eloquent. All are gradually developing a deeper understanding of the importance of
iPhone; just how it is changing mobile as we know it. Whilst iPhone has ramifications for the
wider technology world, in order to fully understand the impact of the iPhone it is important
to have at least a basic understanding of the mobile industry. An industry that some are
relegating to ‘Mobile 1.0’, in the shadow of Apple as they charge straight into the mobile
arena; rendering useless version 1.0 instead, seemingly effortlessly creating their own Mobile
2.0 platform and ecosystem

The mobile industry ‘traditionally’ in the 2000-2006 period (pre-iPhone) comprised:

•Network Operators (carriers);
•Handset Manufacturers; and
•Software providers (OS and apps on the handset or to download).

In addition there were a host of:

•Mobile Payment Gateways;

•Software platforms: the “middlemen” between software developers and consumers;
•SMS Providers, Gateways, and Aggregators; and
•Content providers (think ringtones, ‘wallpapers’, and ‘logos’).

interlinked providers all have the aim of taking a percentage share of transactions that occur
over the mobile data network. This small village of providers was not open to outsiders; each
aimed to protect their share of the mobile data ‘pie’. The mobile industry was indeed a
“walled garden”; and the industry itself not only accepted this description; but traded on it.
As the industry matured, some sought to open mobile; authors Ajit Jaokar and Tony Fish
were instrumental in documenting the industry and its future potential in their book ‘Open
Gardens’13.

“While the mobile data industry holds considerable promise in future, the existing ecosystem
is challenging
Perhaps the best way to describe the industry is from the viewpoint of an independent
developer. Let’s imagine a developer has a great idea for a mobile application. Maybe it’s for
a specific handset / feature set, or maybe it’s an app that can be made to work on many
handsets (more likely). If, for example, the developer chose a platform such as Symbian,
there’s still a lot of work to do to ensure the application does indeed work on all Symbian
phones. For the application to successfully run on a range of handsets the developer will
have gone to significant lengths to test it in multiple environments. They may use a service
like TestQuest14 or outsource testing to companies such as Photon InfoTech15 offering low
cost off shore mobile testing services.

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The next hurdle is the fact that even a great, well tested application has no audience. A
developer has a choice: they can approach a handset manufacturer, or a carrier, or both, or
they can opt to ignore the ‘walled garden’ of the mobile industry proper, and either sell it on
the ‘alternative applications’ market, or promote it themselves. It’s not just handset
manufacturers who say what goes onto the phone; the network operator also has a say.
They’ve done a deal with the handset guys which dictates what you get on your home
screen. So doing a deal with either handset manufacturers, or carriers is difficult. Your
application bundled on a new handset could indeed be lucrative, but it’s rare. So most
developers opt for an alternative platform such as mobile application portal Handango. But
platforms like Handango take high percentage fees - currently now 40% plus tax16.

Key Dates
The iPhone has only been available to buy anywhere since June 2007; but in less than a year
and a half it has established itself as a game-changer. In truth, anticipation of the iPhone
started long before the summer of 2007, with speculation on what an Apple phone might
'look like' going back way earlier. The earliest mention if iPhone is from 1999 when Apple
registered the iphone.org domain name. Inspired by "iPhone timeline" at iPhone Gold22 the

following timeline shows key dates for iPhone.

August 1993: Apple introduces its first handheld device the Newton23
February 1998: Steve Jobs returns to Apple and kills the Newton along with various other
products.
14th December 1999: Apple acquires the domain name iphone.org, which directs visitors to
apple.com/iphone.

following timeline shows key dates for iPhone.

August 1993: Apple introduces its first handheld device the Newton23

February 1998: Steve Jobs returns to Apple and kills the Newton along with various other

products.

14th December 1999: Apple acquires the domain name iphone.org, which directs visitors to

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apple.com/iphone.

9th January 2007: Steve Jobs announces the iPhone at the MacWorld conference.

29th June 2007: The iPhone is launched in the USA.

5th September 2007: The iPod Touch is launched. The iPhone is reduced in price by $200
and the 4GB model is
discontinued.
9th November 2007: iPhone is released in the UK on the o2 network. iPhone is released in
Germany on the T-
Mobile network.
5th February 2008: Apple releases the 16GB iPhone.
6th March 2008: Apple releases the SDK (Software Development Kit) enabling developers to
create applications for
iPhone.
9th June 2008: Apple announces the 3G iPhone and the App Store at WWDC (Worldwide
Developer Conference

iPhone Sales Figures

It’s true that since the announcement of the fourth quarter 2008 sales figures, iPhone is
looking pretty healthy. Indeed Apple got off to a great start with sales of 1.38 million in the
few short months of 2007. iPhone launched 29th June ‘07 giving it till end of September to
reach that figure. (Apple’s financial year runs from the end of September). The sales figures
are identified below - and you might notice some anomalies; growth, then a dip, then a
bigger dip, then ‘insanely great24’ figures in Q4 08. It is also true that the iPhone 3G has
already outsold the original iPhone (unofficially now referred to as iPhone 2G); and that
latest sales figures represent a much larger global market than in the iPhone’s first year in
just a handful of territories. We’ve untangled the reports, predictions and analysis to bring
you hard facts - checked against Apple’s own quarterly reports.

Quarter 4 2008: Headline Snapshot

•Total iPhones sold to date: 17 million

•Total 3G iPhones sold (Q4 08 - Q1 09) across 80 countries: 11.25 million
•Total iPhones (2G and 3G) sold in 2008: 13 million
•3G iPhones: 1 million sold in 1st weekend
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•Apple’s sold more 3G iPhones than original iPhones25
•Techcrunch estimates Apple is on target to sell 40 million iPhones in 2009
•iPhone now outsells Blackberry26
•In revenue terms Apple is the No3 handset manufacturer worldwide

Growth in iPhone Sales

The previous tables and graphs below demonstrate the sales curve. In terms of quarter on
quarter results, the launch of iPhone 3G heralds a positive future; but it wasn’t always like
that; Apple struggled to deliver exponential growth in early 2008. Sales figures for the third
quarter 2008 showed a slowdown in sales; but this was due to the fact that consumers were
awaiting the iPhone 3G; in fact Apple stopped production of iPhone 2G almost 2 months
before the introduction of the iPhone 3G. Q1 09 results also show a dip, perhaps due to the
fact that many 3Gs were sold as upgrades. Quarter 2 09 results will give a better indication
of steady growth (estimate reporting dateend of April 09

iPhone Sales by Quarter

PROBLEM STATEMENT

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 Why apple i-phone’s market get down in 2010?
 Why people are hesitating to buy apple i- phone ?
 Why i-phone market is low specially in India?

PROPOSAL

 1st to introduce iphone options.

 1st to launch illustrations so that customers understand the products better before they

buy.

 1st to disclose portfolio on a monthly basis.

 1st to introduce “iphone” and the same was made mandatory by Apple for all other
iPhone services.

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Introduction

Origins
Comments made by Jobs in April 2003 at the "D: All Things Digital" executive
conference expressed his belief that tablet PCs and traditional PDAs were not good
choices as high-demand markets for Apple to enter, despite many requests made to
him that Apple create another PDA. He did believe that cell phones were going to
become important devices for portable information access, and that what cell phones
needed to have was excellent synchronization software. At the time, instead of
focusing on a follow-up to their Newton PDA, Jobs had Apple put its energies into the
iPod, and the iTunes software (which can be used to synchronize content with iPod
devices), released January 2001. On September 7, 2005, Apple
and Motorola released the ROKR E1, the first mobile phone to use iTunes. Jobs was
unhappy with the ROKR, feeling that having to compromise with a non-Apple
designer (Motorola) prevented Apple from designing the phone they wanted to
make. In September 2006, Apple discontinued support for the ROKR and released
a version of iTunes that included references to an as-yet unknown mobile phone that
could display pictures and video.] On January 9, 2007, Jobs announced the iPhone
at the Macworld convention, receiving substantial media attention, and on June 11,
2007 announced at the Apple's Worldwide Developers Conference that the iPhone
would support third-party applications using the Safariengine on the device. Third-
parties would create the applications and users would access them via
the internet. Such applications appeared even before the release of the iPhone; the
first being "OneTrip", a program meant to keep track of the user's shopping list. On
June 29, 2007, Apple released version 7.3 of iTunes to coincide with the release of
the iPhone.] This release contains support for iPhone service activation and syncing.

According to The Wall Street Journal, the iPhone is manufactured on contract in

the Shenzhen factory of the Taiwanese company Hon Hai.

Advertising
The first advertisement for iPhone, titled "Hello," aired during the 79th Academy
Awards on February 25, 2007 on ABC. The ad features clips from several notable
films and television shows over the last seventy years, showing iconic characters

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answering telephones and saying "hello" or a similar greeting. The iPhone is shown
at the end with the caption "Hello. Coming in June."

The commercial was created by TBWA\Chiat\Day, Apple's ad agency since CEO

Steve Jobs' return to the company in 1998. TBWA's Media Arts Lab will continue to
handle all upcoming advertising for iPhone, much as it has for iPod.

On June 3, 2007, Apple released four advertisements announcing a June 29, 2007
release date.  A fifth ad featuring YouTube was released on June 21, 2007. All five
advertisements feature a voice over describing various iPhone features,
demonstrated on-screen. The song "Perfect Timing (This Morning)" by Orba
Squara plays in the background.

The first publicly released iPhone 3G ad was first shown at WWDC 2008.  Since
then, iPhone 3G ads have been similar to those of the original iPhone; however, the
background is white and the music used is "You, Me, and the Bourgeoisie" by The
Submarines and can be viewed on Apple's website]

One iPhone television advertisement was banned in the UK after the Advertising
Standards Authority decided that the ad made false claims about the device's ability
to access websites, and did not mention limitations in doing so.

In April 2009, iPhone commercials started to showcase applications as part of its

"There's an app for that" campaign.

Domain name
On July 1, 2007, it was reported that Apple paid at least US$1 million to Michael
Kovatch for the transfer of the iphone.com domain name. Kovatch registered the
domain in 1995.[24] ThatURL now redirects to Apple's iPhone page.

U.S. release
On June 28, 2007, during an address to Apple employees, Steve Jobs announced
that all full-time Apple employees and those part-time employees that have been
with the company at least one year would receive a free iPhone. Employees
received their phones in July after the initial demand subside
Initially priced at US$599 and US$499 for the 8 GB and 4 GB models, the iPhone
went on sale on June 29, 2007. Apple closed its stores at 2:00 PM local time to

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prepare for the 6:00 PM iPhone launch, while hundreds of customers lined up at
stores nationwide.

Currently, in the U.S. and some other countries it can only be acquired with a credit
card precluding a completely anonymous purchase. There is no way to opt out of the
data plan. The iPhone at first could not be added to an AT&T Business account, and
any existing business account discounts cannot be applied to an iPhone AT&T
account, which AT&T changed in late January 2008.

The Associated Press also reported that some users were unable to activate their
phones because, according to AT&T, "high volume of activation requests were taxing
the company's computer servers."

Early estimates by technology analysts estimated sales of between 250,000 to

700,000 units in the first weekend alone, with strong sales continuing after the initial
weekend. As part of their quarterly earnings announcement, AT&T reported that
146,000 iPhones were activated in the first weekend. Though this figure does not
include units that were purchased for resale on eBay or otherwise not activated until
after the opening weekend, it is still less than most initial estimates. It is also
estimated that 95% of the units sold are the 8 GB model.

OBJECTIVE

 To find out what are the problems in apple i-phone & why people
are not ready to buy apple i-phone.

 To suggest a few remedies tackle such problem .

 To find out why I phone market get down in india .

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HYPOTHESIS

The synchronization between iCal, MobileMe, and iPhone is one of

the biggest embarrassments and disgraces Apple has yet to deal

with.

For over a year, I have been battling duplicates with little success.

Add to all this MS Entourage, which I had to install last year

because Mac Mail doesn't play nicely with Exchange server. (My

company uses Exchange for our mail, etc.) To be clear, the

duplicate problem existed prior to the addition of Entourage 2008.

So you are out of luck, Koolaide Fans; you can't point the finger at

MS in this case.

After 6 months of struggling and fighting with Entourage (and

because there is no native version of MS Project or Visio for Mac) I

finally had to install VM Ware with Windows 7, MS Office 2007, Visio,

Project, etc. The MS apps work perfectly under the Windows 7

session. So, I my functionality for business has been restored.

However, I am left wondering why I have a Mac if it can't provide me

the functionality I need for such basic things as Email, calendars,

contacts, and tasks. I am to the point where I am basically doing

everything in the VMWare session under Windows.

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SWOT ANALYSIS OF i-phone

STRENGTH:

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.

WEAKNESS:

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
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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 steam.

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RESEARCH METHODOLOGY

MEANING OF RESEARCH-

Before understanding Research Methodology, we should understand the meaning of research.

Research in common parlance refers to a search for knowledge. One can also define Research
as a scientific and systematic search for pertinence information on a specific topic. In fact,
research is an art of scientific investigation.

DEFINITION OF RESEARCH-

Research is a systematized effort to gain new knowledge”

Redmann&Mory

MEANING OF RESEARCH METHODOLOGY-

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Research Methodology, it is a way to systematically solve the research Problem. It may be
understood as a science of studying how research is done scientifically. In it we study the
various steps that are generally adopted by the researcher in studying his research problem
along with the logic behind them. It is necessary for the researcher to know not only the
research.

Data Collection: -The objectives of the project are such that both primary and secondary
data is required to achieve them. So both primary and secondary data was used for the
project. The mode of collecting primary data is questionnaire mode and sources of secondary
data are various magazines, books, newspapers, & websites etc.

Primary data
The primary data are those data which are collected afresh and for the first time, and thus
happen to be original in character.

Secondary data
The secondary data on the other hand, are those which have already been collected by
someone else and which have already been passing through the statistical process.

Sample size –
100 people of BANGLORE City were selected

Research ----- Purposive research

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FINDINGS

 After asking all the questions I found that The company has
been sued by iPhone customers in at least three complaints
related to antenna problems. "When your finger or hand
touches a spot on the phone's lower left side especially for
lefties the signal can significantly degrade enough to cause
you to lose your connection altogether if you're in an area with
a weak signal," .

 Signal problem is major that’s why people are don’t interested

in buy apple I- phone.

 Again I found that Just how strong is the new glass housing on the
upcomingApple iPhone 4? You might want to hold your iPhone 4 tight, as it
turns out just a few drops on a flat surface can cause the special glass
housing to shatter to pieces.

 When he introduced the new iPhone 4 at the WWDC conference earlier this
week, Apple CEO Steve Jobs said that the company developed a new
technology for the glass housing of the iPhone 4. It's called aluminosilicate
glass, and is the sort of glass used in the windshield of high-speed trains and
helicopters.

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LIMITATIONS

 While Apple’s iPhone has become one of the most popular products in recent
years there are some downfalls to the product. While the iPhone does have a
2.75G quad-band GSM capability with text messaging and email services and
Wi-Fi services there are some iPhone limitations. Not only do they keep
people from using certain features but they also prevent iPhone customization
in some cases. These problems should be fixed in the future though.

 One of the biggest limitations that the iPhone has is that the product does not
allow for any custom ringtones to be used. While an iPhone will have a four or
eight gigabyte hard drive where several hundred .mp3 files can be fit onto the
hard drive none of these files can be used for ringtone use. Only the ones that
are available on the phone can use them. Therefore, this part of iPhone
customization is greatly limited.

 The camera on the iPhone is a strong one, as it has two megapixels of picture
quality. This makes for one of the best camera phones on the market. While
pictures can be taken for sending to people or for iPhone customization there
is a significant limitation to the camera? It cannot record video files. Of course,
the four or eight gigabyte hard drive is a major factor in this because recording
one’s one video files can take up a great amount of space on the phone.
 Flash is used on many popular websites, including hot video sites like Google
Video and Youtube. There is limited Flash support on the iPhone though. It
makes it tough to go to certain sites on the Internet as a result. With more
websites than ever before getting into the world of Flash programming this will
be a great problem unless Apple is able to fix it in the future.
 The last of the limitations of the iPhone is that of the difficultly in writing things
at times. The iPhone has a touch screen feature and it can be tough to write
things on the iPhone with speed. For instance, while there is a virtual
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keyboard on the iPhone the user will have to go to another menu every time
to enter commas, periods and other marks of punctuation. While the touch
screen is great and is incredibly responsive to what one enters on it this is a
problem that makes it harder to write things.
 With the great sales that the iPhone has gotten in recent months the iPhone
limits have been discovered too. However, as time goes on newer iPhone
models will be available in the future, and many of these models should be
able to correct the problems that are listed here.

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CONCLUSION
 It has been almost six months since Apple Inc. CEO Steve Jobs took the wraps
off the iPhone, which has been touted as a game-changing device for the mobile
phone industry. Since then, the buzz machine has turned the iPhone into one of
if not the  must have pieces of hardware for 2007.
With that in mind, Computerworld sent two of its writers out yesterday to join the
huddled masses in line waiting for the official launch of the iPhone at 6 p.m.
local time. Michael DeAgonia stood outside an AT&T Inc. store in Orlando. Seth
Weintraub queued up outside an Apple Store in New York.
They were among the first to buy iPhones and spent much of Friday night testing
out the devices to see how well they deliver. Both stayed up late DeAgonia
finally called it a day at 5 a.m. and wrote up their early experiences with the
iPhone.

The phone is available only through Apple and AT&T stores, and through each
company's Web site. While some AT&T stores reported that they had sold out of
the iPhones today, Apple still had them in stock this morning and said they
would be available tomorrow as well.

A cautionary note for those porting telephone numbers from other carriers and
hoping to activate their iPhones right away: A customer service representative at
the AT&T activation help line said that for existing AT&T customers porting a
number could take three to five hours. If a user is porting a number from another
service, that process could take up to 24 hours. If a new iPhone owner is getting
a new number, regardless of whether he is an existing AT&T customer or not,
activation is almost immediate.

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Computerworld will be offer additional looks at the iPhone after everyone has
had time to put it through its paces. In the meantime, for those trying to decide
whether to buy one and wondering how well it works, we have two reviews that
come to a similar conclusion: The iPhone largely lives up to the prelaunch hype.

Suggestions

 In the Maps application the up/down arrow in the bottom left corner
is a toggle and it needs to change in appearance to reflect the currently
selected mode.
 In the Maps application the car icon in the bottom right corner
should be grayed out unless there really is traffic information for the
currently selected area.
 Include a clipboard area for copying and pasting text between
applications
 Make the Notes font more legible or give us more options and let us
change the size
 When a photo is taken while editing a contact include it in the
Camera Roll
 Add brightness / gamma / contrast adjustments to the photo editing
area
 Put iPhone activation kiosks in the AT&T stores
 Include a paper clip in the iPhone box.

Bibliography

 www.appleinc.com

 www.soople.com

 www.google.com

 Newspapers

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APPENDICES

1)Do you think that iphone is good for todays generation?

Particulars No. of respondents

Yes 90

No 10

No. of respondents

no, 10

yes
no

yes, 90

Interpretation : 90 people say that i-phone is good option and 10 are saying
not.

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2) Which company’s i-phone do you have?

Particulars No. of respondents

APPLE 40

BLACkBERRY 60

Interpretation: 40 people have APPLE and 60 have BLACKBERRY.

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5) Why do you use this i-phone (APPLE/BLACKBERRY) company?

Particulars No. of respondents No. of respondents

APPLE BLACKBERRY

Good signal 8 12

Good image of CO. 12 4

Growth of the CO. 18 12

Interpretation: 4 people of Blackberry are having better imageof the company,

12 people of Apple say that they are using APPLE due to growth of the

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