Apple iPhone

I-224
March 21, 2007

Smart Phone

Calls by Touch

Voicemail

SMS

Photos

Calendar

Apple iPhone

Smart Phone

iPod (Widescreen)

Wireless Internet
Communication
Device

PDA

Computer (OS X)

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QuickTime and a
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Camera

iPod (Widescreen)

Tunes Library Access

Videos

Songs

Movie Previews

Lyrics

Album Artwork

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Touch Controls

3.5 inch screen iPod with touch screen controls

Wireless Internet
Communication Device

Wi-Fi enabled Internet Device

Auto Wi-Fi detection

(802.11b/g)

Internet email
Rich HTML email

Widget Applications

Bluetooth

stock quotes

sports scores

weather reports

traffic updates

GSM
Cingulars EDGE

Full Feature Browser

Syncs automatically with a Mac
or a PC

PDA, Computer and

Camera

Apples OS X running Widgets Java based software

PDA features: appoint calendars, contact lists, photos,

emails and documents

Built-in camera takes pictures at 2 MB resolution that

can be stored in 4 GB or 8 GB flash memory

Technical
Specifications
Screen size
Screen

3.5 inches
320 by 480 at 160 ppi

resolution
Input method

Multi-touch

Operating

OS X

system
Storage
GSM
Wireless data
Camera
Battery

4GB or 8GB
Quad-band (MHz: 850, 900, 1800, 1900)
Wi-Fi (802.11b/g) + EDGE + Bluetooth 2.0
2.0 mega pixels
Talk / Video / Browsing - Up to 5 hours
Audio playback - Up to 16 hours

Dimensions
Weight

4.5 x 2.4 x 0.46 inches / 115 x 61 x 11.6mm

4.8 ounces / 135 grams

iPhone Design
Audio

Display Screen
Headphone jacks

3.5-inch touch screen display

Built-in speaker

Finger commands interface

Bluetooth (stereo) transmission

25,000 pixels per inch resolution

Ambient light sensor

Software OS X
Capabilities
Full OS X
Multi Tasking
Networking
Syncing
Low Power
Security
Video

Cocoa
Core Animation
Graphics
Audio
Widgets
Applications

Phone Market Position

Smart
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TIFF (Uncompressed) decompressor
are needed to see this picture.

QuickTime and a
TIFF (Uncompressed) decompressor
are needed to see this picture.

QuickTime
and this
a decompressor
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QuickTime and a
TIFF (Uncompressed) decompressor
are needed to see this picture.

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TIFF (Uncompressed) decompressor
are needed to see this picture.

QuickTime and adecompressor

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iPhone

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E62

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Moto

Complex

Blackberry

Treo

Easy
To
Use

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Nokia

Basic

Phone

iPhone vs. the

competition
iPhone differentiation
10
8

iPhone

Blackberry
Pearl

Motorola
RAZR

2
Score (10 = highest)
0
Email
Affordable
Easy of use
Fashionable

Media Player
Web browsing
Carrier availability

Factors of Competition

Screen
PC functionality

Customer segments

Enterprises are unlikely to buy iPhones

Price ~40% higher than Blackberries

Blackberries have top-notch push-email

iPhone has features that appeal to mass

consumer market

However, sales will be gated by network

and price

Marketing decisions
(I)

Pricing

Skimming strategy

Typically cell phone prices drop rapidly

Expect Apple prices to fall slowly

Product

Add functionality, maintain price

Versioned iPods for price-sensitive segment

Marketing decisions
(II)

Distribution

Restricted availability to Cingular and

Apple stores

New iPhones will open channels & drive

sales

Promotions

Cingular iPhone discounts unlikely

Expect iPhone voice / data plans

Early adopter market

~8.7m

Cingular customers

58m

Cingular subscribers with iPod

30%

Cingular subscribers with iPod

17.4m

Uptake rate from Cingular iPod customers in 1st year

50%
assumption

Est. uptake by Cingular iPod customers in 1st year

8.7m

Mobile Device
Market

World Sales

Millions of Units

Analyses

Porters Five Forces

New
entrants

Bargaining
power of
suppliers

Rivalry
within
industry

Threat of
substitutes

Bargaining
Power of
customers

strengths

SWOT Analysis
Sensors

Style/Brand

User base
Rich UI

No UMTS
First mover

Hype

Migrate people to Apple

Port existing apps

weaknesses

High price / high end

Limited distribution channels

Missing features

Unsafe for
corporate use?

Similar devices
Highly developed market

New social device

Distribute iTunes content

opportunities

threats

Recommendations

Open up the OS
to third party developers

support

Voice over IP

iDream
(The Future)