Apple iPhone

I-224
March 21, 2007
 Smart Phone

• Calls by Touch

• Voicemail

• SMS

• Photos

• Calendar
 Apple iPhone
• Smart Phone

• iPod (Widescreen)

• Wireless Internet
QuickTime™ and a
Communication
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Device

• PDA

• Computer (OS X)
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• Camera
 iPod (Widescreen)
• Tunes Library Access

• Videos

• Songs

• Movie Previews QuickTime™ and a

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

• Lyrics

• Album Artwork

• Touch Controls

• 3.5 inch screen iPod with touch screen controls

 Wireless Internet
Communication Device
• Wi-Fi enabled Internet Device • Internet email

• Auto Wi-Fi detection • Rich HTML email

(802.11b/g)
• Widget Applications
• Bluetooth
• stock quotes
• GSM
• sports scores
• Cingular’s EDGE
• weather reports
• Full Feature Browser
• traffic updates

• Syncs automatically with a Mac

or a PC
PDA, Computer and Camera

• Apple’s OS X running Widget’s 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 3.5 inches

Screen 320 by 480 at 160 ppi

resolution

Input method Multi-touch

Operating OS X
system

Storage 4GB or 8GB

GSM Quad-band (MH z: 850, 900, 1800, 1900)

Wireless data Wi-Fi (802.11b/g) + EDGE + Bluetooth 2.0

Camera 2.0 mega pixels

Battery Talk / Video / Browsing - Up to 5 hours

Audio playback - Up to 16 hours

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

Weight 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 •Cocoa
•Multi Tasking •Core Animation
•Networking •Graphics
•Syncing •Audio
•Low Power •Widgets
•Security •Applications
•Video
 Phone Market Position
Smart
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iPhone
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Complex To
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Nokia

Basic
Phone
 Score (10 = highest)

10

0
2
4
6
8
Af
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Ea
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Fa
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Em
W ai
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br
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Factors of Competition
Sc
re
PC en
iPhone differentiation

fu
nc
t io
na
lity
Pearl

RAZR
iPhone

Motorola
Blackberry
iPhone vs. the competition
 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
 Porter’s Five Forces
New entrants

Bargaining Rivalry within Bargaining

power of industry Power of
suppliers customers

Threat of
substitutes
 SWOT Analysis
strengths weaknesses

Style/Brand Sensors No UMTS High price / high end

User base Limited distribution channels

First mover
Rich UI
Unsafe for
Hype Missing features
corporate use?

Migrate people to Apple

Similar devices

Port existing apps 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)