Apple iPhone

I-224
March 21, 2007
 Smart Phone

• Calls by Touch

• Voicemail

• SMS

• Photos

• Calendar
 Apple iPhone
• Smart Phone
• iPod (Widescreen)
• Wireless Internet
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• PDA
• Computer (OS X)
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• Camera
 iPod (Widescreen)
• Tunes Library Access

• Videos

• Songs

• Movie Previews QuickTime™ and a

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• 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 (MHz: 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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Moto Q Blackberry

Complex To
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Nokia

Basic
Phone
 Score (10 = highest)

0
2
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10
Af
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Fa
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Em
W ai
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br
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M g
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Pl
Ca ay
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a va
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bi
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y

Factors of Competition
Sc
re
PC en
fu
iPhone differentiation

nc
t io
na
lit y
competition

Pearl
iPhone vs. the

RAZR
iPhone

Motorola
Blackberry
World Sales

Millions of Units
 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 Bargaining

power of within Power of
suppliers industry 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)