Apple

Apple iPhoneApple iPhone

Arti PradhanMba 3 sem

Arti PradhanMba 3 sem

Calls by Touch Voicemail SMS Photos Calendar

Smart Phone iPod (Widescreen) Wireless Internet

Communication Device

PDA Computer (OS X) Camera

Apple iPhoneApple iPhone

Tunes Library Access Videos Songs Movie Previews Lyrics Album Artwork

Touch Controls 3.5 inch screen iPod with touch screen controls

Wi-Fi enabled Internet Device Auto Wi-Fi detection

(802.11b/g) Bluetooth GSM Cingular’s EDGE

Full Feature Browser Syncs automatically with a

Mac or a PC

Internet email Rich HTML email

Widget Applications stock quotes sports scores weather reports traffic updates

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

Screen size 3.5 inches

Screen

resolution

320 by 480 at 160 ppi

Input method Multi-touch

Operating

system

OS X

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

Display Screen› 3.5-inch touch screen display › Finger commands interface› 25,000 pixels per inch

resolution› Ambient light sensor

Audio

Headphone jacks

Built-in speaker

Bluetooth (stereo) transmission

•Full OS X•Multi Tasking•Networking•Syncing•Low Power•Security•Video

•Cocoa•Core Animation•Graphics•Audio•Widgets•Applications

Complex

Smart

EasyTo Use

Basic

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iPhone



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Treo

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iPhone differentiation

0

2

4

6

8

10

Afford

able

Easy

of us

e

Fashio

nable

Email

Web b

rowsin

g

Med

ia Play

er

Carrier

ava

ilabilit

y

Scree

n

PC func

tiona

lity

Factors of Competition

Sco

re (

10 =

hig

hes

t)

iPhone

BlackberryPearl

MotorolaRAZR

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

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

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

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

World Sales

Millions of Units

New entrants

New entrants

Bargaining Power of

customers

Bargaining Power of

customers

Bargaining power of suppliers

Bargaining power of suppliers

Threat of substitutesThreat of

substitutes

Rivalry within

industry

Rivalry within

industry

strengthsstrengths weaknessesweaknesses

opportunitiesopportunities threatsthreats

Style/Brand Sensors

Rich UIUser base

Hype

First mover

No UMTS High price / high end

Limited distribution channels

Missing featuresUnsafe for

corporate use?

Port existing apps

Migrate people to Apple

New social device

Distribute iTunes content

Similar devices

Highly developed market

support

Voice over IPsupport

Voice over IP

Apple

Technology

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