Apple iPhone

1
Apple iPhone

• I-224
• March 21, 2007

2
Smart Phone

• Calls by Touch
• Voicemail
• SMS
• Photos
• Calendar

3
Apple iPhone

• Smart Phone
• iPod (Widescreen)
• Wireless Internet Communication Device
• PDA
• Computer (OS X)
• Camera

4
iPod (Widescreen)

• Tunes Library Access
• Videos
• Songs
• Movie Previews
• Lyrics
• Album Artwork
• Touch Controls
• 3.5 inch screen iPod with touch screen controls

5
Wireless Internet Communication Device

• Wi-Fi enabled Internet Device
• Auto Wi-Fi detection (802.11b/g)
• Bluetooth
• GSM
• Cingulars 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

6
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

7
Technical Specifications
8
iPhone Design

• 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
9
Software OS X Capabilities

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

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

10
Phone Market Position
11
iPhone vs. the competition
12
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

13
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

14
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

15
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

16
Mobile Device Market

• World Sales

Millions of Units
17
Analyses
18
Porters Five Forces
New entrants
Bargaining Power of customers
Bargaining power of suppliers
Rivalry within industry
Threat of substitutes
19
SWOT Analysis
strengths
weaknesses
High price / high end
Sensors
No UMTS
Style/Brand
Limited distribution channels
User base
First mover
Rich UI
Unsafe for corporate use?
Missing features
Hype
Migrate people to Apple
Similar devices
Port existing apps
Highly developed market
New social device
Distribute iTunes content
opportunities
threats
20
Recommendations
21
Open up the OSto third party developers
22

supportVoice over IP
23
iDream(The Future)