3. Apple iPhone
• Smart Phone
• iPod (Widescreen)
• Wireless Internet
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• PDA
• Computer (OS X)
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4. 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
5. 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
6. 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
7. 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
9. Software OS X
Capabilities
•Full OS X •Cocoa
•Multi Tasking •Core Animation
•Networking •Graphics
•Syncing •Audio
•Low Power •Widgets
•Security •Applications
•Video
10. Phone Market Position
Smart
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11. iPhone vs. the competition
iPhone differentiation
10
8 iPhone
6 Blackberry
Pearl
4
Motorola
2 RAZR
Score (10 = highest)
0
Email Screen
Affordable
Easy of use
Fashionable
Web browsing Player
Media
Carrier availability PC functionality
Factors of 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
18. Porter’s Five Forces
New entrants
Bargaining Rivalry within Bargaining
power of industry Power of
suppliers customers
Threat of
substitutes
19. 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