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Apple iPhoneApple iPhone
I-224March 21, 2007
I-224March 21, 2007
Smart PhoneSmart Phone
• Calls by Touch
• Voicemail
• SMS
• Photos
• Calendar
• Smart Phone
• iPod (Widescreen)
• Wireless Internet Communication Device
• PDA
• Computer (OS X)
• Camera
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Apple iPhoneApple iPhone
iPod (Widescreen)iPod (Widescreen)• Tunes Library Access
• Videos
• Songs
• Movie Previews
• Lyrics
• Album Artwork
• Touch Controls
• 3.5 inch screen iPod with touch screen controls
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Wireless Internet Communication Device
Wireless Internet Communication Device
• 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
PDA, Computer and Camera
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
Technical Specifications
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
iPhone DesigniPhone 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
Software OS X Capabilities
Software OS X Capabilities
•Full OS X•Multi Tasking•Networking•Syncing•Low Power•Security•Video
•Cocoa•Core Animation•Graphics•Audio•Widgets•Applications
Phone Market PositionPhone Market Position
Complex
Smart
EasyTo Use
Basic
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iPhone
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Blackberry
Treo
E62
Moto Q
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Nokia
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Phone
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Q ui ckTi me™ and aTI FF (Uncompressed) decompressorare needed to see thi s pi cture.
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iPhone vs. the competition
iPhone vs. the competition
iPhone differentiation
0
2
4
6
8
10
Afford
able
Easy
of us
e
Fashio
nable
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
Customer segmentsCustomer 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)
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)
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
Early adopter market ~8.7m
• Cingular customers 58m
• Cingular subscribers with iPod30%
• Cingular subscribers with iPod17.4m
• Uptake rate from Cingular iPod customers in 1st year50% assumption
• Est. uptake by Cingular iPod customers in 1st year 8.7m
Mobile Device Market
Mobile Device Market
World Sales
Millions of Units
AnalysesAnalyses
Porter’s Five ForcesPorter’s Five ForcesNew
entrantsNew
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
SWOT AnalysisSWOT Analysisstrengthsstrengths 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
RecommendationsRecommendations
Open up the OSto third party developers
Open up the OSto third party developers
support
Voice over IPsupport
Voice over IP
iDream(The Future)
iDream(The Future)