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Apple iPhone. I-224 March 21, 2007. Smart Phone. Calls by Touch Voicemail SMS Photos Calendar. Apple iPhone. Smart Phone iPod (Widescreen) Wireless Internet Communication Device PDA Computer (OS X) Camera . iPod (Widescreen). Tunes Library Access Videos Songs Movie Previews
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Apple iPhone • I-224 • March 21, 2007
Smart Phone • Calls by Touch • Voicemail • SMS • Photos • Calendar
Apple iPhone • Smart Phone • iPod (Widescreen) • Wireless Internet Communication Device • PDA • Computer (OS X) • Camera
iPod (Widescreen) • 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 Wireless Internet Communication Device
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
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
Software OS X Capabilities • Full OS X • Multi Tasking • Networking • Syncing • Low Power • Security • Video • Cocoa • Core Animation • Graphics • Audio • Widgets • Applications
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
Porter’s Five Forces New entrants Bargaining power of suppliers Rivalry within industry Bargaining Power of customers Threat of substitutes
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