iPhone Strategic Intent

Apple – A Company

• Apple was founded on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne to sell the Apple I personal computer kit.

• Focused on designing and manufacturing consumer electronics and closely related software products.

iPhone Strategic Intent

Strategic Intent behind iPhone• Develops, sells, and supports a series of

personal computers, portable media players, computer software, and computer hardware accessories.

• Apple is the early mover in the product category and its strategy is to cash in on market before competition creeps in.

iPhone

iPod

Apple Macintosh

Assembled Personal Computer

Operating System with GUI

IPHONE EXPERIENCE

Arena

• CATEGORY : Smartphone

– It's the next-generation iPod

– It's the next generation mobile web browser and email client

– It's the next generation phone

– It's a software design innovation competing against hardware design innovations

IPHONE IS EVERYTHING

• Market Segmentation

– Elite class was 1st priority

–Now focus is on the teenagers and office goers

• Geographic areas

–Already launched in the US, UK markets on NOV 9, 2007

–Phase wise launch in European and Asian countries

CORE Technologies

–User friendly interface

–Accelerometer

–Multitouch

–OS X

–Proximity

– Video of features

• Value creation–Bundling "free" and generic phones with

cell phone service

–Network Providers pay $150 to $250 for handsets

– It has created a phone that consumers see as sexy and desirable, so desirable in fact that they will actually pay $399 for one.

Vehicle

• Internal development

• Exclusive contract with AT&T in US

• International expansion in UK, Germany and France

• In next 3 months, planning to launch in Japan, India & China

Differentiator

• Image:

– Super brand in iPod/Laptop and Desktop/ OS segment in US.

• Price: $399 for 8GB storage capacity iPhone

– Plans start at US$59.99 a month

– 450 minutes,

– 5000 night and weekend minutes,

– 200 text messages,

– unlimited mobile to mobile minutes,

– unlimited data with a two-year service plan.

• Styling:

– The iPhone's 320 x 480 screen puts it in a class by itself. With 153,600 pixels to light up, images look better.

–Breathtaking clarity of the iPhone screen

– iPhone can present visuals no other phone can touch

– The iPhone takes full 2.0 megapixel resolution 1600 x 1200 photos, Treo has a 1.3 megapixel, only takes 640 x 480 photos.

Other features

• iPhone has an "advanced Safari browser" that allows one to view entire webpages as designed for a computer.

• HTML capable e-mail client that fetches e-mail in the background over POP3 and IMAP, a calendar, and "Widgets".

• Google Maps as well as weather and stock feeds

• Speed and sequence of moves:–Product Curiosity - "freezing the market”

–Market Skimming Strategy

–Priced its product at $599 and as soon as break even sales were achieved it has reduced its products at $399 so as to penetrate more into the market.

• Speed of expansion: – The speed and expansion of events can be gauged

by the fact that in three short months its planning to launch the product all across Europe and in emerging markets across the globe.

– Production capacity has been ramped up to cope with increased demand.

• Invested into visibility:– The marketing strategy of APPLE is such that it

created a buzz in the market by announcing the product launch beforehand and keeping all details under wraps.

– Thus creating customer curiosity. Besides this it has invested in creating visibility through outdoor advertisement and also ads at APPLE stores

iPhone Kiosks

at Public places

• Availability of the Product:

– Apple online stores 24x7

– AT&T Locations – Over 1800 stores in US

– Apple stores

– 172 in US, 10 in UK,

– 7 in Japan, 4 in Canada

Economic sense

• Apple has priced iphone at $599 and within three months it has achieved break even sales now with the festive season fast approaching it has reduced its price $399 it hopes to have to do around 2 million pieces.

• $15 / user / month from AT&T and already 1 million users have already joined the AT&T network so far

• Thus a win-win situation is created for both APPLE and AT&T

• Large number of APPLE STORES

Look at some Figures

• First 30 hours sales of iPhone -- 146,000 new activations of AT&T and 270,000 sales.

• $5 million revenue from iPhone accessories.

Bibliography

• Search Engine

• www.google.co.in

• Websites

• www.wikipedia.com

• www.apple.com

• http://www.wired.com

• http://www.everyipod.com/iphone-faq

• http://www.appleinsider.com/articles

• www.brentevans.blogspot.com