Apple Iphone

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



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



iPhone



Blackberry

Treo

E62

Moto Q









Nokia



Phone

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QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.QuickTime™ and aTIFF (Uncompressed) decompressorare needed to see this picture.



iPhone vs. the competition

iPhone vs. the competition

iPhone differentiation

0

2

4

6

8

10

AffordableEasy of useFashionable

Email

Web browsingMedia PlayerCarrier availability

Screen

PC functionality

Factors of Competition

Score (10 = highest)

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)

Technology

Apple Iphone