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
iPhone Strategic Intent
Strategic Intent behind iPhone
• Develops, sells, and supports a series of
personal computers, portable media players,
computer software, and computer hardware
• Apple is the early mover in the product
category and its strategy is to cash in on
market before competition creeps in.
Operating System with GUI
Assembled Personal Computer
• 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
• Geographic areas
– Already launched in the US, UK markets on
NOV 9, 2007
– Phase wise launch in European and Asian
– User friendly interface
– OS X
– Video of features
• Value creation
– Bundling "free" and generic phones with
cell phone service
– Network Providers pay $150 to $250 for
– It has created a phone that consumers see
as sexy and desirable, so desirable in fact
that they will actually pay $399 for one.
• Internal development
• Exclusive contract with AT&T in US
• International expansion in UK, Germany and
• In next 3 months, planning to launch in Japan,
India & China
– 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.
– 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
– The iPhone takes full 2.0 megapixel
resolution 1600 x 1200 photos, Treo has a
1.3 megapixel, only takes 640 x 480 photos.
• 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
• 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
– Thus creating customer curiosity. Besides this it
has invested in creating visibility through outdoor
advertisement and also ads at APPLE stores
• 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
• 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.