12. Value-to-cost relationship Value to Customer $399? Price $199 Estimated Firm’s Cost-of-Value Creation $173 0 Consumer Surplus Firm Margin Profitable Pricing Band From Note by Prof. Robert Dolan
14. Apple iPhone Supply Chain Samsung CPU & Video processing Nfineon baseband communication Primax Electornics Digital Camera Modules Entery industrial connectors Foxconn international circuitry Shenzhen, china apple manufacturing assembly, and fulfillment plant Broadcom technology screen connecters Cancher technology stainless metal casings Cambridge silicon Bluetooth chip set marvail 802.11 Umicron technology printed circuits boards Singapore Taiwan U.S China
15. Distribution Apple stores Network carriers (AT&T, T-mobile etc) Wholesalers & Retailers (Wal-mart etc) Manufacturers Online
22. Five forces Other smart phones Chip producers Screen producers More company enters Strong brands and finance Establish mobile manufacturing Software giants Google,Msft Consumer market Corporate market