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Arti Pradhan
Mba 3 sem
   Calls by Touch
   Voicemail
   SMS
   Photos
   Calendar
Apple iPhone
          Smart Phone
          iPod (Widescreen)
          Wireless Internet
           Communication
           Device
          PDA
          Computer (OS X)
          Camera
   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       Internet email
       Auto Wi-Fi detection                 Rich HTML email

         (802.11b/g)                    Widget Applications
       Bluetooth                            stock quotes

       GSM                                  sports scores

                                             weather reports
       Cingular’s EDGE
                                             traffic updates
   Full Feature Browser
   Syncs automatically with a Mac
    or a PC
   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
Screen size                                          3.5 inches

Screen                                    320 by 480 at 160 ppi
resolution

Input method                                         Multi-touch

Operating                                                 OS X
system

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
   Display Screen
     3.5-inch touch screen display
     Finger commands interface
                                          Audio
     25,000 pixels per inch resolution
     Ambient light sensor
                                             Headphone jacks

                                             Built-in speaker

                                             Bluetooth (stereo) transmission
•Full OS X       •Cocoa
•Multi Tasking   •Core Animation
•Networking      •Graphics
•Syncing         •Audio
•Low Power       •Widgets
•Security        •Applications
•Video
Smart
                                                                                                                                                                                                                                                                                          QuickTime™ and a
                                                                                                                                                                                                                                                                                TIFF (Uncompressed) decompressor
                                                                                                                                                                                                                                                                                   are needed to see this picture.




                                                                                      QuickTime™ and a
                                                                            TIFF (Uncompressed) decompressor
                                                                               are needed to see this picture.



                                                                                                                                                                                                                                                                                  Qu i c k Ti m e™ a n d a
                                 QuickTime™ and a                                                                                                                                                                                                                       TIFF (Un c o m p re s s e d ) de c om p re s s o r
                       TIFF (Uncompressed) decompressor
                          are needed to see this picture.                                                                          QuickTime™ and a
                                                                                                                                                                                              QuickTime™ and a
                                                                                                                                                                                    TIFF (Uncompressed) decompressor                                                      a re n e e de d to s e e th i s p i c tu re .
                                                                                                                         TIFF (Uncompressed) decompressor                              are needed to see this picture.
                                                                                                                            are needed to see this picture.




                                                                            QuickTime™ and a
                                                                TIFF (Uncompressed) decompressor
                                                                    are needed to see this picture.




                                                                                                                          Qu ic k Tim e ™ and a
                                                                                                                 TIFF (Un c o m p re s s ed ) de c o m pre ss o r
                                                                                                                    are ne ede d to s e e th is p ic ture .
                                                                                                                                                                                     Qui c k Ti m e™ an d a
                                                                                                                                                                          TIFF (Unc om p re s s ed ) de c o m p re s s o r
                                                                                                                                                                             are ne e d ed to s e e th i s p ic tu re .
                                                                                                                                                                                                                                                                         iPhone
                           QuickTime™ and a
                 TIFF (Uncompressed) decompressor
                    are needed to see this picture.




                                                                                                                                                                                                                                           QuickTime™ and a
                                                                                                                                                                                                                                 TIFF (Uncompressed) decompressor




                                                                                                                                                                                                                                                                                                                                   Easy
                                                                      E62                                                                                                                                                           are needed to see this picture.


                                                                                                                                                                                                                                                                                                        QuickTime™ and a
                                                                                                                                                                                                                                                                                              TIFF (Uncompressed) decompressor
                                                                                                                                                                                                                                                                                                 are needed to see this picture.




          Moto                                              Q                                                                                                       Blackberry




Complex                                                                                                                                                                                                                                                                                                                             To
                                                                                                                  Treo




                                                                                                                                                                                                                                                                                                                                   Use



                                                                                                                                                                                                                             TI FFe( U Q ui tkTi see t decom pr essor
                                                                                                                                                                                                                                      ncom c o m e™ and c  a
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                                                                                                                                                                                                                                                        s




                                                                                                                                                                                                                                                                                  QuickTime™ and a
                                                                                                                                                                                                                                                                        TIFF (Uncompressed) decompressor
                                                                                                                                                                                                                                                                           are needed to see this picture.




                                                                                                                                                                                                                              Nokia




                                                                                                                                                                                 Basic
                                                                                                                                                                                                                                                                                    Phone
Score (10 = highest)




                                                                                    10




                                                        0
                                                             2
                                                                  4
                                                                      6
                                                                           8
                                  Af
                                    fo
                                       rd
                                         ab
                                            le
                                Ea
                                   sy
                                      of
                                         us
                                            e
                                Fa
                                  sh
                                     io
                                       na
                                          bl
                                             e

                                          Em
                             W                 ai
                                                  l
                              eb
                                    br
                                      ow
                                              sin
                              M                  g
                                  ed
                                    ia
                                         Pl
                         Ca                   ay
                            rri                 er
                                er
                                   a   va
                                         ila
                                            bi
                                              lit
                                                    y




Factors of Competition
                                        Sc
                                          re
                           PC               en
                                fu
                                                                                         iPhone differentiation




                                   nc
                                     tio
                                        na
                                           lity
                                                              Pearl

                                                              RAZR
                                                                           iPhone




                                                              Motorola
                                                              Blackberry
   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
   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
   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
   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
World Sales




              Millions of Units
New entrants




Bargaining   Rivalry within   Bargaining
 power of      industry        Power of
 suppliers                    customers




               Threat of
              substitutes
strengths                                                           weaknesses

Style/Brand          Sensors                  No UMTS        High price / high end


                User base                        Limited distribution channels
                               First mover
  Rich UI
                                                                          Unsafe for
                     Hype                       Missing features
                                                                        corporate use?


            Migrate people to Apple
                                                Similar devices

Port existing apps                                  Highly developed market
                     New social device

                  Distribute iTunes content


 opportunities                                                             threats
support

Voice over IP
H iphone
H iphone

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H iphone

  • 2. Calls by Touch  Voicemail  SMS  Photos  Calendar
  • 3. Apple iPhone  Smart Phone  iPod (Widescreen)  Wireless Internet Communication Device  PDA  Computer (OS X)  Camera
  • 4. Tunes Library Access  Videos  Songs  Movie Previews  Lyrics  Album Artwork  Touch Controls  3.5 inch screen iPod with touch screen controls
  • 5. Wi-Fi enabled Internet Device  Internet email  Auto Wi-Fi detection  Rich HTML email (802.11b/g)  Widget Applications  Bluetooth  stock quotes  GSM  sports scores  weather reports  Cingular’s EDGE  traffic updates  Full Feature Browser  Syncs automatically with a Mac or a PC
  • 6. 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
  • 7. Screen size 3.5 inches Screen 320 by 480 at 160 ppi resolution Input method Multi-touch Operating OS X system 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
  • 8. Display Screen  3.5-inch touch screen display  Finger commands interface Audio  25,000 pixels per inch resolution  Ambient light sensor Headphone jacks Built-in speaker Bluetooth (stereo) transmission
  • 9. •Full OS X •Cocoa •Multi Tasking •Core Animation •Networking •Graphics •Syncing •Audio •Low Power •Widgets •Security •Applications •Video
  • 10. Smart QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Qu i c k Ti m e™ a n d a QuickTime™ and a TIFF (Un c o m p re s s e d ) de c om p re s s o r TIFF (Uncompressed) decompressor are needed to see this picture. QuickTime™ and a QuickTime™ and a TIFF (Uncompressed) decompressor a re n e e de d to s e e th i s p i c tu re . TIFF (Uncompressed) decompressor are needed to see this picture. are needed to see this picture. QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Qu ic k Tim e ™ and a TIFF (Un c o m p re s s ed ) de c o m pre ss o r are ne ede d to s e e th is p ic ture . Qui c k Ti m e™ an d a TIFF (Unc om p re s s ed ) de c o m p re s s o r are ne e d ed to s e e th i s p ic tu re . iPhone QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. QuickTime™ and a TIFF (Uncompressed) decompressor Easy E62 are needed to see this picture. QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Moto Q Blackberry Complex To Treo Use TI FFe( U Q ui tkTi see t decom pr essor ncom c o m e™ and c a ar neededpr essed) hi pi t ur e. s QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. Nokia Basic Phone
  • 11. Score (10 = highest) 10 0 2 4 6 8 Af fo rd ab le Ea sy of us e Fa sh io na bl e Em W ai l eb br ow sin M g ed ia Pl Ca ay rri er er a va ila bi lit y Factors of Competition Sc re PC en fu iPhone differentiation nc tio na lity Pearl RAZR iPhone Motorola Blackberry
  • 12. 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
  • 13. 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
  • 14. 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
  • 15. 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
  • 16. World Sales Millions of Units
  • 17.
  • 18. New entrants Bargaining Rivalry within Bargaining power of industry Power of suppliers customers Threat of substitutes
  • 19. strengths weaknesses Style/Brand Sensors No UMTS High price / high end User base Limited distribution channels First mover Rich UI Unsafe for Hype Missing features corporate use? Migrate people to Apple Similar devices Port existing apps Highly developed market New social device Distribute iTunes content opportunities threats
  • 20.
  • 21.