iPhone 4 Bumper Conspiracy

1,331 views

Published on

How Apple will earn three times more on accessory than hardware sales.

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
1,331
On SlideShare
0
From Embeds
0
Number of Embeds
6
Actions
Shares
0
Downloads
0
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

iPhone 4 Bumper Conspiracy

  1. 1. How Applewill profit on the iPhone 4 reception issues.<br />ArsenyLebedev B.S. PH.d<br />
  2. 2. Theory:<br />Apple’s (AAPL) strategy with iPhone 4 was to release a product that required a vast majority of users to purchase accessories offered officially by Apple. <br />In order to do this, the hardware has to be defective by design.<br />
  3. 3. iPhone 4 has documented reception issues when holding the exposed antenna a certain way.<br />Sources:<br /><ul><li>http://gizmodo.com/5571171/iphone-4-loses-reception-when-you-hold-it-by-the-antenna-band
  4. 4. http://www.pcmag.com/article2/0,2817,2365940,00.asp
  5. 5. http://tech.fortune.cnn.com/2010/06/27/the-iphone-4-death-grip-saga/
  6. 6. http://www.cultofmac.com/the-iphone-4-death-grip-is-real-but-does-it-matter/48335
  7. 7. http://www.examiner.com/x-16806-Long-Island-iPhone-Games-Examiner~y2010m6d29-iPhone-4-death-grip-a-complicated-issue</li></li></ul><li>Further Evidence<br />Steve Jobs had connectivity issues during the keynote announcing the new iPhone.<br />Death Grip<br />
  8. 8. Debunked Theory<br />Theory: Fat fingers are the cause of reception issues. Fat fingers mean more water interference, which greatly affects RF attenuation.<br />Rebuttal: Not all iPhone nerds are fat.<br />Not fatty.<br />
  9. 9. Obvious Evidence<br />Apple released bumpers that cover the entire exposed antenna of the iPhone 4 hardware.<br />Antenna not visible!<br />
  10. 10. Bumper Cost & Income Analysis<br />Apple keeps $25.90 when selling a bumper<br />Sources: <br /><ul><li>Based on polyurethane and aluminum commodity prices July 2, 2010
  11. 11. Cost estimates are for operating (DIRECT MATERIAL, LABOR) costs.</li></li></ul><li>iPhone 4 Income Analysis<br />Sources:<br /><ul><li>Leaked AAPL proforma income statement
  12. 12. Op income for iphone4 hardware as of July 2, 2010
  13. 13. +- 1-2 million for full price sales.
  14. 14. Cost analysis: http://www.isuppli.com/Teardowns-Manufacturing-and-Pricing/News/Pages/iPhone-4-Carries-Bill-of-Materials-of-187-51-According-to-iSuppli.aspx</li></li></ul><li>Hardware versus Accessory Income<br />30% sales rate for normal accessory sales,<br />100% sales rate for forced market purchasing of bumpers.<br />
  15. 15. Conclusion<br />Apple stands to make 3 times more cash from sales of accessories than hardware by injecting a design defect into the iPhone 4.<br />

×