Apple designs and manufactures consumer electronics like Mac computers, the iPod, and the iPhone. Their main products also include software like iTunes. The iPhone was introduced in 2007 and was an internet-connected smartphone with features like a touch screen, camera, and media player. The iPhone 3G added 3G wireless and GPS mapping. Apple uses marketing strategies like advertising, retail stores, and partnerships with carriers to promote their brand and products.

2. Apple Inc. Design and manufacture consumer electronics, hardware and software products. Main products: Mac personal computers iPod iPhone Software: iLife, iTunes etc. Business organization: Operating segments: Americas, Europe, Japan, and Retail (>200 retail stores)

3. Product - iPhone 3G iPhone (29 June, 2007) Internet connected multimedia smart phone Key features: Touch screen Operating system: iPhone OS Camera phone Portable media player (iPod) Text messaging Visual voicemail Internet services (e-mail, web browsing, local wi-fi connectivity) iPhone 3G (11 July, 2008) Black or white Key added features: Fast 3G wireless technology GPS mapping iPhone in enterprise Apple store

4. SWOT analysis

5. Marketing strategy Increased investment in marketing and advertising programs is critical to increasing product and brand awareness Providing a high quality sales and after-sales support experience is critical to attracting new and retaining existing customers. The Company has also invested in programs to enhance reseller sales , including the Apple Sales Consultant Program , which places Apple employees and contractors at selected third-party reseller locations. The Company is uniquely positioned to offer superior and well-integrated digital lifestyle products and solutions, which are further enhanced by the Company’s emphasis on ease-of-use and creative industrial designs

6. Brand awareness

7. Market research – Niche market SURVEY Objectives: Gauge public opinion on various aspects of Apple’s new iphone Methodology: Research conducted between Jan 11 Th and Jan 14 th , 2007 Each question run across 15+ sites out of 148 sites Executive summary: Public have high expectations from the iPhone and that how it will change the way they listen to music 68% claim it is the first ‘all in one’ gadget, cell phone-MP3 player, camera Strong purchase intent among respondents, with 37% claiming they would switch to AT&T just to get iPhone 64% said that iPhone would become their primary MP3 player 32% respondents response that the mot cool thing is the touchscreen

8. Market research – Why iPhone?

9. Market Segmentation PEOPLE 14-64 YEARS AGE CONSUMER& SMALL&MID SIZE BUSINESS ENTEPRENEURS CORPORATE USERS EDUCATION STUDENTS ENTERPRISE, GOVERNMENT& CREATIVE USERS HEALTH CARE WORKERS PROFESSIONALS

10. 2008 CUSTOMER SATISFACTION AWARD RECIPIENT

11. Pricing $399 $199 $299 $599

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

13. Price vs. total cost

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

16. iPhone vs. Competitors

17. iPhone vs. Competitors

18. Promotion & Communications

19. Promotion & Communications iPhone 3G is advertised on : TV: Messages: iPhone’s multi-touch & graphical interface largely speak for itself Ads: Never been an iPod, Calamari Prints Video: Steeve Jobs & the launch of iPhone 3G Radio Internet: Mobile websites (Admob) New ads every week Apple vs. Network agencies (AT&T, T-mobile etc) iPhone 3G developers Advertising cost : Q1-2007: $10.4 million Sep 2008: AT&T spent $21 million Apple spent $15 million

20. Unit sales

21. Sales ($m) iPhone related revenue ($m)

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

23. Recommendations Product quality can be improved: Battery life “ Cut & paste” Voice dialing Camera Memory card Lower monthly payments  reduce the total cost Improve carrier network: AT&T Lots of people thought about getting the iPhone, but many balked at signing up for AT&T's service plan

24. Recommendations Mobile marketing High Net Worth Individuals Early adaptors Offer them new applications Corporations will get benefit

25. Reference http://www.cellular-news.com/story/34658.php http://www.scribd.com/doc/4727162/Smartphone-industry-and-Apples-iPhone-analysis http://www.apple.com/iphone/ http://en.wikipedia.org/wiki/IPhone_3G#History_and_availability http://www.apple.com/pr/library/2008/ http://www.youtube.com/watch?v=sLGEH_6VyvI&feature=related http://www.mobilemarketer.com/cms/news/manufacturers/1314.html http://www.appleinsider.com/articles/08/07/10/piper_jaffray_says_iphone_3gs_real_cost_to_users_407.html http://www.appleinsider.com/articles/08/07/15/iphone_3gs_final_build_price_just_174_33.html http://www.fiercewireless.com/press-releases/admob-launches-new-iphone-3g-advertising-solutions-and-announces-1-million-iphone-dev

27. Q&A