The document summarizes Apple's newly announced iPhone, which combines an iPod, mobile phone, and internet communication device. It has a 3.5 inch touch screen, supports WiFi, Bluetooth, and cellular networks. It runs Apple's OS X operating system and allows access to the iTunes music and video library. It also has a built-in 2 megapixel camera. The document analyzes the iPhone's market positioning and potential uptake, noting its appeal to consumers but challenges entering the corporate and low-price markets due to network restrictions and higher price compared to Blackberries. It performs a SWOT analysis and recommends opening the OS to developers and supporting VoIP.

1. Apple iPhone I-224 March 21, 2007

2. Smart Phone Calls by Touch Voicemail SMS Photos Calendar

3. Smart Phone iPod (Widescreen) Wireless Internet Communication Device PDA Computer (OS X) Camera Apple iPhone

4. iPod (Widescreen) Tunes Library Access Videos Songs Movie Previews Lyrics Album Artwork Touch Controls 3.5 inch screen iPod with touch screen controls

5. Wireless Internet Communication Device Wi-Fi enabled Internet Device Auto Wi-Fi detection (802.11b/g) Bluetooth GSM Cingular’s EDGE Full Feature Browser Syncs automatically with a Mac or a PC Internet email Rich HTML email Widget Applications stock quotes sports scores weather reports traffic updates

6. PDA, Computer and Camera 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. Technical Specifications

8. iPhone Design Display Screen 3.5-inch touch screen display Finger commands interface 25,000 pixels per inch resolution Ambient light sensor Audio Headphone jacks Built-in speaker Bluetooth (stereo) transmission

9. Software OS X Capabilities Full OS X Multi Tasking Networking Syncing Low Power Security Video Cocoa Core Animation Graphics Audio Widgets Applications

10. Phone Market Position

11. iPhone vs. the competition

12. Customer segments 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. Marketing decisions (I) 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. Marketing decisions (II) 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. Early adopter market ~8.7m 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. Mobile Device Market World Sales Millions of Units

17. Analyses

18. Porter’s Five Forces New entrants Bargaining Power of customers Bargaining power of suppliers Threat of substitutes Rivalry within industry

19. SWOT Analysis strengths weaknesses opportunities threats Style/Brand Sensors Rich UI User base Hype First mover No UMTS High price / high end Limited distribution channels Missing features Unsafe for corporate use? Port existing apps Migrate people to Apple New social device Distribute iTunes content Similar devices Highly developed market

20. Recommendations

21. Open up the OS to third party developers

22. support Voice over IP

23. iDream (The Future)