Apple Inc.

Launches
iPhone
BY:
SUNINT KAUR 108E24
NEHA 108
ROHAN 108
 THE COMPANY
Apple Timeline
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 Mission:

"Apple is committed to bringing the best personal computing experience

to students, educators, creative professionals and consumers around the
world through its innovative hardware, software and Internet offerings."

Vision:

"Man is the creator of change in this world. As such he should be above

systems and structures, and not subordinate to them"

Industry:

1. Computer software & hardware

2. Consumer electronics
 THE LAUNCH OF iPHONE
Apple’S Teaser Campaign
Apple launched a teaser campaign on television that
had a “HELLO” tagline .

The ad simply mentioned the word “Hello” and

featured many eminent personalities from the film as
well as television fraternity answering their calls. The
commercial lasted for 30 seconds and ended with the
brief glimpse of the iPhone, followed by the word
“Hello” and “Coming in June” followed by the Company
Logo.
iPhone – First Commercial
 The iDay
 On June 29’ 2007, Apple launched its much hyped ‘iPhone’ in the US mobile phone
market.

 The initial buzz created by the product led to many of Apple’s fans forming queues
outside Apple’s stores to buy the product as soon as it was launched on iDay, the launch
day of iPhone.

 According to analysts the launch of the iPhone was probably the best ever launch of
any product.

 The company sold 1,398,000 units between June 29’ 2007 and September 29’ 2007.

 Apple iPhone, 8GB, was launched at US $ 599.

 The early adopters bought the iPhone with much excitement.

 Initial collaboration of Apple was with AT&T service provider in the US.
 The Price Cut Chaos
 In September’ 2007, barely 10 weeks after the launch of iPhone, Apple announced a
steep price cut for the product.

 The 4GB version was made inoperable while the 8GB version was available at US $
399 and a 16 GB version was to be introduced at US $ 499.

 The early adopters who had waited in queues to buy the product at a much greater
price were discontented and annoyed and they therefore took a legal action against
Apple and AT&T for the price cut.

 This issue had a negative effect on Apple’s share prices.

 Steve Jobs, CEO Apple after critically examining the situation went ahead and posted
a public apology on the company’s official website and in addition to this, he offered a
credit of US $ 100 to all the customers who had bought the handset at the introductory
price to buy products at Apple Retail stores.

 The steps taken by Jobs hence retained the loyal customers of Apple.
 PORTER’S FIVE FORCES MODEL
1. Consumers market
2. Corporate market

Industry
Rapidly
1. VoIP Emerging
Skype 1. Carriers
AT&T
2. PDA phone Substitute
Buyers
Palmtops etc. Products 2. OS providers
Emerged Weak like Linux
3. Similar
features phone 3. Hardware
emerged in makers
Nokia, LG etc Intel

New
Suppliers
Entrants
Threat Strong 1. More
1. Establish mobile companies
manufacture: entering into
Nokia,LG,Samsung Rivals smartphones
market
2. Software giants: Strong
Google, Microsoft 2. Strong brands
and finance
 SWOT ANALYSIS
●
First mover advantage 
Strengt ●

●
Ownership of technological patents
Apple is one of the most established
brand

hs ●

●
Customers loyalty
Cultural, fashion identity

●
Dependence on third party provider: 

Weakn ●

●
AT&T, Content Provider, Application provider
Less appeal to corporate customers 
Technological complication
Gorilla arm

esses
●

●
Limitation of particular features
●
Application slow down and freeze
 ●
Sharp rise in consumer demand
●
56% of smart-phone buyers prefer iphone
●
New target market –
Opportunities ●

●
price reduction attract
more customers
●
High Potential Software –upgradable; can add new features
●
3G Apple iPhones to captivate business demand worldwide

●
New powerful entrant – Google
●
Many similar or substitute products
Threats ●
Intense competition with major rivals
●
Increasing bargaining power of buyers
 KEY SUCCESS FACTORS

Consumer-oriented Factors

Technology
Skill and Distribution
Marketing
------------------- Capability
------------------- --------------------
- Internet driven force -------------------
- Value added - A strong network of
- Replacing - Well-know and well-
(cheaper, faster, more wholesale distributors/
communication tools respected brand name
convenient than the dealers
- Next generation - Market segmentation
alternatives) - Fast introduction and
experience - Targeting and Pricing
- Design and application of services
effectiveness
innovation expertise
 VALUE CHAIN ANALYSIS
Out Mar
Inbo Op
und
bou keti Se
er nd ng
Logi
ati Logi and rvi
stic
s on
stic Sale ce
s s

Alliances Design Horizontal

with and and
Vertical
Plug
and Play
Serv
Major Innovati
Suppliers on
Integratio
n
solution ices
Linkages
● ●
Technology ●
Complete ●
Secure
Driven bundle of operating
with ●
Collaborations applications systems
independe with best ●
Music player ●
Easy-to-use
nt service with iTunes ●
After sale
providers like gives brand services
software AT&T and awareness a ●
Replacement
vendors Vodafone push warranties
 COMPETENCIES
 iTunes
Synchronization between the iTunes -
App store and Apple devices.

 User interface of consumer

gadgets and computing devices

 Intuitive design
 Easy-to-use
 Self-discoverable 
CORE COMPETENCY --- USER EXPERIENCE
RECOMMENDATIONS
APPL-IZATION
OF iPhone
Strategies for competing in rapidly growing markets
 Driving down costs per unit so as to enable price reductions that attract
droves of new customers.
 Pursuing rapid product innovation, both to set a company’s product
offering apart from rivals and to incorporate attributes that appeal to
growing numbers of customers.
 Gaining access to additional distribution channels and sales outlets.
 Expanding the company’s geographic coverage
 Expanding the product line to add models/styles that appeal to a wider
range of buyers
 Online sales and customization
 Ward off black market
THANK
YOU