Apple iPhone I-224 March 21, 2007 Smart Phone • Calls by Touch • Voicemail • SMS • Photos • Calendar Apple iPhone • Smart Phone • iPod (Widescreen) • Wireless Internet Communication Device • PDA • Computer (OS X) • Camera QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. QuickTi me™ a nd a TIFF (Uncompre ssed ) decomp resso r are need ed to se e th is p icture. iPod (Widescreen) • Tunes Library Access • Videos • Songs • Movie Previews • Lyrics • Album Artwork QuickTime™ and a TIFF (Uncompressed) decompressor are needed to see this picture. • Touch Controls • 3.5 inch screen iPod with touch screen controls Wireless Internet Communication Device • Wi-Fi enabled Internet Device • • • Auto Wi-Fi detection (802.11b/g) • • • • • • Internet email Rich HTML email Widget Applications Bluetooth • stock quotes • sports scores • weather reports • traffic updates GSM Cingular’s EDGE Full Feature Browser Syncs automatically with a Mac or a PC 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 Technical Specifications Screen size Screen 3.5 inches 320 by 480 at 160 ppi resolution Input method Multi-touch Operating OS X system Storage GSM Wireless data Camera Battery 4GB or 8GB Quad-band (MH z: 850, 900, 1800, 1900) Wi-Fi (802.11b/g) + EDGE + Bluetooth 2.0 2.0 mega pixels Talk / Video / Browsing - Up to 5 hours Audio playback - Up to 16 hours Dimensions Weight 4.5 x 2.4 x 0.46 inches / 115 x 61 x 11.6mm 4.8 ounces / 135 grams iPhone Design Audio • Display Screen Headphone jacks • 3.5-inch touch screen display Built-in speaker • Finger commands interface Bluetooth (stereo) transmission • 25,000 pixels per inch resolution • Ambient light sensor Software OS X Capabilities •Full OS X •Multi Tasking •Networking •Syncing •Low Power •Security •Video •Cocoa •Core Animation •Graphics •Audio •Widgets •Applications Phone Market Position Smart Q uic kTim e™and a TI F ( Unc om pr e ssed) decompr ess or ar eneede d t osee this pictur e. Q uic kTim e™and a TI F ( Unc om pr e ssed) decompr ess or ar eneede d t osee this pictur e. Q uickTim e™ and a TI FF ( Uncom pr essed) decom pr essor ar e needed t o see t his pict ur e. Qu ic kTi me™ a nd a TIFF (Unc om pres se d) de co mp re ss or are n ee de d to s ee th is pi ctu re . Q uickTim e™ and a TI FF ( Uncom pr essed) decom pr essor ar e needed t o see t his pict ur e. Q uickTim e™ and a TI FF ( Uncom pr essed) decom pr essor ar e needed t o see t his pict ur e. QuickT ime ™an d a TIFF ( Uncomp res sed) deco mpre ssor ar e need ed to see this pictur e. Qu i ck Ti me ™a nd a TIF F (Un co mpre ss ed )d ec omp res so r a re ne ed ed to s ee th i s pi c tu re. iPhone Qu i ck Ti me ™a nd a TIF F (Un co mpre ss ed )d ec omp res so r a re ne ed ed to s ee th i s pi c tu re. Quick Time™a nd a TIFF ( Unco mpre ssed ) dec ompr esso r ar e nee ded to see this pictur e. Q uickTim e™ and a TI FF ( Uncom pr essed) decom pr essor ar e needed t o see t his pict ur e. E62 Q uickTim e™ and a TI FF ( Uncom pr essed) decom pr essor ar e needed t o see t his pict ur e. M oto Q Blackber r y Tr eo Complex Q ui ck Ti m e ™ an d a TF Ia F Un ed co ed m pt re ed )thdi ec e ss or r ( ne e o ss s ee s piom c tuprr e. QuickT ime ™an d a TIFF ( Uncomp res sed) deco mpre ssor ar e need ed to see this pictur e. Nokia Basic Phone Easy To Use Factors of Competition PC Pl fu nc t io na lity Sc re en y ay er sin g ai l va ila bi lit ed ia br ow Ca rri er a M W eb Em Af fo rd ab le Ea sy of us e Fa sh io na bl e Score (10 = highest) iPhone vs. the competition iPhone differentiation 10 8 iPhone 6 4 2 Blackberry Pearl Motorola RAZR 0 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 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 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 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 Mobile Device Market World Sales Millions of Units Analyses Porter’s Five Forces New entrants Bargaining power of suppliers Rivalry within industry Threat of substitutes Bargaining Power of customers SWOT Analysis strengths weaknesses Sensors Style/Brand User base Rich UI No UMTS First mover Hype Migrate people to Apple Port existing apps High price / high end Limited distribution channels Missing features Unsafe for corporate use? Similar devices Highly developed market New social device Distribute iTunes content opportunities threats Recommendations Open up the OS to third party developers support Voice over IP iDream (The Future)