A Study of Apple Inc. Dustin Miller Eric Eason Felicia Foster Gary Rouse

What is a Smart Phone? Generally Smart Phones are phones running an operating software that run applications that can be written by outside developers. What were first Smart Phones? Simon (August 1994) Nokia 9000 (1996) Ericsson R380 (2000) Handspring Treo 180 (2001) Blackberry (2002)

Steve Jobs introduces the iPhone – January 9 th 2007 “We’re gonna make some history together today.” “Every once in a while, a revolutionary product comes along that changes everything.” “So, we’re gonna reinvent the phone.”

The original iPhone Marketed as combining three products in one. Innovative user interface with multi-touch and multi-finger gestures. Phone was considered small compared to similar phones with a large stylus free interface touch screen display.

Smartphone Hardware Models released in the same season typically have comparable hardware Apple focuses on well rounded, static specs to appeal to a more casual user audience that does not want to put forth much effort for a functional phone – ready out of the box Android focuses on hardware specs and customization to promote sales

Operating Systems differ vastly, yet concept and function are similar. Android pushes customization as a selling point Almost any interface element can be changed iPhone matches functionality, but lacks customization iPhones must be “jailbroken” to allow similar customization to Android Apps Despite performing effectively the same function, are not interchangeable across an operating system Must be recoded to function Smartphone Software

Generally the same physical design across the board for all competitors Operating Systems different, yet similar in concept Apple has shifted largely to tasteful minimalistic design Vector icons Solid backgrounds Lush colors Android focuses on logical design Promotes ability to customize on an as-needed basis Attempts to “out-gun” Apple to win back buyers Overall Smartphone Design

Apple iPhone Marketing Strategies

iPhone in the Beginning The iPhone was introduced June 2007 Marketing plan began plain and simple with apple icon Apple focuses on innovative style without the fluff Apple ran four television ads before iPhone’s release The first commercials portrayed the iPhone as the next step from the popular iPod plus it’s a phone

iPhone Features Not only a phone Can listen to music Watch videos View photos Make conference calls Check s Browse the web View maps

Target Segment Professionals- need to stay in touch on the go through , instant messaging and phone Students- need device that performs many functions without carrying many gadgets –iPod, phone TV shows video Entrepreneurs- need to organize contracts, access contracts and schedule details- iPhone provides wireless access to calendar and address book to check appointments and address book Corporate users -input and access critical data on the go iPhone has applications from Mac OS X for notes and record keeping compatible with many software applications

Competitors Samsung LG HTC Microsoft Blackberry MANY MORE

Marketing Strategies Samsung- TV & Mass Media Advertising LG- Advertise the “simplicity” HTC- Immediately on sale Microsoft- Sell lots in the emerging markets Blackberry- Appeal to business professions

Competitors vs. Apple Apple figures out a way to sell a great phone with great specifications at a lower price. Focus more on the High End and making the product unique. Other companies focus more on the lower end and quantity rather than overall quality. Apple offers a smaller amount of products within the year compared to other companies. Apple releases 1-2 phones every September and then makes consumers wait a whole year.

Market Shares