© easilyinteractive.com 20071 Apple’s iPhone Discussion task This task would make a good lesson starter for your Year 10 Business Studies class. Perhaps.

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© easilyinteractive.com Apple’s iPhone Discussion task This task would make a good lesson starter for your Year 10 Business Studies class. Perhaps hand out the article to read for homework and then begin the next lesson in small groups with the discussion questions. Press F5 on your keyboard to launch this PowerPoint presentation Image by Jessie Barber. Used with permission

© easilyinteractive.com Apple’s iPhone  On Tuesday, the contract for the right to sell Apple's innovative new iPhone (released in the USA in June) was awarded to O2  They are expected to sell the phone for £269 with users having to sign up for a £35, £45 or £55 monthly tariff.  Read this BBC article and answer these questions: 1. What is a ‘contract’? 2. What do you imagine O2 had to do to win this contract from Apple? 3. Discuss the risks and potential rewards faced by O2 in signing this contract. *

© easilyinteractive.com Apple’s iPhone suggested answers 1. A contract: An legally binding agreement between 2 parties (businesses or people) 2. To win the contact…  O2 may have had to pay an up-front fee as well as royalties for each sale  They may have had to agree to a certain amount of advertising and other promotion of the iPhone  They may have had to convince Apple of ambitious future plans both in the UK and abroad (O2 is owned by Spanish mobile phone giant Telefónica) to convince Apple that O2 was the right partner 3. Potential risks and rewards  Risks: Sales are below target, the technology is not up to standard, product failures (e.g. short battery life, batteries spontaneously combust), rivals launch competing technologies, Internet connection is too slow etc.  Rewards: Sales beat expectations, prestige, customers switch from rivals *

© easilyinteractive.com  easilyinteractive.com create stimulating, highly professional, fully-editable interactive whiteboard resources for busy teachers of Business Studies  Our GCSE Resource Pack received a great review in the TES in July 2007 – read it on our website  To find out more, and download a ‘virtual sample CD’, click on the button below  For more information:  telephone:   skype: grahamcrewe