Saad+D+Final+Report

Saad D

proximity a next generation connection Proximity Research Report

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= Apple iPhone: Trying to Stay Ahead =

** Table of Contents ** Executive Summary 1 Introduction: Reaching for their Goal 2 Lack of Features 2 Targeting Gen Y through Social Networks 3 Focus Group Results 4 New Technology and New Customers 5 Recommendations 6 Attachment 1: Chatter About Companies 7 Attachment 2: Sleek New Look 8 Attachment 3: iAd Campaign to reach Gen Y 9 Attachment 4: A Must Win Fight for the iPhone 10 References 11

**Executive Summary ** The Apple iPhone was released in 2007. Until this time, it has been the leading smartphone for three years. It was leading sold smartphone and no other smartphone compared to it. Until recently, the iPhone’s sales have decreased and its leading competitor, Google Android has taken the lead. I am looking at sources that compare the Android to the iPhone and how Apple is going to comeback from these events. I am concentrating on how the iPhone plans to take back the title of the leading smartphone of the decade. The focus of this report is how Apple is continuing to increase its role in Gen Y use, where it stands in the smartphone world now, and what will be done to become the top smartphone. Gen Y should look for alternatives for now in a smartphone. There are better phones out there then the iPhone. This holds true, until the release of the iPhone 4G. If the rumor of the Verizon iPhone holds true, Gen Y should really consider investing in the new smartphone because it will be the hottest smartphone on the market. 


 * Introduction: Reaching their Goal **

The Apple iPhone has had a problem becoming the top Smartphone. There has been a stiff competition between Google and Apple. Through the recent years, the iPhone has been the leading smartphone for years. Now with arising of the Android, Apple has had hardships reclaiming its title in the United States. Apple has recognized the problem that it is only offered to one carrier, AT&T. Thus closing the door for Apple to reach out to more proximity clients. On the other hand, Google has started to monopolize service providers and shutting the door on the comeback that Apple is trying to make. The new quarter that started this year shows that iPhone’s sales have decreased with the Android coming out on top.

CNN Money (CNNMoney.com ) ** The new features that customers have been waiting for might be coming in the release of the iPhone 4G. Many customers have given their input on the topic. Surveys have been conducted to find out what Gen Y is looking for in their next iPhone. There is also a talk about how the calling and data plan is too expensive. The carriers for the next Apple iPhone 4G should take that part into consideration. These are five essentials that the iPhone 4G needs:
 * Figure 1. ** Droid outselling iPhone
 * Lack of Features

· Higher screen resolutions; · More processing horsepower; · Video Conferencing; · Global Conversations; · An affordable unlimited calling and data plan.

An upgrade of these features and plan could really persuade proximity clients take a look at own their own iPhone.


 * Targeting Gen Y through Social Networks **

The Apple iPhone has launched a huge campaign to target Gen Y through social networks. There are ads proclaiming the ability to seamlessly check Facebook and Twitter with a touch of a button. They can update their “status” through a text message. Gen Y is being drawn towards these ads because almost every one uses one of these two social networks. Facebook is being promoted through the iPhone, and in turn the iPhone is getting buyers interested because of the easy to use app that comes with it. The #1 app that the Gen Y uses is the Facebook app, and it is currently ranked number one compared to the Droid’s Facebook app. The iPhone is comparatively one of the best mobile devices for accessing Social networks. We can see that through the app usage on the iPhone. Figure 2: Correlation between iPhone sales and Facebook app usage Microarts (Microarts.com)

This graph shows that the more people that use Facebook, and want to be connected on the go will increase. The iPhone sales almost doubled recently with the advertising of Facebook on the iPhone. It appeals to Gen Y greatly and more people using Facebook will continue to increase the iPhone’s sales.

** The focus group that was conducted, provided a lot of thoughts about the Apple iPhone. My focus group stated that they were looking forward to the iPhone coming to Verizon. Many of them expressed that if the switch took place, they would switch to Verizon. The participants in the focus group brought to my attention that they thought Verizon is the better service provider. It is safe to concur that the iPhone, top smartphone, on Verizon could generate millions of dollars for both companies.
 * Focus Group Results

** New Technology and New Customers **

The new Apple iPhone has new features that could determine their place in the smartphone race. Apple has integrated a new technology into the soon to be iPhone 4G. The new technology has included: · Improved regular back-camera; · Improved display; · Multitasking capabilities; · New syncing abilities; · Multitouch gestures. These new features are the edge Apple is looking for to regain their smartphone title. The features combined with the rumor that the iPhone will be made available to other carriers have launched a mass attack on the Android. Apple is trying to target new customers and get ahead of the competition. Verizon is in negotiation with Apple to try to work some deal out to satisfy Verizon’s customers need for the iPhone. The leading service provider and the once leading smart phone could make a powerful combination.

**Recommendation**

Apple needs an innovative to promote the iPhone 4G. It needs to prove that this mobile device will give Gen Y the best smartphone on the market. The ways it could improve their iPhone 4G campaign:

 These changes could make the iPhone 4G indispensible in the smartphone market and make it the leading smartphone for proximity clients for decades to come. The recommendation I make is to stay away from the iPhone 3GS, there are better phones, but pay close attention to iPhone 4G. 
 * iAd promotion;
 * Available to new carriers;
 * Reach Gen Y through stronger Social networking campaign;
 * Incorporate new features.

**Attachment 1: Chatter about Companies**  Apple needs increase their ads to attract more of Gen Y to see that they are the future of smartphones. The iAd can do this for them, but needs to happen fast because there is no telling what Android could do in the mean time to counter act the iAd.
 * ** Rank ** || ** Chg ** || ** Brand ** ||
 * ** 1 ** ||  || ** Twitter ** ||
 * ** 2 ** || ** (+1) ** || ** Google ** ||
 * ** 3 ** || ** (+2) ** || ** YouTube ** ||
 * ** 4 ** ||  || ** Facebook ** ||
 * ** 5 ** || ** (-3) ** || ** iPhone ** ||
 * ** 6 ** ||  || ** Mac ** ||
 * ** 7 ** || ** (+1) ** || ** Obama ** ||
 * ** 8 ** || ** (-1) ** || ** Apple ** ||
 * ** 9 ** || ** (+3) ** || ** Windows ** ||
 * ** 10 ** || ** (+3) ** || ** Microsoft ** ||
 * ** 11 ** || ** (+18) ** || ** Android ** ||
 * ** 12 ** || ** (-3) ** || ** iPod ** ||
 * ** 13 ** || ** (-2) ** || ** MySpace ** ||
 * ** 14 ** || ** (+1) ** || ** XBox ** ||
 * ** 15 ** || ** (-5) ** || ** LG ** ||

**Attachment 2: Sleek New Look**

Innovative look will attract proximity clients (iPhone 4G)



**Attachment 3:** **iAd Campaign to reach Gen Y**

iAd campaign is projected to generate millions in revenue and promote the release of iPhone 4G.



**Attachment 4: Must Win Fight for the iPhone

The iPhone must prove that it is the leading smartphone of the decade without question. **



**References** Chen, J. (2010, April 19). This is Apple's next iphone. // Gizmodo //, Retrieved from  []

Coomes, A. (2009, December 08). At&t and verizon war: how is it affecting consumers?. // Buzzstudy //, Retrieved from  []

Gruener, W. (2010, April 19). 5 features the iphone 4g needs right now. <span style="font-family: Arial; letter-spacing: 1.0pt; mso-bidi-font-family: Verdana; mso-bidi-font-size: 10.0pt; mso-font-kerning: .5pt;">// Tom's Hardware US //, Retrieved from []

Harshad, D. (2010, January 19). Iphone os 4.0 features leaked. <span style="font-family: Arial; letter-spacing: 1.0pt; mso-bidi-font-family: Verdana; mso-bidi-font-size: 10.0pt; mso-font-kerning: .5pt;">// Tech Exclusive //, Retrieved from []

Newman, J. (2010, May 10). Android outsells apple iphone at last, says NDP. <span style="font-family: Arial; letter-spacing: 1.0pt; mso-bidi-font-family: Verdana; mso-bidi-font-size: 10.0pt; mso-font-kerning: .5pt;">// PC World //, Retrieved from [] Weintraub, Svante E. (2010, May 10). Android demolishing iphone in sales. // CNN Money //, Retrieved from []