Saad+D+strategy+report

Saad D

To: Proximity Mobile Users From: Daniel Saad Date: March 2, 2010 Subject: Apple - iPhone Strategy Report

This is my strategy report on Apple iPhone. Apple has some competitors in the mobile market such as Microsoft or Google. They manage to stay ahead of the competition. Apple must keep upgrading their iPhones with new better technology to keep Gen- Y mobile users interested and proved that AT&T is the best market for the Apple iPhone.


 * Profile**

Steve Jobs, the current CEO, Steve Wozniak, and Ronald Wayne founded Apple on April 1, 1976. It sells an assortment of devices ranging from computers to personal handheld devices. The iPods and iPhones are sold in online stores, in retail stores, and in third-party wholesalers. Apple is headquartered in Cupertino, California.

The majority of Apple's revenue comes from their production of three kinds of devices.


 * **Portable computers**, including Macbook, Macbook Pro, and Macbook Air. Sales increased at 9% from 2008 to 2009 ($9.427 million in revenue).


 * **iPods**- sales decreased by 12% from previous year ($8.091 million in revenue).


 * **iPhone and related accessories and services**- sales increased 266% from 2008 to 2009 ($6.754 million revenue in 2009).

The company expects next fiscal year revenue to range from $11.00 billion to $11.40 billion.


 * Competitive Landscape**

The force shaping the Apple iPhone's competition is the development of new mobile devices and software. that performs more efficiently than the iPhone. The Apple iPhone's second competition is in AT&T's service reliability.


 * Strategy**

Apple's competitors are well funded. They keep up with the technological advances in software, and try to imitate the iPhone. Other companies (Google, Microsoft, and Nexus One) are trying very fiercely to incorporate their own "App Store" in their handheld devices, or join together to have a better competitive advantage (Google's Nexus One).

They face competition from Google (Android and Nexus One) and Microsoft ( 7 series). Apple's iPhone does have one liability, which is that they only provide the iPhone to one carrier (AT&T). Google has already made themselves available. Apple must continue to stay ahead of the game to continue to hold the title of the leading smart phone. The competition is getting intense, and only time will tell which mobile devices will continue to be chosen. Apple's strategy is to bring the best mobile communication to its users through hardware, software, peripherals, services, and Internet offerings. The iPhone's app store is still ahead of the curve, while Google is trying to catch up. Apple's iPhone is going to have to shock the market again as it once it did to stay on top.

Other then that, Apple has no other real strategy for improving their iPhone. They just are moving along with the new technology, while their competitors are trying to find new ways to appeal to mobile users.

Apple must maintain two things in order to keep Gen - Y users interested. **
 * Gen - Y Implications**
 * Apple has to come up with innovative ways of expressing the iPhone to appeal to other customers. These ways are like multitasking, or integrate better software that will go hand-in-hand with other "Mac" devices that Gen - Y users are interested in by ads.


 * Apple iPhone has to prove that AT&T's network is the best option for Gen - Y users. Gen - Y users have to feel comfortable that AT&T can bring the best network to the iPhone over Verizon, or any other mobile carriers.


 * Reference**

Gralla, P. (2010, February 22). Google, Microsoft and Apple: Which One Will Thrive? //Business Technology Leadership//, Retrieved February 22, 2010, from []

Apple Inc. (2010). In //Wikipedia//. Retrieved February 22, 2010, from []

Apple Inc. (2009). In //Form 10-K//. Retrieved February 22, 2010, from []