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Goldberg A.

Proximity Research Report

How Apple's iPhone Will Attract Gen-Y Users in the Mobile Market

New Products and Services will give Apple a Stronghold on Market

By Aaron Goldberg Fall 2009

Executive Summary Introduction: Adding Verizon Wireless New Operating System New iPhone 4G Attracting Gen-Y Users Recommendations Attachment 1: Attachment 2: Attachment 3: References
 * __Table of Contents__**


 * Executive Summary**

Although Apple's iPhone is currently the most popular smart phone on the market, Apple has the potential to monopolize the mobile market by allowing owners to choose Verizon Wireless's service in addition to the already offered AT&T Service. By doing this, Apple will greatly increase its potential market by making the iPhone available to a much higher range of people. Apple is also on the verge of several other big moves, including their new iPhone 4G, and the iPhone OS 4.

Apple currently only makes iPhones that are compatible with AT&T customers. If Apple were to offer their iPhone to Verizon users as well as AT&T, they would more than double their market of potential buyers for the iPhone. AT&T serves 81.6 million subscribers. Verizon Wireless serves more than 89 million subscribers. In June, 2010, Apple's contract with AT&T will expire. When this happens, it is believed Apple will make it possible for consumers to be able to utilize the iPhone whether they have AT&T or Verizon Wireless service.
 * Introduction: Adding Verizon Wireless as a Service Provider**

Apple will also be releasing the new iPhone OS4, which has been developed while keeping customer feedback and opinions in mind. One of the major problems with the current operating system, the inability to multitask, will be addressed in the new operating system. Other improvements made will include folders and sorting, borrowing from the iPad, the ability to merge iPhone OS and iPad OS, built-in photo editing, mass storage capability, and Adobe Flash capability.
 * New Operating System

****New iPhone 4G** Apple will soon be releasing their newest version of the iPhone, the 4G. This will have many new features that Gen Y users will find extremely useful, such as front-facing video chat camera, improved regular camera with flash, Micro-Sim instead of the standard Sim, improved display, and metallic power, mute and volume buttons. A version of the phone may also be released that would be compatible with Verizon Wireless users.

In developing the new operating systems and phones, Apple has been very attentive at listening to the feedback given by its customers. The ability to multitask and built-in photo editing that will be addressed in the new operating system were the major complaints about the current operating system. If Verizon Wireless can be added as an option for iPhone users, that will address an enormous amount of the mobile market, as well as give Apple a way to combat one of the few edges that its main competition, the Blackberry, has over it.
 * Addressing Consumer Opinions and Feedback**

After running various focus group sessions at Proximity, I have been able to determine what types of things Gen-Y users look for in their mobile device. These features are:
 * Attracting Gen-Y Users**
 * Good Service
 * Internet Access
 * Text Messaging
 * Reasonably Priced Phone & Service Plan
 * Applications

After analyzing Apple and the moves they will be making ahead in the mobile market, I advise you join forces with Apple. With their new phone and operating system, Gen-Y users will be attracted to Apple's easy-to-use and user-friendly technology. Apple has strived to address consumer feedback when developing their new technology. Also, with Verizon Wireless customers being able to purchase the iPhone, Apple's sales will skyrocket. This more than doubles Apple's target market.
 * Recommendations**

This graph shows the percentage of revenue that the iPhone earns Apple.
 * Attachment 1:**

Figure 1 Source: http://www.businessinsider.com/chart-of-the-day-in-case-you-had-any-doubts-about-where-apples-revenue-comes-from-2010-4

This figure shows two maps of the United States and what areas are covered by Verizon and AT&T
 * Attachment 2:**

Figure 2 Source: http://virulentwordofmouse.files.wordpress.com/2009/12/att-verizon-map-coverage.jpg

Yarow, Jay. "Apple's Contract With AT&T is Done in June". Business Insider. April 10,2010 .
 * References**

Ogg, Erica. "What's in Store for Apple iPhone OS 4?". Circuit Breaker. April 7, 2010 .

Chen, Jason. "This is Apple's Next iPhone". Gizmodo. April 19, 2010 .

Gohring, Nancy. "New iPhone is Coming, Plus a Version for Verizon, Report Says". PC World. April 9, 2010 .