Thomas+K+strategy+report

Thomas K

To: Proximity mobile team From: Kieara Thomas Date: April 1, 2010 Subject: iPhone/ Apple, Inc. strategy analysis

Although Blackberry and iPhone dominates the mobile market, there is still a big threat of new entry. This can cause a big impact to iPhone market shares and customers if they can be beat by their competitors. __ Profile __ Apple, Inc. is a corporation that designs and manufactures consumer electronics, computer software, and commercial servers. The company’s most popular products are Macintosh computers, the iPod, the iPhone, and the iPad.

Apple was established on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. Wazniak hand-build the first Apple computer called Apple I. Later the company was incorporated in January 3, 1977, called Apple Computer, Inc.

The iPhone was first introduced by Steve Jobs in January 2007 at a MacWorld conference and expo. iPhone is a convergence of an internet-base Smartphone and iPod. The iPhone includes features such as mail, Google maps, weather, video recording and voice control. Apple, Inc. is re-inventing the iPhone with advance 3G speed internet and faster internal components.

Apple, Inc. has accumulated over $42.91 billion of sales and a net income totaling $8.24 billion in the year 2009. Apple has become a big part of the electronics and mobile industry, creating customer base and brand loyalty. __ Competitive Landscape __ Although iPhone and Blackberry are at the top of the mobile market, threat of new entrants is a big concern for these companies. Blackberry are close competitors to iPhone because Blackberry has other features that are missing in iPhone, such as, expandable slot, MMS, copy and paste functions.

iPhone and Blackberry are going to face the most competition form imitators who can sell a similar or comparable device at a lower price. Anyone would love to have an iPhone but cannot afford it because the phone and phone plans are too expensive that consumers settle for cheaper prices.

If a company can produce a phone just like the iPhone or better then the iPhone with a cheaper price, then the iPhone will no longer exits. Several companies such as I.G., Samsung, Google, and Microsoft are working on projects to outshine Blackberry and iPhone. __ Apple, Inc. (iPhone) Strategy __ Apple has done a great job re-inventing themselves over the past 9 years. The strategy is to produce and release new versions of the same technology. The company wants to serve customers with cool, trendy, innovative new products, and to be “just good enough” for business. Apple focuses on its “digital lifestyle” products for consumers, the company’s markets in education and professionals. __ Gen-y Implications __ The biggest question regarding iPhone future income and market shares is how Apple can keep up with the increasing growth of technology and consumer needs. Generation Y is the generation of communication, media, and digital technology. As technology grows, Apple has to be able to create and advance iPhone that will satisfy the consumer’s needs and wants.

The market segmentation of Generation Y is people on-the-go, college students, and professionals. Therefore, Apple has to be able to create and iPhone that is fashionable but also a hand-held computer. Consumers should be able to do anything and everything from their phone. This is the advance technology of Generation Y consumers. __ References __ Apple, Inc. (2010, February 5). //Wikipedia.// Retrieved on February 25, 2010, from [].

Ashley, M. (2008, June 20). iPhone “Just Good Enough” Business Strategy. //NetworkWorld//. Retrieved February 19, 2010, from []

How Apple iPhone changes the market landscape and what should carries do? (2008, November 23). //Articlesbase.// Retrieved February 19, 2010, from [] McLean, P. (2008, November 5). Apple outlines shifts in strategy, rise in R&D spending, more. //AppleInsider//. Retrieved February 19, 2010, from [] Moritz, S. (2006, September 8). iPhone’s Early Buzz. //TheStreet.com//. Retrieved February 19, 2010, from []