ASSESS IPHONE- MAN WORKING PAPER
Overview of Apple, Inc. iPhone Product Line
At launching 2007 the iPhone Apple, Inc. was new entrant in the market of mobile handsets in the Porter’s 5 forces framework (Porter, 1985). Although it was not the highest technology standard on the market it was perceived by Apple customers as the pinnacle of the mobile handset hardware because of two main factors: the offering was from a firm, being strongly branded and recognized as an innovative firm, well known by its MAC-s and iPOD. In fact iPhone, bearing mostly used features of the iPOD, was supplementary product to other existing products of the firm. Nevertheless its user friendly design and elegance, combined with the buzz of expectation of a new product that the firm created, turning its brand fans into willing to buy buyers pushed Apple in a leading market position that continued with certain fluctuations with the next iPhone generations (Diagam No. 1). Most users praise at premium the easy to use interface and the sleek design. The most common complaint appears for users in the time to get used to the touch screen keyboard. The iPhone has gained a competitive advantage due its technological difference from other phones, but not only – the remarkable communication of the new Apple product – series of metaphoric stories of Apple CEO Steve Jobs, explaining not what the offering is, but why the firm designed it for the users and how, engaged emotionally the customers. Apple correctly predicted the stupendous success of the iPhone and contracted Samsung as an exclusive hardware supplier for NAND Flash RAM. In spite the mobile handsets market is standardized and strongly competitive, Apple has invested significant money and effort into not allowing the iPhone to be positioned as a commodity item, but as a simple, unique and superior product (iPhone and the others in the mobile sets industry, similarly positioned as Mercedes in the car industry and Bang and Olufsen in the hi-fi industry over the years). The release of the newest 3G generation iPhone 5 end of December 2012 was in strongly competitive environment in handsets superiority class, about the same time when RIM was about to release its delayed for about a year Blackberry 10Z and when Samsung had theAndroid OS based Galaxy III and preparing the Galaxy IV model, further the Nokia Lumina=== Although according to the findings of Kunz et. the perceived firm innovativeness (PFI) in customer perspective the loyalty for goods is stronger than for services and for more than less innovative consumers, due to easier understanding of tangibility than of intangibility in terms of comparative advantage (Kunz, W., Schmitt, B., Meyer A., 2011), in the case of iPhone it is obvious that customers are buying the handsets for accessing the applications that they were used to with the iPOD. The 3GPP iPhone evolved to 4G with the change of the mobile broadband industry trends, being currently defining Long Term Evolution (LTE), which allows UMTS operators to offer even higher peak data rates and lower latency than is possible with existing High-Speed Packet Access (HSPA) technology. The higher speeds and lower latency are achieved from OFDMA and antenna techniques such as MIMO (Multiple Input Multiple Output), SDMA (Spatial Division Multiple Access) etc). LTE promises to allow operators to economically offer innovative services to different market segments such as PDA's, laptops, interactive gaming devices etc. Regarding market share, the iPhone is rapidly gaining presence in the high-end segment for privately financed firms. It is viewed as a great “second phone” but has not been able to take away Blackberry’s corporate presence. This inability to overtake Blackberry appears to result from security concerns within firms. (Williams, J. R. (2009)
Source: Williams, J. R. (2009): Mobile Computing: Predictions on Sustainable Advantage, Tepper School of Business at Carnegie Mellon University,Working...
Bibliography: Williams, J. R. (2009): Mobile Computing: Predictions on Sustainable Advantage, Tepper School of Business at Carnegie Mellon University,Working Paper No. 2009-E18
APPENDIX 1 : iPhone features change over the time
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