Apple Inc: IPhone Apple Inc.: I Phone Essay

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Apple Inc.: I Phone

The mobile telecommunications industry is considered one most important sector within the community market, which represents half of the 1.1 billion euros they billed annually worldwide (Merkow and Breithaupt, 2006, p66-69) Since the technology created in the 40s of last century, to the art terminals, you can say that the mobile phone has a global history in the sense that its development has slowed or accelerated depending on the interests of nations or technological improvements.

This statement can be illustrated by the existence of different ways to set standards technology in the world (Gandal, 2002) or the various forms ESCO- GIDAS for the provision of licenses for third generation (3G) Unlike its predecessor (2G-GSM), 3G (UMTS) offers a superior range of services, while achieves greater network capacity. Its advantages are based on the possibility of transferring voice with other data, such as information, e-mail or instant messages on a much more quickly and efficiently.

Additionally, it is now possible surf the web directly from the phone under conditions hardly imaginable in the technological pre- transferor. Earlier in the second generation mobile phones could easily substitute between them because they were designed basically you to make calls and send short messages (SMS) which, somehow be considered a strong services homogeneous character. 2G in the world, shape or design were the only distinguishing features of each terminal. Consequently, the operators did not consider the terminals as a how to access certain degree of differentiation, and the result bid was similar in all terminal operators mobile telephony services. Ezingeard, 2004, p117-28)

Therefore, the choice between the terminals preferences for the menu designs or the possibility of using complementary products (Like housing) However, 3G technology has had important implications development of new and improved handsets. We now have more features and additional features focused on Internet and multimedia services.


The result is that 3G handsets, whose greatest exponent are known as smartphones, have experienced a significant increase of sales. Thus, the demand for smartphones has grown from twenty million units in 2006 to forty million in the third quarter of 2009.

The cause of this expansion is among other reasons, the possibility of adding functions Internet and personal computer in the same apparatus. One of these smartphones, the iPhone has been for rights the most successful since its launch. At the time of its launch, Steve Jobs, Apple CEO described the iPhone as revolutionary and magical product that is literally five years ahead of any other phone mobile and in the context of smartphones, Apple maintained that to reinvent the phone, suggesting that the terminals high-end features were not as high as previously believed, plus it was not so easy to use as it desirable at this time.

Products and Service design

After some initial stormy, Apple was able to explode and be among the leaders in their fields. In less than ten years, Apple has placed its business model to the world in music and telecoms. The design of equipment in its entirety, be it a portable media player (iPod), mobile phone (iPhone) or a digital book (iPad). The expertise of Apple lies in a simple recipe: combine an attractive product and easy to use, content in very large numbers published by third parties but downloadable on a platform controlled by Apple.

Also Apple never does things by halves, always offering products and comprehensive services. Apple offers the continuously innovative products and design, sometimes just an evolution of a previous product (example: the iPod and its many versions), but always in diversity, both in the field of use at the level price ranges. (Merkow and Breithaupt, 2006, p66-69)

Indeed, the Cupertino company is present in almost all fields of music with the iPod (and iTunes), with Mac computers, telephony with the iPhone, etc. (Plice & Relinig, 2007, p22-30) Apple always staggers its products significantly, allowing (almost) any budget to equip their homes, and of course, every product Apple responds to a different expectation, even with the obvious example of the iPod, a true chameleon, having as a standard the iPod Nano (general public, design, fun, etc. ...), classical (large memory), the Shuffle (the least expensive, and no particular style screen with random mode). Apple then began to market and MultiTouch touch devices, including iPhone (2007) and iTouch (2007), but also with their Magic Mouse (2009) for Mac, and trackpad on MacBook (early 2010) Mac products are often a sign of reliability and performance, while "design" and almost luxury products for high-end products.

With the release of its iPhone in 2007, the company had to revise its inception in its business model: selling the iPhone starting in Europe at a high price to keep the level of luxury, the price was quickly seen down as too expensive for individuals. The unit is subsidized and sold in a single operator, Orange, which must pay back nearly 30% of its revenue from telephone subscriptions.

Then the iPhone is diversifying, sold in more than one operator, making it much more accessible and less expensive thanks to formulas with specific iPhone plans. The iPhone is longer than the professionals; it is the individual and students. Apple and collects in addition to selling the device, a hand through subscriptions (which tends to decrease under the action of operators), but also a large part via the App Store with downloadable content, sometimes paying (in few cents to 10 euros).

Right out of the iPhone in 2007, Apple had a clear strategy for marketing segmentation and positioning of its product. This strategy is modeled on those adopted for the iMac (launched in 1998) or iPod (2001) is a mass strategy that Apple is one of the few companies in the market to use it. This undifferentiated marketing, from behind that of its competitors, Apple has made the third largest smartphone in the world market (19% market share in early 2010), behind RIM Blackberry (20%) and Nokia (35% ), only three years after the launch of the first iPhone.

Capacity planning

The market for Apple and the iPhone is quite special. In fact the iPhone is part of the mobile phone market, especially that of smartphones. First we note that the mobile phone market is partitioned into several groups. Generally operative builders all use a differentiated marketing strategy. Thus the smartphone market is a market segmentation of mobile phones and manufacturers typically use a segmentation strategy.

However, Apple had the idea to use the same marketing strategy that the iMac came out ten years earlier. Indeed, the manufacturer does not leave a single line for its product and then target the whole market with the iPhone alone. This strategy of ignoring the different segments is possible an undifferentiated strategy. (Merkow and Breithaupt, 2006, p66-69)

Apple thus operates through a mass marketing targeted to a wide customer base (no geographical segmentation or social) in a market, the smartphone, however, reserved for the segmentation. This mass marketing is however very little used by companies. But Apple is a company rather special, undifferentiated marketing has become its trademark. In addition, this market is relatively new, and Apple has benefited the economy on a large scale in this market (12% of French people owned a smartphone in 2010, two times more than in 2008).

Apple only offers one product, so they have a policy of producing a single product that allows them to lower their production costs by buying in bulk the same components and also mass producing the same product and not more products. The apple, in the words of its new boss, Tim Cook, has actually unveiled an iPhone 4S, muscular version of its predecessor, but the same design, just like the 3GS released after the iPhone 3G.

Soon, the negative comments have multiplied on social networks and Twitter.

Apple has missed the boat, Apple has disappointed, and Apple would launch a real novelty in a market far more competitive today than in the past with repeated offensive and aggressive Android representing 43% of smartphone sales against 18% for Apple.

Apple was expected on its design; Apple revolutionized the smartphone industry since 2007 with the first model in the range. (Plice & Relinig, 2007, p22-30)

The wildest rumors were circulated about it but Apple is in fact remained true to its strategy in the model simply declining star today. Ezingeard, 2004, p117-28) However, disgruntled iPhone 4S emphasize that this is out of step with the competition, particularly in terms of screen size. Everyone was betting on a screen at least 4 inches to align with industry standards (Galaxy Samsung, HTC etc.)

Others point to the lack of certain technical specifications as the support of 4G, the NFC, and Flash, HDMI or the 3D (sic). Some think that Apple and takes risks with something new that is not perceived as such. Remember that the iPhone now accounts for nearly half of Apple's revenues (46.5%), and we must continue to feed the machine to support sales and margins.…

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