Iphone

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This report will undertake an analysis of one of the most famous household gadgets, the iPhone. Through use of economic theory and analysis we will assess the mobile phone market and make predictions as to future prospects of the product. IPhone was first introduced by Apple’s CEO, Steve Jobs in 2007. The first generation iPhone took the world by storm in 2007 as it was the first smartphone in the world. With its sleek glass multi-touch touch screen display, boasting internet services, music player and multifunctional applications available for the phone itself. It is said that Apple has sold more than one million iPhones just 74 days after its released date on June 29 20071. The first iPhone was sold at the price of $600 in America. IPhone is definitely a differentiated product as it runs a unique system invented by Apple which is known as the iPhone Operating System (iOS) and also allows users of iTunes to sync all of their music albums and pictures into the phone .This is the main features that clearly distinguished iPhone from the other smartphones. Last month, Apple just released their latest generation which is the IPhone 4s. The new iPhone 4s has many upgraded features and better performance as compared to their first generation such as a 3.5 inch wide screen, 9.3mm ultra-slim body 8 megapixel autofocus camera along with a secondary VGA front camera for video calling, dual core processor that delivers more speed, Facetime and not forgetting the new Siri, the intelligent assistant and many more2. IPhones are easily available at any Apple stores worldwide and also some telecommunication companies. IPhone is a huge hit around the world and show us versatility as it caters a range of customers from teenagers to business users. The iPhone has many apps to suit different individuals, some applications come free, and some requires payment. The phone has integrated people from around the world with programs such as Skype, Msn Messenger and Whatsapp. Without a PC, the iPhone was seen to be the mini substitute whenever people go. The table below shows the prices of iPhones over the years. In the third quarter of this year, the iOS is the third dominating operating system in the smartphone market globally with market shares of 15% ,whereas Android has a strong lead ahead the others boasting a high market share of 52,5% , followed by Symbian with a market share of 16.9% . It is said that the market share of Apple dropped as much as 15% for the third quarter as most of the Apple fans were expecting the arrival of the iPhone 4s3.This shows us that oligopoly exist as the accumulation of concentration ratio of the three main firms are 84.4% . Apple, Samsung, Blackberry, Nokia, LG, Sony Ericsson, Motorola and HTC are all well known brands in the phone industry. . Apple’s first iPhone set a new benchmark in the phone industry, resulting in many phone brands inspired to produce products similar to the iPhone .However, Apple & Samsung takes the crown for producing sleek and efficient smartphones in the world. Currently, Samsung maintained a strong lead against Apple who seems to be at the top manufacturer for smartphones, boasting an amount of 27 million units sold worldwide as compared to Apple’s 17 million units 4.Apple’s current main rival is Samsung, the Korean phone company who strived to disrupt Apple’s dominance over the past few years in the smartphone market by producing Samsung Galaxy S2. The Samsung Galaxy S2 is sold around £500 for the handset 5. In the mean time, Nokia recently launched their Windows 7 smartphone, the Lumia 800 comes with a price tag of around £399 without contract6. This clearly shows us that the price competition in the smartphone market is relatively fierce. The smartphone market has a high barrier...
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