The Apple iPhone revolutionized the smart phone market. It is the first device to feature three in one integration of a mobile phone, internet surfing and digital music player capabilities. In addition, the device features a great design, has few competitors, and addresses consumers’ desires to be constantly connected in a convenient and flexible manner. Apple has continuously improved upon its original model, and has become a large international player in the saturated mobile phone market. Apple has been successful with a focus on simplicity of design and use, and a simplistic marketing strategy of addressing consumer desires for innovation. Apple, Inc.
On May 26, 2010 Wall Street valued Apple, Inc. (Apple) at $222.12 billion edging out Microsoft, Inc. valued at $219.18 billion, and making Apple the highest valued publically traded technology company (Helft & Vance, 2010). This success is largely due to Apple’s unique ability to predict consumer demands, and meet them with innovative technology products. Apple employs 46,600 full time employees, and posted total revenues in 2010 of $65.225 billion, with 56% resulting from international sales (Apple, Inc., 2010, p. 34). The company’s revenue is derived primarily from its popular technology products including Mac desktop and laptop computers, the iPod digital music player, the iPad tablet computer, the iPhone, a mobile phone, computer, and music player, in one handheld device, in addition to peripherals, hardware and software that are used with Apple products. In 2010 the iPhone and related products and services brought in $25.179 billion accounting for almost 39% of Apple’s total revenue (Apple, Inc., 2010, p. 34). The iPhone
Steve Jobs, Chief Executive Officer of Apple, Inc., introduced the iPhone at Macworld 2007, an annual trade show held each January that features Apple products. Jobs often introduces new products during the keynote address, and 2007 was no different. Attendees sit on the edge of their chairs in anticipation of the next big thing, and Jobs did not disappoint. The iPhone is the first handheld device that combines a phone, internet access and iPod all in one. The phone features a 3.5 inch 160 megapixel touch screen, and a 2 megapixel camera in an ultra thin 11.6 millimeter sleek case devoid of the typical bulky buttons. The look alone is ground-breaking, and the technology is amazing. The device comes equipped with both proximity and ambient light sensors, which not only helps to save battery life, but also enhances the user experience. The accelerometer allows one to view images in portrait or landscape mode by simply turning the device. The software features that come standard with the device are just as impressive as the hardware. Personal contacts can be easily synced from a PC or Mac computer, and visual voice mail allows users to pick and choose which message to listen to and when. Email is delivered from both IMAP and POP accounts in rich text HTML format, providing a sharp image. Apple partnered with Yahoo! to offer push IMAP email free of charge. In addition, the device contains weather and stock market widgets and Google Maps. The Google maps application offers maps, directions, and satellite imagery. The iPhone is truly a revolutionary product, and it is marketed in a revolutionary way. Micro-Marketing Environment
Apple enters a saturated and competitive cell phone marketing environment. “According to the CTIA wireless association, an amazing 250-million Americans are now [in 2007] subscribers to some sort of cell phone plan. That’s a massive 82.4 percent of the U.S. population” (Stevens, 2007). The company has several things in its favor. Apple is well known as an excellent employer attracting top talent in the software and hardware development, and has strong leadership in place. The company also maintains strong alliances with third party suppliers. However, Apple took a considerable risk, and...
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