Swot Analysis - Iphone

Topics: IPhone, Mobile phone, Apple Inc. Pages: 6 (1844 words) Published: October 14, 2008

With all the hype surrounding the iPod post its introduction into the electronics market, it should be of no surprise that iPod’s unmatched demand for such distinct music management tool would lead Apple to add iPod’s features to the most sold electronic device to date: the cell phone. Thus, you get a hybrid called the iPhone. This highly anticipated electronic trend setter without fault had numbers of people waiting in line at the Apple store in New York; iPod fans want to be among the first to explore some of the most innovative phone features to date. Among those features you will find a 3.5 inch touch screen (the largest of all smart phones), Wi-Fi connectivity, the most usage time of all smart phones, i.e. talk time, internet use, or video playback, and many more impressive characteristics. The iPhone has, thereby, revolutionized the cell phone industry to become a potential best designed and most admired phone of the decade.

The iPhone, a 4.5 by 2.4inch hand held phone, iPod, and web browser, allows users to switch from one application to another effortlessly. All its functions can be accessed with just the touch of a finger, making the iPhone the most advanced portable device ever; the iPhone has a glass widescreen with touch controls that let the user browse their content, including music, audio books, videos, TV shows, and movies on the largest phone display to date. Users can make a call by simply tapping a name or number in the address book, a favorites list, or a call log. It also automatically syncs all of the users’ contacts from a PC, Mac, or Internet service. Additionally, the iPhone enables users to select and listen to voicemail messages in any order, just like email, a feature excluded from all other cell phones. There is no wonder iPhone is known as a mini entertainment system. Strengths:

The time is very appropriate for Apple to further their development of the iPod by integrating this multi-media instrument with a cell phone; it serves to enhance their loyal iPod fans’ experiences with one “cool,” easy to use and conveniently resourceful device. Presently, technology has paved the way for people world wide to become more independent and individualistic, which begs for items that complement that lifestyle. Needless to say, the iPhone does no less than that better than the any other smart phone. Apple has re-demonstrated to the world that their logo represents innovation and, more importantly, reliability: a brand we can trust.

The advantage of having a prominent brand name means that as a long established company Apple has the financial leverage (from previous sales and stock) startup companies lack. Thus, Apple can continue to feed its R & D branch. From its R & D results, which Apple patents, they can then deliver the implied promise of Apple’s above average design capabilities in items like the iPhone.

Given that Generations X and Y dominate the purchasing share of today’s consumers the iPhone can easily entice large numbers of consumers at once. Once convinced that the iPhone “is in” and the cell phone “is out,” consumers will realize today’s digital wallet is the iPhone, which will satisfy ever technologically savvy and curious individuals. Thus, Apple’s sales will certainly increase through their patent on the iPhone design and their brand name coupled with today’s technology/entertainment saturated society.

Like most products the iPhone is not entirely flawless: its major weakness is its limited channels of distribution. Unlike the iPods which are sold through many retailers, the iPhone can only be sold in select Cingular stores and all Apple stores, or at each company’s website, due to its inherent agreement with AT&T. Although AT&T is the largest phone service provider in the United States, they only currently serve 58 million out of 2.14 billion cell phone subscribers. Besides poor channels of distribution, the...
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