For the distribution strategy, Apple first wanted to control the distribution with an iron fist. They wanted to carry all of the weight and do the work themselves cutting out middlemen and in their minds, increasing profits. However, they soon came to realize it would be easier expanding their product to more people and in the long run actually making more money. The Apple iPhone now has 40 carriers in the United States, including big name companies such as Verizon, AT&T, Sprint, T-Mobile and Virgin Mobile. The iPhone has become a must have item among cell phone owners and is in very high demand. The iPhone has many more carriers in other countries but for the purpose of this presentation we have just included United States carriers.

Apple distributes its iPhone through its brick-and-mortar shops and through its website, but also through many other big name stores and their online shopping centers. Apple has a relatively low store count at around 250, but are very productive on a per unit basis. They are very reliant on stores such as Best Buy, Wal-Mart, Target, and others. Despite the low store count, Apple is one of the most successful brick-and-mortar shops generating more revenue per square foot than any other retailer in the United States. The Apple iPhone Sales by outlet is distributed as follows: AT&T- 28%, Verizon- 26%, Apple- 21%, Best Buy- 10%, Sprint- 9%, Mass Retailers- 4%, Amazon- 1%, and eBay- 1%.

Apple makes it very easy to purchase an iPhone. Their distribution strategy is great because almost anywhere you go, you can purchase an iPhone, and most places the services for the phone can be bought as well. The Apple store probably offers the best services and customer relations, however any other carrier you go to will also give you close to or the exact same services. In the Apple stores and the service producer outlets, there are four steps to