...International Conference on Mobile Business / 2010 Ninth Global Mobility Roundtable What factors contributed to the success of Apple’s iPhone? John Laugesen Yufei Yuan McMaster University, DeGroote School of Business Hamilton, Ontario CANADA laugesjd@mcmaster.ca McMaster University, DeGroote School of Business Hamilton, Ontario CANADA yuanyuf@mcmaster.ca Abstract — Unknown to most North American consumers, a mobile data and Internet service in Japan called i-mode has been highly successful in that country for the past decade. Unfortunately, mobile data services in North America have lagged behind many European and Asian countries. However, the situation changed rapidly with the iPhone, launched in the US in June 2007. Consumers lined up for days for the chance to purchase one, and over 500,000 units sold on the first weekend. Since that time, over 42 million iPhones have been sold, arguably making it one of the most successful mobile phone products ever launched. What is it that makes the iPhone such a success? In this paper we define a set of success criteria to investigate the success of the iPhone and propose a comprehensive success model. The success model can be used by both academics and practitioners to understand the reasons why, and ways to ensure that mobile data and commerce services become successful. II. To adequately judge whether the iPhone is successful, a set of ‘success’ criteria was developed. These success criteria are based on an extensive literature review as...
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...Apple iPhone Table of Contents Introduction 3 Changes and Implications 4 Technology’s Rapid Development 4 Applications’ Rising Importance 6 Economical Situation 7 Smartphones as Substitutes 10 Smartphones as a “Trend” 12 Conclusion and Future Outlook 13 Bibliography 14 Appendix 16 Introduction As we step into a new decade, we are experiencing tremendous changes in the technological environment with constantly emerging advancements. Innovations are appearing everyday in a turbulent market flooded with big players and more new entrants everyday. Mobile phones have become an essential part of a person’s image and social identity. Consumers everywhere have developed a whole new meaning for Smartphones, shifting it from business conduct to ordinary individual use. A phone’s function has expanded from phone and text messages to much more beyond that including music, games, Internet and applications. It has become necessary for every consumer to own a Smartphone in order to insure immediacy, variety, and continuous connectivity with the world. In this paper, we will analyze the Smartphone industry and highlight the most important changes and their implications on Apple’s iPhone in particular. We relied on the PEST model to examine the current environmental situation in a time span of three years. [Refer to Exhibit 1. in the Appendix] Apple’s iPhone was first introduced in January 2007. Since the original iPhone, Apple has produced three more generations...
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...Why so Many Foreign Companies Want to Build Factories in China United Nations data of the total foreign direct investment in 2013 shows that China attracted $ 101 billion for continuing topped the list of developing countries. Why so many foreign companies want to build factories in China. I think it has three reasons to explain this question. I will use the example of Apple to show these three reasons. First of all, China as one of the cheap labor export base all over the world, attracting a large number of foreign companies to invest in production in China. American market investment company ConvergEx Group conducted a global minimum wage ranking in August 2013. From this ranking, Australia is $ 16.88 per hour topped the list. The United States is at an intermediate position. China is $ 0.8 per hour on the 17th in this list. The group is also based on the existing minimum wage, calculated that people in countries that are listed in the number of minutes of work to buy a Big Mac hamburger. Among them, the Chinese people need to work on average about 183 minutes to buy a Big Mac price of $ 2.61, which is located in the middle and lower purchase levels. The first decade of 1978 after China started economic reforms aimed at foreign direct investment in China's main business is to establish an export base in China. While this Chinese "reform and opening" initially helpful, but such investments often only have a very low value. For example, in 2009 a study found that, despite...
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...Apple introduced its first phone into the market in 2007. This new product was introduced to consumer as the iPhone and item became a flagship product of the company that attracted consumers from the start. The company offered an innovative smart phone which allows users to not only make calls but to move seamlessly from listening to music, to browsing the web, checking emails and back at the touch of a finger The company presented its product based on four pillars. It offered a small amount of products, focused on the high end, give priority to profit over market share and created a halo effect that makes people starve for new Apple products (Nielson, 2014). Apple surprised consumers with the release of the iPhone and today it continues to dominate by continuously reinventing its product. In this paper I will present a business proposal for the iPhone that addresses market structure, price elasticity, marginal cost and marginal revenue, suggested non-pricing strategies, barrier to entry and fixed and variable cost. Additionally, I will recommend an appropriate pricing and non-pricing strategies for the iPhone based on the projected economy's stage in the business cycle and the prevailing projected economic conditions for one or more macroeconomic factors. Market Structure According to InvestorWords, market structure is defined as the collection of factors that determine how buyers and sellers interact in a market, how prices change, and how different levels of the production...
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...CORPORATE RESPONSIBILITY AND MARKETING STRATEGIES Tanika Fuentes BUS 508 Contemporary Business Dr. Jacob The Apple Corporation has become one of the largest corporations in the world. There are a lot of companies that would like to be mentioned in the same breath as Apple. Many companies want to emulate their success. In this paper I will examine Apple current position and reputation, regarding ethical and social responsibility. According to Crane and Matten (2013) “One of the basic tenets of the Corporate Social Responsibility (CSR) movement in business has been it being voluntary and meeting social expectations above and beyond the law.” The Apple Corporation has been publishing its CSR report on its website since 2007. On Apples website it states “Workers everywhere should have the right to safe and ethical working conditions. They should also have access to educational opportunities to improve their lives. Through a continual cycle of inspections, improvement plans, and verification, we work with our suppliers to make sure they comply with our Code of Conduct and live up to these ideals”. Living up to the previous statement concerning apples commitment to ethical and social responsibility has not been an easy one. My position on whether Apple has met their responsibilities would be no because with their brand being the world’s best global brand, they should be held to a higher standard. When you are the leader in your field other corporations are looking...
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...Anne Nortcliffe. This is an open access journal article distributed under the Creative Commons Attribution License, which permits the unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. Abstract Ownership of mobile smartphones amongst the general consumer, professionals and students is growing exponentially. The potential for smartphones in education builds upon experience described in the extensive literature on mobile learning from the previous decade which suggests that the ubiquity, multi-functionality and connectivity of mobile devices offers a new and potentially powerful networked learning environment. This paper reports on a collaborative study conducted by an undergraduate student with the support of two members of academic staff. The research sought to establish the extent to which students are autonomously harnessing smartphone technology to support their learning and the nature of this use. Initial findings were explored through student interviews. The study found that students who own smartphones are largely unaware of their potential to support learning and, in general, do not install smartphone applications for that purpose. They are, however,...
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...Market Segmentation Of Apple Iphone 4s Marketing Essay In this report, it aims to analyze and evaluate the market segmentation of Apple iPhone 4S. First of all, based on the theory of means end chain, the product is analyzed through product attributes, consequences of use and personal values. Special features of the product lead to the consequence of use, which finally stand for the value of the product. Besides, consumer markets are segmented according to different groups. Therefore, in this report, based on the analysis of four different categories including demographic, psychographic, use-related and benefit sought, it states consumers have different characteristics in terms of different items in each category, and then it identifies three groups of iPhone 4S consumers, including the primary targets of iPhone 4S are people who are loyalty to this brand with some knowledge of it, another two big groups are people who are interested in new high tech phones and people who are chasing social acceptance. It indicates that groups with special features share the same choices when they are making the purchase decisions. Furthermore, based on two reference groups, friends who are using the same products and other people who are interested in discovering applications in smart phones and give comments on the products, this report shows that purchasing decision from reference groups may have very important influence to target customers’ decision-making process. This report has given five...
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...2013 My company is called Henderson’s iPhone Store. We market all the latest versions of Apple smartphones. We will be marketing the new Apple iPhone 6 and entering all foreign markets. The target market for the iPhone is teenagers, college students, business class individuals, and adults. (Apple Inc., 2013). Our specific target market for this report is a married person, approximately 36 years old, and lives in a major city. This individual has a steady job, makes a solid income of about $65K a year. This individual likes to play sports, and has a very active social life. He has high goals which include gaining the experience which will assist him in landing his dream job with an income of over $100K yearly. Consumer’s behaviors include finding convenient mobile devises that offers more efficient ways for calling, messaging, and entertaining using a single button. These consumers are looking for the latest technology to satisfy their personal and social needs. Most of these consumers are affluent, and will purchase expensive products and brands which are shown as a status symbol (Apple Inc., 2013). Identifying the target audience is an important success factor for Henderson’s iPhone Store. Market segmentation can be used in many ways to construct the framework to influence their targeting activities. Understanding the market and the factors that influence consumer buyer behavior can ensure the soon to be launched iPhone 6 will be on the buyers list. Our knowledge...
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...Assignment 1: Corporate Responsibility and Marketing Strategies Tara Traeger Strayer University Professor Christopher Hase BUSS 508 October 21, 2014 The Apple Corporation has become one of the largest corporations in the world. There are a lot of companies that would like to be mentioned in the same breath as Apple. Many companies want to emulate their success. In this paper I will examine Apple current position and reputation, regarding ethical and social responsibility. According to Crane and Matten (2013) “One of the basic tenets of the Corporate Social Responsibility (CSR) movement in business has been it being voluntary and meeting social expectations above and beyond the law.” The Apple Corporation has been publishing its CSR report on its website since 2007. On Apples website it states “Workers everywhere should have the right to safe and ethical working conditions. They should also have access to educational opportunities to improve their lives. Through a continual cycle of inspections, improvement plans, and verification, we work with our suppliers to make sure they comply with our Code of Conduct and live up to these ideals”. Living up to the previous statement concerning apples commitment to ethical and social responsibility has not been an easy one. My position on whether Apple has met their responsibilities would be no because with their brand being the world’s best global brand, they should be held to a higher standard. When you are the leader in your field other...
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...Introduction The purpose of this paper is to analyze the technology industry with a particular focus on the Smartphone industry. The companies that will be compared in this paper are Apple and Samsung. This paper will begin with a brief overview of the history of each of the companies as well as their initial business strategies and core competencies. In addition to this, it will be addressing globalization, the drivers to globalization and the affects that it had toward the business strategies of each of the two companies. Furthermore, the paper will look at the technological advances that have occurred in the industry and how that has impacted the companies, along with how it has shaped each business in order to keep up with the rapidly evolving and expanding market. Lastly, it shall explore what the companies are planning for the future and some of the trends that are occurring within the industry that may be influencing Apple and Samsung. Brief report of Companies Apple Apple Inc., formerly Apple Computer, Inc., is a multinational corporation that creates consumer electronics, computer software, and commercial servers. The company was founded by Steve Jobs and Steve Wozniak on April 1, 1976 and was later incorporated the company on January 3, 1977, in Cupertino, California. In 1985, Jobs left Apple and founded NeXT, acquired the graphics division of Lucasfilm (Pixar), and joined the Disney’s Board of Directors. It was not until 1997 that Jobs returned to Apple and...
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...Favorite Brand Paper Apple is one of the largest and most successful companies in the world. Apple is known for making easy to use and extremely sought after electronic devices such as the IPhone, the IPad and the iPod. Apple connects with consumers of all ages by providing reliable products and excellent customer service, both in their retail stores and through their telephone support line. This type of service builds brand loyalty. They take great pride in the ability to provide product differentiation, market availability, and for getting the upper hand on setting prices. For years Apple was a distant second to Microsoft in terms of their operating system use and sales. However with the launch of a massive advertising campaign a few years ago, made Apple environmentally responsible, put them in an important place in the lives of consumers, and made the brand cool for all ages. According to Perreault, Cannon and McCarthy, “Marketing is the performance of activities that seek to accomplish an organizations objectives by anticipating customer or client needs and directing a flow of need-satisfying goods and services from producer to customer or client” (2009, p.6). Where Apple has evolved and is keeping up with what consumer’s demand of the latest electronic devices, Microsoft has not and their products lack style and are not easy to use. There are several reasons to be passionate about this brand. They market their product very well. They sell good quality electronic devices...
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...Business Analysis Part 1 Arneko Harris MGT/521 September 19, 2011 Evan Barnet This paper discusses the SWOT analysis that includes strengths, weaknesses, opportunities and threats for Apple Inc. The information that was gained from the analysis will become important to the author on the decision of whether or not to invest in this company. Apple Computers Inc. is an U.S based founded in 1976 as the leading software and hardware multinational company handles with consumer electronics goods and computer software. Apple Inc. has been involved in the development, designing, and marketing of their personal communication devices, network solutions, and their portable digital music devices. The well-known hardware for Apple Inc. is Mac computers, iPod, iPhone, and iPad. The software products include the Mac OS X operating systems, iTunes, and iWork suite, iLife suite, Safari the web browser. Apple sells its products to a wide customer base; it ranges from individuals, educational institutions, creative professional, and small and mid level businesses. Strengths * One of the key strengths for Apple its brand recognition. Apple has a very strong customer base. Strong devoted customer followers. * Strong products such as iPhone, iPod, iPad, and all Macs computers. * Apple strengths also include their innovative thinking when they invented iTunes music. Apple created iTunes as an additional source of revenue, which helped increase their overall sales and control...
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...2011 Team members: Wang Lehuan , Apple Inc. Fei Xuan , Liu Danfei , Jiang Yongming , Zhang Hao , Li Changhua Counselor: Sun Na Synopsis The paper is about Apple Inc. which is a famous IT company in the world. It's main business is to offer different kinds of high information technology electronic products. Through the internal and external analysis by using SWOT, STP, 4Ps, PEST models for Apple Inc., some problems are indentified. Firstly, in the analysis of internal environment, the paper tells that Apple's products are high quality and attractive. Apple is the world's most successful and healthy IT brands. It holds the leadership in electronic industry. Apple lead the production design in high technology. Most employees in the company are creative and pay attention to innovation. It prefers to build up good relationship with customers so that to attract them to buy their products again. But Apple don't have a wide distribution channels and its market is limited which only focus on middle and high income people who are pursuing modern, vogue and innovation, most of them are in developed countries. And their suppliers pollution issues are exposed in 2011 which is harmful to Apple's brand image. Apple products are hardly compatible with other companies' electronic products. Secondly, in the analysis of external environment, the paper tells that it is a big opportunity to enter Chinese market, as China just has the boom time economy, and China has the biggest population and Chinese...
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...market analysis of the smart phone industry in preparation for our company’s potential new smart phone product. This paper is intended to summarize the research findings on the current leading competitor in the market, the iPhone s5 and our recommendations on how to successfully compete and maximize profit in the smart phone market. History of Apple Apple Computers was founded in April 1976 by Steven Jobs and Steven Wozniak. The company built computers and operating systems that were revolutionary for the industry. The company has had some competition, and therefore has had some ups and downs financially. Top management in the company has changed over the years and the company had difficulty competing with other computer companies. However, in the late 90s and early 00s the company had an increase in profits because of innovative products. In 2001, the company introduced the iPod. This little device was just a small music player. It played and stored music files that the customer could download on the Internet. Apple Inc. dropped the “computer” out of its name in 2007; the same year it introduced the iPhone (Sanford, 2013). The first phone made by the company was a success. In the following years the company continued to improve its product; introducing the iPhone 3g, iPhone 3gs, then the iPhone4, iPhone4s, and now the iPhone5, iPhone5s, and the iPhone5c. The iPhone 5 has a new ios7 operating system, and 64 bit architecture. The 64 bit architecture has never been put into a phone...
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...Evidence Based Management and Psychological Contracts: The Success of Apple. Aaron Wood Ottawa University * Introduction For decades, the application of organizational behavior theories to business management has been an ongoing process of discovery and innovative thinking. Concepts like evidence based management (McShane, 2013) and psychological contracts (Braekkan & Tunheim, 2013) are being employed in some of the world’s leading corporations. For the purpose of this paper, the synthesis of material into conceptual application will be applied to a single corporate entity. By choosing a company with global interests who continues to espouse very personal, individual based value perspectives, Apple is a good representational fit. This paper will highlight not only how Apple in some cases is using these concepts successfully in the market place, but also ways in which their former CEO failed miserably in utilization of these concepts while achieving enormous corporate success. This paper will also look to Apple’s future and how study of these theories along with others may be further developed. Multiple references from a wide array of media sources and fields of study have been researched to show the breadth of Apple’s stakeholder and business positioning strategies from the earliest days up to resources compiled as late as November 2013. As the development of information threads lead to fields like manufacturing, education, supply chains, demography, and even social-psychology;...
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