Apple iPhone – An Indian Perspective PPT
Content
Apple iPhone – An Indian Perspective
NISHIT GARG
94512236955
Your Life in your pocket
specifications
iPhone
iPhone 3G
iPhone 3G S
iPhone 4
OS
iPhone OS 1.0
iPhone OS 2.0
iPhone OS 3.0
iPhone OS 4 960 x 640px, 800:1 contrast ratio
3.5 in, 3:2 aspect ratio, 265 k colors, 480 x 320px (HGVA) Display
Storage/memory
4,8 & 16 GB/ 128MB DRAM
8 & 16 GB/ 128MB DRAM
8GB/ 256MB DRAM
833 MHz
16 & 32GB/ 512MB DRAM
1.2 GHz
Processor
620 MHz Samsung 32-bit RISC ARM
Objectives
• I year objectives - aiming for 2%market share of US & UK - unit sales volume 4,45000 • II year objectives - achieve 10% market share - unit sales volume 12,45000
Target Market
Market Penetration
Pricing strategy Market skimming - Release new product at high premium - Skim the greatest possible margin - Once sales volume begins to decrease at the original price - Incrementally lower the price to increase sales - Repeat this until stable price with acceptable margin is determined
SWOT Analysis
• First mover advantage • Ownership of technological patents
Strengths
• Apple is one of the most established brand • Customers loyalty • Cultural, fashion identity • Dependence on third party provider: • AT&T, Content Provider, Application provider
Weaknesses
• Less appeal to corporate customers
• Technological complication
• Gorilla arm
• Sharp rise in consumer demand • 56% of smart-phone buyers prefer iPhone • New target market – • price reduction attract • more customers • High Potential Software –upgradable; can add new features • 3G Apple iPhones to captivate business demand worldwide
Opportunities
• New powerful entrant – Google
Threats
• Many similar or substitute products • Intense competition with major rivals • Increasing bargaining power of buyers
CORE COMPETENCY --- USER EXPERIENCE
Key Success factors
Consumer-oriented Factors
Technology
-------------------
Marketing
-------------------
Skill and Capability
-------------------
Distribution
--------------------
- Value added - Internet driven - A strong network of - Well-know and (cheaper, faster, force wholesale well-respected brand more convenient distributors/ dealers name - Replacing than the alternatives) - Fast introduction communication tools - Market - Design and and application of segmentation - Next generation innovation expertise services experience - Targeting and Pricing effectiveness
OS used in smart phones in 2005
OS used in smart phones in 2010
Comparison
Model
Apple iPhone HTC P3300 Motorola RIZR Z8 Mac OS X Windows Mobile Symbian OS
OS
81cc 105cc 77cc
Size
135g 130g 112g
Weight
Screen resolution
320x480 240x320 240x320 Soft Soft
Keyboard
2mp 2mp 2mp
Camera
Other
Accelerometer GPS
Numeric with T9
Nokia 5500 Sport Nokia E61i
Symbian OS Symbian OS
87cc 114cc 150cc
103g 150g 210g
208x208 320x240 800x352 & 240x320
Numeric with T9 Full Qwerty
2mp 2mp
Accelerometer, heart rate features
Nokia E90 Communicator Symbian OS
Full Qwerty and Numeric 3.2mp with T9 Numeric with T9, Multimedia Full Qwerty Numeric with SureType
GPS
Nokia N95 Palm Treo 700p RIM BlackBerry Pearl
Symbian OS Palm OS 5 Blackberry OS
110cc 151cc 77cc
120g 180g 90g
240x320 320x320 240x260
5mp 1.3mp 1.3mp
GPS
RIM BlackBerry 8700c
Blackberry OS
149cc
134g
Full Qwerty
No
RIM BlackBerry 8800
Blackberry OS
105cc
134g
Full Qwerty
No
Samsung SGH-i607 BlackJack
Windows Mobile
76cc
106g
320x240
Full Qwerty
1.3mp
Sony Ericsson P990
Symbian OS
162cc
150g
240x320
Full Qwerty, Numeric with 2mp T9, Soft
Sony Ericsson W950i
Symbian OS
86cc
112g
240x320
Numeric with T9, Soft
No
Score (10 = highest)
10 0 2 4 6 8
Af fo rd ab le Ea sy of us e Fa sh io na bl e Em W eb br ow sin g M ed ia Pl ay er Ca rri er a va ila bi lit y Sc re en PC fu nc t io na lity ai l
iPhone vs. the competition
Factors of Competition
Blackberry Pearl Motorola RAZR
iPhone differentiation
iPhone
Customer segments
• Enterprises are unlikely to buy iPhones
– Price ~40% higher than Blackberries’ – Blackberries have top-notch push-email
• iPhone has features that appeal to mass consumer market • However, sales will be gated by network and price
Marketing decisions (I)
• Pricing – Skimming strategy – Typically cell phone prices drop rapidly – Expect Apple prices to fall slowly • Product – Add functionality, maintain price – Versioned iPods for price-sensitive segment
Marketing decisions (II)
• Distribution
– Restricted availability to Cingular and Apple stores – New iPhones will open channels & drive sales
• Promotions
– Cingular iPhone discounts unlikely – Expect iPhone voice / data plans
Early adopter market ~8.7m
• • • • Cingular customers Cingular subscribers with iPod Cingular subscribers with iPod Uptake rate from Cingular iPod customers in 1st year assumption • Est. uptake by Cingular iPod customers in 1st year 58m 30% 17.4m 50%
8.7m
Mobile Device Market
World Sales
Millions of Units
Analyses
Porter’s Five Forces
New entrants
Bargaining power of suppliers
Rivalry within industry
Bargaining Power of customers
Threat of substitutes
SWOT Analysis
strengths
Style/Brand
weaknesses
Sensors
User base
No UMTS
First mover
High price / high end
Limited distribution channels Unsafe for corporate use?
Rich UI Hype
Missing features
Migrate people to Apple Port existing apps New social device Distribute iTunes content
Similar devices Highly developed market
opportunities
threats
Research Methodology
• Sample size • It refers to the items to be selected from the universe to constitute the sample. The sample size for the survey was 60. • Sampling Technique • The sample size has been taken by non-random convenience sampling technique. • Data Collection- Data has been collected both from primary as well as secondary sources as described below: • Primary sources • Primary data was obtained through questionnaires filled by people and through direct communication with respondents in the form of Interview. • Secondary sources • The secondary sources of data were taken from the various websites , books, journals reports, articles etc. This mainly provided information about the automobile sector and the company’s profile.
Cont……….
• Limitations -No study is free from limitations. The limitations of this study can be: • .Sample size taken is small and may not be sufficient to predict the results with 100% accuracy. • •The result is based on primary and secondary data that has its own limitations. • •The study only covers the area of Chandigarh, Panchkula, and Mohali that may not be applicable to other areas. Respondents were reluctant to disclose correct answers about their opinion regarding the vehicle
The question is being asked from 60 respondents about the usage of smartphone. Out of 60 respondents, 40 respondents are using smartphone at present and 20 respondents are not having any smartphone.
From the above analysis, 20 respondents are being excluded from the research reason being they are not using any Smartphone at present.
According to the above bar chart, 26 respondents can recall about HTC, 28 can recall about Nokia ,22 can recall Blackberry,30 can recall about Sony Ericsson without any aid. The rest of the respondents can recall about the above brands through an aid.
Respondents were asked to rank the following promotion media that are considered or those are having impact on the purchase of an iPhone according to their preference giving first rank to the most preferred media.
Options/Ratings 1 2 3 4 5 Total
Television Newspaper Magazine Hoardings Websites Blogs Word of mouth Total
10 6 15 5 0 4 0 40
15 5 0 0 10 6 4 40
5 15 6 0 4 0 10 40
6 4 0 10 15 0 5 40
4 0 5 10 6 0 15 40
40 40 40 40 40 40 40
Thus the following ranks are obtained: Rank I - Television Rank II - Newspaper Rank III – Magazine Rank IV - Website Rank V - Word of Mouth Rank VI - Hoardings Rank VII – Blogs According to the above composite score we can analyze that Television is having the most valuable impact on the purchase, followed by Newspaper, Magazine, Website, Word of Mouth, Hoardings, and last but not the least by Blogs.
Respondents were asked about the price range they are ready to pay for a smartphone
Respondents were asked about the age category they are lying.
Age
Frequen cy Valid under18 5 Percent 12.5
Valid Percent 12.5
Cumulative Percent 12.5
18-25
9
22.5
22.5
35.0
25-35
17
42.5
42.5
77.5
35-45
5
12.5
12.5
90.0
above
45 4 10.0 10.0 100.0
Total
40
100.0
100.0
Maximum percentage lies in the age category 25-35 i.e.42.5% , followed by 22.5% in 1825, 12.5 in 35-45 and under 18 and the rest to above 40 years.
THANK YOU
ANY QUESTIONS?
NISHIT GARG
94512236955
Your Life in your pocket
specifications
iPhone
iPhone 3G
iPhone 3G S
iPhone 4
OS
iPhone OS 1.0
iPhone OS 2.0
iPhone OS 3.0
iPhone OS 4 960 x 640px, 800:1 contrast ratio
3.5 in, 3:2 aspect ratio, 265 k colors, 480 x 320px (HGVA) Display
Storage/memory
4,8 & 16 GB/ 128MB DRAM
8 & 16 GB/ 128MB DRAM
8GB/ 256MB DRAM
833 MHz
16 & 32GB/ 512MB DRAM
1.2 GHz
Processor
620 MHz Samsung 32-bit RISC ARM
Objectives
• I year objectives - aiming for 2%market share of US & UK - unit sales volume 4,45000 • II year objectives - achieve 10% market share - unit sales volume 12,45000
Target Market
Market Penetration
Pricing strategy Market skimming - Release new product at high premium - Skim the greatest possible margin - Once sales volume begins to decrease at the original price - Incrementally lower the price to increase sales - Repeat this until stable price with acceptable margin is determined
SWOT Analysis
• First mover advantage • Ownership of technological patents
Strengths
• Apple is one of the most established brand • Customers loyalty • Cultural, fashion identity • Dependence on third party provider: • AT&T, Content Provider, Application provider
Weaknesses
• Less appeal to corporate customers
• Technological complication
• Gorilla arm
• Sharp rise in consumer demand • 56% of smart-phone buyers prefer iPhone • New target market – • price reduction attract • more customers • High Potential Software –upgradable; can add new features • 3G Apple iPhones to captivate business demand worldwide
Opportunities
• New powerful entrant – Google
Threats
• Many similar or substitute products • Intense competition with major rivals • Increasing bargaining power of buyers
CORE COMPETENCY --- USER EXPERIENCE
Key Success factors
Consumer-oriented Factors
Technology
-------------------
Marketing
-------------------
Skill and Capability
-------------------
Distribution
--------------------
- Value added - Internet driven - A strong network of - Well-know and (cheaper, faster, force wholesale well-respected brand more convenient distributors/ dealers name - Replacing than the alternatives) - Fast introduction communication tools - Market - Design and and application of segmentation - Next generation innovation expertise services experience - Targeting and Pricing effectiveness
OS used in smart phones in 2005
OS used in smart phones in 2010
Comparison
Model
Apple iPhone HTC P3300 Motorola RIZR Z8 Mac OS X Windows Mobile Symbian OS
OS
81cc 105cc 77cc
Size
135g 130g 112g
Weight
Screen resolution
320x480 240x320 240x320 Soft Soft
Keyboard
2mp 2mp 2mp
Camera
Other
Accelerometer GPS
Numeric with T9
Nokia 5500 Sport Nokia E61i
Symbian OS Symbian OS
87cc 114cc 150cc
103g 150g 210g
208x208 320x240 800x352 & 240x320
Numeric with T9 Full Qwerty
2mp 2mp
Accelerometer, heart rate features
Nokia E90 Communicator Symbian OS
Full Qwerty and Numeric 3.2mp with T9 Numeric with T9, Multimedia Full Qwerty Numeric with SureType
GPS
Nokia N95 Palm Treo 700p RIM BlackBerry Pearl
Symbian OS Palm OS 5 Blackberry OS
110cc 151cc 77cc
120g 180g 90g
240x320 320x320 240x260
5mp 1.3mp 1.3mp
GPS
RIM BlackBerry 8700c
Blackberry OS
149cc
134g
Full Qwerty
No
RIM BlackBerry 8800
Blackberry OS
105cc
134g
Full Qwerty
No
Samsung SGH-i607 BlackJack
Windows Mobile
76cc
106g
320x240
Full Qwerty
1.3mp
Sony Ericsson P990
Symbian OS
162cc
150g
240x320
Full Qwerty, Numeric with 2mp T9, Soft
Sony Ericsson W950i
Symbian OS
86cc
112g
240x320
Numeric with T9, Soft
No
Score (10 = highest)
10 0 2 4 6 8
Af fo rd ab le Ea sy of us e Fa sh io na bl e Em W eb br ow sin g M ed ia Pl ay er Ca rri er a va ila bi lit y Sc re en PC fu nc t io na lity ai l
iPhone vs. the competition
Factors of Competition
Blackberry Pearl Motorola RAZR
iPhone differentiation
iPhone
Customer segments
• Enterprises are unlikely to buy iPhones
– Price ~40% higher than Blackberries’ – Blackberries have top-notch push-email
• iPhone has features that appeal to mass consumer market • However, sales will be gated by network and price
Marketing decisions (I)
• Pricing – Skimming strategy – Typically cell phone prices drop rapidly – Expect Apple prices to fall slowly • Product – Add functionality, maintain price – Versioned iPods for price-sensitive segment
Marketing decisions (II)
• Distribution
– Restricted availability to Cingular and Apple stores – New iPhones will open channels & drive sales
• Promotions
– Cingular iPhone discounts unlikely – Expect iPhone voice / data plans
Early adopter market ~8.7m
• • • • Cingular customers Cingular subscribers with iPod Cingular subscribers with iPod Uptake rate from Cingular iPod customers in 1st year assumption • Est. uptake by Cingular iPod customers in 1st year 58m 30% 17.4m 50%
8.7m
Mobile Device Market
World Sales
Millions of Units
Analyses
Porter’s Five Forces
New entrants
Bargaining power of suppliers
Rivalry within industry
Bargaining Power of customers
Threat of substitutes
SWOT Analysis
strengths
Style/Brand
weaknesses
Sensors
User base
No UMTS
First mover
High price / high end
Limited distribution channels Unsafe for corporate use?
Rich UI Hype
Missing features
Migrate people to Apple Port existing apps New social device Distribute iTunes content
Similar devices Highly developed market
opportunities
threats
Research Methodology
• Sample size • It refers to the items to be selected from the universe to constitute the sample. The sample size for the survey was 60. • Sampling Technique • The sample size has been taken by non-random convenience sampling technique. • Data Collection- Data has been collected both from primary as well as secondary sources as described below: • Primary sources • Primary data was obtained through questionnaires filled by people and through direct communication with respondents in the form of Interview. • Secondary sources • The secondary sources of data were taken from the various websites , books, journals reports, articles etc. This mainly provided information about the automobile sector and the company’s profile.
Cont……….
• Limitations -No study is free from limitations. The limitations of this study can be: • .Sample size taken is small and may not be sufficient to predict the results with 100% accuracy. • •The result is based on primary and secondary data that has its own limitations. • •The study only covers the area of Chandigarh, Panchkula, and Mohali that may not be applicable to other areas. Respondents were reluctant to disclose correct answers about their opinion regarding the vehicle
The question is being asked from 60 respondents about the usage of smartphone. Out of 60 respondents, 40 respondents are using smartphone at present and 20 respondents are not having any smartphone.
From the above analysis, 20 respondents are being excluded from the research reason being they are not using any Smartphone at present.
According to the above bar chart, 26 respondents can recall about HTC, 28 can recall about Nokia ,22 can recall Blackberry,30 can recall about Sony Ericsson without any aid. The rest of the respondents can recall about the above brands through an aid.
Respondents were asked to rank the following promotion media that are considered or those are having impact on the purchase of an iPhone according to their preference giving first rank to the most preferred media.
Options/Ratings 1 2 3 4 5 Total
Television Newspaper Magazine Hoardings Websites Blogs Word of mouth Total
10 6 15 5 0 4 0 40
15 5 0 0 10 6 4 40
5 15 6 0 4 0 10 40
6 4 0 10 15 0 5 40
4 0 5 10 6 0 15 40
40 40 40 40 40 40 40
Thus the following ranks are obtained: Rank I - Television Rank II - Newspaper Rank III – Magazine Rank IV - Website Rank V - Word of Mouth Rank VI - Hoardings Rank VII – Blogs According to the above composite score we can analyze that Television is having the most valuable impact on the purchase, followed by Newspaper, Magazine, Website, Word of Mouth, Hoardings, and last but not the least by Blogs.
Respondents were asked about the price range they are ready to pay for a smartphone
Respondents were asked about the age category they are lying.
Age
Frequen cy Valid under18 5 Percent 12.5
Valid Percent 12.5
Cumulative Percent 12.5
18-25
9
22.5
22.5
35.0
25-35
17
42.5
42.5
77.5
35-45
5
12.5
12.5
90.0
above
45 4 10.0 10.0 100.0
Total
40
100.0
100.0
Maximum percentage lies in the age category 25-35 i.e.42.5% , followed by 22.5% in 1825, 12.5 in 35-45 and under 18 and the rest to above 40 years.
THANK YOU
ANY QUESTIONS?
