Launching iPhone: Apple's Entry into the Mobile Phone Market

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Case Details:

Case Code : MKTG185
Case Length : 19 pages
Period : 2006-2007
Pub Date : 2008
Teaching Note :Not Available
Organization : Apple Inc.
Industry : Consumer Electronics
Countries : USA

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Background Note

Apple was founded on April 1, 1976, by Steve Jobs (Jobs), Steve Wozniak, and Ronald Wayne, and was incorporated on January 3, 1977. It was initially called Apple Computers Inc. and was headquartered in Cupertino, California, USA. The idea for the company originated in the dream of one of the founders Steve Wozniak who wanted to build his own computer...

The Age of Convergence

The global sales of mobile phone handsets were estimated to be just below 1 billion in 2006. According to the International Telecommunication Union, there were an estimated 2.2 billion mobile phone users in the world...

Entry into the Mobile Phone Market

The foundations for the development of the iPhone were laid in 2003 when Jobs declared at an executive conference, "D: All Things Digital," that the future of mobile communication and information exchange lay with mobile phones.

Marketing the iPhone

In May 2007, Apple announced its marketing strategy for iPhone through Bear Stearns analyst Andy Neff (Neff). Neff said that Apple would sell the iPhone through 2,000 retail outlets focusing on markets such as the US, the UK, and Japan, where the company had a strong customer base. In addition, it would be sold through select retailers such as Best Buy Co., Inc...

The Most Successful Launch Ever?

The iPhone opened to a roaring welcome from customers. As the launch date approached, the hype around the iPhone reached its peak.

Apple's fans started to queue up out before Apple stores all over the US, days in advance (Refer to Exhibit V for a photograph of people waiting in a queue to buy the iPhone). The urge to look cool drove the Apple's fans to heat up the excitement before the launch. Estimates of the sales of iPhones ranged from 500,000 to 1 million units in the first two days of its launch...

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