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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Excerpts Contd...

The Other View

Critics said that the enormous amount of hype surrounding the iPhone had led to the initial success of the brand. The main question, however, was whether Apple would be able to match the initial hype with performance. Some analysts opined that the iPhone might not live up to expectations...

Response from the Competitors

The launch of the iPhone led to the emergence of yet another aggressive player in the highly competitive field of mobile handset makers (Refer to Exhibit VI for global market share in mobile handsets by units: Quarter 3, 2007).

The music and email capabilities of the iPhone was expected to affect the market shares of the companies like Sony Ericsson which marketed its Walkman series music phones, and Research In Motion Limited (RIM) which marketed mobile email solutions through its BlackBerry series of phones.

The existing competitors responded cautiously to Apple.

Some of them had already launched new models to meet the competition from iPhone (Refer to Exhibit VII for some of the competing phones to iPhone)...


Industry watchers felt that over-hyped or not, Apple deserved kudos for coming up with a product idea like the iPhone and also implementing it successfully. The company had made an aggressive entry into the mobile phone market and had managed to attract the attention of the existing competitors.

Some analysts predicted that the introduction of the iPhone would prompt its competitors to come out with better phones in the future, thus offering wider choice and better products to customers...


Exhibit I: Total Net Sales of Apple and its Key Products by Unit
Exhibit II: Image of the iPhone
Exhibit III: The Key Features of iPhone
Exhibit IV: A Note on iPhone
Exhibit V: People Waiting in a Queue to Buy the iPhone
Exhibit VI: Global Market Share in Mobile Handsets
Exhibit VII: Some Competitor Brands of iPhone

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