Iphone Vs. Cell Phone Case Analysis

Executive Summary

Apple Inc. has taken many risks and faced many challenges to become one of the most valuable companies in the world. The technology company began in the personal computer market in the 1970’s, and took a leap of faith with a mobile device product in 2007. Apple’s penetration into the mobile phone service industry was a game changer. The entry of the iPhone redefined how people accessed information, communicated, and gained pleasure from their mobile device. However, Apple did make decisions that would hinder the long-term success of the iPhone. The problems that existed were the limitations Apple placed on who and how customers can get their hands on the iPhone, and the functionality of the phone. An exclusive deal with AT&T limited how customers could access the iPhone, and forced customers to make a choice of switching phone carriers and making a long-term commitment. In addition, the lifespan of the battery limited the functionality of the iPhone. Establishing relationships with additional phone carriers, expanding marketing strategies and access to customers, and improving the technology of the iPhone will help Apple alleviate the present problems.

Problem Statement

Despite Apple changing the industry with the revolutionary iPhone and reaching milestones in the first 100 days, there is still much room for improvement. The iPhone has a hefty price tag, which limits Apple’s target market to middle-upper income and business customers. The problem lies in the fact that the phone’s functionality did not fully meet the needs of these business customers. The second problem is the iPhone’s exclusivity to AT&T in the United States. Apple did not make the iPhone available to other mobile carriers and retailers, which limits the iPhone’s exposure to potential customers. A third problem is the iPhone’s battery lifespan. Battery issues reduces the iPhone’s ability to function properly, and limits the hardware and network upgrades that company can make for improvements.

Summary of Facts

The iPhone entered the market in June of 2007 with two storage options. Customers could purchase an 8GB iPhone for $599 or 4GB for $499. The features were desirable for customers who are always on the go, seek convenience, and must stay connected to the world at all times. An iPhone featured internet, camera, email, music, and text message capabilities. Customers could manage their address book and schedules at all times of the day. However, the design of the iPhone was not universally adored and a few key essential features for business customers were not included. The iPhone lacked a QWERTY keyboard, advanced security, and access provided to the Microsoft suite.

Apple strongly protected the exclusivity of the iPhone. If you were not an AT&T customer, you had to switch your phone carrier