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THE IPHONE 5 - A BUSINESS PLAN

NAME
VIKRAMADITYA MURALIDHARAN KUSHAL MANSUKHANI SUVEER MALHOTRA DHRUV AJMERA SHARAN SANIL ANTRIKSH BAJAJ

ROLL NUMBER
37 30 28 4 43 5

TABLE OF CONTENTS

1) Introduction
Product............................................................................................. 3 Design............................................................................................... 3 Features............................................................................................ 4

2) Market
Value Proposition.........................................................................................7 Value chain......................................................................................................8 Product differentiation..............................................................................9 Addressable markets..................................................................................10 Consumer targets.........................................................................................10 Growth and competition...........................................................................11

Financial Data
Cost of Production........................................................................................12

Bibliography................................................................................... 14

INTRODUCTION
The Product ( iPhone 5)
MISSION : To connect users using reliable data and voice communication VISSION : To bridge the gap between the real and virtual worlds with style and elegance. Not since the introduction of the original Apple iPhone has a product introduction been met with so much anticipation. The iPhone 5 a.k.a the iPhone SJ is the latest mobile phone from apple to hit the market very soon.. iPhone SJ has been designed by Antonio De Rosa, who got inspired by Steve Jobs to come up with this beautiful iPhone SJ model of late Steve Jobs. The iPhone targets consumers who need to store information and communicate or people who want entertainment on the go. Currently, the market for high-end phones like the Apple iPhone is increasing. Few people want Internet, video, and PDA features in one device because of the high price. The smart phone market is still growing. The reason for the launch of the iPhone 5 is to keep up with the market needs while combining elegance and technology which is an Apple Corp trade mark and USP

The Design
The body of iPhone is carved out of polycarbonate metal and features a capacitive touchscreen that is made up of fine glass resulting to an edge-to-edge display. Above its sleek design and solid body, the iPhone SJ is loaded with Apple's A6 dual core processor, then a rear camera consisting with the lens of 10 megapixel and the capacitive glass screen which may result in more than 4 inch of retina display. As the body is crafted with polycarbonate metal, the phone is sustainable in use and at the same time it's light weighted. As per the sleek appearance of iPhone SJ, the thickness is 7 mm.

The Features

THE MARKET
Value Proposition
Intended for style-conscious cell phone consumers who would like to browse the Internet and enjoy entertainment to-go, the iPhone 5 is a smart phone that combines a web browser, email, iPod and personal computer into a single, fashionable, easy-to-use device. It contains all the features of its predecessor and as mentioned earlier, its bundled with new ones to make it yet again a technological marvel.

Product Differentiation
The following strategy shows how iOS is different from Android which is the biggest competition for apple in the current market scenario.

Apple iOS vs Android Market share

Value Chain

The value chain below illustrates the context in which Apple delivers value to the customer with the iPhone:

Network

Billing

Components

Design

Build

OS / UI

Apps

Branding

Marketing Sales

User

Primarily Outsourced Primarily Apple

Consumer Targets

SEGMENT

CONSUMER NEED

CORRESPONDING FEATURE

Professional

Student

Corporate

Entrepreneur

Medical .

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Total Addressable Market with current competitors

The iPhone 5 comes with iOS 5 operating system which has 200 new features. The phone will also have the iCloud service from Apple which allows users to store their music or files on remote services for easy access across different devices including iPhones, iPods, iPads or even personal computers. Other features of the iPhone 5 include a 4 inch screen, Near Field Communication chip, 8 megapixel camera and compatibility with both GSM and CDMA networks. The phone is to run on an A5 chip at 1.2 GHz. At the same time, it was never expected that Apple's competitors would sit quietly even as Apple releases its killer iPhone 5.

The Competition
Google Nexus Prime The first phone that looks as promising as iPhone 5 is the Google Nexus Prime from Samsung. Nexus Prime is expected to run Android Ice Cream Sandwich operating system. It is to have a Super Amoled 720p HD display. Google Nexus Prime will run on Texas Instruments OMAP4460 chipset at 1.5 GHz. The physical Android menu buttons will not be present on the phone as everything would be accessible through software. The device will also feature a 5 megapixel camera with improved sensor so it can capture high quality images. It will have a one megapixel front facing camera. Motorola Droid Bionic Another likely competitor of iPhone 5 is the Motorola Droid Bionic. It has already been released in the USA. Droid Bionic runs on Android Gingerbread 2.3.4 and has a dual core 1 GHz processor. It has a screen resolution of 960 x 540 pixels, a 1 GB RAM and an 8 megapixel auto-focus camera which captures full resolution (i.e. 1080-progressive) high definition videos. The device has internal storage of 16 GB, expandable up to 32 GB. Samsung Galaxy S2 The LTE (long term evolution) version of Samsung Galaxy S2 was showcased at IFA Germany recently. In a way it is an improved version of Galaxy S2 both in size as well as hardware. It has a 4.5 inch Super Amoled Plus display and screen resolution of 800 x 480 pixels. This phone will have an 8 megapixel back facing and a 2 megapixel front facing camera. It will run on Android Gingerbread.

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Growth and Competition

SWOT ANALYSIS

strengths
Style/Brand Sensors User base Rich UI Hype

weaknesses
High price / high end Limited distribution channels

First mover

Missing features

Migrate people to Apple Port existing apps New social device Distribute iTunes content

Similar devices Highly developed market

opportunities

threats

A. Strengths

The iPhone has several features that add to the strength of the product. These include its unique look and feel accompanied by a mobile operating system. It has phone sensors that work with the multi-touch screen, which is a new patented technology. These new features are presented to a large and loyal user base that Apple has accrued over the years. Additionally, marketing was given support from all over the internet, saving the company over 400 million in advertising fees. Finally, the fact that the company is first to deliver in this arena of computer phones is one of its greatest strengths

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B. Weaknesses Like every new product, there are is a set of weaknesses. Several of the iPhone features are also not particularly impressive. These include memory not being removable, no bluetooth sharing to other phones, software cannot be downgraded. The phone is priced around 500 to 600 dollars and surveys have shown that 52% of consumers are happy with their current mobile device; essentially, this phone is geared towards the high end consumers. Apples choice of distribution channel has also been construed as a weakness as theyre limiting it to only Cingular and Apple retailers.

C. Opportunities There is quite a demand for a better mobile computing experience. The iPhone tries to combine both powerful computing as well as entertainment into one system. People have also noted that the Mac OS applications for desktop can be seamlessly adapted for the iPhone. Also, this is the first step towards an Internet Protocol-based network. The emergence of Wi-Fi networks is pushing for there to be visitor fees instead of having a provider lock in users. It is very likely for the device fees and pay-per-view system to take flight, eliminating the month to month subscription fee.

D. Threats The majority of threats come from other companies including Nokia, Sony, and Google with their respective products. Smart phones are one popular example that stands to compete against the iPhone. The last threat is the Cisco vs. Apple trademarkinfringement lawsuit that may or may not have taken away from the product launch steam.

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FINANCIAL DATA
As compared to the iPhone 4s the latest iPhone 5 has a relatively lesser cost of production.

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BIBLIOGRAPHY

FOR FINANCIAL DATA

http://static7.businessinsider.com/image/4e4580eb69beddd543000029/chart-of-the-dayiphone-4-cost-breakdown-aug-2011.jpg http://www.macrumors.com/2011/10/20/iphone-4s-component-costs-once-again-begin-atabout-188/

FOR DESIGN AND TECHNICAL DATA

http://www.iphone5reviewed.com/ http://www.phonearena.com/news/Apple-iPhone-5-coming-to-U.S.-on-September-5th-restof-world-on-October-5th_id20565