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Apple iPhone: Market Implications

The iPhone arrived in 2007 to much media and consumer excitement. In the US - and later, Europe - queues of Apple aficionados camped outside Apple flagship stores in order to be one of the first to be able to own the latest product innovation from one of the most skilled consumer electronic marketing companies the world has ever seen. Has the reality lived up to the early hype? Is the iPhone the shape of things to come or a niche product appealing to those known as 'Macvangelists' and few others?

As is so often the case, the truth is neither of these absolute positions really describes the impact and implications of Apple's new product line. Whether successful or not in the market, there is no doubt that the iPhone is a key influence on current product design and that it has already shifted the balance of power in the mobile value chain from service providers to handset manufacturers.

MNOs need to understand what needs the iPhone satisfies for what proportion of mobile users and whether satisfying those needs requires Apple's product or whether a combination of service package and other smartphones can substitute. This report examines the impact of the iPhone in all the markets it has so far been launched in, looks at the implications and answers the questions about what an MNO should do to respond (whether already partnered with Apple or not).

Price: EUR 2,500.00 / GBP 2,000.00

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Table of Contents


1
OVERVIEW
1
2
INTRODUCTION
2
2.1
Background
2
2.2
Report Content
2
2.3
Exchange Rates
2
3
THE APPLE IPHONE
3
3.1
Product Development Background and Strategy
3
3.2
Design & Features
4
3.3
User Experience
7
3.4
Visual Voicemail
8
3.5
iPhone Activation
9
3.6
Market Positioning
15
3.7
Retail propositions
17
4
MARKET IMPACT
18
4.1
Sales
18
4.2
The Ownership Experience
20
5
FROM THE MNO?S PERSPECTIVE
22
5.1
ARPU & Customer Retention
23
6
CONCLUSIONS
25
7
RECOMMENDATIONS FOR MNOS
28