Apple's App Store: Strengthening the iPhone's Competitive Position

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Case Details:

Case Code : MKTG236
Case Length : 17 Pages
Period : 2007-2009
Pub Date : 2010
Teaching Note :Not Available
Organization : Apple Inc.
Industry : Mobile phone
Countries : USA, Worldwide

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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 incorporated as Apple Computer Inc. on January 3, 1977. The company was started by Steve Jobs, Steve Wozniak, and Ronald Wayne to sell the Apple I personal computer. In April 1977, the Apple II was launched, followed by the Apple III in May 1980...

The Launch of the iPhone

In January 2007, at the annual Macworld Conference & Expo , Jobs announced that the company would be renamed Apple Inc. He also stated that Apple would soon be launching a new smartphone called the Apple iPhone...

The Case for iPhone Apps

Initially, Apple did not release the code of the iPhone OS to third-party developers. However, many developers found ways to use 'jailbreaking' to create unofficial apps for the iPhone. In March 2008, after Apple recognized the popularity of the unauthorized iPhone apps, it released the iPhone OS code to developers to prevent jailbreaking from becoming the norm...

The Success of iPhone Apps

The App Store was a resounding success. Within a month of its opening, customers had downloaded about 60 million apps ranging from games to news and entertainment features. In August 2008, Jobs revealed that Apple was making US$ 1 million a day in sales from the App Store...

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