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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Introduction Contd...
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Apple's CEO, Steve Jobs (Jobs) said, "The App Store is like
nothing the industry has ever seen before in both scale and quality. With 1.5
billion apps downloaded, it is going to be very hard for others to catch up."3
Apple, established in the late 1970s, was known for manufacturing technologically superior computer products. In 2001, Apple introduced a digital music player called the iPod that transformed the music industry. The stupendous success enjoyed by the iPod not only provided Apple with a new source of revenue, but also enabled it to become a major player in the consumer electronics industry.
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In 2007, when Apple announced that it planned to introduce the iPhone, the product launch became one of the most anticipated in history. The iPhone was universally acknowledged to be a technically superior product that was not only a phone, a music player, and an internet browser, but also a computer. Within a few months of its launch, the iPhone became the third best-selling smartphone4 in the world...
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