Apple Inc.'s iPhone: Can iPhone Maintain its Initial Momentum?


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Case Details:

Case Code : MKTG201
Case Length : 18 Pages
Period : 2007-2008
Pub Date : 2008
Teaching Note :Not Available
Organization : Apple Inc.
Industry : Consumer Electronics
Countries : UK; Europe; USA

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Please note:

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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Excerpts Contd...

iPhone Goes to Europe

On November 9, 2007, Apple launched its iPhone in the European mobile phone market. The iPhone was initially launched in three markets, Germany, France, and the UK. It was on sale from November 29, 2007 in these European markets.

The initial response from the customers in Germany was overwhelming. People waited in long queues just to get the glimpse of the iPhone. Reinhold Steinwasser, a customer in Germany, said, “I just want to be the first to touch it, play with it, and try it.” A similar response was cited in the French and the UK markets...

Other Challenges

A growing concern for Apple was the existence of a grey market in the mobile phone market. In February 2008, it was estimated that Apple sold around 3.7 million units of the iPhone while AT&T said that it had made only 2 million connections...

Outlook

Apple's move to go in for a steep price cut of iPhone in the US attracted lot of criticism against the company. According to some industry observers, it mainly hurt the sentiments of early adopters who had paid a premium to get hold of the product...

Exhibits

Exhibit I: The Key Features of iPhone
Exhibit II: Customers Willing to buy an iPhone
Exhibit III: Jobs'Open Letter to the Customers of iPhone
Exhibit IV: iPhone's Sales After the Price Drop
Exhibit V: Unlocked iPhone Units Sold (In Millions as of December 31, 2007)
Exhibit VI: Customer Satisfaction Rating of Different Mobile Phone Manufacturers

 

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