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

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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.

Case Details:


Case Code : MKTG236 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges


Promotional Strategy / Growth Strategy / Business Strategy / Innovation / Differentiation
Case Length : 17 Pages
Period : 2007-2009
Pub Date : 2010
Teaching Note : Not Available
Organization : Apple Inc.
Industry : Mobile phone
Countries : USA, Worldwide


The case discusses the role of Apple's App Store in increasing the demand for the iPhone. It begins with a brief overview of Apple's history and the several innovative products it introduced into the market. Later, it describes the launch of the iPhone, the subsequent development of apps for the phone, and the creation of the App Store to distribute these apps.

The case also discusses some of the reasons for the amazing success of the App Store and the role played by the apps in increasing the demand for the iPhone. It concludes with an overview of the competition being faced by the App Store and a brief discussion on its future prospects.


Identify the forces driving change in the global cell phone industry.

Assess the role played by apps in increasing the sales of the iPhone.

Recognize the role of innovation in creating new markets.


  Page No.
Introduction 1
Background Note 2
The Launch of the iPhone 4
The Case for iPhone Apps 5
The Success of iPhone Apps 7
The Developers' Viewpoint 8
The Competition 10
Outlook 11
Exhibits 13


Apple, iPhone, iPod, iTunes Music Store, App Store, smartphone, Steve Jobs, iPhone apps, AT&T Mobility

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