9/8/2009 Chapter 1 Case Study 1. Apple was wise enough to know that the cell phone market was the perfect place to venture in to. Pretty much the whole world owns a cell phone, and that’s over millions of potential customers! With the ROKR they had limited say in the production of the phone, being that they were partnered with a third party in Motorola, whom was the ROKR’s overall designer.
With a three way split in profits, and bad reviews on the phones lag, the phones ability to play songs, and high expectations, the ROKR inevitably flopped! The next step for apple was the new iPhone! The iPhone had new unique features which were only available on the iPhone. Apple excluded Motorola from the project, and Apple’s partnership with AT&T for exclusive rights, and re-designed the buying process, gave apple the success they were looking for! 2. AT&T agreed to partner with apple for exclusive rights to the iPhone.
In exchange AT&T would help structure a new “contract” agreement for customers when they bought the iPhone. The iPhone had its own separate special contract which differs from AT&T’s other phones. The iphone was a huge success! I don’t think Apple would have done as good with another Service provider such as Verizon, or Sprint. AT&T was their best bet, because AT&T was the exclusive provider with the ROKR, so they would have all the statistics for what worked and what didn’t work with the ROKR on hand.
They would have a good idea where to take the iPhone in marketing! AT&T had a leg up on the competition. 3. Yupp! I think if apple continues to raise the bar, and bring more exclusive features keeping the iPhone “FRESH”, then they should bring in success! If their opponents continue to copy, or try to match the iPhone instead of try and bring in the freshness themselves, iPhone will continue to be the leader in the phone world!