The Development Of The Iphone Marketing Essay

The iPhone is a line of smartphones designed and marketed by Apple Inc. Apple Inc is a US company based and the iPhone runs Apples iOS nomadic operating system, originally named “ iPhone OS ” . The first iPhone was released on June 29, 2007 the most recent iPhone, the 6th-generation iPhone 5, was released on September 21, 2012. The user interface is built around the device ‘s multi-touch screen, including a practical keyboard instead than a physical 1. The iPhone has Wi-Fi and cellular connectivity ( 2G, 3G and 4G ( iPhone 5 merely ) .

Hire a custom writer who has experience.
It's time for you to submit amazing papers!

order now

It was a nomadic phone, but like nil the universe had of all time seen before. It was radical and would alter the manner people interacted with the universe everlastingly. This phenomenon of a smartphone called iPhone started five and a half old ages ago, when Steve Jobs took the phase at MacWorld and introduced iPhone to the universe. iPhone was designed with 100 % of screen without a computer keyboard button and it was created to Apple ‘s caput of design, Jonathan Ive.

Along the revolution of iPhone, get downing with the iPhone 3G, it came bundled with a scope of apps which something that ne’er been offered by any other phones antecedently. This included Google Maps, YouTube, Stocks, Weather, Games and 1000s more which are still seen on iPhones today. This apps impressed the universe where assorted of things can be done at merely a finger tips.

iPhone Features

The Apple Iphone is demoing better gross revenues and trade name acknowledgment because of merchandise features. There are several great and particular features to the iPhone:

InnovativeA – has an advanced touch screen that is specially patented and the map is extended from other Mobile.

QualityA – iPhone is built with most abrasion resistant screens and has a all right metallic coating that is lasting and light. The package suite is besides opposition to computing machine viruses.

Functionality – iPhone evolve from one coevals to another. The map will increase and widen for each development. The map and characteristics is farther discussed in the subject of Development of iphone.

Appearance – The sleek styling of the iPhone gives the device its characteristic visual aspect. The design and size of iPhone are able to capture attending of client because of its fashionable and elegant design.

Data Transform and communicating unified – Speed up smart determinations with application that enable you to track a scope of concern activities, proctor current gross revenues figures, generate studies, analyze concern informations and do blessings Transform iPhone into an office phone by linking to your organisation ‘s telephony substructure. It is besides able to do calls over a Wi-Fi web and manage sophisticated call handling.

iPhone Target Market

Professional and Corporate Business Users

iPhone is a well-known trade name for concern people. Existing package is good established and compatible with many merchandises for this market. The market is familiar with Palm merchandises ; important shift costs are involved in traveling to an iPhone. These people need iPhone to organize their busy agendas and communicate with co-workers, friends and household. Coprorate Peoples like from World Wide Technology are significantly rely on iPhone to pass on, organize to each other and maintain web substructures in the field.


iPhone secondary consumer marks are high school, college and graduate pupils who need one portable multifunction device. Chiefly this market will be replacing their iPod and cell phone with the iPhone. Age targeted group scope are from 15 to 25 old ages.

Young and successful male

Harmonizing to Solutions Research Group, the mean iPhone client is a 31-year-old adult male with a college grade and an income of $ 75,600 per twelvemonth. A salary 26 per centum higher than the American average.Almost half ( 43 per centum ) of all likely purchasers lived in technically expert provinces such as California and New York, but merely 28 per centum were female. Younger purchasers dominated, with 63 per centum aged 34 or younger. Successful younger work forces were the mark audience that Apple had focused on.

One month prior to the release of the iPhone, Solutions Research Group profiled a cross-section of those cognizant of the phone. The prognosis of possible purchasers for the twenty-four hours of the release ranked a bulk of T-Mobile clients, AT & A ; T ‘s lone GSM-based merchandise rival, at 15 % . The 2nd largest group expected to buy the new iPhone was AT & A ; T ‘s bing client base, at 12 % . The Solutions Research Group besides found that 72 % of males, versus 28 % of adult females were most likely to look into the phone at its minimal monetary value of $ 499. The obvious current mark audiences for the Apple iPhone include immature people between the ages of 20 and 35.

iPhone Selling Scheme

As with all Apple selling, the iPhone selling scheme is really clear, simple and cagey. With the field and simple apple icon, Apple focuses on the pure advanced manner of their merchandises. The ground-breaking manner of the iPhone was touted for months before the initial release and has remained the best of the best when it comes to cell phones over the past several old ages. Before the iPhone ‘s official release, Apple ran four telecasting commercials advancing the new cell phone. The first of the commercials portrays the new iPhone as the following measure up from the popular iPod. The first four iPhone commercials flaunted the convenience, invention, and utility of a individual merchandise with the functionality of non merely a phone, or a music device, but a merchandise that can, among other things, listen to music, ticker pictures, position exposures, make conference calls, look into electronic mail, browse the web, and position maps.

Development of the iPhone

The first coevals

In 2007, Apple introduced another outstanding merchandise, the iPhone. The first edition of iPhone was launch on January 9, 2007, at the Moscone Center in San Francisco. During that clip, it is described as a radical merchandise since it is literally five old ages ‘ in front of any other nomadic phone. There are two initial theoretical accounts that had been ready to be marketed. 4GB theoretical account and 8GB theoretical account went on sale being to the full marketed by 2008. The chief advantage of the iPhone was the manner it could utilize package applications. These package applications delivered similar content to the iPhone that was in iTunes. The iPhone had the capablenesss of the iPod and would synchronise when connected to a computing machine.

iPhone 3G & A ; iPhone 3GS

iPhone are so farther developed to iPhone 3G. This new theoretical account was launched on July 11, 2008 in 80 states and districts. And on June 8, 2009, Apple one time once more denote the release of iPhone 3GS along with programs to to the full marketed it in U.S. , Canada and major European states. The sweetening from first coevals iPhone to iPhone is more in term of physical characteristics such as size, weight and memory storage, while, development of iPhone 3G to iPhone 3GS has improve in term of operating system and processor.

iPhone 4G & A ; iPhone 4GS

iPhone 4G was released on February 10, 2011. The selling point of iPhone 4G is utilizing video naming characteristic ( Apple promote it as FaceTime ) as chief strong points compared to other rivals and it predecessors. The iPhone 4 tallies utilizing the same operating system used on Apple ‘s merchandise such as anterior iPhones, the iPad, and the iPod Touch which is the Io operating system. The alone design of iPhone 4 compared to the last 3 coevals is that it incorporates an uninsulated chromium steel steel frame that acts as the device ‘s aerial. Later, on October 4, 2011, the 5th coevals of the iPhone has been released. It retains the exterior design of the iPhone 4, but new application voice acknowledgment system known as Siri and a cloud storage service named iCloud is introduced.

iPhone 5

Introduction to the 6th coevals iPhone is announced on September 12, 2012. Among all the iPhone that has been released, the iPhone 5 shows the most important alteration in physical characteristics. The phone portrays a slimmer, lighter theoretical account that introduces a higher-resolution, 4-inch screen to the series and the bit is 22 per centum smaller than the iPhone. Despite of that, it is twice as fast, duplicating the artworks public presentation of its. It is besides runing utilizing the new Apple ‘s Mobile operating system known as Io 6.


Although iPhone has become a phenomenon in universe of Mobile, there is a few close rivals that can be straight compared with iPhones and giving clients a 2nd though. The two closest rivals to the iPhone is Samsung Galaxy S-III and Nokia Lumia 920.

Samsung Galaxy S-III

The Samsung Galaxy S-III was unveiled on 3 May 2012 in London and officially released in 28 European and Middle Eastern states on 29 May 2012, before being increasingly released in other major markets in June 2012. It was designed utilizing the construct of touchscreen, slate-format Android smartphone and marketed by Samsung Electronics. Samsung Galaxy S III is a drawn-out and improved version of Samsung Galaxy S II. It includes extra package characteristics, expanded hardware, and a redesigned. The S III uses quad-core processor, and employs interesting characteristics such as intelligent personal helper, eye-tracking ability, increased storage, and a radio bear downing option.

Nokia Lumia 920

Nokia Lumia 920 is a smartphone manufactured and marketed by Nokia. It begins to be available at the market get downing on September 5, 2012. The interesting characteristics portray by Nokia Lumia 920 is it has a 1.5A GHz dual-core Qualcomm Krait CPU and a 4.5 ” IPS TFT LCD show. It is besides built with a high-sensitivity capacitive touch screen covered by curving Gorilla Glass. Using Windows Phone 8 as the operating system, Nokia Lumia 920 does hold its ain attractive force particularly to working users. It supports inductive charging ( it can be charged by being placed straight onto a bear downing tablet ) compatible with Qi Inductive Charging. One of the advantage is it features an 8.7 megapixel PureView camera with optical image stabilisation for still images and pictures. It comes with 32GB internal storage, but the lone disadvantage is it has no card slot. Memory is limited to the constitutional storage merely.

Malaysia Context

Market Structure

Demand & amp ; Supply

Pricing Strategy & A ; Elasticity

Market construction

By analysing the passs of iPhone such as the monetary value scene, rivals and merchandise distinction, it is shown that iPhone display an oligopoly market construction. Oligopoly market construction is when the market is dominated by a few Numberss of Sellerss, which each offer similar or indistinguishable merchandises. Factors that classified iPhone into oligopoly market construction are: –

Entry and issue

The barriers of entryway are high. iPhone had to confront challenges such as economic systems of graduated table, patents, entree to expensive stuffs and complex engineering. There might be besides limitation from authorities ordinance ensuing troubles for new houses to come in the market.

Number of houses

There are merely few houses that involve in bring forthing the similar merchandises. iPhone is presently viing with several smart phone theoretical accounts such as Samsung Galaxy S-III, green goods by Samsung and besides Nokia Lumia 960 manufactured by Nokia. These are the companies that the action of one will act upon the others in footings of net incomes. If Apple decide to alter its pricing construction for iPhone, it will convey impact all oligopolies house ‘s net income aggregation.

Demand and Supply

Looking at a Malaysia context, Apple iPhone can be considered as a luxury and premium merchandise. iPhone arrived Malaysia someplace in the first one-fourth of 2009, and it was brought in by telecommunication company, Maxis and subsequently followed by DiGi and late Celcom. With its alone characteristics and designs it attracts the market consequently. iPhone has revolves over clip through their characteristics, design features and so on. This will be discussed subsequently under the development of iPhone. The measure demanded of any good is the sum of the good that purchasers are willing and able to buy. Apple received rather an impressive demand for their merchandise viz. iPhone.

Up to day of the month, Celcom Axiata has revealed to MalaysianWireless early this month that it has got over 190,000 active iPhone users in their web. In comparing to Celcom, it is believed that Maxis has some 4 million smartphones users where approximately 60 % of them are utilizing prepaid. Meanwhile, DiGi claims that it has over 5.5 million nomadic cyberspace users. Both Maxis and DiGi have non revealed their really breakdown on Numberss or type of smartphones users in their web yet. The figures revealed by Celcom show a enormous demand and supply every bit compared to a survey done in 2010 where merely about 132,228 users of iPhone. With this figures, we could see the demand of an iPhone in Malaysia had addition from clip to clip.

In the jurisprudence of demand, it says that the lower the monetary value of a good, the larger is the measure demanded and the higher the monetary value of good, the smaller is the measure demanded keeping other variables constant. By and large in an economic signifier, if Apple increases the monetary value of iPhone, measure demanded of the Apple merchandise will be lessening. This is because iPhone is considered as luxuries goods where people can still populate without utilizing a smart phone. A rational consumer will be given to take for permutation trade name such as Samsung or Nokia Lumia which produce a most likely the same merchandise. Therefore, an addition of monetary value will diminish the demand of a good. In other words, the monetary value snap of demand for Apple merchandise is elastic whereby addition in monetary value will ensue a immense decrease on the measure demanded of the good. This statement can be supported through the graph below.

Monetary value of iPhone ( RM )

Measure of iPhone ( units )



Q1 Q2

The graph above shows the relation between the monetary value and demand of the iPhone. Assume that the monetary value of a iPhone increased and the demand for the iPhone is elastic. Initially the market monetary value of iPhone is set at P1 and the measure of demand is set at Q1. When there is an addition of monetary value, there will be motion along the demand curve. The monetary value will goes up from P1 to P2. Increase of monetary value will diminish the measure demand of the iPhone because people will look for permutation trade name. Therefore, measure demand will diminish from Q1 to Q2. From the above drawing, we can see that the demand curve is flatter. This is because alterations of monetary value will take to a bigger impact on the alterations of the measure demand.

Pricing Scheme

On the 26 June 2007, the portion monetary value of Apple fell by 2 per cent on the face of it a reasonably fiddling event except that it was about to establish ( entirely in the USA ) the arguably most-hyped nomadic device in history known as the iPhone. The iPhone is a discrepancy of what are by and large categorised as smartphones, As smartphones go, the iPhone was non unduly expensive at $ 499 for the entry degree theoretical account, nor was the graduated table of monthly service charges which were set between $ 60 and $ 100 in concurrence with a biennial contract. But the Apple stockholders were high-strung: the value of Apple had risen by $ 34 billion since the iPhone had been announced to the universe and they stood to lose much of their additions if the iPhone proved to be a one-week admiration

A Prices1st coevals 4G iPhone $ 499, 8G iPhone $ 599.Current iPhone 4 16G $ 199, 32G $ 299 with two twelvemonth contract.iPhone 3GS still available at AT & A ; T for $ 49 with two twelvemonth contract. iPhone combines three merchandises, is a radical Mobile phone, a widescreen iPod with touch controls, and a discovery Internet communications device with desktop-class electronic mail, web browse, maps, and searching- into one little and lightweight handheld device. iPhone besides introduces an wholly new user interface based on a big multi-touch show and open uping new package, allowing you control everything with merely your fingers. So it ushers in an epoch of package power and edification ne’er earlier seen in a nomadic device, wholly redefining what you can make on a nomadic phone. Loyalty the iPhone is oriented more toward to the amusement market than to the concern market.

0 Q1 Q2


Entire Revenue ( RM )

Measure of iPhone ( units )

Maximum Entire RevenueAn oligopoly is like monopolistic competition where it lies between perfect competition and monopoly. Apple who produced iPhone which is indistinguishable to some other smartphones in the market demand to remain cognizant of the pricing scheme that best suits them in order to retain the loyal consumers. On top of that, before puting up a monetary value of the merchandise, they have to aware whether the demand on their merchandise is elastic or inelastic in the market. If the demand of their merchandise is elastic in the market, puting up a higher monetary value on the merchandise might do them to lose client. In brief, demand snap will impact the entire gross of a company. From the theory of economic sciences, a luxury merchandise will ever hold an elastic demand. However, Apple understood the theory and they applied with their pricing scheme. This is critical for them to continue their market ‘s value until today. Apple understands the market demand really good and they ever brings the new characteristics and new design to pull the market. The graph below will demo the relation between the monetary value cut and entire gross.

Suppose the demand of iPhone is elastic, the entire gross will increases as there is a monetary value cut – as shown at the left country of the graph. If the demand of iPhone is inelastic, the entire gross will diminish if there is a monetary value cut – as shown at the right country of the graph. When the demand of iPhone is at the unit of elastic, the upper limit of entire gross can be achieved – as shown at the highest point of the gross curve.


It is undeniable that iPhone has a really alone and good market value as the company has developed really good. This is due to good concern schemes such holding the highest monetary values and lowest unit costs in the industry. The monetary value of an iPhone is most likely the same from clip to clip and from our group point of position, the monetary value snap of demand on iPhone in Malaysia is non elastic but it is inelastic in world. The enormous users of iPhone from 2010 to 2012 as discussed before proved this statement good. iPhone have its ain loyal consumers and the merchandise are recognized by public therefore increasing of monetary value for the new launched of iPhone will non truly impact the gross revenues in the market. For those who are low-cost, they will still demand for the iPhone alternatively of other rivals. The characteristics and alone design that attracts the consumers alternatively of the monetary value. This is due to Apple as a premium trade name, trusted quality and the worth-to-buy that lies behind it.

On top of that, iPhone in Malaysia are being sold by telecommunication suppliers such as Maxis, DiGi and Celcom. These telecommunication suppliers offer installment payment together with the information program as portion of the selling scheme. This makes iPhone low-cost as consumers able to settle the payment in a longer period. Due to their secretiveness, invention, stigmatization and merchandise to merchandise connectivity and compatibility, iPhone is the most sought after nomadic device and is the market leader in the nomadic market.


I'm Heather

Would you like to get such a paper? How about receiving a customized one?

Check it out