NETW561 – Case Study 1

The Untold Store: How the iPhone Blew Up the Wireless Industry:

by

January 25, 2015

For

Professor Mohamad Haidar

Introduction

In this case study, I will write about how Apple’s iPhone had an affect on the Wireless

Industry, how the iPhone had an affect on the Carriers and on the handset manufacturers

relationship, I will also discuss the pricing strategy and about their target marketing

selection.

After reading this article, I found Apple’s making the iPhone strategy to be clever and

fierce; namely, how the iPhone changed the relationship between the carriers and the handset

Manufacturers and now we all have better service, more features, and lower prices using our

smart devices. Jobs knew the carriers were the dictators of how the phones were made

and how they would work, but Jobs was fierce and kept on pushing and though he announced he

wasn’t working on a Apple phone, he really was working on entry to the mobile phone industry

because the iPod business was more vulnerable than ever due to WiFi phones coming out soon,

and due to slashed storage prices and due to new entrants into making

music stores and like mp3 devices. Therefore, long term revenue from the iPod business was not

seen as profitable.

Therefore, the timing is right for Jobs to rush his people on such a new product because

Jobs idea is going to put the phone, music, internet, on one device. After several failures with

the prototype just months before the Macworld convention, Jobs was he was able to get a

prototype working just weeks before the yearly Macworld convention and was able to show it to

some people that would enable him to get his product through to carrier like AT&T. It was Stan

Stigman, a man who worked for AT&T called Cingular at the time, and a friend of Job’s who

made the carrier’s board