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Iphone

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Apple iPhone

Table of Contents Introduction 3 Changes and Implications 4 Technology’s Rapid Development 4 Applications’ Rising Importance 6 Economical Situation 7 Smartphones as Substitutes 10 Smartphones as a “Trend” 12 Conclusion and Future Outlook 13 Bibliography 14 Appendix 16

Introduction

As we step into a new decade, we are experiencing tremendous changes in the technological environment with constantly emerging advancements. Innovations are appearing everyday in a turbulent market flooded with big players and more new entrants everyday. Mobile phones have become an essential part of a person’s image and social identity.
Consumers everywhere have developed a whole new meaning for Smartphones, shifting it from business conduct to ordinary individual use. A phone’s function has expanded from phone and text messages to much more beyond that including music, games, Internet and applications. It has become necessary for every consumer to own a Smartphone in order to insure immediacy, variety, and continuous connectivity with the world. In this paper, we will analyze the Smartphone industry and highlight the most important changes and their implications on Apple’s iPhone in particular. We relied on the PEST model to examine the current environmental situation in a time span of three years. [Refer to Exhibit 1. in the Appendix]
Apple’s iPhone was first introduced in January 2007. Since the original iPhone, Apple has produced three more generations of iPhone; 3G, 3GS, and 4. For the Product-Market Structure, we have developed an exhibit [Exhibit 2.] that can be found in the Appendix. In the Product-Market Structure, iPhone resides under iOS (Apple’s operating system) and is considered a touch oriented Smartphone for instant individual communication.
The U.S. Smartphone market size is 85 Million units and in 2010 iPhone owned 26.3% of

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