Launching iPhone: Apple's Entry into the Mobile Phone Market

            
 
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Case Details:

Case Code : MKTG185
Case Length : 19 pages
Period : 2006-2007
Pub Date : 2008
Teaching Note :Not Available
Organization : Apple Inc.
Industry : Consumer Electronics
Countries : USA

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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.



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The Launch of the 'Jesus Phone' Contd...

The company announced that the phone would be launched in Europe in the later part of 2007 and in Asia in 2008. Apple had set a sales target of 10 million iPhones by the end of 2008, which would translate to 1 percent of the total market share for mobile phones.

Some analysts felt that the launch of the iPhone was probably the best ever launch of any product. Between June 29, 2007, and September 29, 2007, the company sold 1,389,000 units.7 The buzz that surrounded the launch of the phone, which was referred to as the 'Jesus phone' by bloggers, was unprecedented as far as electronic products were concerned.

Marketing Management Case Studies | Case Study in Management, Operations, Strategies, Marketing Management, Case Studies

One customer who bought the iPhone soon after it was launched remarked "I'm going to run home and ring people just to say 'Guess what, I've got, an iPhone, bye!'"8 Such was the frenzy that surrounded the launch of this new mobile phone.

The premium price of the product (US$499 for the 4GB version and US$599 for the 8GB version) did not deter Apple's eager fans from buying the product. Analysts felt that branding and promotion of the product were as much responsible for the successful launch of the product as the product itself.

Marketing experts were surprised that Apple had not gone overboard in its promotion of the new brand though it was entering a new market with a new product.

They appreciated the way the company had created a buzz around the product through its low key but highly effective marketing effort...

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7] www.media.corporate-ir.net/media_files/irol/10/107357/AAPL_10K_FY07.pdf.

8] Laura Smith-Spark, "Fans Turn Out for 'Rock Star' iPhone," www.news.bbc.co.uk, June 30, 2007.

9] Virginia Commonwealth University's Adcenter is considered one of the top graduate programs on advertising in the US.

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