Consumer Behavior Audit

iPhone 4S

Ashley Webb & Trenity Tigner

MM578

Professor Mary Hills

June 17, 2012

Table of Contents

Market Analysis ………………………………………………………………………………………………………….. 3

Market Segmentation …………………………………………………………………………………………………. 5

Product Positioning …………………………………………………………………………………………………….. 7

Impact on the Consumer …………………………………………………………………………………………….. 7

Consumer Decision Process ………………………………………………………………………………………… 11

Marketing Mix ……………………………………………………………………………………………………………. 14

Market Plan Assessment …………………………………………………………………………………………….. 15

References ………………………………………………………………………………………………………………….. 17

Market Analysis

Company

Apple, Inc., headquartered in Cupertino, California is a multinational corporation that sells consumer electronics,

computer software and personal computers. Apple began back in 1977 in the garage of the late Steve Jobs. He and is

friend Steve Wozniak created the Apple I in an effort to sell the computer that Wozniak had designed. Since then Apple

has continued to wow the market with each revolutionary product that they release. Their mission and values are as

follows:

Mission: Apple is committed to bringing the best personal computing experience to students, educators, creative

professionals and consumers around the world through its innovative hardware, software and Internet offerings.

(www.apple.com)

Core Values:

We believe that we’re on the face of the Earth to make great products.

We believe in the simple, not the complex.

We believe that we need to own and control the primary technologies behind the products we make.

We participate only in markets where we can make a significant contribution.

We believe in saying no to thousands of projects so that we can really focus on the few that are truly important

and meaningful to us.

We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that

others cannot.

We don’t settle for anything less than excellence in every group in the company, and we have the self-honesty

to admit when we’re wrong and the courage to change. (www.apple.com)

Apple first wowed the cell phone market back in 2007 with the late Steve Jobs announcing the long awaited and much

anticipated iPhone. The iPhone is a combination of an internet- enabled smart phone and the iPod. Apple continues to

promise on innovation with the latest release of the iPhone 4S in October 2011. The iPhone 4S is equipped with

advanced technology that has set its self apart from the rest of the cell phone brands in the market. Features of the

iPhone 4S that have made it in such high demand by consumers include: Siri, which is personal assistant application that

operates with voice command, and iCloud, which wirelessly stores content to all of your Apple products.

Customers

Who is the iPhone 4S customer? What is the personality, behavior, demographics, of this particular consumer that will

wait in line for hours to get their hands on the latest and greatest piece of technology from Apple? iPhone customers are

not price sensitive when it comes to this product. They enjoy being able to use it for personal use through phone, text,

email, and video, as well as being able to handle business transactions while on the go. According to the a survey done

by Hunch for the Huffington Post, “Hunch found that iPhone users were, on the whole, more likely to be optimists,

extroverts, self-described "high-maintenance" individuals and leaders, and more willing to spend money,” (Smith, 2011).

iPhone users tend the be the less price sensitive when it relates to buying items which is why they don’t mind spending

money on the premium priced iPhone 4S. According to a recent study between male and female iPhone buyers “49% of

iPhone users are females, with 51% being male,” (Stephens, 2012).

Competition

To compete in the smart phone market category companies must offer products that have core benefits. What is the

consumer getting in exchange for buying this cell phone? The companies must look at themselves as a benefit provider.

Apple has seen its fair share of competition when it comes to matching against its iPhone 4S the top 3 players in this

field are:

Android Phones: Operating system created by Google. Frommer from Business Insideer states, “While Google Android’s

share of the smartphone market soars, Apple’s is dropping.

Last quarter, Android represented 53% of smartphone shipments, according to Gartner — some 60 million

devices

shipped worldwide.

Meanwhile, Apple’s market share dropped to 15%, down from 17% a year ago and 18% during the prior quarter.

Overall shipments grew, but not nearly at the rate as Android’s. (Frommer, 2011).

Android users enjoy be able to have multiple applications running simultaneously, and its complex operating system.

Galaxy S III: Created by Samsung is the next generation with its predecessors being the Galaxy S and Galaxy S II.

Consumers have enjoyed the cheaper price tag in comparison to the iPhone 4S. Alving Tang states, “Samsung has just

reported a sales jump of 44% in Q4, overtaking Apple as the world’s top smart phone maker,” (Tang, 2011).

Blackberry Torch 9800: RIM in effort to re-gain its faithful blackberry audience introduced this phone in efforts of

standing against the competition. The Blackberry comes with the ability to have extended storage with a memory card

slot located on the side of the phone in which the iPhone does not. Adi Robertson states, “After starting the year at 23

percent market share, BlackBerry slid to 19.7 percent by August, and was down to 16.6 percent by the November. Now,

that number is 14.9 percent, and a mere 6 percent of recent buyers use the platform,” (Robertson 2012.)

Conditions

With increased competition in the cell phone market, Apple has to make sure the price of their cell phone isn’t turning

away consumers. In today’s economy people may be more price conscious of over spending on a cell phone device

especially if that money can be put towards paying off bills. If they can find a phone cheaper than the iPhone 4s and able

to do almost everything that Apples product can do you would rather go with that and giving up that want. In a article

released by IDC worldwide it reads, “The mobile phone market exhibited unusually low growth last quarter, which

shows it is not immune to weaker macroeconomic conditions worldwide," said Kevin Restivo, senior research analyst

with IDC's Worldwide Mobile Phone Tracker. "The introduction of high-growth products such as the iPhone 4S, which

shipped in the fourth quarter, bolstered smartphone growth. Yet overall market growth fell to its lowest point since

3Q09 when the global economic recession was in full bloom." (www.idc.com)

Market Segmentation

The product related need sets for a potential IPhone consumer are talk, text, email, and video services; mobile internet

service; access to a wide network of applications; and the ability to perform personal and business transactions.

The IPhone 4s is a prestige item and because of that it requires a certain level of buying power and a high level of

discretionary income. Consumers that fit into the products market segment would have a household income of at least

$60,000+. (DDB Worldwide Communications Group Inc)

The first market segment are between the ages of 17 and 25; They are either in college or have recently graduated; Their

particular need sets is to keep up with popular trends in technology, access to a large amount of applications for things

like social media, and entertainment. Even though teenagers and college students don’t earn the need income to

purchase an IPhone 4s, their parents make enough to purchase the product for them; this group values brand names

and status.

The second market segment contains people that are 25-34 years old. Their particular need sets are to have a product to

help them perform personal and business matters. This segments needs organization to balance a work, and personal

life. They have had children who are under the age of 12 and value quality and brand names. They have careers as

professionals, executives, or jobs that are technical related and their household income is about $60,000+. They are also

highly tech savvy. (DDB Worldwide Communications Group Inc)

For the most part they are located within the top Metropolitan Statistical Areas of the US (New York, Los Angeles,

Chicago, Dallas, Houston, Philadelphia, Washington D.C., Atlanta, Boston, and San Francisco). (Rosenberg, Matt)

These segments are very attractive because they have the tech savvy attitude for the IPhone 4s and the household

income needed to purchase and maintain such a prestigious product.

Market Segment Attractiveness Worksheet

Segment Size 10 10

Segment Growth Rate 5 8

Competitor Strength

Customer Satisfaction w/Existing Products

Fit with Company Image 10 9

Fit with Company Objectives 9 10

Fit with Company Resource 9 9

Distribution Available 10 10

Investment Required 8 8

Stability/Predictability 5 7

Cost to Serve 8 8

Sustainable Advantage Available

Communication Channels Available 9 9

Risk 5 6

Segment Profitability 9 10

Total 82 86

*Group One=Red

*Group Two= Blue

Based on the Market Segment Attractiveness Worksheet the second group proves to be more attractive; this will be our

target market.

Product Positioning Statement

“The IPhone 4s will satisfy the need for technical innovation, style, and quality of our target market, a group that is

young, tech savvy, and brand conscience, by providing a product that provides user friendly design, organization,

entertainment and access to millions of applications. Unlike our competitors, the IPhone 4s will improve productivity and

appearance, save time and effort, and provide entertainment and resources.”

Impact on the Customer

Perception

Perception is form during three stages: Exposure, Attention, and Interpretation. Exposure occurs when consumers are

within range of hearing or seeing things like commercials or seeing billboard advertisements. Consumers are constantly

exposed to these stimuli. This is our chance as marketers to successful grab their attention. Attention takes this a little

further because having their attention means that the consumer has actually seen or heard the advertisement. This is

the step that marketers need to take full advantage of. The small amount of time that we have in this step will ultimately

help the consumer create an interpretation of the product. Interpretation is the point in which the consumer actually

assigns a meaning or feeling about the message that they were exposed to. Memory is not one of the steps of the

perception process but it plays a key part in whether or not the marketing communication efforts actually worked. They

are going to carry memories with them as the browse store aisles and make decisions about purchases.

Up to this point Apple has created the perception that it is a premium brand and because of that the IPhone 4s is

perceived to be a product of quality, style and status. This product is targeted to a certain demographic but most

consumers want to have a piece of the status that the IPhone 4s creates. Even if it’s not within their personal budgets,

consumers will save so they can purchase a piece of status. Our marketing strategy will continue to use the already

established perception to our benefit by continuing the communicate the idea that the IPhone 4s is the world’s greatest

cell phone but it is still accessible to not only the elite few but to anyone willing purchase the product. Our target market

is a rather young group of people so we will also incorporate simple, fun, colorful, and light-hearted elements within our

advertising.

Learning and Memory

The steps of the perception process and memory all boil down to one important place and that’s what the consumer has

stored in their long-term memory or what they have learned about a product. The IPhone 4s can be considered a high-

involvement purchase and a low involvement-purchase at the same time. It’s important to inform the consumer about

the various features that are important during a high-involvement purchase but we also need to communicate just how

“cool” the product is and how “cool” it would be to own one as a low-involvement purchase. The best strategy is to

focus on helping the consumer learn about not only how cool IPhone owners are but to really draw them in with the

features and application opportunities. A way to communicate with the consumer about the features of the IPhone 4s is

to use the Vicarious Learning Model. This model works well with low and high involvement purchases. Vicarious learning

is simply because ads using this model provide opportunities for consumers to the outcome of others who have used the

product. Ads centered on this model would encourage consumers to imagine the feelings and experience of using a

product. Apple has used this concept through various TV commercials in the past. They show a celebrity using the

IPhone 4s with a sense of ease and enjoyment. (Hawkins, et al, Delbert; page 327-331)

Motivation, Personality, and Emotion

Motivation is the reason for behavior and motivations are fueled by motives. Motives are defined as an unobservable

inner force that stimulates and compels a behavioral response and provides specific direction to that response. Motives

are the Why behind the reason of a motivation. These are two of theories that examine consumer’s motivation:

Maslow’s Hierarchy of Needs, and McGuire’s Psychological Motives. We will analyze Maslow’s Hierarchy of Needs to

understand consumer motives for purchasing an IPhone 4s. Maslow’s Hierarchy of Needs is based on four premises: 1.

All humans acquire a similar set of motives through genetic endowment and social interaction, 2. Some motives are

more basic or critical than others, 3. The more basic motives must be satisfied to a minimum level before other motives

are activated, 4. As the basic motives become satisfied, more advanced motives come into play. There are five levels or

steps that make up this hierarchy. They are physiological, safety, belongingness, esteem, and self-actualization. The

IPhone 4s can be applied to this theory because it meets consumer’s needs by fulfilling their need to belong, and to have

high self-esteem. Apple as a brand creates a sense of community for its consumers. This is achieved several ways and

one tactic is by created applications that are exclusive to Apple customers (ex. IMessage, ICloud and Suri voice

recognition). They also excel at creating a sense of community by controlling where its products are sold by making them

only available through a few service providers (ex. AT&T, and Verizon). Being a part of this Apple IPhone community and

being one of the “cool” people with an IPhone does have an effect on a person’s self-esteem needs. Esteem needs

include both self-esteem and the esteem of others. Self-esteem is the feeling that one is worthwhile, competent, and

independent. The esteem of others involves the feeling that other people respect and appreciate the person. Once the

person has satisfied his or her basic needs, concerns about worthiness emerge. The focus becomes not just surviving,

but doing well according to meaningful communal standards. (Maslow’s Hierarchy of Needs)

Consumer Attitude Assessment

An attitude is an enduring organization of motivational, emotional, perceptual, and cognitive processes with respect to

some aspect of our environment. The attitudes of consumers can be found in several different ways. We have

administered a survey of three questions to 10 people.

Question One: How do you feel about the IPhone 4s? On a scale of 1-10

Question Two: What do you think about the IPhone 4s?

Question Three: If you don’t like the IPhone 4s tell me why and what could make you like it.

Even though half of the participants were current IPhone owner I received all positive results back from this survey. The

first question was a quantitative question so we were able to display its results on a graph. (Check Figure 1)

Figure 1

The second question was a matter of opinion. Some people answered with a cognitive approach by describing what they

liked about the IPhone’s features and some people simply said they love the IPhone 4s which is a more affective answer.

When asked what they thought about the IPhone 4s, 7 out of 10 people mentioned something that involved the product

features and abilities. Three people focused more on how cool they thought the product was. This does suggest a more

cognitive component overall because although their reaction to the product was to simply call it “cool” the reaction was

determined because they enjoy the features. Overall this data shows that consumers like features the most and choose

to describe their satisfaction with a more cognitive approach. Apple should communicate the thousands of features that

the product is capable of. The last question was meant to be answered by anyone who didn’t like the IPhone 4s but no

one felt any feelings of dislike towards the IPhone 4s.

Self-Concept and Lifestyle Assessment

Self-Concept would affect consumers on several different levels of self-concept. Our target consumer is highly tech savvy

and they are more likely to buy products that reflect who they are. The target consumer spends the most time online

than any other segment. This means that the consumer is more likely to purchase the IPhone 4s online through the

company website or other online shopping outlets. Our target market’s income and education levels are high. This group

turns to the internet for most of their purchases for things like clothing, electronics and event tickets.

Consumers may want to purchase an IPhone to fit in with their peers as a way to change the actual self-concept into the

ideal self-concept. This perceived change in the consumers self-concept feeds off the affective or feeling influence of the

IPhone 4s. If consumers think that it’s a cool, hip and tech-savvy gadget to have they will purchase it because they would

like to be viewed as cool, hip and tech-savvy. The IPhone 4s target market’s has very high confidence level mostly

because they have such a high income and education level. Consumers ideal self-concept essentially drive the idea that

an IPhone would make you seem a little more cool and in touch. Apple should use this to its advantage by subtly

communicating messages that the IPhone are for people who go against the grain, keep up with technology and enjoy

having fun times with their friends. Even if this is not the case for the consumer lifestyle, the idea of this makes the

product seem like the answer.

Consumer Behavior Process

Consumers all over the world have the daunting task of carefully evaluating cell phones before they come to a

decision on which one to actually purchase. There are many factors that influence this purchase. It can be the brand

alone, price; it’s technological capabilities, and even feelings towards the product itself. This is called the consumer

behavior process. Consumers debating on whether or not to purchase the iPhone 4S are going through this exact

process. In our eyes we would consider this type of purchase an extended decision, “ it involves an extensive internal

and external information search followed by a complex evaluation of multiple alternatives and significant post purchase

evaluation,” (Hawkins, 2010). It first starts with:

Problem Recognition

This occurs when the consumer finds themselves in their current situation with their current cell phone that

they have and might not be satisfied and is looking to upgrade from their actual state to a more desired cell phone or

desired state. Or they may be purchasing a cell phone for the first time which is their actual state and have a desire to

get a phone that they feel is worth purchasing and will leave them completely satisfied. Needing to choose a new cell

phone brand would be considered an active problem, as you are increasingly aware when you go to use your phone and

your began experiencing problems, or you don’t have a cell phone to begin with. Our marketing strategy is to convince

our target consumers that Apple’s iPhone 4S is the top product of choice when it comes to other cell phone brands. Our

cell phone can solve every possible need that they can think of when it comes to product use. By positioning ourselves,

as the only brand to do give this type of satisfaction it will help us gain greater market share over the Android base and

other competitors.

Information Search

Once our target consumer has recognized the need for a new cell phone they begin to search for any

information that may aid in them making this decision. They may try to recall advertising that may have gotten their

attention (in our case recent iPhone 4S advertisements) in a particular cell phone and begin thinking about the

characteristics of the product and how it may be a fit for what they need. They may recall in the advertisements that

display the wonderful feature of iCloud, which backs up your documents wirelessly while on the go. Or they may recall

celebrities using the Siri application in its advertisements. If that still has not helped they will go to outside sources. They

may ask someone they know who has a particular cell phone or the iPhone 4S have they enjoyed it thus far? Can you

show me first hand some of its cool features and technological advancements? Going to the store and speaking with a

salesman can offer the greatest and useful information. They work with these phones daily and have first hand

testimonials from other consumers on how they prefer the iPhone 4s or how they may prefer an alternative. Uncovering

each alternatives performance as well as the price will be crucial in selection a phone of choice.

Consumers’ tastes are changing just as fast as the technology in our world is changing. As technology of phones

changes so does it change the taste of consumers, and the type of phones they may be looking for. Telsa states, “the

iPhone presents a perfect example of technology making its mark on consumer behavior. (“Telsa, 2009) After complete

search of evaluative criteria of cell phones they come up with an evoked set of cell phone brands that will lead to the

solution of their consumer problem. Consumers want a cell phone brand that they can rely on that and also has

technological advancement that will be compatible to their lifestyle. One blogger states, “Apple does a phenomenal job

creating products and services that are unique and special. The Apple brand is so strong that even when competitors

catch up in terms of product performance, people still think Apple is different and unique, (March 2012). The same is

true and consistent for the iPhone 4S.

Alternative Evaluation Selection

Whether it be social networking for personal use, or being able to access and share information for work related

issues, these and more are attributes are what consumers are looking for. Choney states , “ No matter what, she said,

consumers, “want their phones to do a lot — and they want to do it easily,” ( Choney, 2009). This will lead them to an

evoked set of three brands that encompass this: The iPhone 4S, Android phones, and the Samsung Galaxy and to be

further evaluated. In evaluation of each phone they uncover the following characteristics of each, which are also

evaluative criteria:

iPhone 4S:

- Ease of use

- Apple A5 processor the same chip found in the Ipad 2 can download data twice as fast and handle graphics even

better.

- New mobile operating system IOS 5 that features new messaging and the data synchronization iCloud. iCloud

stores your documents, music and photos and more and wirelessly pushes them to all of your Apple devices.

- Siri; Apples personal assistant application that can follow voice commands to help complete basic tasks like

setting an appointment in your iCal calendar, looking up the nearest Target from the location you are at or

responding to a text message.

- The camera on the iPhone 4S trumps any other smartphone camera. The HTC One X comes close, but for high-

quality photography day or night, the iPhone 4S is your best bet.

Android:

- Removable Storage Battery allows the ability to upgrade your battery and SD card which allows for more

storage

- Automation allows you to turn settings on and off for certain applications, by location, time of day, and pretty

much any other condition you can think of.

- Alternate Keyboards allows one to avoid the painful hassle of typing on a tiny keyboard

Samsung Galaxy:

- MicroSD card slot can be expanded to another 32G

- The Galaxy S touts better Bluetooth--3.0 with A2DP on the Galaxy, and 2.1 with A2DP on the iPhone. The Galaxy

also has an FM radio and Adobe Flash support with the 2.2 update; the iPhone lacks both. (Sartain, 2010)

Post Purchase

The reason why consumers stand in line for recent release of Apple products including generations of the iPhone

with the latest being that iPhone 4S is that they have innovative products that are reliable and long lasting. Apple works

around the clock to insure all their products are working to their maximum capability and if they are not they will send

an update to your phone so it can be downloaded. Consumer all around the world have falling in love with the

“phenomenon” and can not get enough of the iPhone and continue to maintain its loyalty to the product and the Apple

brand itself.

Marketing Mix (4 p’s, 4 c’s)

Product- Consumer Need (What does the product look like?)

Apple’s biggest recent launch is the iPhone, the company’s first foray into the wireless telephone market. While Apple

believes the computer can be the digital hub of a family entertainment center, it believes the iPhone has the flexibility to

be the only wireless device that consumers need. It is a convergent communications device that can replace a cellphone,

digital camera, and MP3 player. While Apple believes the computer can be the digital hub of a family entertainment

center, it believes the iPhone has the flexibility to be the only wireless device that consumers need. It is a convergent

communications device that can replace a cellphone, digital camera, and MP3 player. (Kercher, Sherry)

Place/Distribution- Convenience (Where is it sold?)

The IPhone 4s is very convenient for our target to purchase. They are tech savvy and spend considerable amounts of

time using the internet which makes ecommerce one of the best received channels of distribution for the IPhone 4s. In

addition to ecommerce, the IPhone 4s is sold in three of the top retailers in the country (ex. Best Buy, Target, and Wal-

Mart) and Apple’s own Apple Store.

Apple has expanded and improved its distribution capabilities by opening its own retail stores in key cities around the

world in up-market, quality shopping venues. The very successful Apple retail stores give prospective customers direct

experience of Apple's brand values. Apple Store visitors experience a stimulating, no-pressure environment where they

can discover more about the Apple family, try out the company's products, and get practical help on Apple products at

the shops' Guru Bars. Apple retail staff are helpful, informative, and let their enthusiasm show without being brash or

pushy.

The overall feeling is one of inclusiveness by a community that really understands what good technology should look and

feel like - and how it should fit into people's lives. (Marketing Minds)

These locations are concentrated within the Metropolitan Statistical Areas of the US. The IPhone 4s is also available for

purchase in 90 countries worldwide. (Kercher, Sherry)

Promotion- Communication (How are you communicating with consumers?)

Apple has a branding strategy that focuses on the emotions. The Apple brand personality is about lifestyle; imagination;

liberty regained; innovation; passion; hopes, dreams and aspirations; and power-to-the-people through technology. The

Apple brand personality is also about simplicity and the removal of complexity from people's lives; people-driven

product design; and about being a really humanistic company with a heartfelt connection with its customers. (Marketing

Minds)

Apple’s recent advertisement campaign reflects this strategy. Apple aired a new iPhone 4S advertising campaign starring

Samuel L. Jackson and Zooey Dechanel. The commercials show the two celebrities using the IPhone 4s Siri application as

a part of their everyday lifestyle. Samuel L. Jackson, who is set to appear as Nick Fury in the upcoming Avengers movie, is

shown in his kitchen using Siri to help with his cooking. New Girl star, Zoey Deschanel, is shown using Siri to set

reminders. (Allsopp, Ashleigh)

Price- Total Cost of Ownership (What are the price signals being sent?)

All of Apple's products are considered expensive, often more than its rivals. In the case of the iPhone, on top of the cost

for the device, customers must sign up for a two-year service plan. (Kercher, Sherry)

Service (How do you service the customer through the decision process and post purchase?)

In the US, the iPhone is available only through the AT&T Wireless and Verizon Wireless networks, which will frustrate

potential customers who are happy with service through other providers. Apple uses a similar business model in other

countries, leaving out customers who are served by carriers other than the ones selling the iPhone. (Kercher, Sherry)

Market Plan Assessment

After careful research and consideration we would recommend the iPhone 4s to our target consumers. Those who are

looking for a cell phone that is innovative, leading in technology, and is capable to fit every single need that they might

have. It’s advanced mobile operating system (iOS) which is the foundation of the iPhone itself, will continually keep the

iPhone years ahead with it’s technology and features while the rest of the competition tries to catch up.

Competitors Response

With the release of the first iPhone in 2007 competitors felt as thought the iPhone would be a failure just as when Apple

first introduced it first mac computer. Their phones were less priced and with an ease of you would surely fair better up

against the iPhone. They way the consumers reacted when the phone was released was unheard of. Fitzgerald (2007),

wrote, “ reactions to the iPhone highlights competitiors’ inability to understand Apple’s success.” He went on to say.

““Last week, Apple once again showed a better way of doing something… Electronics firms are not going to respond to

the iPhone, because in their eyes, the iPhone couldn’t possibly be a success.”

Fast forwarding to where we currently now in 2012 Apple has released 5 generations of the hardware and iOS software

which had had it competitors scrambling to defend their position in the cell phone arena and take share back that was

once theirs.

iPhone competitors: 2007 - 2008

Apple certainly didn't invent the touchscreen phone; before it, Palm, Windows Mobile and others had delivered PDA-

type devices with mobile features. However, the emerging consensus in the market by 2007 was that users wanted

BlackBerry-like keypads, a trend followed by the most popular Palm Treo, Windows Mobile and Symbian phones. LG's

Prada smartphone delivered a similar form factor to the iPhone, but used Adobe's Flash Lite to construct a simplistic

user interface that lacked any of the rich, animated and desirable aspects of the iPhone. It also lacked a functional web

browser, iPod-like functionality, rich email, and so on. After accusing Apple of copying the Prada, LG then began creating

a series of lookalike iPhone clones.

iPhone competitors: 2009 - 2010

Just after Palm introduced its new webOS Pre, Microsoft began teasing Windows Mobile 6.5, presenting it as a credible

platform with a new app launcher (creatively rethinking Apple's square grid of icons and replacing it with a fresh,

staggered honeycomb arrangement!) and a rival new app Skymarket just like the iPhone's.

Phone 4 competitors: 2010 - 2011

Verizon's 2010 Droid campaign got off to a dramatic start, but quickly lost momentum as iPhone 4 began hitting the

market. That promoted Verizon to rethink its Android-centric strategy within the same year. Verizon first signed up to

carry the iPad, and within a few more months, expanded its relationship with Apple to include iPhone 4.

The future of iPhone competitors: 2011 - 2012

After a year on the market, Microsoft has found it nearly impossible to find interest for WP7 among consumers. At the

beginning of 2011. The most successful iPhone competitor has been Samsung, which like Sony Ericsson, has now

adopted Android as its primary platform. Contingencies that they may have to worry about trying to continually wow

their consumers in making sure it lives up to the “hype.” If not another competitor may try to pass them up.

As you can see Apples competition have tried to match up to it phenomon entitled the iPhone but have not surpassed

them. They are hoping the more and more differentiations they have this will help them in passing up Apple. Until then

they will still enjoy selling a quarter of the world’s smartphones, which has allowed them to enjoy the markets revenues

and profits. Apple continues to wow and promise on it’s innovative technology that surpasses the rest of the

competition, which is mainly why they will continue to see success. They have given their consumers a great customer

experience that is why they will forever remain loyal to the Apple Brand and all of its products.

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