In vibrant world, fortunately
for Apple
the iPhone is more than the sum of its parts.
Arguably, the parts themselves are not that interesting as they are
readily available from a number of sources and alternatives exist for most of
the parts. It’s not believable” Are you agree” So.
Look further act what gives the
iPhone its appeal is really the software that brings all these parts together
and allows the user to interact with the phone in a compelling way. And Apple, of course, developed and owns the
software. Further, given the barriers to
entry outlined above, Apple has little to worry about forward integration
from its suppliers. So, in this sense,
Apple is not beholden to the whims of powerful suppliers.
Here
are great features and advantages for iPhone Buyer. The
buyers of the iPhone are somewhat more powerful, however. Mostlyverbal
communicationof the consumers as a group can be considered the principle
purchasers of the iPhone, a claim that gains more credence given the fact that
no large resellers will be selling the phone and consumers are liable to be subject
to price sensitivity and alternative choices.
Threat of New Entrants, ultimately
the iPhone is going to face the most competition from imitators who can sell a
similar or comparable device at a lower price.
Most of these threats are going to come from established players in the
cell phone industry (such as LG and Samsung) rather than companies trying to
enter the cell phone market an added.
Not for saying only, however, that new entrants may not be around the
corner. Software Company and mobile apps company such as
Google and Microsoft may pose
a credible threat at entering the cell phone market and trying to carve a niche
out for themselves.
It has been rumored that Google has a team actively investigating such a move and
Microsoft currently
has a lot of experience creating software specifically for mobile devices. It remains to be seen, however, if either company will take
the initiative to enter into the cell phone device market directly rather than
content themselves with creating licensing software for cell phones.
There is no substitutes of the iPhone mainly
distinguishes itself from competitors over its user interface which is driven
by a multi-touch screen. iPhone Application Developer claims
various patents relating to this technology. However, it is still likely that
other players in the market will soon be able to deliver similar products.
Synaptics and LG have already disclosed details of coming products which
feature touch-screen interfaces, as well.
It is a best complements from all type of application devices. There
are two major complements to the iPhone: cellular phone service and wireless
Internet access. Phone service is currently entirely provided by Cingular,
wireless Internet is provided through a Cingular data plan when no other/free
wi-fi is available. Interestingly, there are no signs of Apple opening up the
product to customers of other carriers.
The iPhone does not
bring about entirely new lock-in effects. Instead, its tied distribution with
Cingular contracts reinforces the lock-in model of the cellular phone industry,
and its integration with iTunes encourages users to buy music from Apple in the
proprietary, iPod-exclusive AAC format.
Network effects, currently, while the iPhone distinguishes itself from
competitors over its style and features, none of its features are specifically
set up to promote a network effect among iPhone owners.
iPhone-specific applications which
make use of its connectivity and user interface features could dramatically
increase network effects for its owners (especially
social games and applications). Network effects are more likely to develop
for Cingular than for Apple. Having exclusive rights for an attractive product
is more likely to attract more customers to the carrier, which in turn may work
towards a network effect among all Cingular customers.
iPhone does not
support UMTS, a telecommunications standard of importance in Europe. While no
announcement has yet been made about which cellular carriers but iPhone
Development Company try to partner with in Europe and Asia, this
could potential limit their options.
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