The Apple Iphone (Abridged)

8 Pages Posted: 30 May 2017

See all articles by Paul Farris

Paul Farris

University of Virginia - Darden School of Business

Robert E. Spekman

University of Virginia - Darden School of Business

Abstract

This case describes the introduction of the Apple iPhone, including subsequent price reductions and market share goals. The case includes publicly available data on iPhone production costs, channel margins, and marketing costs. It concludes with the July 2008 introduction of the second-generation 3G iPhone.

Excerpt

UVA-M-0851

Jul. 5, 2013

THE APPLE IPHONE (ABRIDGED)

So we're going to enter a very competitive market, lot of players, we think we're going to have the best product in the world, and we're going to go for it and see if we can get 1% market share, 10 million units in 2008, and go from there.

—Steve Jobs

Computers were too expensive for individual ownership until the 1970s, when microprocessors began to be mass-produced, making it feasible for enthusiasts to purchase kits and assemble minicomputers at home. In 1976, college dropouts Steve Jobs and Steve Wozniak founded Apple Computer to preassemble minicomputers for customers. As the mass market for preassembled personal computers began to grow, Tandy Corporation and others introduced competing products. The minicomputer market grew quickly enough that, by the early 1980s, it had attracted the attention of IBM, whose first PC, or personal computer, was targeted toward business users who were familiar with IBM and skeptical of upstarts. The company quickly dominated the market.

. . .

Keywords: pricing, innovation

Suggested Citation

Farris, Paul and Spekman, Robert E., The Apple Iphone (Abridged). Darden Case No. UVA-M-0851. Available at SSRN: https://ssrn.com/abstract=2974717

Paul Farris (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-0524 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/farris.htm

Robert E. Spekman

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4860 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/spekman.htm

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