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    CHAPTER I

    INTRODUCTION

    Modern Smartphones

    A Smartphoneis a mobile phone built on a mobile computing platform, with more advanced

    computing ability and connectivity than a feature phone. The first smartphones were devices

    that mainly combined the functions of apersonal digital assistant (PDA) and a mobile phone

    or camera phone. Today's models also serve to combine the functions of portable media

    players, low-end compactdigital cameras, pocket video cameras, and GPS navigation units.

    Modern smartphones typically also include high-resolution touchscreens,web browsers that

    can access and properly display standard web pages rather than just mobile-optimized sites,

    Flash compatibility, and high-speed data access viaWi-Fi andmobile broadband.

    The most common mobile operating systems (OS) used by modern smartphones include

    Apple'siOS, Google's Android, Microsoft's Windows Phone, Nokia's Symbian,

    RIM'sBlackBerry OS,andembedded Linux distributions such as Maemo and MeeGo.Such

    operating systems can be installed on many different phone models, and typically each device

    can receive multiple OS software updates over its lifetime.

    The distinction between smartphones and feature phones can be vague and there is no official

    definition for what constitutes the difference between them. One of the most significant

    differences is that the advanced application programming interfaces (APIs) on smartphones

    for running third-party applications can allow those applications to have better integration

    with the phone's OS and hardware than is typical with feature phones. In comparison, feature

    phones more commonly run on proprietary firmware, with third-party software support

    through platforms such as Java ME orBREW.An additional complication in distinguishing

    between smartphones and feature phones is that over time the capabilities of new models of

    feature phones can increase to exceed those of phones that had been promoted as

    smartphones in the past.

    Platform, with more advanced computing ability and connectivity than afeature phone.The

    first smartphones were devices that mainly combined the functions of a personal digital

    assistant (PDA) and a mobile phone orcamera phone.Today's models also serve to combine

    http://en.wikipedia.org/wiki/Personal_digital_assistanthttp://en.wikipedia.org/wiki/Camera_phonehttp://en.wikipedia.org/wiki/Portable_media_playerhttp://en.wikipedia.org/wiki/Portable_media_playerhttp://en.wikipedia.org/wiki/Compact_camerahttp://en.wikipedia.org/wiki/Pocket_video_camerahttp://en.wikipedia.org/wiki/GPShttp://en.wikipedia.org/wiki/Touchscreenhttp://en.wikipedia.org/wiki/Web_browserhttp://en.wikipedia.org/wiki/Adobe_Flash_Playerhttp://en.wikipedia.org/wiki/Wi-Fihttp://en.wikipedia.org/wiki/Mobile_broadbandhttp://en.wikipedia.org/wiki/Mobile_operating_systemhttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Android_%28operating_system%29http://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/Windows_Phonehttp://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Symbianhttp://en.wikipedia.org/wiki/Research_In_Motionhttp://en.wikipedia.org/wiki/Embedded_Linuxhttp://en.wikipedia.org/wiki/Maemohttp://en.wikipedia.org/wiki/MeeGohttp://en.wikipedia.org/wiki/Application_programming_interfacehttp://en.wikipedia.org/wiki/Firmwarehttp://en.wikipedia.org/wiki/Java_MEhttp://en.wikipedia.org/wiki/Binary_Runtime_Environment_for_Wirelesshttp://en.wikipedia.org/wiki/Feature_phonehttp://en.wikipedia.org/wiki/Personal_digital_assistanthttp://en.wikipedia.org/wiki/Personal_digital_assistanthttp://en.wikipedia.org/wiki/Camera_phonehttp://en.wikipedia.org/wiki/Camera_phonehttp://en.wikipedia.org/wiki/Personal_digital_assistanthttp://en.wikipedia.org/wiki/Personal_digital_assistanthttp://en.wikipedia.org/wiki/Feature_phonehttp://en.wikipedia.org/wiki/Binary_Runtime_Environment_for_Wirelesshttp://en.wikipedia.org/wiki/Java_MEhttp://en.wikipedia.org/wiki/Firmwarehttp://en.wikipedia.org/wiki/Application_programming_interfacehttp://en.wikipedia.org/wiki/MeeGohttp://en.wikipedia.org/wiki/Maemohttp://en.wikipedia.org/wiki/Embedded_Linuxhttp://en.wikipedia.org/wiki/Research_In_Motionhttp://en.wikipedia.org/wiki/Research_In_Motionhttp://en.wikipedia.org/wiki/Symbianhttp://en.wikipedia.org/wiki/Nokiahttp://en.wikipedia.org/wiki/Windows_Phonehttp://en.wikipedia.org/wiki/Microsofthttp://en.wikipedia.org/wiki/Android_%28operating_system%29http://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/Mobile_operating_systemhttp://en.wikipedia.org/wiki/Mobile_broadbandhttp://en.wikipedia.org/wiki/Wi-Fihttp://en.wikipedia.org/wiki/Adobe_Flash_Playerhttp://en.wikipedia.org/wiki/Web_browserhttp://en.wikipedia.org/wiki/Touchscreenhttp://en.wikipedia.org/wiki/GPShttp://en.wikipedia.org/wiki/Pocket_video_camerahttp://en.wikipedia.org/wiki/Compact_camerahttp://en.wikipedia.org/wiki/Compact_camerahttp://en.wikipedia.org/wiki/Portable_media_playerhttp://en.wikipedia.org/wiki/Portable_media_playerhttp://en.wikipedia.org/wiki/Camera_phonehttp://en.wikipedia.org/wiki/Personal_digital_assistant
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    the functions of portable media players, low-end compactdigital cameras,pocket video

    cameras, and GPS navigation units. Modern smartphones typically also include high-

    resolution touchscreens, web browsers that can access and properly display standard web

    pages rather than just mobile-optimized sites,Flash compatibility, and high-speed data accessviaWi-Fi andmobile broadband.

    Mobile phone

    The cellular telephone (commonly mobile phone or cell phone or hand phone) is a long

    range portable electronic device used for mobile communication. In addition to the standard

    voice function of a telephone, current mo bil e p ho ne s c an s up por t ma ny

    a d d i t io n a l services such a s sessortext messaging, email, switching for a c c e s s t o

    t h e Internet, & MMS for sending and receivingphotos and video. Most current mobile

    phones connect to aCellular network ofbase stations,which is in turn interconnected to the

    public switched telephone networks phones. Cellular telephone is also defined as a type of

    short-waveanalogordigital telecommunication in which a subscriber has a wireless

    connection from a mobile telephone to a relatively nearby transmitter. The transmitter's span

    of coverage is called a cell.Generally, cellular telephone service is available in urban areas

    and along major highways. As the cellular telephone user moves from one cell or area of

    coverage to another telephone is effectively passed on to the local cell transmitter. A cellular

    telephone is not be confused with a codeless telephones.

    http://en.wikipedia.org/wiki/Portable_media_playerhttp://en.wikipedia.org/wiki/Compact_camerahttp://en.wikipedia.org/wiki/Pocket_video_camerahttp://en.wikipedia.org/wiki/Pocket_video_camerahttp://en.wikipedia.org/wiki/GPShttp://en.wikipedia.org/wiki/Touchscreenhttp://en.wikipedia.org/wiki/Web_browserhttp://en.wikipedia.org/wiki/Adobe_Flash_Playerhttp://en.wikipedia.org/wiki/Wi-Fihttp://en.wikipedia.org/wiki/Mobile_broadbandhttp://en.wikipedia.org/wiki/Telephonehttp://en.wikipedia.org/wiki/Text_messaginghttp://en.wikipedia.org/wiki/Multimedia_Messaging_Servicehttp://en.wikipedia.org/wiki/Photohttp://en.wikipedia.org/wiki/Videohttp://en.wikipedia.org/wiki/Cellular_networkhttp://en.wikipedia.org/wiki/Base_stationhttp://en.wikipedia.org/wiki/Public_switched_telephone_networkhttp://searchsmb.techtarget.com/sDefinition/0,,sid_gci211561,00.htmlhttp://searchsmb.techtarget.com/sDefinition/0,,sid40_gci211948,00.htmlhttp://searchmobilecomputing.techtarget.com/sDefinition/0,,sid44_gci211761,00.htmlhttp://searchmobilecomputing.techtarget.com/sDefinition/0,,sid44_gci211761,00.htmlhttp://searchsmb.techtarget.com/sDefinition/0,,sid40_gci211948,00.htmlhttp://searchsmb.techtarget.com/sDefinition/0,,sid_gci211561,00.htmlhttp://en.wikipedia.org/wiki/Public_switched_telephone_networkhttp://en.wikipedia.org/wiki/Base_stationhttp://en.wikipedia.org/wiki/Cellular_networkhttp://en.wikipedia.org/wiki/Videohttp://en.wikipedia.org/wiki/Photohttp://en.wikipedia.org/wiki/Multimedia_Messaging_Servicehttp://en.wikipedia.org/wiki/Text_messaginghttp://en.wikipedia.org/wiki/Telephonehttp://en.wikipedia.org/wiki/Mobile_broadbandhttp://en.wikipedia.org/wiki/Wi-Fihttp://en.wikipedia.org/wiki/Adobe_Flash_Playerhttp://en.wikipedia.org/wiki/Web_browserhttp://en.wikipedia.org/wiki/Touchscreenhttp://en.wikipedia.org/wiki/GPShttp://en.wikipedia.org/wiki/Pocket_video_camerahttp://en.wikipedia.org/wiki/Pocket_video_camerahttp://en.wikipedia.org/wiki/Compact_camerahttp://en.wikipedia.org/wiki/Compact_camerahttp://en.wikipedia.org/wiki/Portable_media_player
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    INTRODUCTION TO IPHONE

    Mobile users today want their handsets to be converged devices handling multiple functions,

    entertainment being the most important among them. They want their mobile to be fullyloaded with top-end features, but they want all that at affordable costs.

    Iphone contains all that features which people demands and iphone meet on the people

    expectations.

    The Apple iPhone is easily the most publicized new mobile device in recent memory.This

    brand is strong among teens, as many say that they hope to buy it. If that does happen, it will

    be a kind of "first" in the cell phone market, because Apple isn't likely to discount phones,leaving this to be one expensive status symbol.

    We all know that iphone is a big name in the modern mobile world, its applications and

    design are the key factors which tempt people towards it.

    From this survey we want to know about the peoples attraction towards iphone.

    This report will include:

    1. Our survey will include the desirability and undesirability of the iphone.

    2.

    Samples were originated through the observation present and specified in the

    questionnaire.

    3. The questionnaires included measurement of scale which were:

    Ordinal scale

    Likert scale

    Sampling plan.

    4.

    The above analysis applied did sketched the preview about the desirable/undesirable

    school of thought in the real world.

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    APPLE I-PHONE

    In 2007,Apple Inc. introduced its first iPhone.It was initially costly, priced at $499 for the

    cheaper of two models on top of a two year contract. The first mobile phone to use amulti-

    touch interface, the iPhone was notable for its use of a large touchscreen for direct finger

    input as its main means of interaction, instead of having astylus,keyboard, and/or keypad,

    which were the typical input methods for other smartphones at the time. The iPhone featured

    a web browser that Ars Technica then described as "far superior" to anything offered by that

    of its competitors. Initially lacking the capability to install native applications beyond the

    ones built-in to its OS, at WWDC in June 2007 Apple announced that the iPhone would

    supportthird-party "web 2.0 applications" running in its web browser that share the look and

    feel of the iPhone interface. As a result of the iPhone's initial inability to install third-party

    native applications, some reviewers did not consider the originally released device to

    accurately fit the definition of a smartphone "by conventional terms." A process called

    jailbreaking emerged quickly to provide unofficial third-party native applications. The

    different functions of the iPhone (including a GPS unit, kitchen timer, radio, map book,

    calendar, notepad, and many others) allowed consumers to replace all of these items. In July

    2008, Apple introduced its second generation iPhone with a lower list price starting at $199

    and 3G support. Released with it, Apple also created theApp Store,adding the capability for

    any iPhone or iPod Touch to officially execute additional native applications (both free and

    paid) installed directly over aWi-Fi or cellular network, without the more typical process at

    the time of requiring a PC for installation. Applications could additionally be browsed

    through and downloaded directly via theiTunes software client onMacintosh andWindows

    PCs, rather than by searching through multiple sites across the Internet. Featuring over 500

    applications at launch, Apple's App Store was immediately very popular, quickly growing to

    become a huge success. In June 2010, Apple introduced iOS 4, which included APIs to allow

    third-party applications to multitask, and the iPhone 4, which included a 960640 pixel

    display with a pixel density of 326 pixels per inch (ppi), a 5 megapixel camera withLED

    flash capable of recordingHD video in 720p at 30 frames per second, a front-facing VGA

    camera for videoconferencing, a 1GHzprocessor, and other improvements. In early 2011 the

    iPhone 4 became available through Verizon Wireless, ending AT&T's exclusivity of the

    handset in the U.S.,and allowing the handset's 3G connection to be used as a wirelessWi-Fi

    hotspot for the first time, to up to 5 other devices.Software updates subsequently added thiscapability to other iPhones running iOS 4. TheiPhone 4S was announced on October 4, 2011,

    http://en.wikipedia.org/wiki/Apple_Inc.http://en.wikipedia.org/wiki/IPhone_%28original%29http://en.wikipedia.org/wiki/Multi-touchhttp://en.wikipedia.org/wiki/Multi-touchhttp://en.wikipedia.org/wiki/Stylus_%28computing%29http://en.wikipedia.org/wiki/Worldwide_Developers_Conference#WWDC_2007http://en.wikipedia.org/wiki/Third-party_developerhttp://en.wikipedia.org/wiki/IOS_jailbreakinghttp://en.wikipedia.org/wiki/IPhone_3Ghttp://en.wikipedia.org/wiki/App_Store_%28iOS%29http://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/IPod_Touchhttp://en.wikipedia.org/wiki/Wi-Fihttp://en.wikipedia.org/wiki/ITuneshttp://en.wikipedia.org/wiki/Macintoshhttp://en.wikipedia.org/wiki/Microsoft_Windowshttp://en.wikipedia.org/wiki/IPhone_4http://en.wikipedia.org/wiki/Pixel_densityhttp://en.wikipedia.org/wiki/Megapixelhttp://en.wikipedia.org/wiki/LED_flashlighthttp://en.wikipedia.org/wiki/High-definition_videohttp://en.wikipedia.org/wiki/720phttp://en.wikipedia.org/wiki/Frame_ratehttp://en.wikipedia.org/wiki/VGAhttp://en.wikipedia.org/wiki/Hertzhttp://en.wikipedia.org/wiki/Verizon_Wirelesshttp://en.wikipedia.org/wiki/AT%26T_Mobilityhttp://en.wikipedia.org/wiki/Tetheringhttp://en.wikipedia.org/wiki/Tetheringhttp://en.wikipedia.org/wiki/IPhone_4Shttp://en.wikipedia.org/wiki/IPhone_4Shttp://en.wikipedia.org/wiki/Tetheringhttp://en.wikipedia.org/wiki/Tetheringhttp://en.wikipedia.org/wiki/AT%26T_Mobilityhttp://en.wikipedia.org/wiki/Verizon_Wirelesshttp://en.wikipedia.org/wiki/Hertzhttp://en.wikipedia.org/wiki/VGAhttp://en.wikipedia.org/wiki/Frame_ratehttp://en.wikipedia.org/wiki/720phttp://en.wikipedia.org/wiki/High-definition_videohttp://en.wikipedia.org/wiki/LED_flashlighthttp://en.wikipedia.org/wiki/Megapixelhttp://en.wikipedia.org/wiki/Pixel_densityhttp://en.wikipedia.org/wiki/IPhone_4http://en.wikipedia.org/wiki/Microsoft_Windowshttp://en.wikipedia.org/wiki/Macintoshhttp://en.wikipedia.org/wiki/ITuneshttp://en.wikipedia.org/wiki/Wi-Fihttp://en.wikipedia.org/wiki/IPod_Touchhttp://en.wikipedia.org/wiki/IPhonehttp://en.wikipedia.org/wiki/App_Store_%28iOS%29http://en.wikipedia.org/wiki/IPhone_3Ghttp://en.wikipedia.org/wiki/IOS_jailbreakinghttp://en.wikipedia.org/wiki/Third-party_developerhttp://en.wikipedia.org/wiki/Worldwide_Developers_Conference#WWDC_2007http://en.wikipedia.org/wiki/Stylus_%28computing%29http://en.wikipedia.org/wiki/Multi-touchhttp://en.wikipedia.org/wiki/Multi-touchhttp://en.wikipedia.org/wiki/IPhone_%28original%29http://en.wikipedia.org/wiki/Apple_Inc.
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    improving upon the iPhone 4 with a dual coreA5processor, an 8 megapixel camera capable

    of recording 1080p video at 30 frames per second, World phone capability allowing it to

    work on both GSM & CDMA networks, and theSiri automated voice assistant. On October

    10, Apple announced that over one million iPhone 4Ss had been pre-ordered within the first24 hours of it being on sale, beating the 600,000 device record set by the iPhone 4, despite

    the iPhone 4S failing to impress some critics at the announcement due to their expectations of

    an "iPhone 5" with rumored drastic changes compared to the iPhone 4 such as a new case

    design and larger screen. Along with the iPhone 4S Apple also released iOS 5 and iCloud,

    untethering iOS devices from Macintosh or Windows PCs for device activation, backup, and

    synchronization, along with additional new and improved features. There are about 35

    percent of Americans that have some sort of smartphone. This shows that the market is

    spreading fast and there are also more capabilities for smartphones because of this spread.

    Smartphones are also mainly valuable based on the operating system. For example, the

    iPhone runs on the iOS and other devices run different operating systems which makes the

    functionality of these systems different. This was the most awaited phone in the Indian market.

    It is now here, but not before it became famous throughout the rest of the world. Renowned for

    its chic design and easy-to-use functions the iPhone has tremendous features such as its wide

    and clear screen, iPod, internet capability with classic web browser, GPS mapping, and last but

    not lease, a phone. Apple iPhone is being offered in the USA for the price of $900, so the

    awaiting buyers in Pakistan expected the same price. Unfortunately, that is not what

    happened. To grab hold of this hot item, you will have to shell out Rs.80,000 for the 8GB.

    http://en.wikipedia.org/wiki/Apple_A5http://en.wikipedia.org/wiki/1080phttp://en.wikipedia.org/wiki/World_phonehttp://en.wikipedia.org/wiki/Siri_%28software%29http://en.wikipedia.org/wiki/IOS_version_history#iOS_5.x:_Fifth_major_OS_releasehttp://en.wikipedia.org/wiki/ICloudhttp://en.wikipedia.org/wiki/ICloudhttp://en.wikipedia.org/wiki/IOS_version_history#iOS_5.x:_Fifth_major_OS_releasehttp://en.wikipedia.org/wiki/Siri_%28software%29http://en.wikipedia.org/wiki/World_phonehttp://en.wikipedia.org/wiki/1080phttp://en.wikipedia.org/wiki/Apple_A5
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    Product portfolio:-

    Apple has different segment in its product portfolio: - (apple, 2011)

    1) Macintosh computers

    2) I Phones (I Phone 3g, I Phone 3gs, I Phone 4)

    3)

    I Pad

    4) I Pod

    5) Software (I Tunes and other application software)

    Political factor:-

    In 2010 Emergency Budget the Chancellor announced an increase in the standard rate of

    VAT from 17.5 per cent to 20 per cent effective from 4 January 2011. This would affect the

    total selling price of i phone 4. (apple store, 2011) GATT laws can interfere selling of i phone

    4 in global context. (duke law,2004) As most apple iphone is sold in terms of contract with

    other telecommunication companies, sometimes customer finds problem to finish this

    contract and thus laws of such contract affect the consumer buying decision.

    Economic factor:-

    Average Weekly Earnings

    Regular pay growth decreases

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    As shown in graph average weekly income of people in UK is going slightly

    down from February 2011, this may affect the purchasing power of consumer

    in future.

    Unemployment rate of UK is 7.8% which is quite high and can affect the sells

    of company.

    Socio-cultural factor:-

    Population Estimates

    UK population grows to 61.8 million

    Population: by gender and age, mid-2009

    The estimated resident population of the UK was 61,792,000 in mid-2009, and

    Children aged under 16 represented approximately one in five of the total

    population and youth population between 20-40 is also high, thus apple has largerscope as it target the customer between this group.

    GDP per head in Britain was 23,500 in 2008 which means standard of living in

    Britain was high. As apple group is targeting the customer with high income

    earning group, can get larger customer group in Britain. (David smith, 2007)

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    As per capita income and economy is growing after the great recession most

    people want to achieve higher slandered of living by purchasing premium

    product. Hence, it widened the market for apple iphone.

    As compared to Asian countries the culture of UK is independent that meansindividual are free to take their own decision after 18 years. Which also influenes

    the buying decision of consumer.

    Technological factor:

    Apple iphone 4 is loaded with latest technology going in market. But Innovation

    in technology takes place very fast thus companies has to keep updating their

    product with new technology. Soon apple is going to launch apple iphone 5,

    hence apple iphone 4 would be out of market.

    Micro environment:-

    Michel Porter identified five forces for analysing the micro environment (Elizabeth, H.

    and Terry O, 1996)

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    Supplier (Supplier power)

    Most of important and tecnical part ofapple iphone4 are manufactured outsideorganisations, supplier have strong power

    against apple INC.

    The Quality, Quantity, and price termsdeclare by their suppliers have to befollowed by apple INC.

    apple doesnt have any power to restrictupon any of the supplier because they all

    are expert in their own field.

    Buyers (Buyers power)

    Buyers such as big organisation such as

    o2, vadophone and carphone warehouse

    has great power of bargain as apple'smost sales are comprised by this

    companies.

    For retaling shopping theres no powerwith buyer as it is leading organisation.

    Potential entrants (Threat of mobility)

    New entrances list, in UK, are many forcalendar year 2011.( 5th generationapple iphon)

    new entrants can add many similarcapabilities to their products that match

    the iPhone and expand to a wider market

    through lower cost and higher-powerproducts..

    Entry barriers list are quite high and no

    barrier can be seen to exit from market.

    Substitute (Threat of substitute)

    apple is going to launch in mid 2011 will

    outdate the iphone 4..

    yet apple iphone3 is cheaper then appleiphone4, thus many customer prefers to

    buy iphon 3.

    balckburry , HTC and Nokia are maincompetitor of apple iphone can comewith new technology and can dominant

    the market.

    Industry competitors (Segment Rivalry)

    The smartphone market in UK cosist with 4 major companies like

    Nokia, blackburry, Apple, Htc.

    Result is frequent technology, price wars, battles of advertisement

    and campaign and hamperign corporate profit.

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    SWOT ANALYSIS:-

    Strength: -

    InnovativeThe i Phone has an innovative touch screen that is patented and unmatchedby any other mobile product today. It also has many functions of other mobile products

    all in one device.

    CompatibilityThe phone will work with iTunes and with other Mac/Apple products

    like the new Apple TV, allowing for wireless connectivity to the big screen. The i Phone

    is also compatible with many Mac OS software tools. Mac OS compatibility means that

    the i Phone has limitless potential for upgradeability.

    Ease-of-UseThe all-new touch screen interface making operations extremely intuitive.

    It is radically different from those of other phones or PDAs that recognizes multi finger

    gestures, just as the human hand normally behaves. The Mac OS X application imbedded

    into the i Phone assures users will easily recognize what they can do

    Brand awarenessApple is well known for cool essential gadgets like the iPods, ipad,

    macbook and Smartphone along great technological innovations like the original

    Macintosh.

    Price At 418, the i Phone would be sold at a reasonable price for its value. It

    outperforms any other PDA or smart phone on the market and the convenience of having

    multiple features combined into one-device increases its overall value.

    QualityThe i Phone has one of the brightest and most scratch resistant screens in the

    market. It also has a fine metallic finish that is durable and light. The software suite

    included is also unsurpassed with their ease of use and resistance to computer viruses.

    Weakness: -

    Image The Apple brand is not targeted towards business people, which most smart

    phones have targeted. Does not have a reputation as being compatible with the corporate

    world.

    Price Apple does not yet offer lower priced models for more cost conscious

    consumers.

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    User InterfaceTouch screen interfaces suffer from the problem of gorilla arm, in

    which long-term use of a flat, solid surface for input becomes uncomfortable.

    Opportunity: -

    Increasing demand and expansion to a new target segmentApple will continue to

    target the business productivity market who wants an all in one computing solution. But

    as technology advances and smart phones get cheaper companies also have a great

    opportunity to target people who want entertainment. Apple will attract these consumers

    and get iPod users to upgrade to i Phones.

    UpgradeableSince software on the i Phone can be updated, it allows new exciting

    features to be brought in which take advantage of the touch screen ability. Future

    versions will also be hardware upgradeable.

    Partnerships Apple can collaborate with many powerful global mobile phone

    companies to flood the market with iPhones, which reduces costs in marketing and

    increases revenue through long-term agreement deals.

    Threats: -

    Increased competition Smart phones are easier to make now more than ever. More

    companies may enter the market, given that there are few barriers to entry other than

    patents. Competitors or even Apple contractors can maneuver around patents to create

    similar devices.

    Downward pricing pressureThe i Phone is marketed as a high-end phone, but phone

    prices are almost certainly going to fall when other companies undercut the price of i

    Phones.

    Price:-

    As Apple iphone is well known brand in domestic as well international market and

    has covered maximum market share in Smartphone industry. Apple iphone 3 and

    iphone 3gs were successful in market thus, apple at launching of iphone 4 decided to

    set their prices on basis of market skimming pricing rather than premium pricing

    strategy.

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    Market skimming pricing is setting a high price for a new product to skim

    maximum layer from the segment willing to pay the high price; the company

    fewer but more profit.(Philip k.and gary.a, 2006,pp.353) Whereas premium pricing is use a high price where there is uniqueness about

    the product or service. This approach is used where a substantial competitive

    advantage exists.

    Apple can use any 1 of the pricing strategy as their brand value and product

    were in demand in market. Because of their new technology customer were

    willing to pay higher price for the iphone 4. But as product goes old and other

    competitors enter the market with same technology apple has to reduce their

    price to be in market. Thus, apple used market skimming pricing strategy to

    cover maximum market share and revenue in beginning and then to lower their

    price according to competition.

    Current price of apple iphone 4 is 16GB is 510 and for 32GB 612 .(apple

    store 2011)

    Place

    Channels of distribution are set of interdependent organisations involved in the

    process of making a product or service available for use or consumption (Kotler P.,

    thr1999. pp. 489-496). There are two types of distribution network 1) direct

    distribution channel 2) indirect distribution channel.

    Indirect Channel

    The indirect channel is used by companies who do not sell their goods directly to

    consumers. Suppliers and manufacturers typically use indirect channels because they

    exist early in the supply chain. Depending on the industry and product, direct

    distribution channels have become more prevalent because of the Internet.(Osmond

    Vitez, 2011)

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    Direct Channel

    A direct distribution channel is where a company sells its products direct to

    consumers. While direct channels were not popular many years ago, the Internet has

    greatly increased the use of direct channels. Additionally, companies needing to cut

    costs may use direct channels to avoid middlemen markups on their products.

    .(Osmond Vitez, 2011)

    Indirect Channel Methods

    Distributors, wholesalers and retailers are the primary indirect channels a company

    may use when selling its products in the marketplace. Companies choose the indirect

    channel best suited for their product to obtain the best market share; it also allows

    them to focus on producing their goods. .(Osmond Vitez, 2011)

    Direct Channel Methods

    Selling agents and Internet sales are two types of direct distribution channels. Selling

    agents work for the company and market their products directly to consumers through

    mail order, storefronts or other means. The Internet is an easy distribution channel

    because of the global availability to consumers. .(Osmond Vitez, 2011) Apple uses

    both types of distribution channel to sell their product in UK. As apple doesnt have

    any manufacturing plant in UK they have to import from USA. Apple has their own

    online stores thus customer those who want to purchase iphone can order there. Thus

    apple uses direct channel for such customer. Apple also has almost 30 retail store in

    UK, hence they follow indirect distribution channel to sell their final product to their

    customer.(apple store,2011)

    As shown in the distribution Chart, Company uses both one level and two level

    distribution channels to make available their product to end user.

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    Distribution channel of apple INC

    Promotion

    Promotion is all about companies communicating with customers. A business'

    total marketing communications programme is called the "promotional mix" and

    consists of a blend of advertising, personal selling, sales promotion and public

    relations tools.(tutor2u, 2004)

    Advertising

    Any paid form of non-personal communication of ideas or products in the "prime media": i.e.

    television, newspapers, magazines, billboard posters, radio, cinema etc. Advertising is

    intended to persuade and to inform. The two basic aspects of advertising are the message

    (what you want your communication to say) and the medium (how you get your message

    across) (tutor2u, 2004)

    End

    user

    Added

    value

    reseller

    End user

    Retailer

    End user

    Retailer

    Direct sale

    force

    End user

    Retail store

    End-users

    Online store

    Apple

    Third party

    wholeseller

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    Personal Selling

    Oral communication with potential buyers of a product with the intention of making a sale.

    The personal selling may focus initially on developing a relationship with the potential buyer,

    but will always ultimately end with an attempt to "close the sale".(tutor2u, 2004)

    Sales Promotion

    Providing incentives to customers or to the distribution channel to stimulate demand for a

    product. (tutor2u, 2004)

    Publicity

    The communication of a product, brand or business by placing information about it in the

    media without paying for the time or media space directly. otherwise known as public

    relations. (tutor2u, 2004) Apple has its own online store so they advertised their product there

    and costumer easily get all information about the product from there. Mostly advertisement of

    apple in UK is done by other telecommunication company such as Vodafone, o2, virgin, and

    orange. These companies in order to sell their telecommunication services gives i phone with

    their services on basis of contract. This is the advertising approach used by apple in UK. Thissaves lots of money for apple and ultimate aim to communicate the message to customer is

    done by this telecommunication companies. Apple also have TV ads to promote their

    product. Apple also use magazine advertisement to promote their product. Apple also uses

    hoardings where image of product is displayed and detailed information is written there. By

    putting such hoardings people who are walking roadside can see the information and message

    can be conveyed to customer. Apple uses promotional methods using special short-term

    techniques to persuade members of a target market to respond or undertake their products.

    Apple uses for sales promotions are money back guarantees, lower purchase price and rebates

    etc. The Apples stores are very distinct and captivating from many other electronic stores

    because they display all of their products for consumers to experience hands-on. Consumers

    are allowed to surf the web on any of their computers, listen to the latest ipods, and

    experience the iPhone and its features. This lets consumers get comfortable with the products

    and familiarize themselves with it. This is a major consumer sales promotion that Apple has

    developed.(apple INC, 2009)

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    Marketing approaches:-

    Segmentation, targeting, and positioning together comprise a three stage process. We first (1)

    determine which kinds of customers exist, then (2) select which ones we are best off trying to

    serve and, finally, (3) implement our segmentation by optimizing our products/services forthat segment and communicating that we have made the choice to distinguish ourselves that

    way.

    Segmentation :-

    Apple i Phone 4 come under Smartphone segment and classified under unsought goods.

    Thus, it requires lots of things to consider while purchasing it though it requires more

    attention of Apple INC. Apples target segments consist of professionals, students, corporate

    users, entrepreneurs, and health care workers.

    Targeting :-

    The decision about which market segment(s) a business decides to prioritise for its sales

    and marketing efforts.(Dibb and et al, 2001)I Phones marketing strategy is to differentiate

    the i Phone from other PDAs on the market. I phones primary customer targets is the

    middle-upper income professional that need one portable device to coordinate their busy

    schedules and communicate with colleagues, friends and family. I phones secondary

    consumer targets are high school, college and graduate students who need one portable

    multifunction device. Mainly this market will be replacing their iPod and cell phone with the

    iPhone. Apple group uses concentrated marketing strategy for targeting their customer.

    Concentrated marketing is a market coverage strategy in which firm goes after a large share

    of one or few segment or niches(Philip k. And gary a. b, 2006, pp 231). Apple group uses

    Type of segment Variable

    Demographic Age, Gender, Occupation, Income

    Geographic Region, Population density, climate

    Psychographic Social class, Life style, personality

    Behavioural Degree of loyalty, Type of User

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    this strategy to attract the customer who are interested in store information and communicate

    or people who want entertainment on the go. By using such strategy apple targets

    Segments consist of professionals, students, corporate users, entrepreneurs, and health care

    workers with age group between 16 to 40.

    Positioning :-

    Positioning is the process of creating an image for a product in the mind of target customer.

    Using product differentiation, Apple group positioned the iPhone 4 as the versatile,

    convenient, value-added device for personal and professional use. The marketing

    strategy will focus on the convenience of having one device for communication, but

    also music, pictures, and video, and full Internet access. The iPhone will be promoted

    as both professional and hip.

    Currently Apple i Phone 4 is in maturity stage generating maximum profit for

    company. But soon apple i Phone 4 is going to decline stage because apple group is

    going to launch i Phone 5 in July 2011.

    Current position of apple i Phone 4 in product life cycle:-

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    INTRODUCTION OF SAMNSUNG

    Samsung Group is a South Korean multinational conglomerate company headquartered in

    Samsung Town,Seoul.It comprises numerous subsidiaries and affiliated businesses, most of

    them united under the Samsungbrand, and are the largest South Koreanchaebol.

    Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest

    information technology company measured by 2011 revenues), Samsung Heavy Industries

    (the world's second-largest shipbuilder measured by 2010 revenues), and Samsung

    Engineering andSamsung C&T (respectively the world's 35th- and 72nd-largest construction

    companies). Other notable subsidiaries include Samsung Life Insurance (the world's 14th-

    largest insurance company),Samsung Everland (the oldest theme park in South Korea) and

    Cheil Worldwide (the world's 19th-largest advertising agency measured by 2010 revenues).

    Samsung produces around a fifth of South Korea's total exports and its revenues are larger

    than many countries' GDP; in 2006, it would have been the world's 35th-largest economy.

    The company has a powerful influence on South Korea's economic development, politics,

    media and culture, and has been a major driving force behind the "Miracle on the Han River".

    Android

    Android is a Linux-based operating system for mobile devices such as smartphones and

    tablet computers.It is developed by theOpen Handset Alliance led byGoogle.

    Google purchased the initial developer of the software, Android Inc., in 2005. The unveiling

    of the Android distribution in 2007 was announced with the founding of the Open Handset

    Alliance, a consortium of 86hardware,software, and telecommunication companies devoted

    to advancing open standards for mobile devices. Google releases the Android code asopen-

    source,under theApache License.TheAndroid Open Source Project (AOSP) is tasked with

    the maintenance and further development of Android.

    Android has a large community of developers writing applications ("apps") that extend the

    functionality of the devices. Developers write primarily in a customized version of Java.

    Apps can be downloaded from third-party sites or through online stores such asGoogle Play

    (formerly Android Market), the app store run by Google. As of February 2012 there were

    http://en.wikipedia.org/wiki/South_Koreanhttp://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/Conglomerate_%28company%29http://en.wikipedia.org/wiki/Samsung_Townhttp://en.wikipedia.org/wiki/Seoulhttp://en.wikipedia.org/wiki/Chaebolhttp://en.wikipedia.org/wiki/Chaebolhttp://en.wikipedia.org/wiki/Chaebolhttp://en.wikipedia.org/wiki/Samsung_Electronicshttp://en.wikipedia.org/wiki/List_of_the_largest_technology_companieshttp://en.wikipedia.org/wiki/List_of_the_largest_technology_companieshttp://en.wikipedia.org/wiki/Samsung_Heavy_Industrieshttp://en.wikipedia.org/wiki/Shipbuilderhttp://en.wikipedia.org/wiki/Samsung_Engineeringhttp://en.wikipedia.org/wiki/Samsung_Engineeringhttp://en.wikipedia.org/wiki/Samsung_C%26Thttp://en.wikipedia.org/wiki/Samsung_Life_Insurancehttp://en.wikipedia.org/wiki/Samsung_Everlandhttp://en.wikipedia.org/wiki/Theme_parkhttp://en.wikipedia.org/wiki/Cheil_Worldwidehttp://en.wikipedia.org/wiki/GDPhttp://en.wikipedia.org/wiki/Miracle_on_the_Han_Riverhttp://en.wikipedia.org/wiki/Linuxhttp://en.wikipedia.org/wiki/Mobile_operating_systemhttp://en.wikipedia.org/wiki/Smartphonehttp://en.wikipedia.org/wiki/Tablet_computerhttp://en.wikipedia.org/wiki/Open_Handset_Alliancehttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Computer_hardwarehttp://en.wikipedia.org/wiki/Telecommunicationhttp://en.wikipedia.org/wiki/Open_standardhttp://en.wikipedia.org/wiki/Open-sourcehttp://en.wikipedia.org/wiki/Open-sourcehttp://en.wikipedia.org/wiki/Apache_Licensehttp://en.wikipedia.org/wiki/Android_Open_Source_Projecthttp://en.wikipedia.org/wiki/Mobile_appshttp://en.wikipedia.org/wiki/Java_%28programming_language%29http://en.wikipedia.org/wiki/Google_Playhttp://en.wikipedia.org/wiki/Google_Playhttp://en.wikipedia.org/wiki/Java_%28programming_language%29http://en.wikipedia.org/wiki/Mobile_appshttp://en.wikipedia.org/wiki/Android_Open_Source_Projecthttp://en.wikipedia.org/wiki/Apache_Licensehttp://en.wikipedia.org/wiki/Open-sourcehttp://en.wikipedia.org/wiki/Open-sourcehttp://en.wikipedia.org/wiki/Open_standardhttp://en.wikipedia.org/wiki/Telecommunicationhttp://en.wikipedia.org/wiki/Computer_hardwarehttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Open_Handset_Alliancehttp://en.wikipedia.org/wiki/Tablet_computerhttp://en.wikipedia.org/wiki/Smartphonehttp://en.wikipedia.org/wiki/Mobile_operating_systemhttp://en.wikipedia.org/wiki/Linuxhttp://en.wikipedia.org/wiki/Miracle_on_the_Han_Riverhttp://en.wikipedia.org/wiki/GDPhttp://en.wikipedia.org/wiki/Cheil_Worldwidehttp://en.wikipedia.org/wiki/Theme_parkhttp://en.wikipedia.org/wiki/Samsung_Everlandhttp://en.wikipedia.org/wiki/Samsung_Life_Insurancehttp://en.wikipedia.org/wiki/Samsung_C%26Thttp://en.wikipedia.org/wiki/Samsung_Engineeringhttp://en.wikipedia.org/wiki/Samsung_Engineeringhttp://en.wikipedia.org/wiki/Shipbuilderhttp://en.wikipedia.org/wiki/Samsung_Heavy_Industrieshttp://en.wikipedia.org/wiki/List_of_the_largest_technology_companieshttp://en.wikipedia.org/wiki/List_of_the_largest_technology_companieshttp://en.wikipedia.org/wiki/Samsung_Electronicshttp://en.wikipedia.org/wiki/Chaebolhttp://en.wikipedia.org/wiki/Seoulhttp://en.wikipedia.org/wiki/Samsung_Townhttp://en.wikipedia.org/wiki/Conglomerate_%28company%29http://en.wikipedia.org/wiki/Multinational_corporationhttp://en.wikipedia.org/wiki/South_Korean
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    more than 450,000 apps available for Android, and the estimated number of applications

    downloaded from the Android Market as of December 2011 exceeded 10 billion.

    Android was listed as the best-selling smartphone platform worldwide in Q4 2010 by Canalys

    with over 300 million Android devices in use by February 2012. According to Google'sAndy

    Rubin,as of February 2012 there are over 850,000 Android devices activated every day.

    Galaxy Nexus,the latest "Google phone"

    The Android operating system for smartphones was released in 2008. Android is an open-

    sourceplatform backed byGoogle,along with major hardware and software developers (such

    as Intel,HTC,ARM,Motorola and Samsung, to name a few), that form theOpen Handset

    Alliance.The first phone to useAndroid was theHTC Dream,branded for distribution byT-

    Mobile as the G1. The software suite included on the phone consists of integration with

    Google's proprietary applications, such as Maps, Calendar, and Gmail, and a full HTML web

    browser. Android supports the execution of native applications and a preemptive multitasking

    capability (in the form of services). Third-party apps are available viaGoogle Play (released

    October 2008), including both free and paid apps.

    In January 2010, Google launched the Nexus One smartphone using its Android OS.

    Although Android has multi-touch abilities, Google initially removed that feature from the

    Nexus One, but it was added through a firmware update on February 2, 2010.

    Concerning theXperia Play smartphone, an analyst at CCS Insight said in March 2011 that

    "Console wars are moving to the mobile platform". In the same month, the HTC EVO 3D

    was announced byHTC Corporation,which can produce 3D effects with no need for special

    glasses (autostereoscopy). The HTC EVO 3D was officially released on June 24, 2011.

    http://en.wikipedia.org/wiki/Andy_Rubinhttp://en.wikipedia.org/wiki/Andy_Rubinhttp://en.wikipedia.org/wiki/Galaxy_Nexushttp://en.wikipedia.org/wiki/Google_Nexushttp://en.wikipedia.org/wiki/Android_%28operating_system%29http://en.wikipedia.org/wiki/Open_sourcehttp://en.wikipedia.org/wiki/Open_sourcehttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Intelhttp://en.wikipedia.org/wiki/HTC_Corporationhttp://en.wikipedia.org/wiki/ARM_Holdingshttp://en.wikipedia.org/wiki/Motorolahttp://en.wikipedia.org/wiki/Samsunghttp://en.wikipedia.org/wiki/Open_Handset_Alliancehttp://en.wikipedia.org/wiki/Open_Handset_Alliancehttp://en.wikipedia.org/wiki/Android_%28operating_system%29http://en.wikipedia.org/wiki/HTC_Dreamhttp://en.wikipedia.org/wiki/T-Mobilehttp://en.wikipedia.org/wiki/T-Mobilehttp://en.wikipedia.org/wiki/Google_Playhttp://en.wikipedia.org/wiki/Nexus_Onehttp://en.wikipedia.org/wiki/Xperia_Playhttp://en.wikipedia.org/wiki/HTC_EVO_3Dhttp://en.wikipedia.org/wiki/HTC_Corporationhttp://en.wikipedia.org/wiki/Autostereoscopyhttp://en.wikipedia.org/wiki/Autostereoscopyhttp://en.wikipedia.org/wiki/HTC_Corporationhttp://en.wikipedia.org/wiki/HTC_EVO_3Dhttp://en.wikipedia.org/wiki/Xperia_Playhttp://en.wikipedia.org/wiki/Nexus_Onehttp://en.wikipedia.org/wiki/Google_Playhttp://en.wikipedia.org/wiki/T-Mobilehttp://en.wikipedia.org/wiki/T-Mobilehttp://en.wikipedia.org/wiki/HTC_Dreamhttp://en.wikipedia.org/wiki/Android_%28operating_system%29http://en.wikipedia.org/wiki/Open_Handset_Alliancehttp://en.wikipedia.org/wiki/Open_Handset_Alliancehttp://en.wikipedia.org/wiki/Samsunghttp://en.wikipedia.org/wiki/Motorolahttp://en.wikipedia.org/wiki/ARM_Holdingshttp://en.wikipedia.org/wiki/HTC_Corporationhttp://en.wikipedia.org/wiki/Intelhttp://en.wikipedia.org/wiki/Googlehttp://en.wikipedia.org/wiki/Open_sourcehttp://en.wikipedia.org/wiki/Open_sourcehttp://en.wikipedia.org/wiki/Android_%28operating_system%29http://en.wikipedia.org/wiki/Google_Nexushttp://en.wikipedia.org/wiki/Galaxy_Nexushttp://en.wikipedia.org/wiki/Andy_Rubinhttp://en.wikipedia.org/wiki/Andy_Rubin
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    Bada

    TheBada operating system for smartphones was announced by Samsung on 10 November2009. The first Bada-based phone was theSamsung Wave S8500,released on June 1, 2010,

    which sold one million handsets in its first 4 weeks on the market. Samsung shipped 3.5

    million phones running Bada in Q1 of 2011. This rose to 4.5 million phones in Q2 of 2011

    http://en.wikipedia.org/wiki/Badahttp://en.wikipedia.org/wiki/Samsung_S8500http://en.wikipedia.org/wiki/Samsung_S8500http://en.wikipedia.org/wiki/Bada
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    COMPANY PROFILE

    Type Business unit

    Industry Telecommunication

    Founded Seoul, South Korea 1977

    Headquarters Suwon, Shout Korea

    Area served Worldwide

    Key people Geesung choi, President

    Products Mobile phones,Smart Phone

    Telecommunication system

    MP3 Player, Laptop computers

    Revenue US$ 21.1 billion (2007)

    Net income US$ 2.3 billion (2007)

    Employees 344,000 (2010)

    Website Samsung consumers

    HISTORY

    Unlike other electronic companies Samsung origins were not involving electronics but other

    products.In 1938 the Samsung's founder Byung-Chull Lee set up a trade export company in

    Korea, selling fish, vegetables, and fruit to China. Within a decade Samsung had flour mills

    and confectionary machines and became a co-operation in 1951. Humble beginnings.

    From 1958 onwards Samsung began to expand into other industries such as financial, media,

    chemicals and ship building throughout the 1970's. In 1969, Samsung Electronics was

    established producing what Samsung is most famous for, Televisions, Mobile Phones

    (throughout 90's), Radio's, Computer components and other electronics devices.

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    1987 founder and chairman, Byung-Chull Lee passed away and Kun-Hee Lee took over as

    chairman. In the 1990's Samsung began to expand globally building factories in the US,

    Britain, Germany, Thailand, Mexico, Spain and China until 1997.

    In 1997 nearly all Korean businesses shrunk in size and Samsung was no exception. They

    sold businesses to relieve debt and cut employees down lowering personnel by 50,000. But

    thanks to the electronic industry they managed to curb this and continue to grow.

    The history of Samsung and mobile phones stretches back to over 10 years. In 1993 Samsung

    developed the 'lightest' mobile phone of its era. The SCH-800 and it was available on CDMA

    networks.

    Samsung has made steady growth in the mobile industry and are currently second but

    competitor Nokia is ahead with more than 100% increase in shares.

    Samsung Telecommunications

    Samsung Telecommunications is one of five business units within Samsung Electronics,

    belonging to the Samsung Group, and consists of the Mobile Communications Division,

    Telecommunication Systems Division, Computer Division, MP3 Business Team, MobileSolution Centre and Telecommunication R&D Centre. Telecommunication Business

    produces a full spectrum of products from mobiles and other mobile devices such as MP3

    players and laptop computers to telecommunication network infrastructure. Headquarters is

    located inSuwon,South Korea.

    In 2007 Samsung Telecommunication Business reported over 40% growth and became the

    second largest mobile device manufacturer in the world. Its market share was 14% in Q4

    2007, growing up form 11.3% in Q4 2006. At the end of November 2011, Samsung sold

    more than 300 million mobile devices and set still in second after Nokia with 300.6 million

    mobile devices sold in the first three quarter of 2011.

    http://en.wikipedia.org/wiki/Samsung_Electronicshttp://en.wikipedia.org/wiki/Samsung_Grouphttp://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/MP3http://en.wikipedia.org/wiki/Laptophttp://en.wikipedia.org/wiki/Suwonhttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/South_Koreahttp://en.wikipedia.org/wiki/Suwonhttp://en.wikipedia.org/wiki/Laptophttp://en.wikipedia.org/wiki/MP3http://en.wikipedia.org/wiki/Mobile_phonehttp://en.wikipedia.org/wiki/Samsung_Grouphttp://en.wikipedia.org/wiki/Samsung_Electronics
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    Objective

    Our project work focuses on the study of the Android ecosystem and how it differs

    from other mobile ecosystems such as those surrounding the iPhone. This project includes

    the study of the Android Market, (online mobile application store for Android users)

    application developers, and which factors developers consider for selecting a platform for

    application development. To understand application development trends across Android and

    iPhone platforms, we compared the Android market with the iPhone App Store, the leading

    application store in current mobile market, and how different kinds of developers are

    working for the Android, the iPhone, or for both the platforms.

    Apple launched an online application marketplace called the iPhone App Store before

    launching iPhone 3G. Currently, this store has more than 195,000 applications. To match or

    surpass the success of iPhone App Store, Apple rivals such as Google and Blackberry

    introduced their own application downloading stores called Android Market and

    Blackberry App World respectively. The Android Market is similar to the iPhone App

    Store or to any other application store; it boasts a catalog of applications, services and tools

    available for the user to purchase download and use. Today, the Android Market also has

    around 49,000 applications. Thus, the comparison between iPhone and Android application

    stores will help explain the new challenges faced by these two application stores, and also

    the demand for these stores in the near future. This study will help understand why third-

    party developers choose the Android over the iPhone, what determines their success, which

    large companies are directly involved in developing applications for Android, and which

    factors they consider for developing an application.

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    LITERATURE REVIEW

    In order to achieve success in project implementation, the first step is to research and

    find information already available. During research, we found many articles related to our

    topic. This paper is based on the content from these articles. We have divided the this sectionin four main areas: (a) Overview of the Mobile Ecosystem (b) Overview of Platform

    Leadership (c) Fundamentals behind the Open Source Platform (d) Introduction to the

    Smartphone

    Overview of the Mobile Ecosystem

    As we know, mobile phone usage has been increasing dramatically over the last several

    years. Globally, if a usage comparison can be carried out between PCs and mobile devices;

    mobile devices have approximately 3.5 times more usage then PCs. These mobile deviceshave become a platform to support wide variety of data applications such as capturing and

    sharing photos, downloading, recording, and sharing audios and videos, and gathering

    information from the Internet, to list but a few. At the same time the way people use their

    mobile phones has also been changing noticeably, from voice calling and text messaging to

    data applications. This trend arises from falling handset price, larger phone screen size, better

    and faster mobile processors, affordable price of storage, etc. Thus, the mobile phone has

    become a complex system requiring integration of a wide range of component suppliers and

    an equally complex distribution system. By reviewing a paper written by Dr. Joel West and

    David Wood, (2008) this section is divided further

    Mobile/Wireless - Business Ecosystem

    Any firms performance depends on success of their own business ecosystems, which can be

    larger than the firm itself. A mobile/wireless ecosystem typically contains network of

    suppliers, distributors, product or service makers, and technology providers which have an

    effect on, or are affected by the creation and delivery of a companys own benefits.

    Moreover, a mobile/wireless ecosystem is highly interdependent among member firms (and

    other bodies) and some of these ecosystem members, being well-located, play a crucial role

    in connecting ecosystem members and catalyzing links between other members. (Joel and

    David, 2008) Also to optimize performance, a complex product ecosystem requires alignment

    of interest among various members and partition of the technical and business responsibilities

    among these members. The following figure gives an idea of how the mobile business

    ecosystem life cycle works

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    Categories in the Mobile/Wireless Business Ecosystem

    The major categories include:

    Original Equipment Manufacturers (OEMs).

    They create new devices or handsets for end users by combining externally sourced or

    internally developed hardware and software.

    Semiconductor Manufacturers.

    They provide compatible hardware anddrivers for their respective hardware components.

    Operating System Vendors. (OSVs)

    They provide platform, SDK, and features to OEMs. They also promote and support

    application developer communities.(William, 2009)

    User Interface (UI) Suppliers.

    They determine mobile phone companiesuser interface development groups, and they work at

    the application level dealing directly with users. Most UI code is distributed through platformoperating system vendors (OSVs) (e.g., ACCESS, Google), original equipment

    manufacturers (OEMs) (Apple, Motorola) or via open source projects (e.g., GNOME,

    Enlightenment), or even handset OEMs (e.g., Motorola and MOTOBLUR)

    Wireless Network Operators.

    They provide distribution channels forphones in different countries, and also determine what

    software components should be preloaded on phones. Operators also have their developer

    program that includes Software Development kit (SDK) and app stores. e.g., Sprint Developer

    Program, AT&T Developer Program.

    Enterprise Software Developers.

    They develop company compatible software for its own employees that use companys

    phones.

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    Other Software developers.

    They can also be referred to as independentsoftware vendors. (ISVs) There are large ISVs, (e.g.,

    Google, eBay, Amazon) small ISVs and individual developers who make user applications and

    also middleware components such as database.

    Consultancies and training centers.

    They include firms that are licensedby specific mobile phone companies to provide training

    courses based on firms software development kit. It plays minor role in the ecosystem. In

    many cases, however, it happens that members of a mobile phone ecosystem, for e.g.,

    Symbian ecosystem, are also members of competing mobile phone ecosystems such as

    Windows Mobile, Googles Open Handset Alliance, etc.

    Study of Mobile/Wireless Ecosystem Tradeoffs

    The firm that sponsor a business ecosystem, also inherit issues such as how to collect the

    ecosystem requirements for a new product, how to balance between interested participants

    and ecosystem leader, and how to prioritize the conflicting needs of various ecosystem

    participants (Joel & David, 2008). To overcome these above mentioned difficulties, firms

    have to face a series of tradeoffs in managing ecosystem relationships. These tradeoffs could

    be made under conditions of limited sources, time, and knowledge of the future which

    include:

    Breadth vs. Depth.

    A sponsor, who participates in the mobile/wireless ecosystem, can deeply engage with a

    limited number of key partners to maximize their chance of success without increasing

    amount of time and money. Or a sponsor can engage with a large group of partners to make

    sure that all possible important partners are addressed.

    Scale.

    The sponsor can provide personal attention, but it has a limited reach. A large

    mobile/wireless ecosystem will provide less personal attention compared to a small

    mobile/wireless ecosystem, but it can reach a large audience. So the firm has to consider

    economy of scale during implementation of their own business ecosystem.

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    Customization vs. Standardization.

    The customized business programs,made to fulfill individual needs, could be more effective

    but less efficient. But by doing standardization of these programs, a sponsor could support all

    its members in more efficient way except their elite partners

    Prioritization and Tiering.

    A random distribution of partner importancecan result in unbalanced attention by giving an

    importance of two-to-four levels. To tier this business program, the sponsor needs a number

    of decisions such as how many partners should be in each category, how much resources

    need in each category, what is the potential revenue, what is the size of channel, etc. If an

    important partner is neglected by sponsor, it could turn out as a missing an unfamiliar one.

    The biggest challenge for a real business ecosystem is how to capture loyalty and attention of

    its partners who could be members of multiple competing ecosystems. In mobile phone

    ecosystem, these partners include software developers, handset manufacturers, operators, etc.

    Thus, a mobile/wireless business ecosystem is the interdependence of technical and

    economical relationships, and it has a significant degree of variation between firms.

    Overview of Platform Leadership

    As mentioned above, a mobile phone ecosystem is very complex; it requires the involvement

    of many participants with different expertise. There are two fundamental forces behind the

    creation of a complex productinterdependency and innovation. These high-tech companies

    are able to produce what they want, by getting the required components from suppliers.

    Sometimes, these suppliers deliver some other complementary products so called

    complements along with main components. So the main product made by firm has

    interdependency with these complements. Platform leaders have to work very closely with

    other firms to built innovative and new generation of complement products in their

    competitive market. In order to achieve platform leadership, firms can use a framework

    called the Four Levers to design a platform leadership strategy, more effectively (Gawer,

    A. & Cusumano, M (2002).

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    Comparative Study of I Phone VS Samsung

    Page 28

    Area of Study

    Samsung Electronics Co., Ltd. (KRX: 005930) accused Apple Inc. (Nasdaq: AAPL) of using

    litigation to limit consumer choice after the iPhone maker said it was seeking to halt U.S.

    sales of Galaxy S3 smart phones.

    "Apple continues to resort to litigation over market competition in an effort to limit consumer

    choice," Samsung said in a statement. "We will continue to take the necessary legal measures

    to ensure the availability of our innovative products in the United States."

    Seeking to capitalize on a recent major legal victory over its rival Samsung, the Cupertino,

    Calif.-based electronics giant, in a separate case, asked a federal district court in San Jose,

    Calif., on Friday to add four more products to a list of Samsung products that Apple says

    infringe its patents.

    In February, Apple alleged that at least 17 Samsung products infringe its patents. In the

    amended lawsuit, Apple added Samsung's flagship smartphone Galaxy S3, Verizon Galaxy

    S3, Galaxy Note and Galaxy Note 10.1.

    In documents filed Friday, Apple said those 21 Samsung smartphones, media players and

    tablets released after August 2011 were "copycat products."

    "Rather than innovate and develop its own technology and a unique Samsung style for its

    smartphone and tablet computer products, Samsung has chosen to copy Apple's technology,

    user interface and innovative style," Apple said in one document.

    Samsung's Galaxy S3 hit the 10 million global sales mark in July, less than three months after

    its release. The rampant sales drove Samsung's quarterly profit to a record high of nearly 8

    trillion won ($7 billion) for the June quarter.

    At the time, analysts were forecasting that Samsung, which controls more than a third of the

    global smartphone market, would sell 15 million to 20 million of its Galaxy S3 in the

    September quarter.

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    Comparative Study of I Phone VS Samsung

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    If the court finds those devices are infringing Apple's patents, it could temporarily halt sales

    in the U.S. market even before the trial begins -- an outcome Samsung is anxious to prevent.

    Apple last week won $1 billion in damages in a separate case after a U.S. jury found that the

    South Korean company had copied critical features of the popular iPhone and iPad. Samsung

    has vowed to appeal the verdict, all the way to the U.S. Supreme Court, if necessary.

    On Aug. 27, Apple gave U.S. District Judge Lucy Koh a list of eight Samsung products it

    wants pulled from shelves and banned from the U.S. market, including popular Galaxy model

    smartphones.

    A new study reveals that Apple's iPhone has already crushed the eight Samsung smartphones

    that it wants to have banned in the U.S. markets, Wired.com reports.

    Advertising analytics firm Chitika measured a week's worth of U.S. mobile web traffic

    generated by the iPhone versus the eight contested Samsung phones.

    The study showed that iPhones drove eight times the mobile web usage of all eight Samsung

    models combined.

    In other words, iPhones accounted for 88 percent of all web traffic analyzed, versus 11

    percent generated in total by all the Samsung phones.

    Shares of Apple Inc. (Nasdaq: AAPL) closed up 0.21 percent on Friday. So far this year, the

    stock has gained 64.26 percent.

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