Competitive Forces for the Iphone

5604 WordsJun 14, 201123 Pages
INTRODUCTION Apple Inc. has manufactured some of the most recognizable products in America today. From the commercial success of the Apple II in the early 80’s to the worldwide embrace of the iPod as a cultural icon, Apple Inc. has established itself as one of the leaders in innovative household technologies. Apple Inc. introduced and attempted to sell its first product, the Apple I, in 1976. The Apple I was not as successful as its creators, Steven Jobs and Steven Wozniak, had hoped. As a result, Jobs and Wozniak went on to introduce the Apple II at a computer trade show in 1977. The Apple II launched Apple Inc. to the forefront of the new computer era. Although it had a bumpy road in the 1980’s, Apple continued to grow into a…show more content…
Overall, the strength of Apple brand identity into a cell phone virtually differentiates more than any other attribute. Cost disadvantage: Apple has minimized this trait by using a number of manufacturing resources and channels available to it but it could be a significant barrier for new entrants. Also, Apple has invested substantially in knowledge and R&D which makes it difficult to emulate. Regulations: Apple was granted a patent for the iPhone which may help them keep competitors from emulating their phone too closely. Also, the regulations and approval requirements of the FCC, which governs communication and technologies, make difficult new entrants compliance. However, the existence of big players in the software industry such as Google and Microsoft may pose a credible threat at entering the cell phone market and trying to carve a niche. Bargaining Power of Suppliers Among the long list of Apple suppliers run providers of memory chips, touch screens, flashes, cameras, etc…. Worth to mention are their biggest suppliers Samsung who provide the silicon brains of the iPhone, Skyworks, Intel, and Broadcom. (Cohan, 2009). However, the parts itself are not the most important competent in the iPhone as they could be obtain from a number of resources and alternatives. What really gives the iPhone its attractive appeal and the capacity to combine together these parts allowing the user to
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