What factors contributed to the success of Apple’s iPhone?

7160 WordsJun 6, 201329 Pages
2010 Ninth International Conference on Mobile Business / 2010 Ninth Global Mobility Roundtable What factors contributed to the success of Apple’s iPhone? John Laugesen McMaster University, DeGroote School of Business Hamilton, Ontario CANADA laugesjd@mcmaster.ca Abstract — Unknown to most North American consumers, a mobile data and Internet service in Japan called i-mode has been highly successful in that country for the past decade. Unfortunately, mobile data services in North America have lagged behind many European and Asian countries. However, the situation changed rapidly with the iPhone, launched in the US in June 2007. Consumers lined up for days for the chance to purchase one, and over 500,000 units sold on the first weekend.…show more content…
When iPhone finally launched in June 2007, consumers lined up for days for the chance to purchase one and over 500,000 units sold on the first weekend. Since that time, millions of iPhones have been sold, arguably making it one of the most successful mobile phone products ever launched. Why has the iPhone been so successful? The objective of this paper is to provide evidence showing the factors that have contributed to success and the lessons that can be learned from the iPhone. The remainder of this paper is organized as follows. Section II provides the criteria used to determine the success of the iPhone, as well as support for the assertion that the iPhone can be deemed a success. Section III details the success model containing factors that have been identified as contributing to the successes of the iPhone. Section IV provides lessons learned from the iPhone launch and subsequent strategies and tactics. Section V outlines the contributions of this research to academics and practitioners as well as the research limitations and future research directions. 978-0-7695-4084-9/10 $26.00 © 2010 IEEE DOI 10.1109/ICMB-GMR.2010.63 B. ARPU and Churn Rates Average revenue per user (ARPU) provides the company a granular view (at a user or unit basis) and allows it to track revenue sources and growth. Churn rate refers to the proportion of contractual customers or subscribers (typically called postpaid) who leave a supplier during a given time

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