Apple's Strategies for the iPhone 3GS and Their Impact on the Global Smartphone Industry

• Publication date: July 2009

Abstract On June 8, 2009, Apple announced the third-generation iPhone product at its WWDC - the iPhone 3GS. The new product has not only been upgraded from the iPhone 2.0 OS to iPhone 3.0 OS, several hardware specs have also been improved. Besides continuing to use prices previously adopted for the iPhone 3G (US$199 and US$299) for the new iPhone 3GS, Apple has also reduced the price of the iPhone 3G to US$99. This strategy could increase com...

Abstract
On June 8, 2009, Apple announced the third-generation iPhone product at its WWDC - the iPhone 3GS. The new product has not only been upgraded from the iPhone 2.0 OS to iPhone 3.0 OS, several hardware specs have also been improved. Besides continuing to use prices previously adopted for the iPhone 3G (US$199 and US$299) for the new iPhone 3GS, Apple has also reduced the price of the iPhone 3G to US$99. This strategy could increase competitive pressure in the industry, which could further impact profit margins and push second- and third-tier vendors out of mainstream markets. This report examines Apple's strategies for the iPhone 3GS, and the possible impact of these strategies on the worldwide Smartphone industry.

Global Phones And PDA Industry

Table of Content
1. Apple Launches iPhone 3GS in June 2009
2. Low-price Strategy Shakes Up North American Mobile Phone Market
3. Palm Web OS and Windows Mobile Facing More Challenges
4. Apple's Price Strategies Could Lead to Domino Effect Similar to the Period after Nokia's Price Reductions in 2004
MIC Perspective
Appendix
List of Topics
1. New features of the iPhone 3GS
2. Sales volume of the iPhone product series
3. New price strategies of Apple for the iPhone series and the possible effects of these strategies, including the impact on other Smartphone vendors
4. Possible impact of Apple's strategies on outsourcing and supply chains
5. Competition trends in the Smartphone OS market in North America
6. Companies and organizations analyzed or mentioned in the report include:Acer, Alcatel, Amoi, Apple, AT&T, Bird, Compaq, Dell, Google, HP, HTC, IBM, Kyocera, LG, Microsoft, Motorola, NEC, Nokia, Palm, Panasonic, Pantech, Philips, RIM, Sagem, Samsung, Sharp, Siemens, Sony, Sony Ericsson, Sprint Nextel, TCL, T-Mobile, Toshiba, Verizon, VK
List of Tables
1. Table 1 Main Differences between iPhone 3G and iPhone 3GS
2. Table 2 Prices of Apple iPhone Products Bundled with AT&T Service Contracts, June 2007 - June 2009
List of Figures
1. Figure 1 Apple iPhone Product Series Sales, 3Q FY2007 ?2Q FY2009
2. Figure 2 The North American Mobile Phone Market, 2008
3. Figure 3 The Worldwide Top 5 Mobile Phone Vendors' Profit Margins, 2003 - 2008