I came across this article from 3 years ago that didn't give Apple much of a chance with their new iPhone. Read the article and answer the 4 questions at the end of it. Then tell me why you think that Apple was a success with the iPhone.
Sunday, March 06, 2011
Does Apple Stand a Chance?
I came across this article from 3 years ago that didn't give Apple much of a chance with their new iPhone. Read the article and answer the 4 questions at the end of it. Then tell me why you think that Apple was a success with the iPhone.
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1) The cell phone market is already dominated by large and long established firms and the fact that other companies are quick to create ripoffs that remove any advantages of product differentiation make entering into the market a very difficult task.
2) It's a high risk market with demand reaching for the ultra high tech which is a difficult level to reach for a company just starting in it.
3) I'm gonna go with a yes.
4) First, it puts perspective on apples rather high prices by contrasting it with a phone that's dirt cheap, but claims to do all the things an iPhone does. Second, it lessens the demand for iPhones by giving Apple a competitor for people in the market for high-end phones.
Apple probably won out simply due to a rather long history of product reliability and the relative exclusivisity of Apple products. Paying the high price became a statement of social status, thus the demand for the iPhone could only go up.
1. The world is slowly become more dependent on technology. When something new new comes out, it is immediately shadowed by a newer, innovative object. The biggest challenge seems to be creating enough "hype" and financial basis for a phone.
2.As stated in the previous question, it is appealing to consumer's tastes as well as the cost.
3. Of course. Hasn't it already?
4.The major threat is that it takes away the original and causes demand to shift for a cheaper, copied object. Pretty much, cost is the biggest issue. if it works the same way, then why not get it?
1) The main entry barrier is the name. When you go to the store to buy a phone you know this will be a piece of technology that you will need to rely on, and who better to rely on than the people who have been doing it well for awhile?
2) Primarily due to the fact that to be successful in the mobile market, you need to bring something new to the table. With so few innovations left (so one might think) it's best for a company to do what they do best and steer away from mobile phone market until they can come up with something that people will go crazy for.
3) Not in a million years.
4) The iPhone's main threat (at the time this article was written) was the people's inability to tell the iPhone apart from som cheap knock-off. When something is new and not yet established, if something looks JUST like it than how can one be expected to tell them apart? In today's day and age it's all about getting the best deal on the best equipment, and Chinese knock-offs are seemingly like the real thing so why bother paying full price for something that looks exactly like the real thing?
I think that the Apple name was one of the main reasons it explode. Apple did such an amazing job revolutionizing the music player industry, why can't it do the same with phones? Also the quality of the touch-screen and the new App system made it a must-have.
1. when a new company or a firm lounge its new material, the biggest trouble that it could get is the already established firms. People tend to go for a more established firm because they now how the item or the material works. Once the people are satisfied with the item they naturally will flaw to the new market.
2. people need to communicate one way or the other. when the TV announces a newer, faster way t9o communicate people jump for the better product.
3. i think yes, pertaining to the current position.
4. first of all the phone is cheap, this would pose great threat for apple because the apple iPhone have a value to the phone rather than being cheap. secondly, with the cheap phone, the demand for iPhone will lessen. third, when a person hears it is from china the truth is they would buy more of their stuff than the latter
1. Cell phones are dominated by a hand full of companies. They control a certain percentage of the mobile phones made. The difficult thing about entering the market is that whatever great new innovation you may think of, someone can knock it down with a cheaper knock off.
2. They think that the industry already has its set companies and trying to jump in with them puts a great risk on their company.
3. People love apple. The love Apple IPODS Apple MacBooks, they will be able to win over the market purely with the brand name they posses.
4. People can make an Iphone replica more affordable and try to knock them out, but it also would be a difficult task because Apple is an established brand that people trust.
1) These days the world depends on technology too much. When a new product is out, people get that and depend on that.
2) When a new technology is out, people don't care what the price level is. They just get that to cope up with the enviornment.
3)I would say yes.
4)It is better than a normal phone even though the cost is way higher than a normal phone. When people hear its from China the demand for the price will go up as the best products come from there.
1. Like all other forms of technological advancements in our nation’s economy, the cell phone industry is constantly looking and generating new ideas into their products. Therefore, in order for a starting company to become successful, their product must be well equipped to compete with other products that carry the well-known name brands of big-time companies who have established themselves for many years. People tend to rely on brands that they know they can trust.
2. Technology has developed so much that there is hardly anything left for companies to create or design. The lack of imagination and creativity makes it hard for companies to produce something especially with the continuous and rapid growth of technology.
3. Gee, I have no idea…
4. Personally, if there was a phone, or any product for that matter, that possessed all of the quality and functions that its competitor did and carried a lower price, but did not necessarily carry the same brand name, I would probably consider buying the “knock-off” version. Clearly, the “knock-off” products present a cost effective issue as well as a negative shift in demand towards the iPhone, which at the time of this article, would have proved to be detrimental to the promotion of the iPhone.
1.People like brand names that are common and well-known. A new company needs to spend tons of money on advertising to even grasp a couple hundred people’s attention, much less, encourage them to invest money in their product.
2.These few brands are known for being the best and it frightens people to try to put a new product out there that might not succeed.
3.Apple has and will continue to transform the mobile market. It seems to be leading everyone else already.
4.China’s cheaper phones may pull some people away, but brand name means a lot to many people. China will back off once Apple continues to grow.
The iPhone was a unique product that stood out among all the other phones. Apple became a success because they made a product that has changed the world.
The reason that Apple was succesful with the iPhone was its ability to read the market. They knew smartphone were confusing and that touch interfaces were becoming the way. So they made a phone that was very simple and had the best touch screen on the market. Its app store was revolutionary and allowed for an even better user interface. While China could make a phone that looked similar it could not create software superior to the iPhone. China did not have the ability to make apps on that wide of a scale. The iPhone was an example of capitalism. When something better comes along it will take hold and the others will have to adjust to the new standard.
1. The reason that the cell phone market is hard to enter is that there are companies that have been in the market for a long time. Therefore, these companies have established their reliability, their products and their dominance.
2. It costs a lot of money to produce a cell phone. It is also risky when one company could produce a new product and another company could produce a similar product as a lower price. The market is too competitive and ruled by long standing companies.
3.Yes, I do believe they have a chance at excelling. They have good advertising and a high tech new device.
4. The cheaper phone takes away some of the market in China. But although they claim the phone is virtual the same just at a lower price, you never know. Reliability comes with paying the higher price which may help apple's sales in China.
I believe that Apple did so well because of their forever changing and upgrading iPhone. Also, Apple has great commercials and service to help with any issue that may be presented. The phone is really one of a kind.
1) Cracking the top four companies is hard simply because all their phones are quite similar. There isn't much difference in the capibilities of phones in different companies, therefore what people pay for are the established companies that they can trust.
2) The techonlogy with phones is changing rapidly so it is hard to keep up with it, it would require alot of funding and progressive breakthroughs to make the better phone.
3) It definitely has.
4) You can have some knock off iphone but if it won't work with itunes then there really is no point whatsoever to wasting 20 dollars on that knockoff.
The constant apps and updates with its sleek design and its simplicity to use is why i think the iphone was so successful.
1. First, people tend to buy brands that they already know or heard about. Besides the long established firms,the biggest challenge seems to be more original than the rival company. Why should I buy an Iphone if a Nokia can do the same?
2. Producing phones is very time consuming, costly ,and risky. All the money for testing and advertising may not pay off by the sale. No one knows if the phone is going to be the best-seller or a piece of trash since consumers' taste change quickly. Maybe another brand name Lemon will take over in several years..
3. Apples has already make a place in the mobile market. Even though it has multiple issues over the phone. I just don't think it is as big as people think. Many people are willing to go for Adriod phones because they are cheaper or sometimes free by contract, and they can perform similar functions as an Iphone.
4. Knock-offs are obviously going to hurt the original market because they look and work the same as the original with less money. If the threats are big enough, Apple may just move out of the Chinese market because no one wants them anymore.
But to be honest, a lot of people in China do care about the brands and they will buy the real Iphone just to show off.
Apple is successful because it knows what the customers want and slowly changes the way we think. It seems like now days people are going to laugh as you when you have a regular phone, of course in my opinion that is unnecessary,but the society is pressuring the people to get better phones and cost the demand of Iphone goes up.
1.) The brand of the company definitely plays a significant role. But I guess in order to achieve "awesome brand" status you have to know what's 'hip' nowadays. The Apple company, for example, was already a well-established company due to its iPods which many consider cool, so I guess it all just depends on that.
2.) Well, it's hard to get into the business when there are already so many well-established companies out there. Innovation is also crucial to this industry. Not many companies can come up with anything nowadays to "wow" the consumers. The touch phones idea is gonna be as far as innovation gets for a long while I think.
3.) Yes. I like this question by the way.
4.) I don't think knock-off iPhones have posed a significant threat to iPhones so far. So many people have iPhones it's sorta crazy. I rarely meet anyone with a knock-off brand (but then again, how would I know I guess).
^ Apparently I need another paragraph so I'll just add on to that last post. Well, I think Apple became so successful because, as I mentioned earlier, it was already a well-established brand with its 'hip' iPods and macbooks, etc. Also, the touch screen idea seemed really innovative to everyone so I guess that also played a part in Apple's major success with the iPhone.
1) The reason why it is difficult for entry into the cell phone market is because it is already taken up by a huge percent amongst firms that dominate such as Nokia and Motorola, any firm that wants to be granted a successful entry must have some unique feature to make a mass number of consumers attracted to them, this rarely happens.
2) There is a lot of competition and risk in this market. Technology is rapidly advancing and phone companies have to come up with new attractions to keep their ranking high.
3)yes
4) In terms of money, obviously the consumer will have more of an inclination to buy the cheaper brand if it claims to have the same features as the Apple product. It makes sense to the consumer to save money and get a product that is equally comparable to the Iphone.
Apple was such a success with its Iphone because of its advertisements, and its reputation of creating top notch music players, laptops, and desktops. Just as the commercial posted on the blog showed, there's pretty much an app for anything, everything is made easier; anything easy and comfortable is what any typical consumer wants.
1. There are companies that are already well established and nearly control the cell phone market (at this time period) and as such make it difficult for new phones to come in and play a role in the market.
2. When a few firms can control production of the majority of the market, most of the competition can be more easily taken out and not allowed to play a role.
3. Yes, probably.
4.China has always been a tough market for outside competitors, so it isn't anything new and with a much cheaper price, a knockoff is much better to acquire, especially in a nation so... renowned for its knockoffs.
The iPhone presented an entirely new level of the smart phone that has become typical in today's market. As is now common with Apple, its products are second to none in many ways and the aesthetic appeal also plays a large role. in general, its one of the coolest phones out there and so it has been wildly successful.
1. The main barrier for entry is the existence of famous cell phone companies. Because people are already used to Nokia and Motorola, it takes a lot of convincing via ads and the like to get consumers to even look at the new products.
2. It's hard to create a phone that's never been done before. Unless the phone walks the dog, cleans the house, and pays the bills, it's probably been made by some other company awhile ago.
3. Only if they change the name to another fruit...apples are gross. What about Pineapple?
4. The knock offs pretty much do everything that an iPhone does, but they cost a lot less. Penny-pinching consumers would have absolutely no problems with buying the fake phone, leaving Apple in the cold with only a few savvy customers paying $700 for the real deal.
I think Apple has been able to do so well because of its availability. Apple is constantly reminding the public that it is a phone made for every type of person, be it the CEO or the stay-home mother. Although Apple products are not cheap in any way, they make people want to buy them. Wanna fit in? There's an app for that.
1) Cell phone markets are controlled by a few major firms, so anyone attempting to enter that market has to elbow its way into an already tight market.
2) The high risk of the market makes it a win-or-lose gamble, with a rapid destruction of anything which is unworthy of being in the market.
3) Well... three years in the future I can safely say they succeeded.
4) Knock-offs take advantage of Apple's often very highly priced goods, producing things of much lower quality, but for a much more affordable price. Thus, they can edge out Apple for those people hunting for a bargain.
Similar to what Andrew said, Apple's small but devoted following gave the phone its start, and as that group showed them off, iPhones began finding their ways into the hands of other people of the world.
1.) the largest barrier, i would say, is the fact that there are already so many phone companies in existence. In order to sell their product, there is lots of advertising that needs to be done to persuade individuals that your product is worth the hassle of switching phones
2.) mobile phones are a very complex device. companies have to do extra work in order to ensure that there is service everywhere,and put up more signal towers, and make sure they can keep up with the competition of the hottest new product. also, additional engineers and tech workers, not to mention marketing execs and pr workers need to be hired to deal with the differences of cell phones and making sure the product is bought.
3.) obviously, apple has had huge success with the iphone.
4.) the good thing is that china is not the usa. apple has PLENTY of buyers in the states, and other countries. plus, there are always the individuals that want the real deal, not some cheap knock off. there is also a high chance that buyers of said cheap knock off will realize the poor quality of the product and then upgrade to the real, better product.
nicole mclellan
1) I think you really need to be an established company to enter the cell phone market. The iPhone was a complete success because Apple is know for its innovative technology and unique look. It would be hard to stand up against well-known companies if you are not established.
2) I'm sure so few firms produce cell phones because they have nothing new to bring into the market. A phone is only going to be a hit if there is something unique and innovative about it. Also, I'm sure it would be hard to keep up with all the technological advances.
3) Yes? They have in my opinion. A lot of people have iPhones, and 90% of the people who don't have one, want one.
4) I don't think the knock-offs pose a threat. Apple is an established company that people trust. And I'm sure the knock-off cannot do everything that an iPhone can do.
1. The cell phone industry is filled with many companies so that the strict competition between these companies make it hard for a newcomer to survive.
2. Because there are already dominating companies that seem to hold their rank in the cell phone industry, less companies are willing to compete with them as the chances of them wasting money is high.
3. Well, with things as they are now, yes.
4. We all like to buy the cheaper product if possible since we are not billionaires. Apple is at a disadvantage due to price; however, if economy is good, some people are still willing to buy the real iPhone over the fake one due to product quality.
The iPhone probably became a success due to how popular the other electronic devises were from Apple. This fame might have brought people over to try the iPhone, and to their surprise, they liked it and now it has become a successful market product.
1. The mobile phone market has a few big companies that control much of the market share. They will try to resist any newcomer that could pose a threat.
2. Products have to be different to attract attention. If you are a new company, your cell phone has to be unique. The major companies out there have many of the popular niches covered, making anything that is both special and popular hard to accomplish.
3. Somthing tells me yes.
4. Chinese consumers are unlikely to purchase an expensive foreign product when a domestic and very cheap copy of it is available.
1) The well established, big boy mobile phone companies kill the infant mobile phone companies in their cribs before they have a chance to build up.
2) Making money off of mobile phones is challenging because it's the one product that requires innovative and practical technology. The high standard for innovation discourages firms to produce mobile phones because without new ideas, they're just copying the big wigs.
3) Yes, because Apple is quite innovative with their technology which makes life a little bit easier and thus, they tend to catch on with exceptional speed.
4) A cheap knock off that does the same stuff as the iPhone means that it makes more sense to buy the knock off version. A weaker hit on the pocketbook means that more people will be able to buy.
Apple's success with the iPhone was mainly due to it's innovative nature. The iPhone was something totally new and practical in that it could overcome the small speed bumps that made life annoying.
1. In the current market, there is so much competition that for new companies, it would be hard to enter the mobile phone business and remain a significant player.
2. Since the mobile phone industry is already dominated by competitive companies, firms wouldn’t bother to start a brand new company. The firm would probably just buy into an existing company, or even if the firm decided to produce its own phones, it would most likely be bought out by one of the already super giant existing companies, unless it has a new innovative idea, like Apple.
3. Definitely
4. Knock-offs take money away from the real brand. In Apple’s case, since this was their first phone in the market, it probably hurt their profits. However, because knock-offs are nothing compared to the real, reliable original brand, I’m sure Apple wasn’t too significantly hurt. Any company with a good product usually has people who knock-off their merchandise. Apple should be flattered. But then again, the Chinese knock-offs only effected only one of Apple’s many markets for consumers; it still had the rest of the world to sell its iPhones.
1)Barriers such as having a phone that is made of good quality and is from one of the top 4 mobile phone makers exist in the phone market. Also, they have to be original when designing a phone.
2) Only a few firms produce mobile phones because it takes a lot of work and money involved in making a phone. If the phone fails, it’s a loss of money and effort. A lot of people would be stick buying phones from the companies their familiar with.
3) Apple will be able to penetrate the market because what they created is original and unique. People would buy it because it’s different from everything else they’ve seen and Apple has loyal customers
4) The “knock-off” Iphones would prevent the consumers from buying the real thing. Because the iphones would be expensive and not everyone would be able to afford it, they would buy the cheap knock- offs.
Apple was successful with the iphone because they created something people haven’t seen before.
1. New things come out on the market every day basically and new phones are obsolete as soon as they come out. It is the name that matters and new companies cannot win. If it has Apple on its label it sells, no matter how bad it is. The name is all that matters.
2. As i just stated it is the name that makes the money. Money funds research and development. That research creates superior products. New companies do not have enough money to compete.
3. History has said yes so who am i to argue with history.
4. They offer little competition due to the name.
1) Mobile phone companies must cater to the desires of the general public, consisting greatly of the middle class. The desires tend to require an extensive amount of technology, and the technology tends to be expensive. Companies have to surpass have to figure out a way to include all the technology without making the product too pricey.
2) Few firms produce mobile phones because the market is competitive. Many companies tend to divert their focus from mobile phones to other technology, and if they can't manage multiple products, it will work against them.
3) I think they already have...?
4) The knock-offs pose a threat because they possess the same functionality as the iPhone at a cheaper price. They share the same look. However, I don't think Apple faces a problem in this case, because people feel the need to buy the real thing.
Apple had such success with the iPhone because they executed excellent marketing for a product that exceeded the public's expectations. Unlike other companies, Apple continues to improve the iPhone with each generation according to public interest.
I sent mine in Friday March 11,2011 but it never saved....
1) The main entry barrier is the name. When you go to the store to buy a phone you know this will be a piece of technology that you will need to rely on, and who better to rely on than the people who have been doing it well for awhile?
2)It is appealing to consumer's tastes as well as the cost.
3) Yes I believe so
4)It is better than a normal phone even though the cost is way higher than a normal phone. When people hear its from China the demand for the price will go up as the best products come from there.
1. The already established companies have created barriers to entry in the market for mobile phones. The other companies are already well known, liked, and trusted and have been for years. Consumers will have to overcome their fear of the unknown in order to switch to Apple’s iPhone and that fear is very hard to defeat.
2. New firms avoid producing mobile phones because they lack the innovation to make something that has not already been done before and even those that do, lack the ability to correctly market it and show its innovation. Companies also have been set in their ways and do not usually know how to make a good product “attractive”.
3. Apple will be able to penetrate the mobile market because they have a completely different approach and an innovative and different design. They are doing things that other companies have never done in the past and people like to have the newest products.
4. The cheaper “knock-offs” pose a very low threat in China’s mobile market because the knock offs will not be hardwired as expertly and will not have the technical support and many of the capabilities that the iPhone flaunts.
Apple was a success with the iPhone because they not only took one good idea and ran with it, but they combined hundred s of great and genius ideas all into one phone and made it look futuristic and made it work easily and it is an easy product and almost anyone can learn how to use one quickly.
1. Cell phones, more or less, are a statement. It's easy enough to replicate a model and produce it as your own but it won't be successful in the long term. Unfortunately, the only way to get in the cell phone business is to have already been in it. Name brands, like apple, will always dominate this market. 2. The main reason is competition. If a company that's not involved in the cell phone market and is successful on it's own, it will not want to risk name. 3. I'd say yes. 4. Apple's biggest threat at the time was it's the iphone's " newness" . It had yet to make a reliable name for the company in the cell phone market.
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