Sunday, December 09, 2012

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.

23 comments:

Sam Konstanty said...

1) Some of the barriers to entry for other mobile phone companies are: customer loyalty to existing companies in the oligopoly, the network effect, the superior research and development of existing companies, and the superior stock and investment.
2) Due to the numerous barriers to entry, it is understandable that few firms produce mobile phones, for it is hard to compete with the superpowers of Apple, Nokia, and Motorola. New companies won't be able to compare to the advertising, development, and innovation of Apple, so a firm would have to create a completely different product with heavy advertising to attain a spot in the phone market.
3) Obviously, this question is archaic. However, Apple did penetrate the phone market due to its innovation and product differentiation as stated in the article.
4) The knock offs of the iPhone, like any other knock off, drive away purchases since the knock offs can be made much cheaper. If the Chinese can attain a similar phone for cheaper, they will stray from Apple sales. Also, the knock offs could be sold on the black market, decreasing sales globally, not just in China.

Going along with number 3, Apple provided a product completely different than any other phone on the market, which appealed to the customers. Apple stayed ahead of other companies in terms of ideas and technology , securing itself in the global market.

Caleb Cheung said...

1. In today’s market for mobile phones the barriers that exist for entry of other mobile phone companies are already well-established mobile phone companies that prevent any new entry mobile companies because of their dominance in the market from loyalty from customers, and the built networking of the companies to manufacturers.

2. I think that few firms produce mobile phones because of the market is already dominated by large successful firms that make it almost impossible for new firms to enter the market and make a profit because the dominance of the large firms will out sell the new firms and force them out of the market.

3. I think Apple will be able to successfully penetrate the mobile market because of the uniqueness with a whole new type of cell phone that converts their well loved IPods from the past into a phone with features that have not been seen in the market yet.

4. I think cheaper “knock-offs” of the Apple iPhone will pose a HUGE threat to Apples attempts to compete in China’s mobile market because Apple has and will be highly publicized in China as it has been in the United States which will draw large amounts of sales of IPhone but consumers will now know if they are buying real or “knock-offs” of the Apple iPhone which will result in the actual sales of Apple IPhone to suffer and have a large loss.

Anissia Wilson :) said...

1.Today mobile phones are pretty vain we pick phones because of their look or the name associated with it. The barriers that exist are: popularity, if the company is popular then more people will associate themselves with the company. How well the network works is also important, for example, everyone basically hates Sprint so Sprint is not the top mobile network. Also the type of phones networks support, like T-Mobile lost business because they didn’t have the iPhone.

2.Due to all the barriers there isn’t much variety in the mobile phone carriers. Also it is hard to build up a reputation when AT&T does such a great job for all its customers.


3.Well I think Apple did a pretty good job getting into the mobile market. iPhone has become the best phone to owe, whether you like Apple or not. iPhone has become the standard and any other phone that is released on the market will be compared to the iPhone. Other companies have tried like Android and Google phones but none have surpassed Apple and the iPhone.

4.In the beginning the “knock offs” were a huge threat but as Apple grows and proves itself to be superior, the “knock offs” become less of a factor. I think it has gotten to a point where most people know the iPhone just by its look and knock offs can try but they can’t fool people much now.


The iPhone had an idea that had never been successfully accomplished: release
an iPod and let consumers grow to love it, then release the iPhone. People liked the idea of having one device for everything and as time progressed the iPhone has become basically the only device we need. It has a phone, music, and a camera plus a thousand apps you can add to your phone to personalize it.

Jonathan Cheung said...

1. Because the mobile phone market currently is divided essentially into just android and iphones, the only barriers lie within which company receives the right to produce the newest android system. Although the Samsung Galaxy SIII has done comparatively well in sales, the just released LG Nexus 4, which has the newest android operating system, is back ordered 7 weeks. Its essentially a simple assumption that the long wait for the phone is for the software rather than the branding of LG. The barrier between the iphone and android phones essentially lie between operating system loyalties and preferences as the two are polar opposites of one another.

2. The question is somewhat flawed because of the statement about obtaining the rights for the newest operating system for the android phones. There is no competition directly with the iphone as a new phone company. Rather, it would have to approach through the android market specifically. But it is difficult for companies to start because of the fast-paced changes in android software, along with the lack of capable resources to produce the phones rapidly.

3. The question is quite comical to anyone who reads it with hindsight bias because Apple has swiftly etched its place into the mobile phone industry as the leader of the pack.

4. Debatably not much. The semi-annual release of a new Apple model phone provides the consumers with various affordable options for consumers to purchase in China, some even cheaper than the knock offs. Because consumers focus more on the branding and the quality of the products, the slight price difference for a legitimate older Apple product easily outweighs the fake, unreliable pseudo-iphones.

Sriniketh Srinath said...

1)The main barrier for entry that exists is that the iPhone is a completely different concept of the cell phone. People must be able to understand it and adjust to it.

2)The mobile phone market is dominated by bigger name companies. It would be tough for new companies to successfully compete.

3)I am from the future and I will tell you that Apple will not only penetrate the market but dominate it.

4)People like cheaper products. Why pay a lot for something that you could get for less? Apple must convince the Chinese that their product is the real deal and some cheap knockoff can’t even come close to the real iPhone.

Apple revolutionized the phone industry and became a hit. People liked the iPhone more than regular cell phones. It caught on and became a success. There are many products that try to change an industry but fail. Apple was not one of them. Now everyone is trying to compete with Apple instead of the other way around.

Danielle Sherman said...

1. Entering the mobile market is not easy. There are competitors as well as barriers. Because the market is basically already dominated, entering and being successful, one's chances are slim to none. Customers such as those with T-Mobile and will not switch, which is also a barrier.

2.The mobile market is hard to enter as well as be successful in. Advertising against competitors will take a lot of money, time, energy, and dedication.

3.Apple runs the market, in my eyes. The iPhone can do everything, and Apple not only supplies the public with the iPhone, but everything!

4. Cheaper "knock-off" iPhones to those who are unaware that it is a knock off can taint Apple's name. To those who know of the cheaper brand, Apple will lose business.

This article amuses me. The main phone markets, only three years ago,were "Nokia, Samsung, and Motorola"? It is just funny how things change so quickly. Like now almost everyone has an iPhone< i have not seen a MOtorola, let alone a Nokia, in a long time. The only reason I have seen a Samsung is because of T-Mobile, who does not sell the iPhone.

Donovan Bankett said...

1) Some barriers to entry are consumers reluctance to change phones and having new and innovative reason as to why they should buy a new phone.

2)I believe their are so few firms that produce mobile phones because of people's reluctance to change and the fact that people want what everyone else has.

3)Since I already know if they will or won't I have to say yes, but if I were asked when they first came out i believe my answer might have varied depending on the phones and their capabilities at that time.

4)Knock offs for any product dramatically lower the demand for the original product. So if China was able to make a cheaper knock off, demand for the iphone in China would drop or even disappear.

Jibin Kuzhippil said...

1) One of the barriers the iPhone had to face when entering the mobile phone industry must have been trying to convince consumers to switch from the phones they already know and trust to something new and untested. People who have good experiences with the phones they had at the time needed to be shown why they should take the risk and switch to a new phone with no history.

2) I believe new firms are nervous to get involved in the already congested mobile industry because the risk of losing money is so high, and in order to make money of a new product, their phone has to offer something other phones don't have to make themselves stand out

3)Apple's innovation in focusing on how the Phone looks helped it garner attention, as well as the fact that they spared no expense in making the phone to have the best products. Today, the iPhone is one of the best, if not the best, phone available in the market.

4) Anytime there is something valuable in the market, knock offs are sure to be created as well. The quality of the actual Phone makes the knockoff something that should not even get attention, or be worried about.

Iram nandolia said...

1) One of the barriers new phones encounter is competition of other major phone companies. Another is product differentiation where the company must establish a brand identification and customer loyalty through effective advertising and outstanding features. Also, a new company must make large initial capital investments from their own pocket or loans at the risk of not being successful. The company must have patents and government licenses.
2) I think many firms do not make mobile phones because as stated in the article the realm of the oligopoly is very difficult to break through therefore not many companies try. It is very difficult to gain supporters who are already committed to another comapny.
3) Apple has already been able to not only penetrate the mobile market but dominate it!
4) Knock offs prevent the company being able to make full profits from their products. Maybe in America where people have the desire to have the best of the best knock offs won't create that big of a threat but places such as china where people don't have as much money to spend knock offs will make a good profit

Eric Li said...

1) Barriers that exist in today's market for mobile phones include customer loyalty, the vast network, and the amount of money companies use to invest in the next attention - grabbing phone.

2) It is hard to innovate the next new thing on the market when your competitors are mobile phone giants that have been in the business for years.

3)Seeing as how the iPhone is already the standard, yes it has dominated the field of mobile phones.They will continue to dominate for some time until the competitors catch up.

4)The knock -offs cause sales to drop for the real iPhone. But having seen first hand Apple's presence in China, it can be noted that the knock offs are not doing well.

Apple was successful with the iPhone because of the new innovation it provided and brought the standard up to a whole new level. With more innovations expected from Apple, I can see it raising the bar further.

Ross Lasris said said...

1. The barriers to entry in the market for mobile phones are similar to just about any market a person would enter today. Other companies have already been doing it for much longer and have probably sunk a lot more money into putting out competitive products.
2. There are only so many things you can do with a cell phone while still keeping it competitive as a product. Consumers know what they want and the biggest companies are already producing the best products technology will really allow. There's no room in the cell phone market for new companies to make inferior products.
3. Apple did a good job of penetrating the market.
4. I don't think the fake products pose a real threat to apple. Even now there are tons of phones that could be considered superior to the iphone but none of them can manage to sell more. Its not even about the product in the first place its about the brand name. Who wants a fake coach purse? Who wants a fake iphone? What kind of sketchy place do you have to buy your phone from that they are selling fake phones, anyway?

Nidhin Sam said...

1. One of the primary barriers for a new company to enter the mobile phone market is that there are currently so many other competitors. Also, obtaining customers for a new company can be difficult because customers tend to be loyal to their existing company.
2. I think the main reason that more companies do not produce mobile phones is because of the current competition. If you look over the past 5 years, competition has gone through the roof as Apple, T-Mobile, AT&T, etc. have all vied for the business of the customers. Therefore, companies find another device that will be more profitable to them to produce.
3. Clearly, Apple did an excellent job in penetrating the mobile phone market. Through their innovative device, the iPhone, Apple fought their competition and made it in the market.
4. The knock-offs of the iPhone basically take away from profit that Apple can make from customers that buy a real iPhone. If the people of China can find a similar phone with similar specifications as the iPhone, yet at a much cheaper price, then they would buy that.

Apple was a huge success with the iPhone because they gave the consumers a product that had never been seen before. By doing so, they didn't step into the market, yet they leaped into it as the iPhone was a huge hit worldwide.

Rachel Choate said...

1. The barriers that currently exist are that there is no phone like an iPhone, and now people are so hooked, they don't see a reason to change.
2. It's a huge risk to go into the market, as it's expensive making a new phone, mass-producing it,and advertising it enough so that everyone wants it. You would have to be very, extremely brave to try to break into such an established market.
3. Of course!:)
4. Not very much, as seen in the video, Apple has thought out their plan very carefully. It's not easy to replicate the iPhone, and they obviously have more than a few secrets in the process that prevents the fake phones from working.

Apple presented a phone that had everything anyone wanted in a phone, and made it very easy to understand and use. What everyone loves about Apple's products is that it is so convenient, easy to store, light, and easy to use. At the same time, it has technology in it to do whatever you need to. That's why everyone, from ten year olds to executives of major corporations can and prefer to use Apple's products.

Steve Tomy said...

1. the main barrier is that there are other well established firms to compete against.
2. i think its because there are phones out there of levels that which they would have a hard time to overcome.
3. definitely, especially with their product differentiation thing going on.
4. the fakes lower profit for the real thing.

Kate Whitsitt said...

1)Consumers have never experienced apple in terms of a phone, therefore they may be suspicious of its durability and efficincy to actually work, which would cause a barrier to entry for the iPhone. Also, some people do not like trying new things an would raher stick with what they have than try something new.
2)There are few mobile companies in the market for the same reason that apple has not produced a mobile phone yet, it is difficult to get people to buy it. Producers have a didfficult time keeping up with the market and giving the people what they want.
3)I know that apple was able to penetrate the market becuase it was in the past, but it was a good idea so it did well.
4) Chines knock-offs will give customers a better buy and will be more appealing to most, however they will not be able to compete with the high technology and product. They might discover fater and better ideas that Steve Jobs as not thought of through make knock-offs aso.
Apple was such a success with the iPhone because of its popularity and usability. People were already extremely happy with apple products before the iPhone so they naturally would want that too. Apple

Mebin Mathew said...

1) There are many barriers for phones to enter the current market. If it is a new phone with completely new hardware, people will be wary of how it will function and other aspects of phones, such as durability and ergonomics.

2) Few firms produce phones because the market is dominated by a set archetype of phones, leaving no room for change or creativity. People will mainly buy phones that they know work and will rarely buy a phone outside of the mainstream phone market.

3)Since Apple already made a name for itself with many successful lines of iPod's, it is sure to leave an impact in the smart phone market. Now, it is pretty much the ideal cell phone, it is the first thing you think of when you hear the words "cell phone".

4) I doubt cheaper knock offs will have a huge impact on purchases. Sure it will have some effect, because people will want to buy something cheap, but in the end, most tend to stick with something they know to work and will not be likely to deviate from this norm. There is already a negative stigma attached to knock off brands, so it won't be too big a problem.

Apple brought something different to the market. It integrated its well known iPod with the standard cell phone and set off a revolution of a new era of smart phones. Apple started creative and made great strides, which inevitable carved its place the the market.

Cristian Schaffler said...

1. The most obvious barrier to me would be the fact that reputation is the most important factor when it comes to anything electronic. People will not purchase a product when they do not feel secure that the product will work properly without failure.
2. Because firms know better than to join a race as competitive as the mobile phone market without having something extremely innovative.
3. At this point someone would hit you in the back of the head if you didn't think so.
4. As far as the US goes knock offs hardly do well at all, mostly due to social reasons. In china, however, I am uncertain it always depends how the knock offs are made. If the knock offs function as properly as the apple product then it will damage apple quite a bit.

The two major factors that made apple the behemoth it is today are 1. Popularity and 2. Innovation. On the innovation topic; people want to feel like they are evolving, it is a simple desire however very few things fulfill it. Moving to the popularity topic if it had not been for all the people buying this product and showing it off to their friends, I do believe that without popularity an item will fail, even the iphone if no one ended up buying it (as unlikely as it is).

AndrewLu said...

1) Many barriers exist in the mobile phone market. One, customers are used to the same big name companies such as the ones mentioned in the article (Nokia, Samsung), and are hesitant to use another company that, while innovative, is extremely new to the industry. Hence, people are more inclined to stick with the norm and use companies that they are used to, supposedly. Funny thing is, people actually like innovation.
2) So few firms actually sell phones because, as I mentioned earlier, companies are scared to enter a market that has long been dominated by certain big corporations. Innovation is hard, especially for small companies trying to enter such a big industry. Thus, people are less inclined to compete with other phone companies.
3. LOL. Do I think apple will be successful? Well, I don't know...just kidding. This is a weird question for us to answer now since we know the answer already.
4. Well, obviously, cheaper alternatives act as substitutes that people will be more willing to buy because of the lower opportunity cost (I.E. cheaper phone).
Apple is a success because, first and foremost, they are innovative. They are always ahead of the industry, starting with the iphone( smartphone industry) and then into the tablet industry, apple has always been one step ahead of other corporations.

Sarah Hordern said...

1) Barriers include previously established companies with reputations that buyers will prefer to use than risk a new companies possible downfall. Also there is a universality to phones of this age - everyone wants something similar but better. Because of this, it is even more difficult to create new companies, as all the phones are the same to the point that brand names tend to be all that's different. At most there are three distinctive types of smart phones. Blackberries are virtually extinct. Flip phones are a sign of an obsolete technology.

2)Again, because the market is so built by brand names and companies. Also, those companies have proved themselves not above suing one another for small device implements, an action that would prove devastating on younger companies.

3)Hello dated question. Yes. Apple succeeded. It went hand in hand with current phone providers to make its way into the current market, proving the questions of the article irrelevant.

4)While the "cheaper knock-offs" take away some of the buyers, knock offs tend to have lowered quality - if they are not outright black market sales. And there is still a percentage of people that buy as part of a status symbol, allowing Apple to continue with a buyer base in that area.


Apple took the idea of a smart phone and made it into what it has become. While not necessarily the first to create an iPhone-like product, the advertising of the company and the that status buying its products grant contributed to its extreme success. Apple introduced the idea of staying sleek and advanced into mainstream.

Ashna Raju said...

1. One of the greatest barriers of entering in the mobile phone business is popularity. A company should be reputed for their service and must be able to bring forth phones that are unique, only offered by this specific company. This particular company should prove to be unique so people would not be reluctant to try the new phone company.
2. Along with the barriers to entry, business people would resist starting a new firm of phone company because becoming successful in the phone company business area is extremely challenging as there are already existing powerful phone companies.
3. Apple would probably be successful because their products offer variety and more technical comforts. They can easily attract customers which would boom their business.
4. At one point when Apple was not as popular, the knock offs were a huge factor that reduced their business. Realizing their threats, Apple stepped up their game and introduced even better products which made them preferable over the knock offs.
I personally believe that Apple was successful with their Iphone because it was an entirely different product from what was previously introduced. Their uniqueness and what they had to offer put their products on demand raising their profits with the high price.

Edward Qin said...

1) the barriers for the mobile phone companies are probably the intensive competition already existent in the market between the big companies. To sell your product, you must be extremely innovative and smart in advertising.
2)The existent powerhouse in mobile phones dominate the market, making it extremely difficult for innovations to develop in in people who wants to make their own phones. Simply, the money put into their phones by the big names greatly discouraging other companies.
3)I think Apple will be able to enter the market due to their reputation as a innovative brand with a strong lineup of solid ideas for their products. Needless to say, Apple is now a major force in the industry.
4)Knock offs will most definitely reduce revenue for phone companies in general. People will settle for cheaper alternatives to the real thing, and thus denting, if slightly, the powerhouses of the mobile phone industry.

Innovation and good marketing are the key sale points that Apple incorporates for their product to sale so successfully. Apple's technological leaps into the business further cements its place as one of the premiere option for consumers.

Cameron Hastreiter said...

1) The barriers of entering the mobile phone industry are vast due to the pre existing phones with multiple things that they can do. It's hard to compete with a phone that are similar to the company's at hand. Many people have the same features but in a different format and it truly comes down to comparability for what people decide to use.
2) So very few firms produce phones because its difficult to compete with phones that are already out there and striving. People can't really jump in unless their mobile phone is incredible and revolutionizes the game much like Apple did but they were one of the very few people to do so.
3) Yes I think Apple can penetrate the mobile phone market with ease because of the distinct features they include in their phones which truly set them apart.
4) They pose little threat because even though they are cheaper you get what you pay for and that's just that. The iPhones price may deter people but the knock offs will be worse and not do anything close to what the real thing can.

Christine Yick said...

1)One of the primary barrier to entry exist in the market for mobile phones is popularity. often times customer's choice is based on the popularity of the company, not the function of the products. another example is having other competitors in the market, customers tend to be loyal to their existing company so obtaining customers for a new company can be difficult.

2. I think so few firms produce mobile phones because the market is already dominated by bigger name companies like samsung, Nokia. the risk of losing money is high. Therefore, there's hesitation on investing such a big project and may end up wasting their time, money and energy.

3. definitely, lol .

4. of course, the cheaper knock off will have an impact on purchases. it will lower the profit of the real iphone.

apple was a success with the iphone because it provides many media attention to apple. although apple started out with ipod. but not many people are in need of it. Unlike iphone, it is a combination of phone and ipod with many functions included. it gave the consumers a product that had never been seen before and set off a revolution of a new era of smart phones.