Abstract

The case discusses the role of Apple’s App Store in increasing the demand for the iPhone. It begins with a brief overview of Apple’s history and the several innovative products it introduced into the market. Later, it describes the launch of the iPhone, the subsequent development of apps for the phone, and the creation of the App Store to distribute these apps. The case also discusses some of the reasons for the amazing success of the App Store and the role played by the apps in increasing the demand for the iPhone. It concludes with an overview of the competition being faced by the App Store and a brief discussion on its future prospects.

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Identify the forces driving change in the global cell phone industry
• Assess the role played by apps in increasing the sales of the iPhone
• and Recognize the role of innovation in creating new markets.

Keywords

Apple, iPhone, iPod, iTunes Music Store, App Store, smartphone, Steve Jobs, iPhone apps, AT&T Mobility