Launching iPhone: Apple's Entry into the Mobile Phone Market

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Case Details:


Case Code : MKTG185 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Shipping & Handling Charges extra


Marketing Communications/ Strategic Marketing/ New Product and launch strategy/ Market entry strategy
Case Length : 19 pages
Period : 2006-2007
Pub Date : 2008
Teaching Note : Not Available
Organization : Apple Inc.
Industry : Consumer Electronics
Countries : USA


This case is about one of the leading consumer electronics company, Apple Inc.'s (Apple) entry into the mobile phone market. The case discusses the launch of the much hyped iPhone, which was hailed by some analysts as the most successful launch of a brand ever. While many analysts hailed the innovative marketing strategy followed by Apple and also considered the iPhone to be a category-defying product, others felt that iPhone was over hyped and said that it was never good to over hype any products. Some analysts felt that Apple had a long way to go to realize its ambition of becoming a major player in the mobile phone market considering that the market had some very dominant competitors who had decades of experience behind them.

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Some analysts also viewed Apple's foray into this market as a defensive strategy necessitated by the introduction of music phones by some well-known mobile phone companies.


The case will help the students to:

• Understand the reasons behind Apple's entry into the highly competitive mobile phone market

• Understand the issues and constraints in entering a new market with a new product, and in this context understand how Apple successfully launched iPhone

• Understand how the companies can adopt word-of-mouth marketing to launch a product

• Understand the importance of product innovations in the marketing of technological products.


  Page No.
The Launch of the 'Jesus Phone' 1
Background Note 2
The Age of Convergence 4
Entry into the Mobile Phone Market 6
Marketing the iPhone 7
The Most Successful Launch Ever? 9
The Other View 10
Response from the Competitors 12
Outlook 13
Exhibits 14


Promotional strategies, Word of mouth marketing, Buzz Marketing, Innovation, Convergence, Mobile phone market, Category-defying, Pricing , Consumer electronics market, Apple retail stores, Mobile handset market, Motorola, Entry , iTunes, AT&T, Hype, Steve Jobs, iPhone, Marketing, Touch screen, iPod, Nokia, Samsung, Macintosh, Apple, Sony Ericsson

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