BEIJING, July 11 CCID-Strategy-iPhone
BEIJING, July 11 /Xinhua-PRNewswire/ -- CCID Consulting, China's leading
research, consulting and IT outsourcing service provider, and the first
Chinese consulting firm listed in Hong Kong (Hong Kong Stock Exchange:
HK08235), releases its report on Apple's Strategy on 3G iPhone.
Apple stands out amongst other digital manufacturers with innovative
products. Its Mac or iPod+iTunes bundle successfully attract global attention
by adopting a style that is both fashionable and distinctive. The original
idea in 2007 behind iPhone was to share telephone fee and service income with
carriers, which caused a stir among mobile phone manufacturers that are used
to traditional sales means. However, amid global mobile phone market
competition, Apple has to restructure its marketing strategy that is to be
adopted by its 3G iPhone.
Firstly, as for price, compared with the first generation iPhone's $499
and $599, entrance price for 3G iPhone starts from $199, which rocked the
market with a surprise. Apple changes its high price strategy as part of its
product highlight, that although iPhone was launched just one year, in order
to achieve high profit, Apple puts out a new slogan ''Twice as fast, Half the
price'' for its 3G iPhone. Supporting WCDMA, assisted with GPS, and Chinese
Handwritten Input, also compatible with HSDPA network, its low price attracts
consumers' attention again. Secondly, Apple strengthens market share, that
with challenges from Nokia, Samsung, LG and RIM, iPhone's market share in the
American smart phone market share raised from 19.2% in 2008Q1, to 26.7% in
2007Q4. In order to satisfy users' demands and further stimulate iPhone's sale,
this low price strategy is the effective means to guarantee selling 10 million
sets of mobile phones by the end of 2008.
Secondly, as for sales mode, Apple enlarges iPhone's global sales scope.
3G iPhone will be launched in 22 countries and areas on July 11, including
Australia, Austria, Canada, Finland, France, German and Hong Kong. 3G iPhone
will then debut in 48 countries and areas, such as Argentina and Brazil.
Compared with 3G iPhone, the first generation iPhone is only sold in six
countries. On the other hand, Apple now has a ''subsidy plan'' with carriers,
that instead of taking away part of the service revenue from carriers, Apple
will split revenue from sales, thus clearing the obstacles for 3G iPhone
entering global market. Thirdly, first generation iPhone limits its sales
potential by confining to only one carrier per country, so Apple gives up this
exclusive carriers' sales mode. These series of measures review Apple's
ambition to push 3G iPhone market share in the global market.
However, behind low price and a new sales mode, 3G iPhone is not as easy
to get as it sounds. For those who would like to acquire iPhone with $199,
they will need to pay more money to carriers. Taking AT&T as an example, AT&T
up-regulates 3G iPhone users' tariff standard: the lowest service charge is
$39.99 every month; if users would like to use unlimited data service, they
have to pay another $30 every month. According to AT&T and Apple's two-year'
cooperative agreement, Apple will acquire $432 sales subsidy from every user,
on top of sales profit from just the iPhone. For Vodafone 3G iPhone users, 8GB
iPhone is 499 Euro, and 16GB is 599 Euro.
Apple adjusts its products and business mode to push 3G iPhone to its
global sales peak. However, if Apple would like to sustain in the smart phone
market and expand its influence in the mobile phone industrial chain, it
should further cater for market's actual demands to capture a broader
portfolio of users.
About CCID Consulting
CCID Consulting Co., Ltd. (hereinafter known as CCID Consulting), the
first Chinese consulting firm listed in the Growth Enterprise Market of the
Stock Exchange (GEM) of Hong Kong (stock code: 8235.HK), is directly
affiliated with China Center for Information Industry Development (hereinafter
known as CCID Group). Headquartered in Beijing, CCID Consulting has so far set
up branch offices in Shanghai, Guangzhou, Shenzhen, Wuhan and Chengdu, with
over 300 professional consultants after many years of development. The
company's business scope has covered over 200 large and medium-sized cities in
China.
Based on major areas of competitiveness: industrial resources, information
technology and data channels, CCID Consulting provides customers with public
policy establishment, industry competitiveness upgrading, development strategy
and planning, marketing strategy and research, HR management, IT programming
and management. CCID Consulting's customers range from industrial users in
electronics, telecommunications, energy, finance, automobile, to government
departments at all levels and diversified industrial parks. CCID Consulting
commits itself to becoming the No. 1 advisor for enterprise management, the No.
1 consultancy for government decisions and the No. 1 brand for informatization
consulting.
For more information, please contact:
Cynthia Liu
Coordinating Manager
CCID Consulting Co., Ltd.
Tel: +86-10-8855-9080
Email: liuyan@ccidconsulting.com
SOURCE CCID Consulting Co., Ltd.
