Download - Technology Trends: iPhone5
What
is a
sm
art
phone?
• A cellular telephone with
built-in applications and
Internet access. In addition to
digital voice service, modern
smartphones provide text
messaging, e-mail, Web
browsing, still and video
cameras, MP3 player and
video playback and calling. In
addition to their built-in
functions, smartphones run
myriad free and paid
applications, turning the once
single-minded cellphone into
a mobile personal computer
His
tory
of
a S
mart
Phone
• 1946 - AT&T establishes the first mobile network
• 1974 - Theodore George Paraskevakos patents the
basic concept for an “apparatus for generating and
transmitting digital information”
• 1994 - IBM combines a cellphone and PDA forming
the Simon Personal Communicator - capable of text
messaging, faxing, emailing and making phone calls
• 1999 - the first BlackBerry device was released as a
two-way pager with email, but no phone capabilities
• 2000 - Ericsson coined the term “smartphone” when
marketing its R380 mobile phone, a lightweight flip
phone running the Symbian operating system
• 2007 - Apple releases the first iPhone, a mobile
media center capable of making phone calls, playing
music, taking pictures and browsing the Internet
• 2008 - Google releases first smartphones with the
Android operating system
• 2008-2012 - Smartphone technology booms with the
addition of a Microsoft Windows phone, dozens of
Android based devices and several upgrades to the
original iPhone• September 21, 2012 - Apple releases the iPhone 5
His
tory
of
the iP
hone
• Original iPhone 2G came
out in June 29, 2007• iPhone 3G – released
July 11, 2008• iPhone 3GS – released
October 26, 2009• iPhone 4 – released
June 24, 2010• iPhone 4S – released
October 14, 2011• iPhone 5 – released
September 21, 2012
New
Str
uct
ura
lC
om
ponents
• 18% thinner, 20% lighter, 12%
less volume• A6 Chip• iSight camera• Panorama, enhanced HD video
recording, Facetime HD camera
• iOS 6• 4 inch retina display• EarPods • Lightning connector• Maps designed by Apple
• New Siri features• iCloud• AirPlay and AirPrint
Reve
nue M
odel
• The iPhone is based on a
subscription revenue
model, a business model
where customers pay a
subscription fee in order to
access the service. Subscribers sign yearly
service agreements with
wireless networks for
cellular and data coverage.
Revenue is also earned
through mobile purchases
via iTunes and the Apple
App Store.
iPhone 5
Sale
s
• Apple announced it had sold
over five million of its new
iPhone 5, just three days
after its launch on September 21.• Apple’s business has been
transformed by mobile
products, revenue from the
iPhone rose 56 percent to
$17.13 billion, making up 48
percent of the company’s
total revenue. It sold 26.9
million iPhones, 58 percent
more than a year earlier.
Applic
ati
ons
• App Annie estimates that Apple’s app
revenue edge over Google is 71% to 29%
worldwide• Verizon has revealed that 72 percent of
revenue from iPhone apps comes from in-
app purchases • Apple receives a 30 percent cut of
revenue generated by content sold
through iTunes, which means that app
developers and content makers shared
some $1.33 billion in revenue from the
digital portal• The iTunes App Store has added some
50,000 apps to its library, pushing the
total of apps available on Apple’s iOS
platform up over 600,000
• Distimo, a mobile consulting firm,
estimates that the Apple App store
generates $5.4M/day for the 200 top-
grossing apps
NA
SD
AQ
• Apple is a publicly traded
company on the NASDAQ.
• Current Data from NASDAQ
(10/26/12):• AAPL Stock Price: $604 per
share• Total Number of
Shareholders: 1,933• % of Shares Outstanding:
66.59• Total Shares Held: 624,206,318• Total Value of Holdings:
380,477,470,661
Impact
• Altered the smartphone
landscape and ushered in the
modern era of intelligent,
connected devices• Apple’s stock price at the close
of June 29, 2007, the day of
the iPhone launch: $122.04 a
share. Tuesday: $335.26 with a
market cap of $310 billion.
• Worldwide smartphone market
share shifts since 2007
• Apple revenues shift toward
the iPhone• AT&T outpaced Verizon in net
subscribers adds for the next
three years
Impact
C
onti
nued
• The iPhone has greatly impacted the way that
society conducts personal and professional
business. The age of the smartphone has brought
about quick, digital access to a plethora of
resources. A 2011 study conducted by the Florida
Institute of Technology and the University College
Aberdeen Center found that 52 percent of
respondents rely on their smartphone for both
business and personal use. More than 40 percent
of respondents spent one to two hours per day on
their smartphone, and 82 percent said that their
smartphone increases their daily productivity.
• While sales of the iPhone and other smartphones
are booming, many traditional forms of media are
suffering. Many brick and mortar bookstores are
going out of business as reading materials are
converted to a digital format. Smartphones and
tablets offer e-reader technology, where books can
be downloaded onto the device through providers
like iTunes and Amazon. Periodicals, such as
newspapers and magazines, have also been
greatly affected by the digitalization of news
media. Some consumer magazine industry
executives in the U.S. expect at least 25% of their
readership to be on digital devices by 2015.
Impact
on e
lect
ronic
m
edia
indust
ry
• With the integration of mobile social
media, such as Facebook and Twitter,
iPhone users are able to keep their
social networks constantly updated on
their daily life. While on the go, users
can post commentary, upload photos,
tag friends and check-in to locations
they’ve visited, all from their mobile
device.• The iPhone’s ability to take pictures
and videos and upload them directly
to the Internet has greatly increased
the number of citizen journalists
around the world. Smartphone users
become mobile reporters when they
document events as they are
happening, offering a nearly live
report. This enables consumers to gain
new perspectives on happenings,
other than what the mainstream news
media provides.
Apple
Exp
ert
"Apple has impacted our lives immensely.
They are innovators of the technology
industry. It amazes me how they not only
create products and services, but also
change lives. As an Apple employee, I was
fascinated at how excited customers were
over the release of the iPhone 5. It felt so
rewarding to provide a child with a phone
that has access to so many educational
applications and resources for his or her
development. It warms my heart to know
that a soldier who is serving overseas, who
hasn't seen his family or friends in months,
can directly connect with them through
innovations like FaceTime. I don't know
where we would be today without
technology like the iPhone. The iPhone 5 is
the future of wireless communication.”
~Cody Conklin, Apple Store Employee
Sourc
es
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m.
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