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3 Six Forces Analysis
3.1 Competition
Like many other Apple products, the iPhone leverages vertical integration between
software and hardware. Although this provides an edge in development, Apple is
forced to compete simultaneously on both the software and hardware fronts.
On the hardware side, Apple competes with Nokia (53% global market share),
Research in Motion (11%), and Motorola (7%), with Apple tying for third with 7%.
Other competitors include LG, HTC, Palm, Samsung, and others.
On the software side, Apple competes with Symbian (65% global market share),
Windows Mobile (12%), and Research in Motion (11%), having a 7% share itself.
Apple also competes with Palm, Danger, and others.
However, these statistics are skewed by the fact that the iPhone has very limited
legal exposure outside of the United States. Domestically, the iPhone currently
holds the #2 spot with 28% market share, behind RIM’s 41%,(Canalys) despite only
being on the market for less than a year! This provides powerful evidence that Apple
should attempt to repeat its domestic success in the global market.
Since wireless service providers are eager to provide hardware with the newest
features to differentiate themselves from other carriers, Apple can gain market
share by having the best features. Apple has proved this by leveraging the AT&T
marketing machine for the iPhone launch, gaining AT&T’s cooperation by being a
iPhone: Surviving the Shakeout 5
phone of many firsts: touchscreen user interface, desktop-class web browsing, and
best-in-class media playback.
3.2 New Entrants
Despite the smartphone market being crowded, two giants are set to enter the
smar ...