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iPhone 5 Brittany Taylor Colin Cook Ky-Shon Hepburn Fayeza Fatema

Technology Trends: iPhone5

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iPhone 5

Brittany Taylor

Colin Cook

Ky-Shon Hepburn

Fayeza Fatema

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

iPhone 5

“The biggest thing to happen to iPhone since iPhone.”

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

Apple, as a single company holds 34% of manufacture share

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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2012. Web. 23 Oct. 2012.

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About.com. About, 2012. Web. 23 Oct. 2012.

http://ipod.about.com/od/decidingwhichipodtobuy/a/iphone_chart.ht

m.

Hornshaw, Phil. "Apple’s iTunes App Store surpasses 600k apps, $1.9

billion in revenue for Q2." . Appolicious , 25 2012. Web. 28 Oct 2012.

"Industry Trends." Introduction to the Entertainment & Media

Industry. Plunkett Research . Web. 29 Oct 2012.

"IPhone History IPhone 5." IPhone 5. N.p., n.d. Web. 23 Oct. 2012.

http://www.iphonehistory.com/iphone-5/.

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Personal And Professional Productivity." Journal Of Applied Global

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2011. Web. 23 Oct. 2012. "Smartphone." Wikipedia. Wikimedia Foundation, 25 "Two Thirds of

New Mobile Buyers Now Opting For Smartphones." Nielsen Wire. The

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