Mobiles

Analysis of Success Consumer Factors of Apple’s iphones

In an effort to determine the factors that contribute to the success of the iPhone, we conducted an extensive literature review and Internet search, and then categorized the success factors so that we could more succinctly assess how and why the iPhone is so successful. It has been speculated that the iPhone’s business model is one reason for its success. However, the business model alone cannot fully explain each of these product/service successes. It has also been assumed that user acceptance is the key to success. However, most user adoption studies focus on the reasons for user adoption, not on the factors that influence the success of products or services. How to identify and meet consumers’ needs based on their demographics, culture, and preferences is critical to success. Finally, since mobile communications are usually controlled by government regulations, and mobile data services are delivered through mobile communications infrastructure, the success of mobile data services also depends on these environmental factors.

Therefore, we propose a success model that uses a large number of factors that explain the successes achieved. These all total types of success factors can be categorized by consumer (demographics, user preferences and culture), corporate (business model, technology, marketing and service providers) and environmental (regulatory, infrastructure). This comprehensive model includes relevant factors that can explain the success of the iPhone. Whether overtly, or perhaps by chance in some cases, Apple has been able to capitalize on every single success factor, in essence riding the ‘right wave’ of factors and achieving incredible success with the iPhone product.

1. Demographics

Apple attempted to target the right consumer group. According to a survey the typical iPhone consumer is more likely to be male, aged 25-34 in whole world, college educated, and with an income of over $100,000. Another study confirmed the age factor, indicating that 50% of iPhone consumers are under the age of 30, are technically sophisticated, and are typically members of the professional, scientific, arts/entertainment or information industries. In addition 75% are reported to be past Apple customers. These demographics can be considered similar to the profile of the typical iPod/iTunes consumer, with which Apple has extensive experience and success.

Apple iphone mobile company took the lessons learned from the iPod/iTunes demographic and successfully applied them to the iPhone on world wide level. More recently, in order to succeed, Apple and AT&T have learned to target ‘mainstream America’ by lowering the price of the iPhone and promoting applications that appeal to a variety of demographics. The majority of iPhone use (61%) is for personal use, not business use, while another 24% use the phone for some business, but pay the bill themselves, leaving only 15% for actual business use. Again, iPhone has succeeded by focusing on personal use, while technically ensuring that the iPhone is attractive to both personal (through gaming and entertainment applications) and business users (through its iPhone in the Enterprise and Microsoft Exchange capabilities) in whole world.

2. User Preferences

Smartphone and mobile internet user preferences in the US are some of the most important factors in the iPhone’s success. Funk indicated a need for increased mobile phone capabilities for both access and richness of content, as US consumers expect richness due to their experience with fixed line internet. User preferences also factor into the provision of content, as consumers in the US may not be willing to pay for content because they are accustomed to receiving it for free. US consumers are not convinced that they need mobile services that they feel are too complex, indicating a need to ‘simplify’ the mobile internet experience. A 2004 MIT survey shows that US consumers rated the cell phone as the most hated invention they could not live without, with 30% or so of respondents indicating this. Clearly, mobile internet user preferences in the US are strong, and perhaps difficult to meet. Although the US Internet experience may not be the norm for other countries, it strongly influences US user preferences for mobile Internet.

“People in the US may be just as excited about mobilizing technology, but they often think about shrinking and mobilizing the PC and the Internet rather than enhancing the cellphone”. Thus, much of the iPhone’s success can be attributed to its ‘simple’ but effective ability to replicate the computer (in terms of applications) and the fixed-line rich Internet experience (via the Safari browser) on a mobile phone. In short, the iPhone may be the device that Michael Mace was referring to in 2006 when he discussed shrinking the PC and the Internet to mobile phones. With regard to specific iPhone user preferences, a survey was completed prior to the launch of the iPhone 3G to find out what features iPhone users would like to see added. The top 5 responses were 3G capability (19%), third party software (18%), GPS (15%), e-mail integration (10%) and voice recognition (8%). All of these capabilities were added by Apple (3G, applications, GPS, e-mail) or third-party software developers (applications, voice recognition) when the iPhone 3G was launched in July 2008. Clearly, from starting Apple mobile phone company is responding to user preferences and needs with all total successive generations of the iPhone.

3. Culture

Limited research has been completed on cultural factors related to the adoption and use of smartphones and the mobile Internet in the US. Those that do have cited a number of factors specific to the US. Real-time gratification is relatively more important to US consumers, which can be achieved through the value of entertainment applications in m-commerce. Thus, part of the Apple iPhone’s mobile company success can be attributed to the provision of real-time gratification through entertainment applications such as games, etc. Another study showed perceived security (the extent to which people believe the Internet is safe), perceived enjoyment (the rewards received through the use of technology) and subjective norms (the use of innovation associated with one’s social status) were all found to be higher in the US. iPhone customers derive personal enjoyment through the plethora of entertainment applications available and perceived security, as all applications downloaded onto the iPhone have been approved by Apple, giving users a much-needed sense of security. Finally, subjective norms and social status are inherently part of the iPhone user experience, as the iPhone (much like the iPod) is seen as a status symbol.

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