Iphone Market Essay

Submitted By yuttana44
Words: 2957
Pages: 12
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IPhone 5 I. Executive Summary
The iPhone has been, by many measures, one of the most successful products in business history. Nearly 200 million iPhones have been sold in four and a half years, 37 million of them in the last three months of 2011. Apple's market cap has soared from $104 billion in June 2007, when the first iPhone was sold, to $480 billion today. No doubt, the iPhone is a revenue machine. Last quarter, it generated $24.4 billion in revenue for Apple (AAPL), greater than the $20.9 billion Microsoft (MSFT) made in all of its various businesses. It is, to say the least, obscenely profitable: iPhones make up 75% of the profits of cell-phone makers, despite being only 9% of all units shipped. Less visible in such soaring statistics, is the impact on the mobile carriers. Even with the heavy subsidies phone companies must pay to Apple and some five years after its introduction, the iPhone may well be the best thing going for the mobile industry. Even though AT&T (T) has lost its exclusive status with the iPhone, it's likely to keep fighting for iPhone customers. According to Hudson Square Research, iPhone users have a net present value -- a measure of cash flows over a product's lifetime -- that is twice as high as subscribers using the old, clamshell feature phones.
External environment of the Iphone5, Apple believes that improving the environmental performance of our business starts with our products. The careful environmental management of our products throughout their life cycles includes controlling the quantity and types of materials used in their manufacture, improving their energy efficiency, and designing them for better recyclability. The information below details the environmental performance of iPhone 5 as it relates to climate change, energy efficiency, material efficiency, and restricted substances.
Climate Change, Greenhouse gas emissions have an impact on the planet’s balance of land, ocean, and air temperatures. Most of Apple’s corporate greenhouse gas emissions come from the production, transport, use, and recycling of its products. Apple seeks to minimize greenhouse gas emissions by setting stringent design-related goals for material and energy efficiency.
Energy Efficiency, iPhone 5 uses power-efficient components and software that intelligently manage power consumption. In addition, the Apple USB Power Adapter outperforms the stringent requirements of the ENERGY STAR® specification for external power supplies.
Material Efficiency, Apple’s ultracompact product and packaging designs lead the industry in material efficiency. Reducing the material footprint of a product helps maximize shipping efficiency. It also helps reduce energy consumed during production and material waste generated at the end of the product’s life. iPhone 5 is made of aluminum and other materials highly desired by recyclers. The packaging for iPhone 5 is highly recyclable, and its retail box is made primarily from bio-based materials, including fiberboard containing 90 percent post-consumer recycled content. In addition, the iPhone 5 packaging is extremely material efficient, allowing more units to be transported in a single shipping container. The following table details the materials used in iPhone 5 packaging.
Restricted Substances, Apple has long taken a leadership role in restricting harmful substances from its products and packaging. As part of this strategy, all Apple products comply with the strict European Directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment, also known as the RoHS Directive. Examples of materials restricted by RoHS include lead, mercury, cadmium, hexavalent chromium, and the brominated flame retardants (BFRs) PBB and PBDE. iPhone 5 goes even further than the requirements of the RoHS Directive by incorporating the following more aggressive restrictions: Arsenic-free display glass, Mercury-free LED-backlit display, BFR–free,
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