Apple iPhone

More Brown than Green?

The Apple Juice• 8 or 16 GB Memory

• 3.5” widescreen Multi-touch display

• Audio support for AAC, MP3 & more

• Visual Capabilities inc 640 by 480 pixel video

• 2.0 mega-pixel camera

• Wi-Fi 802.11b/g

• Bluetooth

The IssueIt may be the latest in modern technology, but is the Apple

iphone damaging to the environment & how has the price been affected by these concerns?

The Bitten AppleGreenpeace say the iphone contains two hazardous

chemicals:

• Brominated Flame Retardants (BFR)

• Polyvinyl Chloride (PVC)

Key assumptions :

• Headphone Cable contains toxic phthalates

• iphone battery is glued & soldered to handset, hindering the battery for electronic waste recycling

Apple iPhone environmental report

-The report clearly states that Apple keeps to the rules of RoHS* against restricted substances.

- This may not ultimately change the market value of the product but instead put off retailers who are going to sell

the product.

*Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment

From $600 to $399 in just 2 months!Business Ethics or The Customer comes

1st?• When apple reduced it product by $200 after 68 days from release, many customers were left fuming!

• Adopters will always pay a full price, but didn’t expect such a price cut so soon.

• A 14 day full refund policy to claim back $200 was introduced.

iPod recycling program

• This scheme will make the iphone more environmentally friendly

• Customers will receive a discount on new iphones if the exchange their old mobile

• If Apple encourage this scheme with their own products it will play a hand in reducing global pollution

Victims of their own success?Will the iPhone be the end of the ipod, nano & touch?

Fears:

iPhone will cause sales of other Apple products to drop.

Upon release Apple fear they could lose $1billion dollars as a result of the iPhone introduction

So what do Apple want to do??

Victims of their own success?

Strategy 1

Market the iPhone to Businessmen & high earners and ipods to teenagers & fashinistas.

Strategy 2

Make the iPhone a high end product by increasing its price & lower the price of the ipod.

References(2007) Apple iPhone contains hazardous substances, Greenpeace claims, Retrieved Oct 08 from www.edn.com/article/ca6491623

(2007) The iPhone price drop, Retrieved Oct 08 from http://pogue.blogs.nytimes.com

(2007) 3 Ways the iPhone could be more environmentally friendly, Retrieved Nov 08 from www.appleiphonereview.com/news

(2007) The iPhone effect: What will happen to Apple’s other products? Retrieved Nov 08 from www.seekingalpha.com/article/36110