Cell phones industries are one of the most profitable industries in the world and the Market is continuously increasing. The increased competition amongst the leading companies may become a threat to the IPhone. Smart phones are becoming easier to make now more than ever before. More companies may enter the market, and competitors or even Apple contractors can find ways around patents to create devices similar to that of the iPhone. The iPhone is marketed as a high-end phone, but phone prices are likely to drop when other companies undercut the price of iPhones.
The top competitors in the industry are Nokia, Android, Blackberry, and Samsung. All of these companies strive to perfect a phone that has the similarities and capabilities of the IPhone. To be able to compete effectively they will need to mirror some of the features that apple provides. The iPhone has an innovative touch screen and is multifunctional. It works with iTunes and with other Mac and Apple products and OS software tools which means greater potential for upgradeability. The iPhone offers a scratch resistant screen, durable and light metallic finish and software resistance to computer viruses.
The primary customer target is the middle-upper income professional who needs to coordinate their busy schedules and communicate with colleagues, friends and family. The IPhone targets consumers who want to store information or people who are looking for entertainment on the go. Potential consumers consist of professionals, students, corporate users, entrepreneurs, and health care workers. Currently, the market for high-end phones like the Apple iPhone is growing however "Smartphone penetration is still relatively low," said Neil Mawston, Executive Director at Strategy Analytics.