The new and improved iPhone 4S? Read to find out more...

Joanna Zhu, a Commerce 101 and Section 101 student, captured my attention with her blog about “The iPhone 4s. Deal with it.” She commends Apple’s marketing strategy of introducing the iPhone 4S only 16 months after the release of the iPhone 4. Joanna summarizes that the “the iPhone 4S isn’t meant to be an upgrade for iPhone 4 users – it’s a lure to get new iPhone users in the door, to entice any Blackberry or Android users whose carrier contracts have just ended after their 2-year contract period and are in the market looking for a new phone.” According to Joanna’s analysis I am able to understand the concept of why the iPhone 4s was released in that time period. Thus, I am able to apply Porter’s Five Forces of Industry Attractiveness. In the cellular war industry, barriers to entry include Apple’s loyal consumer basis. Customers who purchase Apple products are likely to upgrade their current device with the newest available product. Also, competitors entering the mobile service network require large capital investments. Threats of substitutes include other Smartphone companies such as Android, Blackberry, and Google. Since Apple maintains global brand recognition, mobile companies compete to carry Apple products, increasing the company’s buyer power. Apple is a large publicly traded company, so the company is able to purchase materials for production at a lower rate; this benefits Apple’s supplier power. 

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