CASES Case 7-1 Keeping Apple's iPhone Competitive 10 www.apple.com The past several years have seen an increase in smart- phone ownership by cellphone users. In its infancy, the Smartphone was produced by only a few companies, such 2 RIM's Blackbery and Motorola. However, the market is now crowded. Still, Apple's introduction of the iPhone changed the industry. The purpose of a smartphone has shifted from e-mail and business to apps and functionality. The cellphone industry must be in tune with the customer. Ap de attempts to incorporate popular features in its designs. The iPhone includes the Apple staples of app capability and interfacing with other Apple products. The iPhone is operated using a touchscreen and plays music and video. Like other smartphones, the iPhone can manage e-mail accounts and thousands of apps. With a new generation introduction, customers expect improvements to the features, including front and back cameras for video conferences. Including dual cameras in the design required Apple to create new soft- ware for video conferencing. Camera quality in phones is improving as people rely on them more than hand- helds. Knowing that quality is important to some cus- tomers, a reviewer of the iPhone commented, "It isn't the best cellphone camera l've tested, but it is a big im- provement." This is an example of the trade-offs that may occur in product design. With so many features to incorporate, it may not be possible for a company to have the best for each. A company must decide which areas to focus on in the design. The iPhone has addressed other areas of cellphone design. Apple claims that the iPhone is the world's thin- nest smartphone and sports the world's highest-reso- lution smartphone screen. The high-resolution screen helps compensate for its smallish screen. Battery life is a concern for all cellphone designs, and Apple has increased talk-time battery life. New mul- titasking software manages apps to reduce battery drain. The iPhone incorporates some features over which Apple has limited control. Facebook, Twitter, and Pandora are popular apps among customers. Incorporating these features requires limiting battery consumption, but allows for frequent updates. Some users want to be con- stantly connected to their social networks. Apple's mul- titasking feature addresses some of these issues but may still disappoint some users. Discussion Questions 1. The case discusses the issues of trade-offs in de- sign. What are some smartphone trade-offs? Why are these important to consider in design.. 2. Choose another product besides a smartphone. What are some important trade-offs for that prod- uct design? 3. How should Apple evaluate the "quality" of its iPhone? 4. How could Apple improve its design processes for the iPhone