Mobile Phone Sector in UK

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CHAPTER 1

INTRODUCTION

The Apple is established as Apple Computer by Steve Jobs, Steve Wozniak and Ronald Wayne on 1st April 1976 in California, United States. But the main super head and an innovator behind Apple till date is Steve Jobs. Currently the company led by Steve Jobs has disrupted three industries- computers (The Mac), music (The i-Pod) and movies (Pixar). First i-Pod was innovated by Apple in 2001. This invention of Steve Jobs actually started the measure success story for Apple.

The research questions for this dissertation are as follows:

Research Questions:

1) How ‘Apple I-Phone' can use the ‘Mobile Projection Technique' to further expand their market penetration?

2) What are the different innovative strategies that ‘Apple i-Phone' can bring in to further enhance or increase their target audience by using ‘Mobile Projection Technique'?

3) How the customers will be influenced and benefited from the introduction of in-built projector in ‘Apple i-Phone'.

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Based on these above mentioned research questions the outlined research objectives are as follows:

Objectives:

1) To evaluate the current competitive market for ‘Mobile Phone Industry'. It would cover the different strategies used by the mobile manufacturers for influencing or attracting the customers and increase their market share.

2) To recognise the current market share along with the previous year's market share for ‘Apple i-Phone' which will allow them to further target the segmented market.

3) To critically analyse the customer wants, needs and their perception towards i-Phone services innovative applications they offer. Find out what customers are looking for while choosing ‘Apple i-Phone' over its competitors like Blackberry, Nokia, HTC and Google Phones.

4) To evaluate the response of the customers for introducing the in-built projector in ‘Apple i-Phone'. Find out the consumer behaviour and how curious they are to see this innovation coming to reality inside the ‘Apple i-Phone'.

5) To analyse the opportunities for the ‘Apple i-Phone'. This research will undertake an analysis of the information gathered from the above four objectives followed by the opportunities that could be gained by ‘Apple i-Phone' for introducing ‘Mobile Projection Technique' through the in-built projector.

Layout:

Chapter One sets the research introduction defining the research problem and setting out the research objectives followed by the research methodologies which will be carried out to complete the research successfully.

Chapter Two focuses on the Literature Review that is closely related to the subject. This chapter includes Mobile Market theory for the UK market along with the theoretical ideas from past-related subjects.

Chapter Three outlines the past and current market share for the ‘Apple i-Phone' along with their sales reports to figure out the future strategies for further market penetration in the UK market.

Chapter Four focuses on the customer wants, needs and their perception towards i-Phone services innovative applications they offer which influences their decision making for choosing the ‘Apple i-Phone' over its competitors like Blackberry, Nokia, HTC and Google Phones. This chapter also examines the data collected from the first five primary research questionnaires and secondary research that was carried out.

Chapter Five explains the different types of external projectors compatible with ‘Apple i-Phone' followed by the proposed approach for introducing the in-built projector in the ‘Apple i-Phone'. This chapter also examines the remaining five set questionnaires for the research.

All these findings from chapter Four and Five were then compared to the literature review to carry out the research analysis in the chapter Six.

Chapter Seven draws conclusions and makes recommendations based on the findings from both primary and secondary data along with the research analysis.

Research Methodology:

The methodology used for this research should be Positivism which is the understanding of human behaviour by observation and the experiments (Morris, 2006). These experiments include connecting the Pico-Projectors (explained in brief under Chapter Five) which are available in market to the ‘Apple i-Phone' and presenting this fantastic feature in front of the group of customers to gather their valuable feedback towards the introduction of in-built projector in the ‘Apple i-Phone' using the DLP chip (explained in brief under Chapter Five) inside the i-Phone. These experiments are carried out at my workplace ‘The Carphone Warehouse' (Chiswick Branch) along with the Curry's and PC World retail store.

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Now the Data Collection methods used for this research are both Primary and Secondary Data Collection. For the Primary data Collection the handout of the Questionnaires were given to the groups of consumers who attended the ‘Pico-Projector i-Phone Presentation'. The Questionnaires handout includes the heading as Profession and Nationality along with the set of 10 Questionnaires.

The Segmentation done for this research is as follows:

1) Students.

2) Non-Corporate Working Sector.

3) Corporate Working Sector.

Each of the above segments are further divided as:

1) Developed Countries.

2) Developing Countries.

3) Under-Developed Countries.

The above mentioned research responses are collected from the 100 people who attended the ‘Pico-Projector i-Phone Presentation'. These responses are then respresented diagrammatically using Bar Graph by keeping in mind the above mentioned segmentation under Chapter Four and Five. This is also followed by the Secondary Data Collection for the ‘Apple i-Phone' through the internet and journals mentioned under Chapter Three.

CHAPTER 2

Literature Review

Literature Review Approach:

In this Literature Review the bottom to up approach has been used, where the first step taken is to discuss the whole mobile phone manufacturers market across the world and most importantly that of UK. And finally in the second step this literature review will look at the mobile phone aspect considering the customer aspect and discuss the potential future opportunities.

Industry Review of Mobile Phone Sector across the World:

In this decade the mobile industry has been growing at an increasing pace. Initially the mobile industry only had few users which now reached to a number of 1.8 billion users and this number is still growing at a rapid pace (McQueen and Reid 2005). The two significant reasons for the increase in the demand of the telecom services are just because of the change in life style and living standards of the people. By the end of the year 2010, according to the research done by Informa telecom and media, the number of global mobile phone users is expected to amount to around 2.9 billion (McQueen and Reid 2005).

Many mobile phone organisations have invested in alternative research, technologies and services because the quantity of the mobile phone users is continuously growing across the world. The increasing of technology in the mobile services such as use of internet, data, multimedia services etc have changed the scene for mobile phone services around the world. Initially mobile phones were used for messaging, voice calling and standard gaming. But nowadays, Mobile phones are being used for internet, video calling, GPS navigation etc. It can also be said that world has surely become a smaller place to live because of such an increase in the innovation in the telecom industry. It is also believed that the use of the mobile phone services will keep on increasing especially by the introduction of innovative applications and the new operating systems like windows, symbian and android. This is because the people are always attracted towards the new technology which can surely make them do their work faster.

Industry Review of Mobile Phone Sector in UK:

In our routine life of business and private, the mobile phone industry plays one of the significant roles of contacting people. In United Kingdom around 76 million people have mobile phones and also around 86% of the adults have the handsets. The mobile phone services along with the other mobile devices are the important element of the mobile industry. While the small notebook computers are also considered the part of mobile phone industry. The mobile phone services are not dependent on the time and place factor but, the mobile phone device is used to take advantage of these services. What one needs to take use of mobile phone services is the public network and service provider system and by the help of this a customer can contact to another though mobile phone services (Steinbock 2005).

The mobile phone manufacturing and service providing companies are taking full advantage of the globalisation and therefore penetrating their services in alarming pace. This can be proved by the fact that in the third quarter of the year 2008 there was about 1.8% growth on quarter to quarter basis and 4.5% growth was noticed in year to year basis in the UK mobile service phone industry (Businessmonitor.com 2009). The UK mobile phone service market is considered to be the second largest mobile internet market. This fact can also be proved by seeing the growth in all the three quarters of the year 2008 which was around 1.8%, and this growth was mainly due to the contract subscriptions of the net connections (Ofcom.com 2009). The UK mobile phone market consists of many mobile service providers. The major players of the UK mobile phone market are British Telecom, Orange, T-mobile, Vodafone, O2 etc. All these companies are trying their hands on the latest technologies which add into their services so at to attract new users. The new users basically include youngsters as they are the only once to demand for more techno-savvy services like internet, WAP etc.

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In the research done by the Forrester Research it has been found that the penetration in the European mobile phone market has been grown from 71% in the year 2003 to 81% in the year 2009. Whereas due to the less access in the advance mobile phone device market, there is still less use of value added mobile phone services. Due to the GSM phones the UMTS phone (universal mobile telecommunication system) penetration has grown to 40% in the year 2009 from just 1% which was in the year 2004. It is expected that GPRS phones (General Packet Radio Services) will dominate the market in this decade. In the year 2009 it is number of internet users of all the western European market will grow by 59%, which was once only 13% in the year 2004 (Lussanet de 2004). In the total European market, the telecom market represent around 9% and by the end of the year 2010 the forecast has been made that there will be around 78 million subscribers for the mobile phone services (Mintel.com 2009).

With the growing demand of the technology, if there are no sufficient applications are installed in the mobile phone the people don't ask for it. Even then accessing mobile phone industry is extremely limited. There are many factors which affect the use of mobile phones. These factors basically are mobile devices, mobile networks and lastly the compatible mobile applications. The companies are now coming up with schemes to attract the different segments of the customers. The companies have classified the schemes for business man, youngsters and for working people. This study mainly focuses on the demands of all these segments from the mobile phone manufacturing industry and mainly ‘Apple i-Phone' for their continued innovation.

According to Gartner (2009) Mobile phone sales declined by 0.9% to 1.216 billion units in 2009, but grew by 8.4% in the final quarter. "The mobile devices market finished on a very positive note, driven by growth in smartphones and low-end devices," said Carolina Milanesi, research director at Gartner.

Over the full year of 2009, Nokia remained the market leader, shipping 442m phones. However, it lost 2.3 percentage points of market share, falling to 35.4%. Nokia was followed by Samsung (19.7%) and LG (10.3%) from South Korea. In fourth and fifth places, both Motorola (4.9%) and Sony Ericsson (4.6%) saw big declines in market share.

In the smartphone market, Nokia's high-volume sales kept Symbian in first place with 82m units shipped for a market share of 47.9%, down from 52.5%. Research In Motion -- known for its BlackBerry smartphones -- came second with 19.8%, an increase of 4 percentage points on 2008. Apple's i-Phone more than doubled its unit sales to take the third spot with 14.5%, an increase of 6.3 percentage points, i-Phone overtook Microsoft Windows Mobile, which dropped 3.3% percentage points to take 8.8% of the market, with only 16m units shipped. (Gartner 2009)

Google's Linux-based Android software did well, shipping 6.7m units for a market share of 3.8%. However, sales of other Linux smartphones fell. Adding Linux and Android together, Linux only gained slightly over half a percentage point (from 8.2% to 8.8%).

Gartner principal research analyst Roberta Cozza said Android's fourth-quarter growth should continue, but some suppliers had "expressed growing concern about Google's intentions in the mobile market". If this led them to change their product strategies, "this might hinder Android's growth in 2010."

The UK mobile phone market consists of many mobile service providers. The major players of the UK mobile phone market are British Telecom, Orange, T-mobile, Vodafone, O2 etc. All these companies are trying their hands on the latest technologies which add into their services so at to attract new users and to get the latest Mobile Phone under their exclusive networking services. The new users basically include youngsters as they are the only once to demand for more techno-savvy services like internet, WAP etc. The best example for this scenario includes the introduction of first i-Phone in UK market in Jun'07 exclusively with O2 as a mobile service provider.

The mobile phone manufacturing and service providing companies present in the UK have to be extremely attentive and responsive to the consumer market. As the mobile phone service providers are providing latest and the best mobile handsets. Therefore the mobile phone companies cannot simply ignore the importance of competitor's policies and their innovative practices. With the increase in the innovations in the technology, the mobile phone companies should strongly hold the market and have to adapt themselves to the changes taking place in this extremely competitive mobile industry. (Vesa, 2005)

As in every industry the profit can be earned only if the customer base is increased. Therefore all the companies in the mobile phone industry aim at building loyalty in the customers as it make sure that the companies are on the verge of achieving the profitability. For building loyalty the companies would surely make a point to provide the customers with the fantastic services including the world class customer services in order to maintain the long term profitability prospect. (Pandya, 2000)

In UK, Apple i-Phone, Nokia, Blackberry, Sony Ericsson, Samsung, HTC and Google are biggest Mobile Phone manufacturing brands including Vodafone, O2, Orange, T-Mobile and ‘3' are the major network providers for these above mentioned brands. The sales figures of these manufacturing brands depend on the two critical factors like the choice of Mobile service provider and the in-built applications for the respective mobile phones. The figure below shows the market share of the different mobile phone service providers in the UK (telecomsmarketresearch.com, 2009).

UK's mobile phone industry is highly competitive; hence the companies in the industry spending a large part on the Research and Development department to get an added advantage over each other. This is done so that the companies can introduce the latest technology as soon as the customer becomes aware of it. This also helps the companies to gain the larger market share in the industry. For e.g. the different mobile phone companies like Apple, Nokia, Sony Ericsson, Samsung, Motorola, etc are always coming up with the new designs, technologies, strategies and applications in order to gain larger market share and be ahead in this competition. What the market and customers needs today is the mobile phones having different features like camera, music players, internet, messengers etc.

Since the year 1990 the researchers have believed that it is very important to incorporate different value added services in the mobile phone service industry. The first technology or the devices which was found very beneficial to include in the mobile phone was the camera. It was in the year 1994 that AT&T filled a patent and then in the year 1997 Philippe Kahn invented the first mobile camera phone. By the end of the year 2007, there were around 85% of the mobile phones manufactured which included camera as the additional device in mobile phones (Ukphoneshop.com, 2009).

Another important thing what companies have to be clear in the mobile phone service industry the cost is mainly associated with the production and Research and development. This is very important aspect as if they will be able to keep cost low; the companies would be able to provide competitive and friendly prices to the customers. Within the UK market the rivalry among the players of the mobile phone companies is because of the technological superiority, global developments, competitive pricing etc. Only those companies would be able to maintain and sustain the competitive edge in the market who gets accustomed with the new technology and services.

Now, the mobile phone users not only ask for the voice or the SMS services, but especially the youth segment demands for the other services even. These services mainly include the internet services. The mobile internet services are viewed as the next big thing in the recent times. The mobile phone operators are looking to boost their profits by investing more in mobile advertising, mobile games, mobile social networking etc. (Mintel.com 2009).

The technology has become the major rivalry area among the companies and therefore every company now is looking forward for installing 3G services and internet services in the mobile phones. The competition in the UK mobile phone market has also increased with the increase the deregulation and liberalisation of the domestic market of the UK mobile phone industry. The competition would keep intensifying more as the companies keep developing latest technologies (Mintel.com 2009).

The mobile industry is highly competitive industry and therefore the companies spend a lot of money of Research and Development department to come up with new features and ideas that will help them gain a larger market share for their company. The MNCs like Sony, Ericsson, Motorola, Samsung, Apple, etc. have always come up with the new and innovative strategies, there are many mobile phones seen in the market which are well equipped with the designs, applications, etc. so as to gain competitive edge over the other players in the industry. Determining the major players and the strategies of the major players of the industry is one of the main objectives of the research. The study of the competitors in the mobile phone industry will help to fulfil all the objectives of the research. The research mainly aims at determining the different factors which influence the purchase of the services by the particular mobile phone manufacturer which is discussed in detail under chapter four. A thorough study of the competitors in the industry would also help to know opportunities that are available to Apple in future for expanding their market share in UK. Now the next chapter will briefly explain the ‘Apple i-phone' in detail.

CHAPTER 3

The Journey of the ‘Apple i-Phone'.

As discussed under Literature Review, the main pillar behind the success of the ‘Apple' is Mr. Steve Jobs. In January 2007, Steve Jobs announced that his innovative team was going to release the first Apple i-Phone.

Leadership and Innovation:

In today's business climate innovation is a key to success, yet many organisations are risk averse. This limits their ability to innovation. Understanding what influences an organisation's willingness to take risk provides a basis for determining changes to enable appropriate risk taking and a desired level of innovation.

The below diagram from Deakin (2003) is the base for the Apple's environment which suggests that the influential Leadership leads to the fantastic innovations. Also, It can be argued that an “organisation's culture” is driven the other influences listed, and that WTR (willingness to take risks) is part of culture. “Leadership” is linked to the other influences in several documents. These links are shown graphically as follows:

What influence the likelihood of success/failure from the innovation process, see Figure 3.7, is of interest. If leaders make changes, then staff will perceive potential outcomes differently, and the organisation's natural WTR may change.

With the basis of the above mentioned diagram the birth of Apple ‘i-Phone' which is the one of the greatest success story in the Telecommunication industry, is being possible with the idea generated by Steve Jobs in Jan'07 along with the fantastic support from his innovative team which is explained below:

The idea and the success story for the i-Phone were possible with the great Leadership from Mr. Steve Jobs along with his fantastic innovative team. Steve Jobs confessed and asked his innovative team that “We should make a great phone that everyone would fall in love with. We have got the technology and the miniaturization from the iPod. We have got the sophisticated operating system from Mac. Nobody had ever thought about putting operating systems as sophisticated as ours inside a phone and that is the biggest challenge. So at that time we had a big debate in the company whether we could do that or not. And that was the critical time where I had to adjudicate it and just say that we are going to do it, so let's try.” (I-Phone History, 2007). And the result is in front of us with the fabulous ongoing success story for Apple ‘i-Phone'. This reflects the great Leadership qualities for being leading from the front from Steve Jobs and the effective and precise implementations of future strategies to accomplish the dream of Apple from his amazing innovative team.

The Apple ‘i-Phone' success story mentioned above through the combined effort from the Leadership of Steve Jobs and his innovative team proves the theory of EFQM model which is diagrammatically explained as follows:

The combined result of Leadership and innovative team effort of Apple was successful in June 2007 when Apple came up with their first i-Phone which was 2G (2nd Generation) version followed by i-Phone 3G (3rd Generation) in June 2008 and finally the i-Phone 3GS (3rd Superior Generation).

The specifications of these i-Phones are mentioned under the following table:

2G

3G

3GS

Essentials

Family: iPod

Codename: iphone 2G

Minimum OS: iPhone OS 1.0

Maximum OS: iPhone OS 3.1

Introduced June 2007

Terminate June 2008

Family: iPod

Codename: iphone 3G

Minimum OS: iPhone OS 2.0

Maximum OS: iPhone OS 3.1

Introduced June 2008

Family: iPod

Codename: iphone 3GS

Minimum OS: iPhone OS 3.0

Maximum OS: iPhone OS 3.1

Introduced June 2009

Processor

CPU: Samsung S3C6400 (w/ARM 11)

CPU Speed: 400 MHz

FPU: integrated

Bus Speed: 100 MHz

Address Width: 32 bit

Onboard RAM: 128 MB

Maximum RAM: 128 MB

Level 1 Cache: 16 kB data, 16 kB instruction

CPU: Samsung S3C6400 (w/ARM 11)

CPU Speed: 400 MHz

FPU: integrated

Bus Speed: 100 MHz

Address Width: 32 bit

Onboard RAM: 128 MB

Maximum RAM: 128 MB

Level 1 Cache: 16 kB data, 16 kB instruction

CPU: Samsung S5PC100 (w/ARM Cortex A8)

CPU Speed: 600 MHz

FPU: integrated

Bus Speed: 150 MHz

Address Width: 32 bit

Onboard RAM: 256 MB

Maximum RAM: 256 MB

Level 1 Cache: 32 kB data, 32 kB instruction

Video

Screen: 3.5" multi-touch

GPU: Power VR MBX-Lite

Max Resolution: 480x320

Video Out: composite, component (via Dock Connector)

Camera: 2MP

Screen: 3.5" multi-touch

GPU: PowerVR MBX-Lite

Max Resolution: 480x320

Video Out: composite, component (via Dock Connector)

Camera: 2MP

Screen: 3.5" multi-touch

GPU: PowerVR SGX (Supports OpenGL ES 2.0)

Max Resolution: 480x320

Video Out: composite, component (via Dock Connector)

Camera: 3.15MP

Storage

Flash Drive: 4/8/16 GB

Flash Drive: 8/16 GB

Flash Drive: 16/32 GB

Input/Output

USB: via Dock Connector

Audio Out: stereo 16 bit mini

Speaker: mono

Microphone: mono

USB: via Dock Connector

Audio Out: stereo 16 bit mini

Speaker: mono

Microphone: mono

USB: via Dock Connector

Audio Out: stereo 16 bit mini

Speaker: mono

Microphone: mono

Networking

Airport Extreme: included

Bluetooth: 2.0+EDR

Cellular: GSM/EDGE (850, 900, 1800, 1900 MHz)

Airport Extreme: included

Bluetooth: 2.0+EDR

Cellular: GSM/EDGE (850, 900, 1800, 1900 MHz), UMTS/HSDPA (850, 1900, 2100 MHz)

Airport Extreme: included

Bluetooth: 2.1+EDR

Cellular: GSM/EDGE (850, 900, 1800, 1900 MHz), UMTS/HSDPA (3.6 & 7.2 Mbps) (850, 1900, 2100 MHz)

Miscellaneous

Battery Life: Talk 8 hrs, Standby 250 hrs, Internet 6 hrs, Video 7 hrs, Audio 24 hrs

Dimensions: 4.5" H x 2.4" W x 0.46" D

Weight: 0.3 lbs.

Battery Life: Talk 5 hrs (3G)/10 hrs (2G), Standby 300 hrs, Internet 5 hrs (3G)/6 hrs (Wi-Fi), Video 7 hrs, Audio 24 hrs

Dimensions: 4.5" H x 2.4" W x 0.48" D

Weight: 0.29 lbs.

Battery Life: Talk 5 hrs (3G)/12 hrs (2G), Standby 300 hrs, Internet 5 hrs (3G)/9 hrs (Wi-Fi), Video 10 hrs, Audio 30 hrs

Dimensions: 4.5" H x 2.4" W x 0.48" D

Weight: 0.29 lbs.

http://www.apple-history.com/images/models/iphone_hand.jpgi-Phone 2G:

With reference to the above table, the first Apple i-Phone 2G was released in June 2007 and the iPhone marked Apple's entry into the cellular phone marketplace. Described by Steve Jobs as "a wide-screen iPod with hand controls... a revolutionary mobile phone and a breakthrough Internet communications device," the iPhone was the first Apple-branded consumer device to run on OS X. Based around a touch-based user interface with a single button, the iPhone was controlled using a variety of one- and two-finger gestured. It included a custom version of Safari that allowed full browsing of any web page, a revamped iPod interface with Cover Flow, integrated access to YouTube and Google Maps, an iChat-like SMS text-messaging interface (iChat itself was missing from the initial release), and a standard set of cellphone apps, such as a calendar, an address book and a calculator.

The iPhone was available exclusively with AT&T voice/data plans, and was limited to EDGE-based network access, rather than the faster 3G wireless networking standard. This was mitigated somewhat by an integrated 802.11g WiFi chipset, which allowed for faster browsing on any available WiFi network. But in UK market it was exclusively available with O2.

Though the iPhone officially only supported web-based applications from third-party developers, an underground development effort was quickly organized, and within a few months native 3rd party applications were widely available. Warrantee-breaking hardware modifications to "unlock" the iPhone from the AT&T network were also uncovered. The iPhone was sold in two configurations: a 4 GB model sold for $499, and an 8 GB model for $599. In September 2007, Apple discontinued the 4 GB model, and dropped the price of the 8 GB model to $399 (a $100 Apple Store credit was offered to angry early adopters). In February 2008, a $499 16 GB model was added. All models were discontinued in June 2008, with the release of the i-Phone 3G.

i-Phone 3G:

Released in June 2008, the iPhone 3G had been widely anticipated for nearly the entire lifespan of its predecessor, the wildly successful i-Phone 2G. The iPhone 3G included two prominent features that had been distinctly absent from the original iPhone—3G networking and built-in GPS. These features came at a price, however: the iPhone 3G was slightly thicker than the iPhone, and had reduced battery life when using 3G networking. To mitigate the increased depth, the iPhone 3G featured a curved back, making it thinner on the edges. The iPhone 3G included a non-recessed headphone jack, to the joy of many iPhone customers with 3rd-party headphones.

Even more anticipated than the various hardware improvements was the 2.0 version of the iPhone OS, which shipped with the iPhone 3G, and was also made available for existing iPhone users. The primary feature of iPhone OS 2.0 was the inclusion of a robust application SDK, and a distribution system which was fully integrated into iTunes. Though developers had already shipped device-resident applications for illegally unlocked (or "jail-broken") iPhones, this was the first opportunity for developers to ship legal, Apple-sanctioned software for the iPhone.

The iPhone 3G initially shipped in two models, at an aggressive price-point: the 8 GB model sold for $199, and the 16 GB model sold for $299. Both required a two-year contract with AT&T, once again the exclusive provider of the iPhone 3G in the US market. AT&T customers not eligible for a handset upgrade could purchase the models for $399 and $499, respectively, provided they extended their existing contract by two years. Both models were later made available without a contract, for $599 and $699, respectively. In June 2009, following the release of the i-Phone 3GS all models were discontinued, with the exception of the 8 GB black model, which received a price-cut to $99 ($299 for early-upgrade, $499 unsubsidized).

I-Phone 3GS:

http://www.apple-history.com/images/models/iphone_3gs_many.jpgIntroduced in June 2009, the iPhone 3GS included both specification and feature enhancements over its predecessor, the wildly successful i-Phone 3G. In addition to CPU, GPU, and capacity improvements, the iPhone 3GS included a higher-resolution video-capable camera, an integrated Magnetometer, and Voice Control. It shipped with iPhone OS 3.0 (which was also made available for previous iPhone and iPod Touch models), which included software enhancements, such as cut & paste, pervasive landscape keyboard, search, internet tethering, and a voice memos application. The iPhone 3GS was available in both black and white in two capacities: 16 GB for $199, and 32 GB for $299, assuming subsidy eligibility. Early upgrade prices were $399 and $499, respectively, while unsubsidized prices were $599 and $699.