Entering a Mature Industry Through Innovation: Apple’s iPhone Strategy

Joel West
San José State University

*Michael Mace
Rubicon Consulting

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     Last modified: May 7, 2007

Abstract
Innovation competencies are valuable in emergent and high-growth phases of the lifetime of a product or industry segment. For mature industries, researchers have emphasized strengths in operations and execution, with the implication that innovation-oriented companies must enter early in the product lifecycle or not at all.

Here we examine the decision of Apple Inc. to enter the mobile handset business. We link the iPhone entry strategy to its historic competencies and the industry context of commodization and convergence. From this we offer conclusions about openness in mobile phones and prospects for a single dominant design for convergence devices.