.Task 2 – Literature Review [10%] Course Name: Integrated Industry Project Course Code: BUS 4966 Date: Week 8, Sunday, @ 4pm Word Count: 2000 – 3000 words Percentage of Total Grade: 10% Student Name Hesa Khalfan Obaid Student ID H00226310 Student Section BU01 LO 1 Propose the application of functional knowledge and managerial insight through research on complex challenges in facing the industry. Instructions: • Please follow the instructions provided. Cheating Statement I understand that if I cheat, try to cheat, or if I try to help another person to cheat in this assessment, I will be dismissed from the college. Student Signature: Date: For Examiner’s Use Only Section (Question) number TOTAL Marks Available 100 Marks Earned Marker Name The purpose of this study is to explore some of the different variables that influence into smartphone and the market share. The study seeks to answer the research question which is how new application and new store impact on the market share and increase the sales. The goal is to get an answer by some analyzes from variety of people, facts, news and journals. Actually, Smartphones have a high market share in the UAE and the most using smart phones are Apple iPhone, Samsung and Nokia. In 2016, Apple’s iPhone 6 was the most popular smartphone used in the UAE according to the latest report from the Telecommunications Regulatory Authority (TRA) and Samsung is the most used handset brand. The market share of the Apple’s iPhone 6 was increased in in the last few years (Nagraj, Apple’s iPhone 6 remains UAE’s most popular smartphone in Q1 2016, 2016). In 2007, Apple's App Store created new mobile value-added services (VAS) and the prominence of iPhone release up the whirlwind of mobile application (App), and lead mobile application stores up and flourishing (Hsiu-Yu Wang, 2013). Similarity, Apple took the market share from smartphone manufacturers by a premium reseller of Apple products. The UAE is expects 2.8 million smartphones to be sold in 2014. In that year, there is one Apple store and several resellers in the country and the impact of that store on resellers will not be large (Algethami, 2014). Moreover, Apple show off it as a new service type to meet the needs of mobile phone users. There is an App for whatever you want to do. This new service type is creates new avenues of mobile market opportunities. The forecasting of worldwide mobile application store revenue is projected to exceed $15.1 billion in 2011. Both of the end users buying applications and applications themselves generating advertising for their developers. In the end of 2014, also there is a forecast over 185 billion applications will have been downloaded from mobile App stores since the launch of the first one in July 2008. Accordingly, there is a great opportunity of new revenue source in the mobile communication sector by Apps and it has received wide attention. It is extremely important to the consumers' perception of Apps usage to get the profit from Apps (Hsiu-Yu Wang, 2013). Actually, Apps can create a positive opportunity to get a profits. So, this objective which is adding new application to the iPhone will be a success achievement to the market share in the UAE. In other words , iOS application has developed in iPhone and iPad. iOS is an operating system used for mobile devices manufactured by Apple Inc. Consequently, that have revolutionize mobile application industry by caught the imagination of its users and new generation iPhone technology like iOS 9 (iOS Application Development, 2011). According to Telecommunication Regulatory Authority (TRA) detect data for second quarter of 2016 on UAE market shares of mobile handsets, smartphones and social networking sites. Actually, in the last year from 1 April to 30 June the TRA has revealed the most popular mobile phone handsets, social networking stage and applications websites and report discover the market share of mobile phones in the UAE by manufacturer and model (Release, 2016). In addition, UAE’s handset market is dominated by smartphones as 61 per cent of handsets registered on the UAE telephone networks in fourth quarter of 2014. According to the data released by Telecommunication Regulatory Authority (TRA), the use of smartphones has been constantly increasing (Haider, 2015). Moreover, all handsets registered on the UAE’s networks were smartphones was 77.81%. There are five top handsets are using in the UAE during Q2-2016 which are Apple iPhone 6 by 2.45%, Nokia 108 by 2.99%, Samsung Galaxy J100H/J1 by 2.45%, Apple iPhone 6S by 2.32% and Apple iPhone 5S by 2.29%. The report might suggest that Apple is dominating the UAE market. However, in reality Samsung brand that is most popular handset use such as the Samsung has 33.3% of all handsets registered and Apple has 13.6%. Samsung Apps Store was by far the most visited applications website, followed by Apple iTunes, and finally Android Applications. During the period 1 April 2016 to 30 June 2016, UAE smartphone and fixed Internet users made 24 billion visits to social networking websites (Release, 2016). The TRA report also disclosed the nation’s most popular mobile phone handsets, social networking platforms and applications websites and said 40 per cent of all handsets were manufactured by Nokia. iPhone 5s was the most commonly used smartphone comprising four per cent of total handsets registered on UAE networks, a figure that increased by 22 per cent during second quarter 2014 (Haider, 2015). The report said that the iPhone 5 was the second most popular Smartphone with 2.4 per cent of the market share and it reversed its upward trend during the fourth quarter. In terms of social media, UAE smartphone and fixed internet users made a total of 16 billion visits to social networking websites during the period 1 August 2014 to 31 December 2014. Visits to Facebook accounted for 91 per cent of total visits to social networking sites, followed by Twitter with 6.6 per cent of visits, then LinkedIn, Maktoob and MySpace. This chart below shows the market share of visits to application stores in UAE (Haider, 2015). However, there is an impact of iPhone 6 in the sales. last year there was a huge problem with iPhone 6 may be famed for its Reality Distortion. The problem is battery which is the company failing to meet basic consumer needs for normal wireless communication. Which is this issue has a negative impact for the sales and market share in the UAE. The Chinese government has dismissed Apple’s attempts to solve the situation because of failing exists in the iPhone 6, iPhone 6 Plus, iPhone 6s Plus, in addition to iPhone 6s devices produced between September and October 2015. In an official statement, a government watchdog group, has issued Apple with a formal warning for reporting their situation. After that, Apple improving batteries efficiently and meet basic consumer needs for normal wireless communication (Kelly, 2016). On the other hand, the first new Apple store in the UAE create more consciousness of Apple and push demand. Moreover, multi-brand retailers will not be affected by the new Apple store, but retailers that almost only sell Apple products could be hit. Similarly, multi-brand retailers of Apple products said that they don’t expect the new store to hurt their sales. It will act as a catalyst to improve sales of Apple products in Emax and enhance availability of products and services to international standards in our region (Algethami, 2014). This new store has a positive impact in the market share in the UAE because of high demand. There is two Apple store in the UAE which in Dubai and Abu Dhabi. In 2016, App developers earned $20 Billion and in Jan. 1, 2017 customer purchases makes the App Store’s busiest day ever. Apple announced that last year the App Store was the biggest day ever on the App Store. Moreover, customers records with purchases from the App Store topping $3 billion in the same month. Since the 2007, developers have earned over $60 billion, creating amazing app experiences for App Store customers. Super Mario Run made history with more than 40 million downloads in just four days after its release, and was the most downloaded app globally on Christmas day and New Year’s Day and it became the most successful apps for iPhone, iPad, Apple TV, Apple Watch and Mac, respectively. The App Store offers 2.2 million apps in total, up over 20 percent from last year. With the App Store available in 155 countries, Apple’s customers have access to millions of apps to make their lives easier. Today, Apple leads the world in innovation with iPhone and making the best products on earth, and to leaving the world better than we found it (Saffer, 2017). Moreover, the new Apple store in the UAE is going to attract a lot of customers and market share and retailers say that the store will not hurt their sales. It is seeking a retail manager for the UAE. The new Apple store is opening and retailers’ sales across the board- not only of Apple products- could drop and it will take a market share from smartphone manufacturers. The new store will create more awareness of Apple and drive demand and this will reflect a positive impact in the sales and market share in the UAE. The smartphone market in the UAE is saturated and they expects 2.8 million smartphones to be sold in the UAE that year which is 2014 and retailers could boost their sales. However, the impact of the store on resellers will not be large, considering that there is one Apple store and several resellers in the country. Another analyst, said that multi-brand retailers will not be affected by the new Apple store, but retailers that almost only sell Apple products could be hit. Similarly, multi-brand retailers of Apple products said that they don’t expect the new store to hurt their sales. Where the new store of Apple will act to improve sales of Apple products in Emax and enhance availability of products and services to international standards in our region. Resellers said that their contract with Apple will not be affected after the store’s opening, and they will continue to sell Apple products at the same prices as those in the Apple branded store (Sarah Algethami, 2014). Furthermore, Officially opened two new Apple stores on June 14th, the stores will offer the full Apple ecosystem including the iPhone, the iPad, the Apple watch, the MacBook range, Apple TV and Apple accessories. Apple stores have opened at the Dubai Duty Free (DDF) in Dubai International Airport, representing the largest-ever Apple outlets in travel retail. It located in Terminal 3 next to gate B15 and A12. The Apple shop programme in Concourse B being the largest in any travel retail in the world, this is a very exciting development for Dubai Duty Free and our customers. The expect of Apple sales to reach Dhs 220m ($61m) in 2016. The two stores have a combined staff of 150 people from 30 nationalities, speaking 40 different languages. According to the latest report from the UAE’s Telecoms Regulatory Authority, Apple has been increasing its market share in the UAE in the last few years and it had 14.2 percent as of Q2 2015 (Nagraj, In pictures: Two new Apple stores open in Dubai airport, 2016). The report said that the iPhone 5 was the second most popular Smartphone with 2.4 per cent of the market share and it reversed its upward trend during the fourth quarter. In terms of social media, UAE smartphone and fixed internet users made a total of 16 billion visits to social networking websites during the period 1 August 2014 to 31 December 2014. Visits to Facebook accounted for 91 per cent of total visits to social networking sites, followed by Twitter with 6.6 per cent of visits, then LinkedIn, Maktoob and MySpace. This chart below shows the market share of visits to application stores in UAE (Haider, 2015). There is an over 25% of the market share in terms of mobile app users, iOS apps are generating much higher revenue because of great monetization. Apple work to develop and set live a custom application for consumers choice. Apple has paid more than 13 billion dollars to iPhone app developers and that a support to increase the iPhone apps. A brand new version of Apple Mobile OS – iOS9 has been released recently. The iPhone app market is incredibly rewarding, but in order to succeed, you have to have the right app, the right functionality, the right rollout and the right support. At the end of March 2015, there are more than 700 million iPhones were sold. This is an enormously important statistic for business owners who wish to take their business to the next level by going mobile. (iOS Application Development, 2011). However, there are an negatively impacts of iOS application for the iPhone 4s performance. Apple faces complaint over how iOS 9 negatively impacts because of this application. That's according to a new complaint over how iOS 9 is reported to significantly impact the performance of the iPhone 4s. Unfortunately for those affected, they're unable to reduce from iOS 9 due to Apple security. It's claimed that Apple knows all too well about iOS 9 and how the update makes the iPhone 4s simply not fit for use by owners and pushing them to either suffer abovementioned issues. Complainants are now seeking more than $5 million in damages, with an option to treble. Apple has also been reported that the exact opposite is the case in some tests, where newer updates applied to older hardware actually improves performance (EDMONDS, 2015). There is a fact secrets of Apple’s Retail Success which is Apple is one of the most successful retailers and it was forced to do a better job than everyone who came before it. Apple operates over 360 retail stores which employs over 40,000 people and plays host to more than a million visitors every day. Amazingly, Apple’s retail operations are on track to generate more than $20 billion in 2012. Apple’s stores average over $7,000 per square foot. The first successful secret is Apple had to think different about retail by learning why other retailers had failed, atypically hiring an external expert to make sense of what mistakes entry made with its gateway country computer stores. Every retailer should be positive in learning what works and what doesn’t work and improve the retail experience. The second secret is Apple doesn’t sell products. Apple sells membership which is attractive customers to experience the Apple lifestyle to figure out what you need and help you get it, even if it's a product Apple doesn't carry. Also, it focuses on what people do with their products and not what their product does. Their stores naturally help people feel that their purchase grants them access to a very special place. Apple’s aim to make a great products by sales happen as a result of this focus on improving people’s lives. The third secret is Apple empowers its customers. Apple’s guidelines are carefully arranged to project a much more welcoming and friendly environment. Apple empowers its store’s visitors by letting them touch everything, try anything, and stay as long as they like. Apple also invested in self-service tools to empower customers to schedule their own appointments and to purchase products online and in-store. The fourth secret is Apple stores enrich their customer’s lives. Which is the staff isn't focused on selling stuff, it's focused on building relationships and trying to make people's lives better. On the other hand, the stores focus on improving and enhancing the value and quality of people’s lives. Apple have grown dramatically by its market share and store sales. The last important secret is Apple goes one step further by delighting customers when they purchase a product and keep them happy throughout its lifespan. Apple Store customers become lifelong repeat customers, fans and evangelists. Retailers should consider ways to do more than necessary to surprise and delight their customers. Customers will react positively to stores that make them feel that the people who work there are encouraged and empowered by their employers to go one step further to ensure customer happiness and satisfaction. Apple Stores are now the highest performing stores in retail history. Today Apple is in a retail class all by itself. While Apple now has some distinctive products and a very powerful brand, it still uses a secret recipe to continue to achieve new retail successes (Chazin). Finally, this literature review is answer the question which is how new application and new store impact on the market share and increase the sales by some analysis. Actually, there are some positive impact and negative impact to get the answer. The positive impact are the App Store offers 2.2 million apps in total, up over 20 percent from last year. Also, Super Mario Run made history with more than 40 million downloads and it became the most successful apps for iPhone. The negative impact was the battery of iPhone 6 which is the company failing to meet basic consumer needs for normal wireless communication and negatively impacts of iOS application for the iPhone 4s performance. However, Apple fixed this issue and make the iPhone 6 most popular smartphone in that period. Lastly, Apple's App Store created new mobile value-added services and lead mobile application stores up and flourishing and there is over 25% of the market share in terms of mobile app users. Bibliography iOS Application Development. (2011, Jan 16). Retrieved Feb 19, 2017, from oranzsoftwares: http://www.oranzsoftwares.com/services/iphone-application-development/ Algethami, S. (2014, Aug 20). New store in the UAE to widen Apple’s market share. Retrieved Feb 5, 2017, from gulfnews: http://gulfnews.com/business/sectors/retail/new-store-in-the-uae-to-widen-apple-s-market-share-1.1374617 Chazin, S. (n.d.). The Secrets of Apple’s Retail Success. Retrieved 12 2, 2017, from marketingapple: http://www.marketingapple.com/Apple_Retail_Success.pdf EDMONDS, R. (2015, Dec 30). Apple faces lawsuit over how iOS 9 negatively impacts iPhone 4s performance. Retrieved 2 17, 2017, from imore: http://www.imore.com/apple-faces-lawsuit-over-how-ios-9-negatively-impacts-performance-iphone-4s Haider, H. (2015, Mar 3). Smartphones continue to dominate the UAE market . Retrieved Feb 16, 2017, from khaleejtimes: http://khaleejtimes.com/business/technology/smartphones-continue-to-dominate-the-uae-market Hsiu-Yu Wang, C. L.-H. (2013). What Affects Mobile Application Use? International Journal of Marketing Studies, 11. Kelly, G. (2016, Dec 2). Apple Warned iPhones Have A Serious Problem. Retrieved Jan 20, 2017, from forbes: http://www.forbes.com/sites/gordonkelly/2016/12/02/china-iphone-battery-warning-to-apple/#761719827cf7 Nagraj, A. (2016, Aug 7). Apple’s iPhone 6 remains UAE’s most popular smartphone in Q1 2016. Retrieved Jan 25, 2017, from gulfbusiness: http://gulfbusiness.com/apples-iphone-6-remains-uaes-most-popular-smartphone-in-q1-2016/ Nagraj, A. (2016, Jun 19). In pictures: Two new Apple stores open in Dubai airport. Retrieved Feb 15, 2017, from gulfbusiness: http://gulfbusiness.com/in-pictures-two-new-apple-stores-open-in-dubai-airport/ Release, P. (2016, Oct 24). TRA reveals data for second quarter of 2016 on UAE market shares of mobile handsets, smartphones and social networking sites. Retrieved 2 14, 2017, from albawaba: http://www.albawaba.com/business/pr/tra-reveals-data-second-quarter-2016-uae-market-shares-mobile-handsets-smartphones-and-s Saffer, S. (2017). App Store Shatters Records on New Year’s Day. Retrieved Feb 8, 2017, from apple: http://www.apple.com/pr/library/2017/01/05App-Store-Shatters-Records-on-New-Years-Day.html Sarah Algethami, S. R. (2014, Aug 20). New store in the UAE to widen Apple’s market share. Retrieved 2 15, 2017, from gulfnews: http://gulfnews.com/business/sectors/retail/new-store-in-the-uae-to-widen-apple-s-market-share-1.1374617