Strengths

Innovative – The iPhone has an innovative touch screen that is patented and unmatched by any other mobile product today. It also has many functions of other mobile products all in one device.

Compatibility –The phone will work with iTunes and with other Mac/Apple products like the new Apple TV, allowing for wireless connectivity to the big screen. The iPhone is also compatible with many Mac OS software tools. Mac OS compatibility means that the iPhone has limitless potential for upgradeability.

Ease-of-Use – The all-new touch screen interface making operations extremely intuitive. It is radically different from those of other phones or PDAs that recognizes multi finger gestures, just as the human hand normally behaves. The Mac OS X application imbedded into the iPhone assures users will easily recognize what they can do

Brand awareness – Apple is well known for cool essential gadgets like the iPods along great technological innovations like the original Macintosh.

Price – At $350, the iPhone would be sold at a reasonable price for its value. It outperforms any other PDA or smart phone on the market and the convenience of having multiple features combined into one-device increases its overall value.

Quality – The iPhone has one of the brightest and most scratch resistant screens in the market. It also has a fine metallic finish that is durable and light. The software suite included is also unsurpassed with their ease of use and resistance to computer viruses.

Weaknesses

Image – The Apple brand is not targeted towards business people, which most smart phones have targeted. Does not have a reputation as being compatible with the corporate world.

Price – Apple does not yet offer lower priced models for more cost conscious consumers.

User Interface – Touch screen interfaces suffer from the problem of “gorilla arm,” in which long-term use of a flat, solid surface for input becomes uncomfortable.

Opportunities

Increasing demand and expansion to a new target segment – Apple will continue to target the business productivity market who wants an all in one computing solution. But as technology advances and smart phones get cheaper companies also have a great opportunity to target people who want entertainment. Apple will attract these consumers and get iPod users to upgrade to iPhones.

Upgradeable – Since software on the iPhone can be updated, it allows new exciting features to be brought in which take advantage of the touch screen ability. Future versions will also be hardware upgradeable.

Partnerships – Apple can collaborate with many powerful global mobile phone companies to flood the market with iPhones, which reduces costs in marketing and increases revenue through long-term agreement deals.

Threats

Increased competition – Smart phones are easier to make now more than ever. More companies may enter the market, given that there are few barriers to entry other than patents. Competitors or even Apple contractors can maneuver around patents to create similar devices.

Downward pricing pressure – The iPhone is marketed as a high-end phone, but phone prices are almost certainly going to fall when other companies undercut the price of iPhones.

Difficulty expanding into Asian market – There is less hype and interest in Asia since smart phones are better known and already widely used.

Strengths
Experience: Palm has the longest history in PDA market and has experience-developing software for mobile devices.

Business brand: It is a well-known brand for businesspeople. Existing software is well established and compatible with many products for this market. The market is familiar with Palm products; significant switching costs are involved in going to an iPhone.

Weaknesses
Low profile: Not known for groundbreaking innovations or consumer marketplace products. Palm’s closest iPhone competitor, the Treo, has lower build quality and its interface may be harder to use, being from an older generation of products and unfamiliar to Apple customers.

Interface: Reviews complain that the Trio’s keyboard is small and difficult to use, especially for accessing the Internet. Although some users may prefer having a keyboard built into the device, potential users show a preference towards using the touch screen only.

Opportunities:
Similarity: Palm can add many similar capabilities to their products that match the iPhone and expand to a wider market through lower cost and higher-power products.

Threats:
Increasing competition: New competitors like Apple are entering the market and Palm will face difficulty maintaining its market share.
Microsoft (indirect threat)

Strengths:
Financial flexibility and capital: Microsoft has lots of money and development resources.

Compatibility: There is a large amount of software already available, such as Windows CE operating system for mobile devices. Windows CE is "proven" technology, just like Palm's software.

Brand name: Microsoft is known worldwide for its software products. Businesspeople are likely to order it on the strength of its name, whereas Apple does not make
"business machines.”

Weaknesses:
Previous failures in hardware: Zune have not been successful or profitable for the company.
Image: Lacks Apple’s cool image and customer satisfaction rates. Many people hate Windows and will recoil at the thought of using a phone version.

Opportunities:
New hardware market: Microsoft has the ability to create smart phone hardware based on Windows CE and already makes an iPod competitor, the Zune. This opens up another major front in the computer wars.
Further Windows OS and Office: Microsoft can expand the reach of its dominant OS and its Office Suite, which are huge cash cows for the company.

Threats:
Market Saturation: The market is too competitive for a company like Microsoft; Microsoft is strong when they have single products to focus on and overcome. In the smart phone market, one size is not likely to fit all. It is a fast-paced market and subject to fads like Motorola's RAZR phones.