Apple Inc 2012

Steve Jobs and Steve Wozniak, a pair of 20-something college dropouts, founded Apple Computer on April Fool’s Day, 1976. 4 Working out of the Jobs family’s garage in Los Altos, California, they built a computer circuit board that they named the Apple I. Jobs’s mission was to bring an easy-to-use computer to market, which led to the release of the Apple II in April 1978. It sparked a computing revolution that drove the PC industry to $1 billion in annual sales in less than three years. 5 Apple quickly became the industry leader, selling more than 100,000 Apple IIs by the end of 1980.

In December 1980, Apple launched a successful IPO. Apple’s competitive position changed fundamentally in 1981 when IBM entered the PC market. The IBM PC, which used Microsoft’s DOS operating system (OS) and a microprocessor (also called a CPU) from Intel, was a relatively “open” system that other producers could clone. Apple had a third founder besides Steve Jobs and Steve Wozniak. Ronald wayne had a 10% stake in the company. He forfeited his share to the new company for a total of $2,300. All three partners worked at Atari before they started Apple.

Ronald Wayne drew the first Apple logo, wrote the three men’s original partnership agreement and wrote the Apple I manual. He has never owned an Apple product. * “? Macintosh’ is in fact a variety of apple. It also was the first commercially successful personal computer that resembles the ones we use today. It was the first ones to have a graphical user interfaces (GUI) and mouse instead of command line interfaces. * The Big Three ““ Apple, Microsoft, and Google. * No three companies can be more different, but they affect our lives in same way.

Microsoft, the oldest of three, has the iron grip on desktop computing. Apple, next born, is about personal style thanks to iconic products like the Mac and the iPod. Google, the youngest, but arguably the most vivacious of the lot, has a finger in any pie that has to do with the internet (and beyond. Apple provide consumer those things they don’t know what they want. Apple shows see this is the things what you actually want. Company tag line is “think different”. Actually Steve Job proves that by launching his product. Sculley also chose to forge an alliance with Apple’s foremost rival, IBM.

They worked on two joint ventures; Taligent was set up to create a new OS and Kaleida aimed to write multimedia applications. Apple undertook another cooperative project involving Novell and Intel to rework the Mac OS to run on Intel chips that boasted faster processing speed. These projects, coupled with an ambition to bring out new “hit” products every 6 to 12 months, led to a full-scale assault on the PC industry. Yet Apple’s gross margin dropped to 34%, 14 points below the company’s 10-year average. In June 1993, Sculley was replaced by Michael Spindlers, the company’s president.

Due to development of operating system and key processors Apple stars growing not only in U. S. market but also outside of boundary. 45% of sales come from outside of US market. Steve jobs and Apple turn around, Mac products and revamping Apple’s distribution system from smaller outlets to national chains. In addition, in 1997, Apple launched a website to set up direct sales for the first time. Internally, Jobs focused on reinvigorating innovation. Apple pared down its inventory significantly and increased its spending on R&D. Jobs first real coup came with the iMac in August 1998.

The $1,299 all-in-one computer featured colorful translucent cases with a distinct eggshell design. The iMac also supported “plug-and-play” peripherals, such as printers, that were designed for Windows-based machines for the first time Thanks to the iMac, Apple’s sales outpaced the industry’s average for the first time in years. Following Jobs return, Apple posted a $309 million profit in its 1998 fiscal year, reversing the previous year’s $1 billion loss. Assignment questions 1) There is no two opinions that no consumer electronic company capture the public’s fascination the way Apple has.

It become of culture and life sytyle to own Apple’s product and status symbol among youngster. Apple attribute their recent success to ipod (32 million in 2005). They optimistic about media giant such as Disney and pixer. We can glean Insight into the history and composition of the PC Industry from it s eponymous title. In the late 1970s, as Wozniak and Jobs were starting Apple computer, personal computers were an emerging product. . IBM SOM Apple II SOM Mac SOM Amiga SOMC64 SOMTRS 80 SOM By 1983, the market share of the Apple II fell to 8% while the PC had 26%.

Marketshare of Macintosh peaked at slightly more than 10% in the early 1990s and has since tapered to between 2-3%. The IBM PC and its clones became the standard due to the success of the open nature of the PC. This allows product developers to offer vastly more products for the platform. Some argue that not licensing the Mac OS was a mistake. Bill Gates and Microsoft were encouraging Apple to license their OS in the early 1980s, because they were developing software for Apple and had much riding on the success of the company.

When Apple did not license, Microsoft began developing their operating system, Windows. Apple’s competitive advantages are its control of software and hardware, marketing, digital asset management, retail strategy, product differentiation and Steve Jobs’s strategical decisions. Decisions such as switching to Intel processor resulted not only reduced power use & design ease but also increase eeficency. Moreover, Apple has always had a proprietary design. Apple has never licensed any of its products or designs (except during Spindler’s management).

This means that it has always had a wide control over its value chain, from the designs from scratch of their computers, till the software and its marketing or sales. It has a widely vertical integrated business and nowadays, it is even beginning to design its own microchips. This has led to a very unique differentiation that can be hardly found in competitors’ products. That is why one of Apple’s most typical characteristics are its products’ elegant and state-of-the-art industrial designs and superior software 2) Analysis of Apple personal computer industry

While Apple pioneered the first usable “personal” computing devices, it was IBM that brought PCs into the mainstream in the 1980’s. But by the early 1990’s, a new standard known as “Wintel” the Windows OS combined with an Intel processor) dominated the industry. Thousands of manufacturers—ranging from Dell Computer to no-name clone makers—built PCs around standards building blocks from Microsoft and Intel. Growth was driven by lower prices and expanding capabilities. The overall industry continued to boom through the early 2000’s, propelled by Internet demand and emerging markets such as China and the Middle East.

By 2010, more than one billion PCs were in use around the world. As per my view competitive dynamic environment is favorable for apple, because emerging company like india and china there are more population of younger generation and this generation , whose inclination towards innovation technology shupsticated product is rapidly increasing. Its competitors like HP, Dell, blackberry, RIM, Lenovo, Nokia. Etc. if apple has surpassed IBM, HP, Intel and other techno expert product it can win over them in other market too. change in technology and dynamic environment it helps to increase sales growth of apple computers.

Because acc to time customer taste and preferences changes new technology came up and new operating system like unix which is unique operating system is launched and adopted by Apple .. so it gives advantages in today scenario. 3) Apple having sustainable position rather than smart phone because Apple adopted its original idea it is a pioneer and innovative product like Mac iphones ,and ipod ,tablate computers. Apple reached from study rooms to living room because its highly portability and less wait, non wiring features. Apple have strong development and research department. Due to visionary and charismatic CEO like Steve Jobs.

Apple having joint venture with other big company and more international expansion like Asian country. Growing market of “Green” and energy efficient product. Apple successful because of its multi –million dollar marketing campaign such as the successful “think different”. Ads and catch slogan. Apple just released a bottom box portable version of iPod. This iPod (the iPod Hi-Fi) comes with are mote control. Instead of forming a strategic alliance, Apple engineered the iPod Hi-Fi and designed it with high-fidelity features. (Burrows) Apple is clearly trying to develop a stronger core competency in the entertainment area.

Acc to recent survey 46% of consumer have their sights sets on smart phone in 90 days they choose iphone. 32% buying Google android and 4% buying other black berry and RIM’s phone. 4). Apple current position in smart phone is governed by mainly the big players like nokia, Samsung and HTC. Apple slipped to second place in the worldwide smartphone market, but nonetheless posted strong year-over-year growth to reach 35. 1 million units shipped. Apple’s gains in the market benefited from iPhone availability at additional mobile operators worldwide, as well as sustained end-user demand among both consumers and enterprise users.

Other companies threading apples are: Samsung reclaimed the Smartphone’s leadership position and established a new market record for the number of smartphones shipped in a single quarter. Propelling the company forward was continued expansion of its Galaxy portfolio in nearly all directions – new and old Smartphone, product and market segmentation, and multiple price points, screen sizes, and processor speeds. Nokia’s Symbian phone shipments declined precipitously last quarter as demand dropped in key emerging markets, such as China.

The company’s current smart phone woes make a speedy transition to products powered by the Windows Phone operating system, upon which it has bet its Smartphone future, critical. Research in Motion’s BlackBerry unit decline continued last quarter, reaching levels not seen since 2009. Like Nokia, RIM is a company in transition. Smartphones running on its new platform, BB 10, will be released later this year. Until then, results like these may be a sign of things to come. HTC’s struggles in the U. S. market once again negatively affected its overall performance.

However, its relatively strong performance in Asia/Pacific still allowed the company to maintain its position among the top 5 smartphone vendors. The company is staking future success in large part on its One X and S products.. 5. Analyze the recent legal battle between Apple and Samsung from an ethical perspective. Then analyze it from a customer’s perspective. The case is just one of many in the worldwide legal battle between Apple and Samsung. ` Last month, a jury in the state of California found the South Korean company guilty of willfully violating property rights on several patents owned by Apple.

The California jury awarded Apple more than one billion dollars in damages. The patents include so-called utility patents for Apple’s “pinch to zoom” and “tap to zoom” technology. They also include design patents on the look and shape of the iPhone, and one for the home screen design. From an ethical point of view Samsung’s behavior shows flagrant disregard for the original design and it’s obvious they were copying. Anyone with any design sense knows those technology didn’t exist before Apple created them.

The impact of Apple’s victory in the short-term is their pursuit of seeing several Samsung phones banned from the US market. This leaves an uncertain future for other phones that, like Samsung’s, run on Google’s Android operating system. And indeed most smart phones, which arguably owe some debt to the development of each other, and Apple’s I Phone. One uncertainty is whether other smart phone will be redeveloped with more care this time around Effect on consumer as per Samsung: Today’s verdict should not be viewed as a win for Apple, but as a loss for the American consumer.

It will lead to fewer choices, less innovation, and potentially higher prices. It is unfortunate that patent law can be manipulated to give one company a monopoly over rectangles with rounded corners, or technology that is being improved every day by Samsung and other companies. Consumers have the right to choices, and they know what they are buying when they purchase Samsung products. This is not the final word in this case or in battles being waged in courts and tribunals around the world, some of which have already rejected many of Apple’s claims.

Samsung will continue to innovate and offer choices for the consumer. ” Alternative recommendation * Apple can strengthen relationship with the Nokia , Samsung ,Motorola and with Microsoft and Google. * Innovation and think differently has always key factor of Apple. It has always been the first one to create technically elegant product and other have to follow it. Apple should keep innovative to remain ahead in competition. * International expansion is great opportunity to Apple inc. to fight completion.