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Apple Case 30: Taking a Bite Out of the Competition

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Apple Case 30: Taking a Bite Out of the Competition General: • Apple had the highest brand and repurchase loyalty of any computer manufacturer • Low market share always • Recognized as being innovative and considered to have a niche status • iPod and iTunes examples of innovation • Personal computer line to transition to Intel processors (BootCamp make run windows on mac machines) • Apple’s personal computers are known for their stylish design, ease of use, seamless integration of peripherals, and high performance NEVER were able to capture a great market share partly because of the proliferation of Windows in the business consumer production. Q1: Now that the switching costs are removed, could Apple gain market share and …show more content…

• In 2002, Apple released iMac and announced iPhoto. iMac flat panel was designed to be the center of the emerging digital lifestyle and run Apple’s award-winning suite of software. • Big problem, if the company fails to produce innovative products because it created a weather system all its own. • In 2003, Apple introduce iTunes Music Store compatible with iPod only. • Apple held a 40% share in the digital music players and a 70% share of the paid music download market. • By the end of 2004, iPod became a must have Christmas present. • In 2005, Apple released the MacMini computer module, iShuffle, and Mac OSX version Tiger, billed as the world’s most advanced operating system. • A free recycle program for iPod was announced and problems with batteries were solved. • On June, 2005, Apple announced the switch to Intel chips in their personal computers. The goal was to provide customers with the best personal computers in the world after a ten years transition from Power PC to Intel. RISKS: devotion of customers and making programs that are compatible for

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