Apple Case Study

Revenues are recognized in a net basis and only commissions they retain from each sale are reflected under the company’s financial statements.

Apple Inc., September 27, 2008. 2008 10-K Annual Report. Apple Inc. Available from: http://www.apple.com/investor/ [Accessed: 12 November, 2008]

The PC industry has started to develop fast in the 80 's when IBM launched its first PC series and later on when numerous small companies entered the market. PC is a new product and companies had to create the demand to it from the scratch.

The PCs became a commodity. Microsoft grew to be the leader in the operating system market continuing to develop their Windows GUI line. With Windows, software standards have been established allowing software developers to certify their products to meet Windows requirements and deliver controlled performance. In addition, the PCs allowed numerous hardware manufacturers to

The closest comparison to this small computer at the time was the Altair 8800 and the Intel microprocessors used in calculators and watches. An improved version of the Apple 1 developed into the Apple 11, the first personal computer with graphics and a keyboard, and IBM soon followed Apple’s lead with their version of a small computer. The market for personal computers had been primarily in the business industry. Apple Computer sales netted $50 million by the last quarter of 1979 (Gitman & McDaniel, 2009) and Apple soon became the personal computer of choice for many small businesses and families, especially when Apple introduced the more user- friendly Macintosh computer in the 1980’s. The Macintosh was Apple’s first major step in adapting the personal computer to the desires of corporate America. In ten years, Apple had grown from two employees in a garage to a $2 billion company with over 4000 employees (Jobs, 1985). What began as a hobby for Jobs and Wozniak soon became an essential part of many households and established the foundation for the Apple empire.

Issue 01: Steve Jobs is now gone - can they do it without him in the long term?

* In 1981, IBM entered PC market used Microsoft’s DOS OS and microprocessor and will be Apple best rival for the start on 1981. Jobs forced out in 1985.

The PC industry is highly competitive and constantly changing as technology evolves and customer needs change. Some of the top competitors in the PC industry are IBM, Hewlett-Packard, Dell and Apple. Theses rivals are constantly jockeying for the top competitor’s position. They compete in prices, product innovation, advertising, etc.

Apple’s strategy has evolved as technology does. At the beginning, Apple focused on the computer industry

The PC industry was experiencing tremendous cost pressure and was undergoing a period of consolidation. As profit margins fell, PC makers were launching cost reduction strategies aimed at further improving the efficiency of their supply chains, while lowering the cost of distribution. According to a recent newspaper article: The latest financial results for PC makers show a slow down in both sales and profitability. Both corporations and consumers are holding on to their PCs for a longer period of time to avoid the cost and hassles associated with upgrading their equipment. As a result, purchases are being deferred and PC makers are looking at new markets for growth opportunities. The industry appears to be undergoing a wave of consolidation as cost control and scale become more important than ever before.1 In 2007, a major news magazine ran a cover article entitled “Whither the PC?” The threats reported in their analysis were worldwide and stemmed from a variety of factors including the growing popularity of mobile phones, PDAs and web-based application software. For most people, email is the most important application that they use. For a long period of time, sending and receiving email necessitated having a full-fledged PC. Nowadays, though, businesspeople and consumers want to

Apple Inc. is a globally recognised pioneer in the tech industry. It is a corporation that designs, develops and sells electronic products such as tablets, computers and phones. Founded by Ronald Wayne, Steve Jobs and Steve Wozniak in 1976, it is a multinational corporation with headquarters in Cupertino, California. Tim Cook has been CEO since Jobs’ passing in 2011.

Apple Inc. is established in California on April 1, 1976 and incorporated on January 3, 1977. Apple Inc. focuses on designing and manufacturing consumer electronics and software products. Which should be mentioned is that the company's best-known products are Macook, iPod, iPhone, and iPad.

Apple operates with fierce competition in the consumer electronics segment which comes in many different forms. There are a large number of competitors in the different market niches who offer many similar products. Furthermore, many of these competitors' products are priced much less than an Apple branded products. Just as soon as Apple releases a new product, major companies begin imitating it immediately. In the personal computer industry, market pressure is continuously being exerted from such companies such as IBM, Dell, HP, and Toshiba (Wildstrom, 2009). Furthermore, with its flagship product the IPhone, Apple competes with companies like HTC, Palm, Blackberry, and Motorola (Wortham, 2011). Apple has had significant success despite the competitive environment because Apple commands a brand loyalty and dedication to innovation that few companies have ever achieved.

* Apple has the customer base mainly in the United States that is devoted to the company and its brands.

Apple Inc. is the most revered corporation of the USA, both in terms of brand equity and market capitalization. The company’s international competitive strategy is focused on the innovative product development, which Apple controls through its eight business segments: Portables, Desktops, iPads, iPhones, Music related products and services, peripherals and hardware (Lam et al. 2005).