1- INTRODUCTION:- (APPLE MACINTOSH)
* APPLE HISTORY AND DEVELOPMENT:-
Founded in 1976 in a garage in Santa Clara, California, Apple is the brainchild of Steve Wozniak and Steve Jobs, two college dropouts who sought to provide a user-friendly computer to a new and distinct market of small computer users. Between 1978 and 1980, sales increased from
$7.8 million to $117 million, and in 1980 the company underwent its initial public stock offering. In 1983, Steve Wozinak left Apple. That same year Steve Jobs hired away John Sculley from Pepsi to be the company's president. After experiencing several product failures, Apple unveiled the Macintosh computer in 1984 to overwhelming success, setting the stage for Apple's rise and its
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For instance, the desktop computer is part of the screen, not a separate box with wires; the iPhone has very few buttons and feels nice in the hand. Products are easy to use, almost intuitive.
• Marketing. Clever and takes advantages of people's frustrations with other hardware.
• Brand name.
• CEO Steve Jobs. Visionary and charismatic.
Weaknesses:
• Very proprietary and controlling. Won't open the operating system to outsiders to develop hardware to work with the products, keeping hardware sales to itself. While this keeps design control inside and up to standards, it has hurt wide adaptation of its hardware, especially computers, where it has a relatively small market share. Apple has veto power over Apps sold.
• CEO Steve Jobs. He has been described as a control freak and very demanding. When he dies, the company will take a severe blow. When his health was in the news, his secretiveness damaged the company's reputation.
• Not shareholder-friendly. Has abused option granting in the past and refuses to pay a dividend despite a huge (and growing) cash level, no debt, and gobs of free cash flow.
Opportunities:
- Very loyal customer base which has expanded beyond the Mac-heads of the 1990s with the iPod and the iPhone. The iPad has had a very successful launch. This seems to be leading to more sales of computers.
- Has a well-deserved reputation for high-quality products that work smoothly. New products are generally well-received and have a
Overall in the past few years Apple has become more and more successful through preparing for the growth of E-Business for today’s society. The company has taken in and analysed competitors behaviour in order to remain market leaders and stay at the forefront of high end products such as IPhone and there IMacs range. Apple have tried to create a unique feel for their products when compared with Microsoft they have been trying to play catch up with Apple in all the same categories they both operate in. Apple use very different marketing techniques compared to Microsoft which has made Apple the number one brand in the world.
One key element of Apple’s strategy in computers, personal media players, tablet computers, and smart phones is product innovation, diversification and development. Over the years Apple has been very successful in integrating software and hardware in new developing products. Despite the struggling economy in recent years, Apple has been able to grow their market share and stay ahead of the game.
First, let’s start with the Apple Inc. mission and the company history and an introduction of what apple is and what they do and provide to the market. Apple designs high quality personal computers, music players and mobile communication devices for business, education and entertainment (Apple, 2012). Apple, through easy to use, professional software such as iOS, OSX and iTunes leads the world in digital music distribution and mobile computing with its iPod, iPhone and iPad devices (Apple, 2012). Apple will continue to create electronic devices and software that is so cutting edge that it is redefining mobile computing, media distribution, and communication.
They also pride themselves in quality with attention to detail and top grade components. The customer support ranks the highest in all the personal computer market supporting software and hardware issues. The support has multiple options including chat, phone, and in store support. They also feature a easy to use operating system and no unwanted software making the operating system simple to use. They also don’t require you purchase security software since Mac’s do not get viruses making them more secure. That is just a couple benefits of the Mac over the PC and if you watch their commercials you find out so much more. The personal computer market is extremely large with around 75% of adults in the United States owning one(ExtremeTech). Apple has many competitors such as Lenovo, Dell, HP, ASUS and many more because anyone can make a PC that runs Windows. However only Apple can make a computer to run their operating system,
Another aspect of their success is their approach to product designing. In Apple, product design always precedes engineering. They envisage their product, engineer one way to the goal, and start from scratch if anything does not seem right. They have always tried to make products which are easy to use and does everything better than a similar product in the market. This approach has worked pretty well so
I think that the by the Iphone being the first good option outside of the Palm pilot and black berry. That really made sense for the average everyday cell phone user. They made it so user friendly it’s how they gained such market share with the Mac’s. If anyone can remember back to the MS-DOS versions of Windows they made almost no sense when files started to get corrupt. If you look back at early macs they were very simple. This is how they became a part of mainstream America. My Family had both growing up our Mac is the one my parents used most. The windows different was it had Word and that’s why I used it. Word has been the separator for my Generation. This might not have anything to do with the financial standing of the Apple stock but the brief history gives a glimpse into the differences between the two competitors products. WIthout understanding how the Company makes money it’s hard to understand the stock I feel. I think that Apple earned it’s way into our homes and then
Apple being the top price point for its products must compete differently than some of the others in the market to pull in consumers willing to pay for the Apple brand and its promises, such as making devices as easy to deploy as they are to use.
Apple is now a 35 year old company, and since its founding is has strategically chosen to limit consumer choice. This would of thought to be debated, because many Apple buyers don’t view Apple as being limited in possibility or product options. However, as soon as consumers start buying stuff from Apple, they find it difficult to move to products made by someone else, as they have evolved their use of technology around apple software and products.
Apple tries to make their product look hip and cool while making the Microsoft PC look dull and nerdy. A reason Apple does not have many users is because the lack of software
Apple is technology monster. It is a 4-in-1 company. It’s a hardware company, a software developer, a services company, and retail store all wrapped into one. Apple controls its user interface through its software company this helps Apple control how customers will see and use their phone, this is something many
Rivalry Among Existing Competitors: Although the number of PC manufacturers has increased since the 1980s, there still remain only a few dominant players who fight hard for market share. Many firms have chosen to compete in price, but Apple has competed with innovation. This is shown in Apple’s high R&D/Sales ratio in Exhibit 5, which routinely trumps that of Dell and HP. This is a mostly negative dynamic for Apple, because even though they spend more, they can’t charge significantly more on this price sensitive product.
SHAREHOLDER FRIENDLY: The Company generates ample free cash flow, a good portion of which it typically returns to shareholders in the form of dividends (the yield has been hovering near 2%) and stock buybacks. Impressively, over the past decade, approximately 40% of the outstanding shares have been retired. And CEO Frank Blake, who took his seat in the corner office in early 2007, remains committed to repurchases as a way to bolster share earnings and enhance shareholder value.
Apple Computer Company got its start in the early seventies when the two cofounders wanted to create a computer for every person. Steve Jobs and Steve Wozniak got together and started creating one of the first personal computers. After CEO Steve Jobs was forced to leave the company and then return after ten years of working with other technical companies. In 1996, he made his return and they began to look into the music industry as there next big idea.
Despite this Mac has continued to gain popularity in the market. It 's programs have proved to be more stable than Windows, as a result of this hardware for the systems generally last longer as well. This is due to the fact that Mac systems have more features that monitor and regulate the activities, temperatures, and functions that can wear a system down faster. Mac computers also become known for their vivid aqua screen. Because of this many graphic designers, special effects editors, and even musicians have switched to using Mac computers. Even despite their price, which to this day remains higher than the competition, Mac still shares a steady part of the market and its popularity continues to grow. One of the biggest things that has kept Apple very competitive in the market is their version of the tablet. They have also developed the iPhone and the iPod. Apple was the first to not only create these devices but also they made these devices work with each other in a way that no other company has done with any of their devices before.
There is an ease of operation, it is free from any fear of viruses, and most importantly, it doesn’t CRASH like any PC. My Dad purchased the iMac way back in 1998. Today it continues to function as effectively.