Vinzent Karger, K-3577
University of Warsaw
What were the causes of Apple's on PC market in 80s and 90s?
Apple Computer took the world by storm in 1977 with the first successful personal computer, the Apple II. The II was not only the first successful personal computer, it was the first successful computer to have a keyboard and monitor, a form which has come to be synonymous with "computer" to many. The II sold millions of units, making Apple a billion dollar company. But by the mid 90's Apple was a shadow of its former self. With few exceptions, Apple products had become overpriced and uninspired; the majority of the product line consisted of indistinct rehashes of the 1983 Macintosh, with relatively minor improvements. Competing products beat the Macintosh in performance in almost every dimension save style, typically at a significantly lower price. Apple was no longer a technological leader and struggled to stay afloat as the company lost money in all of 1994, 95, 96, and 97. The first quarter of 1997 marked a downturn, as Apple stock hit a 12-year low of $4 and the company reported a $708 million loss. While the Apple II was successful in homes and schools, Apple created the III as a business computer. Introduced in 1980, the III had major quality problems. The late 80's and early 90's both the company's visionary founders departed. Technical failures and strategic blunders resulted in a lackluster product line, culminating in a tremendous financial collapse. In 1998 the stock reached a low near $4, and the company posted losses of over $1 billion. A factor in the failure of any technology company that must be considered is technical incompetence. Apple displayed this in its 90's operating system development work. By 1989, affordable hardware had become much more powerful. Additionally, the low profit margins on low-end computers meant that PCs with cheaper components were more profitable for retailers than Macs. Few retailers wanted to invest in...
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