Apple Inc 2012 Case Study

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Fact of the case

On April 4, 2010, Apple Inc. launched its eagerly anticipated iPod amid great hype. The company started off as “Apple Computer,” best known for its Macintosh personal computers (PCs) in the 1980’s and 1990’s. Despite a strong brand, rapid growth, and high profits in the late 1980s, Apple almost went bankrupt in 1996. Then Jobs went to work, transforming “Apple Computer” into “Apple Inc.” with innovative non-PC products starting in the early 2000’s. In fact, by 2010, the company viewed itself as a “mobile device company.” In present scenario Apple having largest market share in all over the world.. Apple knows as because of its unique features and innovation. Early 1980 . it having some market failure. Company feces many problems such bankcouurpcy. Profit margin was very low at that time. At the same time, Microsoft introduced Window 7, which led to a resurgence in PC sales. Even though Macintosh sales had grown faster than the industry in recent years, Apple’s share of the worldwide PC market had remained below 5% since 1997.

History

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...
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