Apple Computer, the Cupertino, California-based company ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Apple computer is one of America's most inventive companies. It developed many of the features that computer users have come to take for granted, including the graphical user interface, the mouse, the laser printer, and the color monitor. In the last 10 years alone, the company has issued more than 1000 patents.
In the 90's Apple made the momentous strategic decision not to license its technology and Microsoft with its Windows operating system quickly dominated the market. Apples share of the worldwide market for PCs decreased continuously to the lowest level of just about 2%. Steve Jobs, one of the founders of Apple Computer, who left the company in 1985 to start his own business with NeXT Computer and Pixar Animation Studios, returned to the company as CEO seven years ago. Since then Apple enjoys a renaissance. Jobs' company has surprised with the iMac, introduced OS X a new Unix based operating system and rolled out the PowerMac G5, arguably the fastest desktop computer ever built.
And now Apple makes a bold move. For the first time in his history Apple moves away from its core business of computer into the music business and kicks of a revolution again. Apple introduces the iPod, which have become the most selling portable music player in the world and the iTunes Music Store a revolutionary online service to buy digital music.
The aim of this report is to evaluate the threats and opportunities that Apple has in the market, not looking only at the normal market but also to the digital music market.
Apple is a very successful company. Sales of its iPod music player had increased its second quarter profits to $320 (June 2005). The favourable brand perception had also increased sales of Macintosh computers. So...