Challenges Faced by Apple Inc

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Apple, an American multinational corporation which focus on designing and manufacturing consumer electronics and closely related software products, is now facing the challenges from all sides. In June of 2007, the Apple PC’s worldwide market share was only 3 percent, according to Roger L. Kay (2007). This unsatisfying market share stimulates the company executive team endeavouring to figure out a strategy to bring Apple a brighter future. However, before Apple to go further, Apple has to solve two intractable problems which are the software especially the operation system software monopolization competition with Microsoft and market expanding against the driving competitors. This essay will classify and explain both the cause and effects of the problems, and then the possible solutions will be discussed. Finally a conclusion will be given.

In the early 1990's, Apple's distant lead in graphical computing began eroding quickly. Microsoft worked to made incremental progress in developing the entirely new Windows operating system. During the rise of Windows, Apple seemed content to rely on its existing, established share of specific markets that offered large profit margins ( RD ,1990-1995). The chance kindly offered by Apple finally brought up a new head of the operation system manufacturer- Microsoft. Now Microsoft is possessed of the largest operation system market share by around 90% in the world (IT Report, 2006) which is significantly regarded as the strongest competitor against Apple. Once the Windows operation system is widely applied in the market, it is hard for the customers to switch their present systems because of misgiving, high expenditure for training operators and high cost for updating both the software and hardware. As a result, windows still occupies the market and Apple has to work arduously to make progress in the operation system under the additional commercial boycott inflicted by Microsoft. By losing the predominance in operation system...
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