Current Market Conditions Competitive Analysis
The Apple Company is one of the most successful firms in the cellular phone market. Although the company has not always been on the top, they found a way to surpass other competitors through the quality and pricing of their products. Today, we can walk through most superstores and find Apple’s products. Apple was started in 1976 when Steven Wozniak and Steven Jobs joined forces. Wozniak created the Apple I which Jobs suggested they try to sell. The Apple I was not very successful. By 1980 the Apple III was introduced which increased sales tremendously and helped to employ thousands of people. In 1981, sales became more difficult because the market became populated with other competing firms. This is when John Sculley came into the picture as it was determined that Steven Jobs was not a good manager. Jobs worked with Macintosh to compete with the new IBM pc. In 1985, Jobs and Sculley began arguing because Sculley believed Jobs was out of control and Jobs was convinced that Sculley knew nothing about computers. Sculley became head of Apple by the company’s choice and subsequently, Apple laid off over 1,000 employees because of the company’s quarterly loss. The LaserWriter and the PageMaker brought Apple out of the hole, but by 1990 the market was full of different types of PC's this made it difficult to compete. In June of 1993 Sculley stepped down as CEO and Michael Spindler was placed in his position. Under Spindler's control Apple released the PowerMac and licensed Mac OS to other companies. Apple could sell many computers but they did not have all the parts to build them, which caused many items to be backordered. Apple experienced a $68 million loss for one quarter during the winter of 1995-1996. Spindler resigned as CEO and Gil Amelio was put into the position butt was eventually replaced by none other than Steve Jobs. The Apple Store was created and became one of the largest e-commerce sites. The immaculate, iBook, and PowerMac G4 all brought growing profits to the company. Throughout the 2000's many products were brought into the market like the iPod and iTunes. In the first year iTunes sold nearly 70 million songs. Now products such as the iPhone, iPod, and iPad's are a must have (Company History: 1976-Present, 2012). On September 7, 2005 Apple and Motorola partnered up to release the first phone to use iTunes which was called the ROKR E1. Steve Jobs was disappointed with the phone because he felt that Apple was not able to create the phone they wanted. In 2007 Jobs announced the iPhone at a convention which received a lot of attention. Apple released the iPhone in 2007 and awarded his employees with free iPhones. Since the release of the first generation of the iPhone there have been many updates such as 3G service, system updates, physical changes, etc (History Of The iPhone , 2012). The iPhone is one of the most popular phones on the market because of the advanced technology. Market Competition
The cellular phone industry has experienced somewhat of a boom in the last 3-5 years. The market for smart phones in particular, of which the Apple iPhone is a major part, has increased exponentially with the advent of Apple’s iOS devices and its competition with Google’s Android and RIM’s Blackberry OS. The competition within this market is fierce as each company tries to ‘one-up’ the others in terms of usability and connectivity. Android devices tend to be geared toward a male demographic while the iPhone has a much larger female market presence. A 2010 report by AdMob found that nearly 73 percent of Android users were male and roughly 27 percent were female. Conversely, the iPhone showed a female user base of 43 percent, a much larger percentage of overall user base than Android devices. Another 2010 study done by the Nielsen Company found that a lot of younger and less-wealthy people owned Android devices rather than iPhones (Arvidson,...
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