Operating System and Apple Inc.

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Case Analysis: Apple, Inc.
Krista Geisler-Gnirk
Kaplan University
GB520-04N: Strategic Human Resource Management
Unit 1
April 26, 2011

I. Introduction & Background
Apple Inc. has been at the forefront of innovation and creativity in the computer industry. In 2001, they entered into the digital music player industry with the launch of the iPod (Slind & Yoffie, pg. 10). Another product line they created is the iPhone, which is controversial with its high costs and limitations from AT&T. Apple Inc. started in 1976 and has constantly fought to achieve a high market share in its industries and to increase profits globally. They have created new products and entered new fields and still struggle to be market leaders. They are in strict competition with Microsoft, IBM, Hewlett-Packard, Dell, Acer, and etc. (Slind & Yoffie, pg. 21). While computer sales have more than doubled in the last 30 years, Apple Inc. has the lowest market share at 2.6% in 2007.

II. Key Problems
One of the key problems that Apple faced early on was competing with other operating systems (OS). Apple II’s OS was superior to Windows OS because it worked with many different computers, where Apple II’s OS only worked on Apple computers (Slind & Yoffie, pg. 2). In the early stages, Apple Inc. separated itself and was independent from other competitors. In later years, they created a parallels program that allowed Microsoft to be run on a Mac computer. This provided profits for both companies (Slind & Yoffie, pg. 6). Apple continues to create applications specifically for Macs. Also, Mac’s have been considered on the high end of cost for computers. Another key problem, is the low profit from iTune sales; after paying the studios, the credit card fees, and the maintenance of the website they are not really profiting. This is only really in support of the iPod. They are getting increased competition from other music download sites that make it...
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