Analysis Apple’s History, Development and Growth

Topics: Apple Inc., Steve Jobs, IPod Pages: 11 (3007 words) Published: December 15, 2010
Analysis apple’s history, development and growth
Steve Jobs and Steve Wozniak, a pair of 20-something college dropouts, founded Apple Computer on April Fool’s Day, 1976. Working out of the Jobs family’s garage in Los Altos, California, they built a computer circuit board that they named the Apple I. Within several months, they had made 200 sales and taken on a new partner-A.C.”Mike” Markkula, Jr., a freshly minted millionaire who had retired from Intel at the age of 33. Markkula, who was instrumental in attracting venture capital, was the experienced businessman on the team; Wozniak was the technical genius; and jobs were the visionary who sought “to change the world through technology.” Jobs made it Apple’s mission to bring an easy-to- use computer to market. In April 1978, the company launched the Apple II, a relatively simple machine that people could use straight out of the box. The Apple II sparked a computing revolution that drove the PC industry to $1 billion in annual sales in less than three years. Apple quickly become 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, seemed bland and gray alongside the graphics and sound-enhanced Apple II. But the IBM Pc was a relatively “open” system that other producers could clone. By contrast, Apple relied on proprietary designs that only Apple could proprietary designs that only Apple could produce. As IBM-compatibles proliferated, Apple’s revenue continued to grow, but its market share dropped sharply, falling to 6.2% in 1982. In 1984, Apple introduced the Macintosh, marking a breakthrough in ease of use, industrial design, and technical elegance. Yet the Mac’s slow processor speed and a lack of compatible software limited its sales. Between 1983 and 1984, Apple’s net income fell 17%, leaving the company in crisis. In April 1985, Apple’s broad removed Jobs from an operational role. Several months later, Jobs left Apple to found new company named NexT. Those moves left John Sculley, the CEO whom Apple had recruited from Pepsi-Cola in 1983, alone at the helm. Sculley had led Pepsi’s successful charge against Coca-Cola. Now he hoped to help Apple compete against dominant players in its industry. The Sculley Years, 1985-1993

Sculley sought to make Apple a leader in desktop publishing as well as education. He also moved aggressively to bring Apple into the corporate world. Apple’s combination of superior software, such as Aldus (later Adobe) PageMaker, and peripherals, such as laser printers, gave the Macintosh unmatched capabilities in desktop publishing. Sales exploded, turning Apple’s worldwide market share stabilized at about 8%. In the education market, which contributed roughly half of Apple’s U.S. sales, the company held a share of more than 50%. Apple had $1 billion in cash and was most profitable PC Company in the world. Apple controlled the only significant alternative, both in hardware and in software, to the then prevailing IBM-compatible standard. The company practiced horizontal and vertical integration to a greater extent than any other PC company, with the typically designed its products from scratch, using unique chips, the disk drives, and monitors, as well as unusual shapes for its computers chassis. http://www.apple.com/choose-your-country/

Net sales performance -- Apple’s Annual Report filed on 10/27/2010. The company depends on component and product manufacturing and logistical services provided by third parties, many of whom are located outside of the U.S.” Risk factors in form 10-K, Apple’s Annual Report filed on 10/27/2010. Apple catches up to market leader Nokia:

http://hken.ibtimes.com/articles/70050/20101008/apple-catches-up-to-market-leader-nokia.htm Apple picks...
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