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Apple Introduction

By waimac22 Nov 26, 2008 568 Words
Apple Inc. is a well-known and unique computer manufacturer which designs, manufactures and markets personal and professional computers, related software, services, peripherals, networking solutions, entertainment equipments and mobile phone device. The most famous entertainment device that Apple has introduced since year 2001 is iPod. This marvelous portable digital music players started as a back and while screen, only Mac-compatible, and with a 5GB hard drive that only can store 1000 songs up with a price of $400USD. Today, the 6th generation iPod family is introduced in January 2008 to have five members: iPod shuffle, iPod nano, iPod classic, iPod Touch and the mobile phone – iPod Phone. The classic iPod classic is the most similar to the 1st generation of the 5GB iPod. It has full colour screen, Windows- and Mac-compatible, up to 160GB that can store up to 40,000 songs, or 200 hours of videos or 25,000 Photos. Moreover, iPod family now has whole bunch of related accessories and services including online distribution of third-party music, audio books, music videos, short films and television shows.

Apple’s marketing strategy focuses on introducing the best personal computing and music experience to students, teachers, professionals, businesses, government agencies and consumers through its innovative hardware, software, peripherals, services and Internet offering. Besides, iPod as a hardware device that to deliver the protable entertainment experiences to consumers; Apple also offers the online media store – the iTunes Music Store to enhance the wonderfulness of “Apple experience” for its customers. The iTunes Music Store is a portfolio of peripherals that support both Mac and Windows users who has iPod products to enjoy a variety of other service and support offerings.

Currently, Apple has been successful in developing a near cult following surrounding its iPod. People identify with Apple and when they buy a Macintosh or an iPod, they are buying into a culture or lifestyle choice. Apple has been able to bond with its customers just like Southwest Airlines, Nike and Volkswagen (Chadwick, 2004). Sales of iPod have proven to be phenomenal. According to Graham (2006), ¡§Apple has sold 42 million iPods -- 76% of them in 2005 and recently reported record revenue for the quarter -- $5.7 billion, compared with $3.5 billion for the same period in 2004.¡¨. Its iPod controls over 74 percent of the market for MP3 players of any kind in the United States. Also, Apple has sold more than 500 million songs or half a billion songs since it opened its iTunes Music Store. It is now selling more than 1.8 million songs per day. Apple possesses 82 percent of the market share in the United States and 85 percent of the global market for music (Thurrott, 2005). Apple¡¦s direct competitors include Dell Computers, Microsoft Corporation, Hewlett Packard, IBM, Fujitsu Siemens, Gateway, and NEC. Each of these company¡¦s main products includes desktop computers, notebooks, servers, and software. Apple¡¦s competitors to the iPod Shuffle product include Sony, Samsung, SanDisk, and Creative Technologies Apples indirect competitors include alternative forms of music distribution, specifically CDs and portable CD players, as well as radio - especially web radio and the new and quickly growing SIRIUS satellite radio. SWOT Analysis

SWOT analysis is a tool for auditing an organization and its environment and represents the first stage of planning, enabling marketers to focus on key issues. A SWOT analysis of Apple (Table 1) revealed:

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