Apple had been a very successful company since its foundation in 1976. It has been a leader in the computer and mobile technologies field since its first release of the Apple- I to the most recent revolutionary product, the iPad. Through its core competencies innovative design, advanced technology, ease of use, and premium pricing strategy; the company has always positioned itself as a quality leader. Despite their disadvantage in pricing, Apple has seen consistent success throughout its history, specifically since the release of its new mobile devices, as is evidenced by the 15-fold increase of its share price since 2003. Since its early years, Apple has had a drive for innovation and excellence, striving to release new hit products every six to twelve months. This strategy has been greatly successful for the company, as their new products are redefining the industry every year. These products can continue to be refined and perfected to appeal exactly to the company’s target market.
However, Apple can still improve its positioning by targeting solely towards the home consumer and by staying ahead of its competitors in its product innovation.
With the release of the iPod in 2001 and the subsequent introduction of the iTunes Music Store in 2003, Apple had created a dominant position for themselves in the sale of mp3s and mp3 players. The iPod, like all of Apple’s products, had a significantly higher price than the mp3 players of its largest competitors. However, the iPod’s sleek design, simple user interface, large memory, and most importantly, unique compatibility with iTunes, the world’s largest music library, all but guaranteed its success in the consumer marketplace. Profits from music sales remained low due to a high cost structure. Though as song sales numbers boomed with low profits, iPod sales rose alongside. Sales through the iTunes Store provided a loss leader for the much more profitable iPods. Though new products have become available in recent...
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