Apple Company Information to Help Complete the Case Study

Apple Company Information to help complete the case Study

Apple Computer, cofounded by Steve Jobs and Steve Wozniak, has had a tumultuous journey during its 25 years in the computer industry. With a mission of providing easy-to-use computers to everyday people, Apple grew to become stronger than IBM in the personal computer segment. In 1984, with the introduction of the Macintosh, Apple revolutionized the personal computer market by providing the first widely available graphical user interface (GUI) operating system (O/S).

The company continues to innovate with several new product offerings, such as the iPod, newer versions of the iMac, revisions of the iBook and PowerBook, and a new operating systems based on Unix technology. However, Apple is ranked number six among the competitors listed above, with a market share of only 3.48 percent. Worldwide, Apple fares worse; it is in ninth place with 2.4 percent market share.

Apple Computer has recently focused on its home consumer markets with software development including iTunes, iDVD, iPhoto, and iMove. A report suggests that Apple's "biggest opportunity for growth is in the horizontal market, which is basically consumers... The other big segment is content creation professionals and they [Apple] are pretty safe there. Those people pay a premium because they want the Mac hardware and software-- the whole universe of people that do work in that segment are Mac people.

As the computer industry dwindled in the post Y2K economy, Apple performed unprofitably once again in the second half of 2000. Apple performed unprofitably once again in the second half of 2000. Apple introduced the PowerMac G4 Cube in July 2000, a computer with a novel form and style for those who did not want a monitor included with the computer. However, the Cube was a complete failure, and production was halted a year later. The shortcomings of 2000 led Apple to reevaluate its position in the computer industry and address the needs of its constomers.

During the mid-1970s, industry pioneers such as Apple began marketing personal computers to the general public. They released machines that were capable of both word-processing and spreadsheet functions. Apple became the industry leader and remained on top until 1981, when IBM introduced its first PC. The 1980s saw computers invade homes, businesses, and schools at a staggering rate. The number of personal computers in use grew from 5.5 million in 1982 to 65 million in 1992.

Today, the personal computer has reached the status of a commodity and the battle for market share is all the more intense. Clearly, the market ha reached maturity and only the strong survive. The boom of the late 1990s is over, and weathering the storm has led all the players in the industry to reevaluate the way they do business.

Dell's direct-to-customer business model adds value in five ways. First, Dell customers aviod delays and price markups because there is no middleman. Second, Dell's model allows for customizations; customers get exactly what they want. Third, the direct model allows Dell customers to receive outstanding service after the sale that is tailored to their needs. Fourth, Dell is able to implement the latest technological advances in computer hardware and software quickly because the time between assembly and delivery is so short. Fifth, Dell's efficiency creates shareholder value.

Gateway believes that customer service is the key to success. From financing and consulting to training and support, we're here to help at every stage in the relationship, so you get the most from your investment. While advertising and promotions are a part of Gateway's strategy, the company hopes to attract many of its customers by word of mout, believing that no marketing technique is as effective as satisfied customers who promote Gateway to their friends and family. Gateway is most notably distinguishable from Dell in that it operates brick-and mortar stores. Customers who wish to use a computer or talk to a sales representative in person are able to do so at these locations.

The new entity resulting from the acquistion of Compaq by HP promises to distinguish itself from the pack through innovattion. Scientists at laboratories from both companies in the merged firm are eager to collaborate to expand current capabilities, particularly in area of handheld and wireless devices. Although HP/Compaq remains a dominant force in the PC market, the company's primary focus is currently on communication technology.

The goal at IBM is to faciliate the continued evolution of computing technolgy. [IBM's] worldwide research labs work in all areas of information technology, from physics and cognitive science to leading-edge application research. IBM work with the governmental and academic communities to provide customers with the most sophisticated products that technology will permit.

In the software market, the industry profile is radically different. Rather than being defined by rigorous competition, the market is dominanted by Microsoft. Its Windows operating system comes standard on nearly every PC that a consumer may purchase. While Apple offers its own operating system that comes standard on all Apple computers, the software is not compatible with PCs. The result is that Apple software sales are limited