1)I have chosen Apple as my company.

Apple has a strategy to that focus on emotions, they try to get customers to buy their products by focusing on the customers lifestyle. Because we now live in an information based society, and almost every teenager and grownup own their own computer, they have chosen to focus most on the teenager and students. Because we have used technology our whole life, many of us are very interested in new functions and beautiful design. They have made a design that can attract both women and men. Apple have some big competitors that has been there for a long time. The biggest are Dell, HP, Compaq and IBM. They have some threats of new entrants because company's like this often go together and do some research, and then new companies can use this information to get into the market. There also are some substitute products for a Apple, but it depends on what you want the use of the products are. For example, if you look at a Mac, a substitute product might be a cellphone, with an Internet access if that is what you want to use the Mac for. It can also be a Playstation or a TV with a DVD player, if the purpose is to look at movies. The suppliers does not have power over the manufactures in the computer business, and therefore not for Apple either. Because Apple is a pretty expensive brand, the buyers have a lot of power over Apple. Even though Apple have some differentiation from the other brands, there are a lot of similar functions, and they can chose to buy a different brand that are cheaper. The industry rivalry also is pretty strong, because the computer industry will continue to grow. There are a lot of other brands that have started to think more about design and special functions that can challenge Apple. 2)Apple's core competency is innovative design and technology. They combine these two things better than anybody else does, and this includes all of their products. I would also say that this also include their stores, which is more delicate, beautiful and in-time than most other stores I have visited. If i take the iPhone as an example. It has three out of four criteria of sustainable competitive advantages, and by that it has a sustainable competitive advantage. It is valuable, costly-toimitate and rare. It lacks the nonsubstitutable capability. The blackberry can be a substitute product for the iPhone, because it has a lot of the same functions. Both of them have a digital media player, an Internet client, a camera, the possibility to call and text, and a lot of other functions. Apple outsources a lot. They do this to be the best at what they do, and most of the times this is a good thing. Sometimes, when you are a big company like Apple, it can backfire on you. You have to always know what's going on in the outsourcing companies. For just a few days ago, Apple was in the media because some of its outsourcing factories employed 42 minors, and it was serious toxins exposures at a facility.

These kind of things is very important for companies to think of, and make sure that they have contact and control over whats happening in the facilities and factories, so it doesn't make you look bad, and get a bad reputation. 3) Apple focus on making the best products. They are a company

that focuses on innovation, and by that I mean with new products, but also improvements on their existing products. They use the focused differentiation strategy, by making products that are exclusive, and pretty expensive. Not everyone can afford a Apple product. The focus on aligning their business strategy and their marketing strategy with product development. This is something that they do much better than their competitors, and this is a huge advantage for them. Apple's target market is people who are willing to pay more for products with better user experience, people who likes to have fun with technology, music enthusiasts and people who work with media and design professional. They have done a good job by finding out which customer needs to satisfy. They have found out that these customers wants a nice, beautiful and simple design and user input, and they have focused on programs that help you to take pictures, programs that edit both pictures and videos, and good music programs, both to listen, and to make music. To make these programs, they have to have to focus on innovation, and have programmers and designers that can make program like this, that are both easy to use, beautiful to look at, and can do everything you can expect from programs like these.

4)Apple Inc has over the years being enjoying overwhelming performance in the technology industry, whereby it has demonstrated market leadership and excellence. The company's early entrance in the technology industry has been closely associated with its continued success and dominance. It is worth noting that the company has rarely succeeded following its early entrance in the market but as a result of efficient organizational management. It is notable that the business strategies adopted by the company have been the main elements of its survival and success in the market. This is evident through the numerous initiatives of newmarket disruptions among its products and services. This has widely impacted on its competitiveness, thus contributing to success. The company has been acknowledged for reaching consumers who were unavailable to its predecessors. This is majorly through clever

marketing, ease of use, good design as well as smart distribution. As a result of these characteristics, the company has been able to attract and maintain a high range of consumers thus boosting its success and sustainability. This paper will provide an explicit discussion and analysis of Apple Inc Business level strategies.

Identification and critical evaluation of the company's existing strategies

With reference to the dynamics and competition faced in the technology industry, there has been every need for the participating companies to demonstrate efficiency in their operations (Boddie 2005: 1). In this case, Apple Inc has not been exempted, whereby it has long established business strategies that guide its operations. The establishment of strong corporate mission and vision has been a vital tool giving light to the business future (Rafter 2002: 1). This has motivated the management to come up with strategies that will help in realization of the company's vision. Apple business-level strategies have been focused towards enhancing performance.

Cost leadership
Cost leadership strategy has been highly adopted by Apple Inc in its endeavors of ensuring competitiveness and success in the technology industry. The company's management has been able to draw policies and strategies that are aimed at ensuring that the company is the lowest cost producer and distributor (Roth 2001: 24). By strategizing on cost efficiency, the success and sustainability of the company is enhanced. By lowering the cost of production and management, Apple Inc has been given golden opportunities on determining prices of its products, thus enhancing its competitive edge. Lower cost of production and distribution has enabled the company to put competitive prices on its products as well as enhancing its gross profit margins (Bowerman and Wart 2011: 63). Some of the practices adopted by the company in executing the cost leadership strategy is through minimization of operating costs, lowering distribution costs, tight control on labor costs as well as reduction of input costs.

Focus on particular market niche

The focus of Apple Inc on digital music environment has been a vital element of success and innovations. This strategy of specializing and putting more focus on digital music has reinforced the company's competitiveness in the digital market. Specialization in this product line has been aiming at capturing the young generation. Unlike other companies, the products of Apple Inc have bee widely focused on the young generation as well as the elite. This is much evident through iMovie, iTunes as well as the GarageBand. Focus on these products has influenced new innovations like the 18th-month-old music editing software. Unlike competitors who are characterized by concentration on broader range of customers and products, the company has been able to enhance differentiation and cost leadership. By so doing, the competitiveness and profitability of the company has been enhanced, thus leading to its present success (Ireland et al 2008: 124).

Consideration of business model redefinition

The business environment has in the current past been undergoing tremendous changes and revolutions. This is closely related with the aspects of globalization, liberalization of markets as well as advancement in technology. In regards to these developments, increased business activity has been witnessed, thus leading to increased competition (Lussier 2008: 51). In the case of increased competition in the technology industry, Apple Inc has not been exempted thus leading to declining performance. Based on this insight, there has been every need for the company to redefine its business model (Anderson and Phillips 2000: 34). This will not only ensure its survival but also boost success and sustainability in the market. The potentials of Apple Inc have not been optimally exploited thus inducing the need for change. Over the past decade, the company has not adequately addressed the need for diversification (Brown 2010: 187). This is very evident through the limited product and services dealt with by the company. Despite that limited diversity of products and services enhances specialization and efficiency; it is also a big threat to the stability of the company. This is in consideration to the rapid increase in competition in the technology industry. New companies are showing interests in the production and distribution of computer products and services (Lussier 2008: 51). This poses significant pressure to Apple Inc, thus calling for the need of redefinition of the business strategy.

Need for growth

The company has not reached optimum performance, thus the need to redefine its strategies to enhance performance. This will help in expanding profits, sales, market share, market coverage, product mix among other market and accounting variables (Hill and Jones 2009: 345). Some of the strategies for enhancing growth include enhancement of market penetration by ensuring provision of efficient services. Vertical integration is also an efficient strategy for enhancing growth, whereby Apple Inc may take activities performed by its suppliers or business in its channel of distribution. Diversification strategy can also been an effective move by the company to enhance its growth. In this case, the company may look for potential business ventures to enhance its operations (Hill and Jones 2009: 345). The company's resource endowment gives it a chance of diversifying its operations thus reinforcing its competitiveness.

Need for stability

With regards to the dynamics and competition in the technology industry, there is every need for Apple Inc to redefine its strategies so as to reinforce its stability. This is an efficient strategy in countering the forces of its competitors as well as guaranteeing sustainable growth and development. The stability strategies are nothing new but rather a continuation of the existing strategies. Some of the key activities to undertake in executing these strategies include restructuring of the management and organizational model. This is aimed at ensuring sustainable and efficient management and leadership within the organization. Market research and development is also a vital component in ensuring stability, whereby the company will be able to ensure market orientation (Gibbert 2010: 124). Business-level strategies guide companies' actions in each distinct line of business they are in. Strategies at this level describe who the company will serve, with what products it will serve them and how the company will serve them. A company can be in more than one line of business at once, necessitating unique business-level strategies for each line.

Quality Focus
Companies may choose to focus on the premium end of the market with their business-level strategies. A company pursuing quality leadership is likely to place less emphasis on its cost structure, and more on the reliability, brand appeal and overall quality of its products and services. Business-level strategies for quality leadership include implementing Six Sigma, Total Quality Management (TQM) or other iterative quality improvement systems, focusing on employee development and using advertising and public relations to create a prestigious image.

Cost Focus
Cost leadership is another strategic direction chosen at the business level. Cost-focused initiatives seek to achieve the lowest end-user price possible by decreasing costs along the value chain, even possibly reaching back through the supply chain to spot inefficiencies and improve processes for cost minimization. Business-level strategies for cost control include implementing automated production or service processes, keeping the workforce lean, sourcing low-cost materials and outsourcing non-vital business functions.

Niche Focus
Developing products and services for niche markets is a unique endeavor that can be more personally rewarding than financially at times. It is possible to create a hugely successful business serving a niche market, however. Consider Apple, which, before introducing iTunes and the iPod, followed a quality leadership strategy while offering a product that only a small percentage of the market was interested in, while reaping large financial rewards. Market research is the key business-level strategy for niche marketing. Find out as much as possible about your niche customers' needs, wants and unique ways of using products, and craft your products and services around their feedback.

Value Leadership
The value leadership business-level strategy mixes cost and quality focus to find the perfect middle ground. As with niche marketing, research and testing are the key to value leadership. Succeeding as a value leader such as Wal-Mart or Family Dollar involves finding the perfect balance between cost and quality so that you can attract customers from higher-end competitors and keep them loyal with the quality of your products and services.

Filling the Void

Each of the strategies discussed above has its pros and cons, and is best suited for specific companies in specific regions serving specific customers. The best way to ensure that you choose the best business-level strategy for your company is to perform a competitive analysis of your chosen industry and region before crafting your strategy. List the strategies of each major player in the industry, and find the strategy that is being neglected in the marketplace, as long as that strategy makes sense in your specific region and industry. If you notice that there are five high-end grocery stores in town, for example, and one-third of the population

earns less than $40,000 per year, opening a discount grocery outlet may be a lucrative opportunity. Apple Inc has over a years being enjoying strenuous opening in a record industry, whereby it has demonstrated marketplace care as good as excellence. The companys early opening in a record attention has been closely compared with a one after another success as good as dominance. It is value observant which a association has frequency succeeded following a early opening in a marketplace though as a outcome of fit organizational management. It is important which a commercial operation strategies adopted by a association have been a categorical elements of a presence as good as success in a market. This is clear by a countless initiatives of new-market disruptions between a products as good as services. This has during large impacted upon a competitiveness, to illustrate contributing to success. The association has been concurred for reaching consumers who were taken to a predecessors. This is majorly by crafty marketing, palliate of use, great pattern as good as intelligent distribution. As a outcome of these characteristics, a association has been means to capture as good as say a tall operation of consumers to illustrate boosting a success as good as sustainability. This paper will yield an pithy contention as good as investigate of Apple Inc Business turn strategies. Identification as good as vicious analysis of a companys existent strategies With anxiety to a dynamics as good as foe faced in a record industry, there has been each need for a participating companies to denote potency in their operations (Boddie 2005: 1). In this case, Apple Inc has not been exempted, whereby it has prolonged determined commercial operation strategies which beam a operations. The investiture of clever corporate goal as good as prophesy has been a critical apparatus giving light to a commercial operation destiny (Rafter 2002: 1). This has encouraged a government to come up with strategies which will assistance in fulfilment of a companys vision. Apple business-level strategies have been focused towards enhancing performance. Cost leadership Cost care plan has been rarely adopted by Apple Inc in a endeavors of ensuring competitiveness as good as success in a record industry. The companys government has been means to pull policies as good as strategies which have been directed during ensuring which a association is a lowest price writer as good as distributor (Roth 2001: 24). By strategizing upon price efficiency, a success as good as sustainability of a association is enhanced. By obscure a price of prolongation as good as management, Apple Inc has been since golden opportunities upon last prices of a products, to illustrate enhancing a rival edge. Lower price of prolongation as good as placement has enabled a association to put rival prices upon a products as good as enhancing a sum distinction margins (Bowerman as good as Wart 2011: 63). Some of a practices adopted by a association in executing a price care plan is by minimization of handling costs, obscure placement costs, parsimonious carry out upon work costs as good as rebate of submit costs. Differentiation ]]> The judgment of split has additionally been during large adopted by Apple Inc in enhancing a competitiveness as good as profitability. This has been completed by conceptualizing as good

as prolongation of singular products (Furrer 2010: 231). The aspects of announcement have additionally been adopted in ensuring product split from aspirant products. Despite which split has been a means of aloft costs to a company; it has enabled it to heed a products as good as services from those of competitors. It is value observant which split has enabled a products of Apple Inc to crop up unique, to illustrate attractive aloft markets (Ireland et al 2008: 124). Apple Inc has been most unwavering about a increasing costs following a embracing a cause of differentiation, to illustrate enabling it to say a competitiveness. Focus upon sold marketplace niche The thoroughness of Apple Inc upon digital song sourroundings has been a critical member of success as good as innovations. This plan of specializing as good as putting some-more thoroughness upon digital song has reinforced a companys competitiveness in a digital market. Specialization in this product line has been aiming during capturing a immature generation. Unlike alternative companies, a products of Apple Inc have bee during large focused upon a immature era as good as a elite. This is most clear by iMovie, iTunes as good as a GarageBand. Focus upon these products has shabby latest innovations similar to a 18thmonth-old song modifying software. Unlike competitors who have been characterized by thoroughness upon broader operation of commercial operation as good as products, a association has been means to raise split as good as price leadership. By so doing, a competitiveness as good as profitability of a association has been enhanced, to illustrate heading to a benefaction success (Ireland et al 2008: 124). Consideration of commercial operation indication redefinition The commercial operation sourroundings has in a stream past been undergoing extensive changes as good as revolutions. This is closely compared with a aspects of globalization, liberalization of markets as good as enrichment in technology. In regards to these developments, increasing commercial operation wake up has been witnessed, to illustrate heading to increasing foe (Lussier 2008: 51). In a box of increasing foe in a record industry, Apple Inc has not been exempted to illustrate heading to disappearing performance. Based upon this insight, there has been each need for a association to redefine a commercial operation indication (Anderson as good as Phillips 2000: 34). This will not usually safeguard a presence though additionally progress success as good as sustainability in a market. The potentials of Apple Inc have not been optimally exploited to illustrate inducing a need for change. Over a past decade, a association has not sufficient addressed a need for diversification (Brown 2010: 187). This is really clear by a singular product as good as services dealt with by a company. Despite which singular farrago of products as good as services enhances specialization as good as efficiency; it is additionally a large hazard to a fortitude of a company. This is in care to a fast enlarge in foe in a record industry. New companies have been display interests in a prolongation as good as placement of mechanism products as good as services (Lussier 2008: 51). This poses poignant vigour to Apple Inc, to illustrate job for a need of redefinition of a commercial operation strategy. Need for growth The association has not reached best performance, to illustrate a need to redefine a strategies to raise performance. This will assistance in expanding profits, sales, marketplace share, marketplace coverage, product brew between alternative marketplace as good as accounting

variables (Hill as good as Jones 2009: 345). Some of a strategies for enhancing expansion embody encouragement of marketplace invasion by ensuring sustenance of fit services. Vertical formation is additionally an fit plan for enhancing growth, whereby Apple Inc might take activities achieved by a suppliers or commercial operation in a channel of distribution. Diversification plan can additionally been an in effect pierce by a association to raise a growth. In this case, a association might demeanour for intensity commercial operation ventures to raise a operations (Hill as good as Jones 2009: 345). The companys apparatus capacity gives it a possibility of diversifying a operations to illustrate reinforcing a competitiveness. Need for stability With regards to a dynamics as good as foe in a record industry, there is each need for Apple Inc to redefine a strategies so as to strengthen a stability. This is an fit plan in tackling a forces of a competitors as good as guaranteeing tolerable expansion as good as development. The fortitude strategies have been zero latest though rsther than a delay of a existent strategies. Some of a pass activities to commence in executing these strategies embody restructuring of a government as good as organizational model. This is directed during ensuring tolerable as good as fit government as good as care inside of a organization. Market investigate as good as growth is additionally a critical member in ensuring stability, whereby a association will be means to safeguard marketplace course (Gibbert 2010: 124).

BUSINESS-LEVEL STRATEGIES
Business-level strategies are similar to corporate-strategies in that they focus on overall performance. In contrast to corporate-level strategy, however, they focus on only one rather than a portfolio of businesses. Business units represent individual entities oriented toward a particular industry, product, or market. In large multi-product or multi-industry organizations, individual business units may be combined to form strategic business units (SBUs). An SBU represents a group of related business divisions, each responsible to corporate head-quarters for its own profits and losses. Each strategic business unit will likely have its' own competitors and its own unique strategy. A common focus of business-level strategies are sometimes on a particular product or service line and business-level strategies commonly involve decisions regarding individual products within this product or service line. There are also strategies regarding relationships between products. One product may contribute to corporate-level strategy by generating a large positive cash flow for new product development, while another product uses the cash to increase sales and expand market share of existing businesses. Given this potential for business-level strategies to impact other business-level strategies, business-level managers must provide ongoing, intensive information to corporate-level managers. Without such crucial information, corporate-level managers are prevented from best managing overall organizational direction. Business-level strategies are thus primarily concerned with:
1. Coordinating and integrating unit activities so they conform to organizational strategies (achieving synergy). 2. Developing distinctive competencies and competitive advantage in each unit. 3. Identifying product or service-market niches and developing strategies for competing in each.

4. Monitoring product or service markets so that strategies conform to the needs of the markets at the current stage of evolution.

In a single-product company, corporate-level and business-level strategies are the same. For example, a furniture manufacturer producing only one line of furniture has its corporate strategy chosen by its market definition, wholesale furniture, but its business is still the same, wholesale furniture. Thus, in single-business organizations, corporate and business-level strategies overlap to the point that they should be treated as one united strategy. The product made by a unit of a diversified company would face many of the same challenges and opportunities faced by a one-product company. However, for most organizations, businessunit strategies are designed to support corporate strategies. Business-level strategies look at the product's life cycle, competitive environment, and competitive advantage much like corporate-level strategies, except the focus for business-level strategies is on the product or service, not on the corporate portfolio. Business-level strategies thus support corporate-level strategies. Corporate-level strategies attempt to maximize the wealth of shareholders through profitability of the overall corporate portfolio, but business-level strategies are concerned with (1) matching their activities with the overall goals of corporate-level strategy while simultaneously (2) navigating the markets in which they compete in such a way that they have a financial or market edge-a competitive advantage-relative to the other businesses in their industry.

ANALYSIS OF BUSINESS-LEVEL STRATEGIES

PORTER'S GENERIC STRATEGIES.
Harvard Business School's Michael Porter developed a framework of generic strategies that can be applied to strategies for various products and services, or the individual business-level strategies within a corporate portfolio. The strategies are (1) overall cost leadership, (2) differentiation, and (3) focus on a particular market niche. The generic strategies provide direction for business units in designing incentive systems, control procedures, operations, and interactions with suppliers and buyers, and with making other product decisions. Cost-leadership strategies require firms to develop policies aimed at becoming and remaining the lowest cost producer and/or distributor in the industry. Note here that the focus is on cost leadership, not price leadership. This may at first appear to be only a semantic difference, but consider how this fine-grained definition places emphases on controlling costs while giving firms alternatives when it comes to pricing (thus ultimately influencing total revenues). A firm with a cost advantage may price at or near competitors prices, but with a lower cost of production and sales, more of the price contributes to the firm's gross profit margin. A second alternative is to price lower than competitors and accept slimmer gross profit margins, with the goal of gaining market share and thus increasing sales volume to offset the decrease in gross margin. Such strategies concentrate on construction of efficient-scale facilities, tight cost and overhead control, avoidance of marginal customer accounts that cost more to maintain than they offer in profits, minimization of operating expenses, reduction of input costs, tight control of labor costs, and lower distribution costs. The low-cost leader gains competitive advantage by getting its costs of production or distribution lower than the costs

of the other firms in its relevant market. This strategy is especially important for firms selling unbranded products viewed as commodities, such as beef or steel. Cost leadership provides firms above-average returns even with strong competitive pressures. Lower costs allow the firm to earn profits after competitors have reduced their profit margin to zero. Low-cost production further limits pressures from customers to lower price, as the customers are unable to purchase cheaper from a competitor. Cost leadership may be attained via a number of techniques. Products can be designed to simplify manufacturing. A large market share combined with concentrating selling efforts on large customers may contribute to reduced costs. Extensive investment in state-of-the-art facilities may also lead to long run cost reductions. Companies that successfully use this strategy tend to be highly centralized in their structure. They place heavy emphasis on quantitative standards and measuring performance toward goal accomplishment. Efficiencies that allow a firm to be the cost leader also allow it to compete effectively with both existing competitors and potential new entrants. Finally, low costs reduce the likely impact of substitutes. Substitutes are more likely to replace products of the more expensive producers first, before significantly harming sales of the cost leader unless producers of substitutes can simultaneously develop a substitute product or service at a lower cost than competitors. In many instances, the necessity to climb up the experience curve inhibits a new entrants ability to pursue this tactic. Differentiation strategies require a firm to create something about its product that is perceived as unique within its market. Whether the features are real, or just in the mind of the customer, customers must perceive the product as having desirable features not commonly found in competing products. The customers also must be relatively price-insensitive. Adding product features means that the production or distribution costs of a differentiated product will be somewhat higher than the price of a generic, non-differentiated product. Customers must be willing to pay more than the marginal cost of adding the differentiating feature if a differentiation strategy is to succeed. Differentiation may be attained through many features that make the product or service appear unique. Possible strategies for achieving differentiation may include warranty (Sears tools have lifetime guarantee against breakage), brand image (Coach handbags, Tommy Hilfiger sportswear), technology (Hewlett-Packard laser printers), features (Jenn-Air ranges, Whirlpool appliances), service (Makita hand tools), and dealer network (Caterpillar construction equipment), among other dimensions. Differentiation does not allow a firm to ignore costs; it makes a firm's products less susceptible to cost pressures from competitors because customers see the product as unique and are willing to pay extra to have the product with the desirable features. Differentiation often forces a firm to accept higher costs in order to make a product or service appear unique. The uniqueness can be achieved through real product features or advertising that causes the customer to perceive that the product is unique. Whether the difference is achieved through adding more vegetables to the soup or effective advertising, costs for the differentiated product will be higher than for non-differentiated products. Thus, firms must remain sensitive to cost differences. They must carefully monitor the incremental costs of differentiating their product and make certain the difference is reflected in the price.

Focus, the third generic strategy, involves concentrating on a particular customer, product line, geographical area, channel of distribution, stage in the production process, or market niche. The underlying premise of the focus strategy is that the firm is better able to serve its limited segment than competitors serving a broader range of customers. Firms using a focus strategy simply apply a cost-leader or differentiation strategy to a segment of the larger market. Firms may thus be able to differentiate themselves based on meeting customer needs through differentiation or through low costs and competitive pricing for specialty goods. A focus strategy is often appropriate for small, aggressive businesses that do not have the ability or resources to engage in a nation-wide marketing effort. Such a strategy may also be appropriate if the target market is too small to support a large-scale operation. Many firms start small and expand into a national organization. Wal-Mart started in small towns in the South and Midwest. As the firm gained in market knowledge and acceptance, it was able to expand throughout the South, then nationally, and now internationally. The company started with a focused cost-leader strategy in its limited market and was able to expand beyond its initial market segment. Firms utilizing a focus strategy may also be better able to tailor advertising and promotional efforts to a particular market niche. Many automobile dealers advertise that they are the largest-volume dealer for a specific geographic area. Other dealers advertise that they have the highest customer-satisfaction scores or the most awards for their service department of any dealer within their defined market. Similarly, firms may be able to design products specifically for a customer. Customization may range from individually designing a product for a customer to allowing the customer input into the finished product. Tailor-made clothing and custom-built houses include the customer in all aspects of production from product design to final acceptance. Key decisions are made with customer input. Providing such individualized attention to customers may not be feasible for firms with an industry-wide orientation.

Porters generic strategies in relation to Apple

Companies all over the world employ countless strategies in other to have competitive advantage over their competitors. Each companys strategic approach entails customdesigned actions to fit its own circumstances and environment in which it operates. It is therefore obvious that managers of companies have slightly different ideas as to how the future market trend and condition would be. These necessarily translate to the fact that the strategies deployed by managers to mitigate a common market challenge differ from one firm to the other and from one industry to the other. How best a company aligns its strategy with these challenges depends on how corporate management understands the market dynamics, and the type of strategy to deploy. In a competitive industry, the best strategy to deploy should be directed towards how to maneuver rivals, and at the same time entice customers to patronize the firm's products and/or services. The strategy must also aim at creating brand image in the mind of the users of the product, thereby causing customers to be delighted whenever they come into contact, or even hear of the product.

In other instances, firms strategy may depend on market share. That is whether it has a bigger market share or smaller market share, or whether it is the market leader or the market follower. All this factors determines the formulation of a good business strategy. According to Michael Porter, a firm's strength in developing strategy falls ultimately into one of the three headings. These are low cost provider strategy, differentiation strategy and focus strategy. He however, Arthur A. T. Jnr. et al. Crafting and executing strategy, the quest for competive advantage concept and cases, ( 2005) expanded the three generic strategies to five generic strategies and explained as shown in figure 1 below: For the purpose of this discussion I would deliberate on the five generic strategies as propounded by Michael Porter, as expanded by Arthur A. T. Jnr. et al. Figure I, below demonstrates the five generic strategies. Called from Arthur A.T Jnr. (2005). Overall low cost provider strategy Best Broad differentiation strategy Cost strategy Focus Low Cost Strategy Focus Differentiation Strategy A low cost provider strategy appealing to a broad spectrum of customers by being the overall low cost provider of a product or service. A broad differentiation strategy seeking to differentiate the companys product/service offering from competitors in a way that will appeal to a broad spectrum of purchasers. A best cost provider strategy giving the customers more value to their money by incorporating good-to-excellent product attributes at a lower cost than competitors. A focus (or market niche) strategy based on low cost concentrating on a narrow buyer segment and offering unique product at a lower cost than competitors . A focus (or market niche) strategy bus on differentiation concentrating on a narrow market segment and offering unique product with customized attributes that meet the taste and requirement of buyers than that of competitors.

Apple, since its inception in the computer industry gained a lot of advantages which eventually became its hall mark and which none of the players in the industry like Dell and IBM could march up with. These core competences makes Apple computers stand unique even among the giants in the industry. This has sustained Apple even through the hectic industry change over the time. Apple has been able to strategies and is now matching up with the challenges in the industry. As a result Apple has chalked a lot of strength and unique core competence. The core competence which Apple chalked for itself includes: Creativity: Apples agile and innovativeness way of developing computers and software differentiates it from the other players. This has mad Apple stand tall among competitors in the industry. Apple was noticed to be at the fore front of revolution technology by integrating music, images and animation. This has brought Apple to the forefront of industrial revolution. Apple has a first mover advantage by developing the Macintosh operating system. This has compelled Microsoft to request for the registration of the Macintosh operating system with Microsoft. Apple had Konoclastic (revolutionary) design which no other competitors was able to emulate. Despite the aforementioned strength and capabilities of Apple, Dell, IBM and Microsoft became a threat to Apple. Dell on seeing the weakness of Apple decided to capitalize on it. This Dell did by driving down costs through its direct sales approach to computer users. The difficulty Apple had was the leadership quality in terms of the Chief Executive Officer, when John Sculley was in the herm of affairs. John Sculley took bad unilateral decisions which affected the prosperity of Apple. The business virtually went on its kneels only to be salvaged by the timely exit of John Sculley, and the re-entry of Steve Jobs as the interim Chief Executive Officer (CEO). Michael porters generic strategies are generic strategies which could be deployed by any firm in other to be competitive. Generally, firm exist by crafting varying strategies to outweigh their competitors. For that matter any firm that decides not to think strategically and deploy strategies to outwit competitors is bound to fail. The firm may even be more vulnerable when it operates in a competitive environment like in the case of Apple Computers. Analyzing Michael Porters generic strategies in relation to the competitive strategies employed by Apple. Low Cost Provider Strategy: Apple on studying the computer market identified specific needs and designed tailored to meet such needs. This they did by designing IMac computer and

iBook computer for basic computer buyers. The costs of this model of computers is relatively low. Broad Differentiation Strategy. This strategy has to do with differentiating the companys product/servicing from competitors. Apple differentiated its product by focusing and producing on two market segment, the consumer and the professional market. Apple designed computers for beginners which does not necessary have too many complex functions. Best cost providers. This strategy is crafted to give customers by incorporating good-toexcellent product attributes. A typical example is the incorporation of ipod digital music player, iTune websit for the sale and download of music in the computers provided users of Apple Computers Value for money. Focus strategy based in differentiation: Apple has differentiated it products focusing on the professionals and producing computers tailored to meet exact needs professionals. Computers designed for professionals have complex functions that meet their todays requirements. Focus strategy based on cost. This strategy is concentrating o narrow market segment by providing low cost products to the segment. Apple has achieved this through the production of iBook computers to serve the customer section. Apples competitive strategies are in tune with the generic strategies of Michael Porter. The strategies deployed by Apple are very good strategies except that they had some managerial problems in the beginning, however Apple has to deploy market penetration strategy in other to expand its market share. (2) Discuss the concept of strategic alliance by competing companies as a means for strategic growth. By forming strategic alliance with IBM and Microsoft, what competitive risk face Apple. Strategy Alliance is a business relationship established by two or more companies to cooperate out of mutual need to share risk in achieving a common objective. Strategy alliances are sought as a way to support weakness and increase competitive strengths companies. Cateora P. R. et. al. (2002). Companies that establish strategy alliances are exposed to tremendous benefits that when harness could change the fortunes of their business. When companies are engaged in strategic alliance one partners strength offset the weakness of the other, thereby positioning the company in the market to compete against other competitors. The good thing about Strategic Alliance is the, the allying companies may have unique core competences that when brought together would obviously introduce a new dimension into the operation of the business. The numerous advantages and benefits companies accrue form strategic alliance includes: Opportunities for rapid expansion into new market. Access to new skills and technology.

More efficient production and marketing costs. Risks sharing when there is much uncertainty and instability in a particular market. Enhance product development. Access to additional sources of capital. High productivity and maximization of profit. Enhance competitiveness in domestic/global market. Synergy and competitive advantage. Strategy alliance which is a synergistic relationship established to achieve a common goal in which both parties benefit can be in the form of; joint venture, licensing, or franchising. Joint Venture is a legal entity formed between two or more parties to undertake an economic activity together and sharing the risk in formation. The parties agree to develop for a finite time, a new entity and new assets by contributing equity. They both exercise control over the enterprise and consequently share revenue, expenses and assets. Licensing: This is giving a foreign company the technology or production right to produce the companys products in the foreign country. By licensing the technology or the production rights to foreign based firms, the firm does not have to bear the costs and risks of entering foreign markets on its own, yet it is able to generate income from royalties. The only disadvantage of licensing is the risk of providing valuable technological know-how to foreign companies and thereby losing some degree of control over its use. Franchising has the same advantages as Licensing, but franchising bears most of the risks and costs of establishing foreign locations. Here the franchisor has to expend the resource to recruit, train, support and monitor the franchisees.

Strength of Strategy Alliance

When firms come together to form alliance, they tend to be stronger than when they are independent. They pull their expertise together, develop new technology, and in most case new products are developed. Strategic Alliance blends two core competences, (in most cases a blend of more than two unique core competences) to help the company rejuvenate the operation of the business, thereby bringing about total transformation, as well as develop a very strong competitive edge in the market. Strategic Alliance again can be used to pursue radical strategy such as a defense strategy. In this scenario, it may term as a deliberate strategy to deter other potential new entrants from entering the market.

However, it is not all alliances that succeed. Most alliances fail and never achieve their objective. Failure of alliance can be attributed to a lot of factors. Some of these factors includes: Mistrust between allying firms as business operations progresses. Incompatibility of allying partners. Difference in distribution of earnings. Potential cost of anatomy in the individual firm. Despite the aforementioned challenges in forming Alliances, it is worth mentioning that Alliances are healthy venture that companies must resort to when they confronted with severe competition from competitors, or even when the intend to enter the international market with ease. Forming strategy alliance with IBM and Microsoft would mean harnessing its core competences with IBM and Microsoft to achieve competitive edge in the computer industry. By this, and Apple having a very good and enviable core competence but lacks marketing technique, would have the ability to sell its products, and distribute them to reach computers user directly around the globe. Even though Apple has good and innovative products out to the users, how to get them out there to the end user was their problem. As result Apple is unable to capture a bigger market share even though it has good products. However, Apple has unique competences that give it a competitive advantage over competitors. These competences such as, creative renovation, iconoclastic design which none of the competitors was able to emulate, and as such was seen as being at he fore front of revolution technology. The prospects of Apple Computer are very good, and would only need to rejuvenate its marketing strategy to be able to penetrate the market and possibly expand its market share. By allying with IBM and Microsoft, Apple losses all its strength and core competencies to its partners.The uniqueness of apple that is seen by its loyal customers would be eroded. Apple therefore stands to loose by allying with these industry giants. What Apple has to do is to engage in aggressive market to achieve aggressive growth. (3) What are the strategic competencies and resources of Apple that when sustained could serve as a competitive edge over its competitor. Please discuss. Corporate management of organizations are confronted with complex, confusing and continuous challenging macro environmental issues throughout the existence of the business. These challenges stretch from economical through fierce competition.

For a business to survive these environmental challenges, it is imperative that corporate management ensures the development of strategic competence across the facets of the business. They must therefore device prudent strategies in other to mitigate these challenges. In the process of managing this challenges, and continuously solving the problems over time generates some competences. This brings about better understanding and competence required for improving working practices and enhancing individual and organizational effectiveness. Strategic competence is the ability to acquire knowledge, experience, information, develop and archive them, and be able as intellectual capital and be able recall and use same for the long term survival of the organization. These processes do not have to be managed by a specific section of the organization. They are achieved as a result of the continuous execution of tasks the company goals and objective which are being driven by the company mission and vision. From piece, strategic management can be define as . With reference to the organizational of chart Apple Computer, Apple has able and competent human resource capacity that necessarily aided in chalking the successes over the period. The high caliber human resource at the Corporate level of Apple computer includes, Senior Vice President Avadis Tevanian Jnr. Ph.D. (chief software Technology officer and Bertrand Serlet, Ph.D. Senior Vice President (software Engineering). It imperative to note that, for a company or organization to have Ph.D. holders at the corporate level of a strategic business like Apple Computer is no mean an achievement. What makes it strategically important is their area of expertise which are in software Technology and Engineering. The other competent corporate staffs are Bertrand Sina Tamaddon Senior Vice President, Computer Application and Jonathan Rubinstein - Senior Vice President - iPod Division just to mentioned just a few. The background and credentials of these top management staff of Apple (according to the organization chart) speaks of why Apple has proactive strategies in designs, and had been able to design computer products that no firm in the industry was able to emulate. No wonder Apple was identified as being at the forefront of the digital computing age. Apple may have some authority in terms of market leadership, but fall short of some competences. The shortfall enabled other competitors like Dell and Hawlett- Parkard to overtake it. The down side of Apple computer has been its inability to drive down costs through direct sales approach, and not producing the computers as and when the market demand. Unlike Dell which was able to practice the Just-In-Time and at the same time engage in direct sales of computer to computer users, Apple relied solely on the traditional retail system of getting the computers to the end user.

However, Apple with its unique characteristics has a lot of competitive advantage over the other competitors. The strategy competences of Apple that made it to be seen among the Computer giants include: Creative innovation. Revolutionary design. Fore front or revolution technology. However Apple with its unique characteristics has a lot of completive advantage over the other competitors on the industry. These competitive advantages of Apple even though has barely a market share of about 5 per cent, year become the most profitable computer company in the industry despite the dampened economy and is small size relative to the computer As a result Apple has gain strategic competence that when sustained could serve as a competitive edge over its competitors. Apples development of consumer products like the ipod, ., which was very difficult to emulate places. Apple at a strategic lever and differentiating it invention from competition. Whilst competitors were thinking of how to fight . That attack their computers, Apple has already taken care of the management of various in the Mauntos operating system. Apples history of immolations and its motor of thinking differently has enabled it gain key advantage for keeping its customer and at same time enticing new ones.

Mobile Business Strategy

Apples goal for their mobile business should not be to take a Microsoft-like monopoly of the industry, but rather to take a sizable portiontwenty-five to thirty percent or so. Since Apple is fundamentally about innovation, differentiation, they can seek high profit margins, and thus do not need overwhelming market share. Strong profit margins allow them to have a high percentage of the industrys profit share without a corresponding market share. It should be asked, then, why they should seek a market share as high as twenty-five to thirty percent if they are targeting higher profit rather than market share. The reason is that some level of market share is necessary to attract developers, both in quantity and quality, to develop for the platform. Just like for the PC, a solid group of third-party developers is necessary for a mobile platforms success.2 Gaining market share, however, should not be Apples primary goalit is just a means. Market share today does not guarantee market share tomorrow. Rather, Apples goal should be to define what these devices are, again and again, so the competition responds to Apple. Peter Drucker wrote that What makes the future happen is always a businesss embodiment

of an idea of a different economy, a different technology, a different society. It need not be a big idea; but it must be one that differs from the norm of today (117). This means defining what the devices are (e.g., a pocket-sized device, or a tablet-sized device), and what they do. Apple must do this through constant innovation. By constantly defining what these devices are and what they do, Apple can secure for itself the role of industry innovator, and thus a position of strength. If they are constantly redefining the industry, they do not need overwhelming market share. The iPhones release in 2007 is a perfect example. Before the iPhone, no smartphones used touch as a primary means of input. After its release, however, most smartphones use large touch screens and even resemble the iPhone. ? The similarities extend to the software, too. They try to match the iPhones features specifically, its excellent web browser and the App Store. The iPhone defined what smartphone devices are (all screen, touch input) and what they do (browse the web, run userdownloadable applications). Competitors have tried to make incremental improvements, such as a higher-resolution screen or a physical keyboard, but none have made serious changes to the basic definition laid out by Apple in 2007. There is an interesting parallel between the nascent mobile market and the personal computer market of the mid-1980s. Apple dominated the early personal computer market with integrated hardware and software (only Macintosh ran Mac OS, so consumers could only use the Mac OS by purchasing a Macintosh), but Microsoft licensed its operating system to any computer manufacture who wanted it. Microsoft ended up dominating the market. In the mobile market, Apple is following a similar path as it did with the Mac: hardware and software are integrated. With Android OS, however, Google is using Microsofts strategy (with a few differences). In an attempt to grab market share, Google allows any device manufactures to use Android on their smartphones. By giving away the operating system and taking a majority of the market, Google can ensure a place for the company in the mobile market, entice developers to their platform and commoditize their competitors main advantagethe operating system. They are grabbing significant market share in the smartphone market. In first quarter 2010, Androids market share grew to twenty-eight percent, up from twenty percent in fourth quarter 2009. Apples market share in the same period stood at twenty-one percent.3 Going forward, Androids success may come at the expense of Apples own market share, and thus could marginalize the platform. The question, then, is whether Apple should follow Googles strategy and license the iPhone OS to other companies in an attempt to negate Androids advantage. This is not the proper strategy. Apples basic business model is to sell hardware. Everything elsethe operating system, iTunes, the App Storeare used to make their products more valuable and thus to increase hardware sales. Apple enjoys high profit margins on their products not because the hardware is better than what others offer (although that is a part of it), but primarily because their software is better. At the 2007 All Things Digital conference, Steve Jobs said,

If you look at what a Mac is, its OS X, right? Its in a beautiful box, but its OS X. And if you look at what an iPhone will hopefully be, its software. If Apple were to license the iPhone OS to other manufactures, this would give away their hardwares main advantage and thus significantly cut into their sales. Apple would have to find a different business model. In Leading the Revolution, though, Gary Hamel provides an even more compelling answer. Hamel wrote, What is not different is not strategic. To the extent that strategy is the quest for above-average profits, it is entirely about varietynot just in one or two areas, but in all components of the business model (72). If Apple merely follows Googles strategy, but plans just to do it better, they are playing on Googles terms, and that is a difficult game to win. Instead, Apple should differentiate the platform. Because the Android platform is spread over a large number of devices and manufactures, it is necessarily fragmented. Some devices have 3.5 inch screens while others are 4.3 inches; some have track balls; some have hardware keyboards while others do not. Worse, because Android devices are manufactured by different companies with unique versions of the operating system, and are dependent on them for software upgrades, some Android phones are stuck on older versions of the operating system that cannot take advantage of new features or applications. This is confusing for users and makes it difficult for developers to build applications that can run on the entire platform. Android may have twenty-eight percent of the market in the last quarter, but developers can only build applications for a portion of those devices. This is terrible for users and developers. Apples hardware-software integration strategy eliminates this problem. Because Apple controls the iPhones hardware and software, they can guarantee that users can access operating system updates immediately and that the hardware characteristics are uniform across the entire platform. For developers, this means if their application is on the App Store, every iPhone user can use their application, and for users, this means if an application is available on the store, they can use it.4 They do not have to worry whether their iPhone is stuck with an outdated version of the operating system, or whether their hardware is incompatible with the application. They just use it. Their integration strategy provides other advantages as well. By controlling the hardware and software, Apple can guarantee a level of quality their competitors cannot. Moreover, they can build hardware and software features their competitors cannot access, and thus make their products more valuable. For example, the iPads battery lasts for ten hours of use. For its weight, thickness and price, this is an incredible advantage over competing devices, and it is due to Apples own battery and processor technology. Apple is doing this in software, too, with iPhone OS 4 (announced in April), and recent acquisitions like Siri, a natural speech recognition company. Controlling the hardware and software together is the best way for Apple to differentiate their products, because they can guarantee the quality of their devices and create innovations and features exclusive to the platform. This not only is Apples best strategy for succeeding in the

mobile market, but it serves their goal of constantly re-defining it. Controlling the hardware and software allows them to make substantial changes quicklythere are no other manufactures to deal with.
1. Tablet computers released in 2003 were not tablets in the current sense of the term, but rather notebook computers with touch screens. They are very different devices and should be understood as such. [] 2. It should be noted that while market share is important for this (developers do not want to build applications for insignificant platforms), excellent developer tools and environment is even more important. That is outside the scope of this paper, however. [] 3. This is somewhat misleading, though, because it excludes iPod touch devices, and they are estimates. The trend it indicates is what matters, and other estimatessuch as Gartnersagree. Android is gaining significant market share. [] 4. This is somewhat overstated. The iPhone platform has some fragmentation as well, due to improved processing speeds in newer iPhones and new hardware capabilities, but this fragmentation is immaterial compared to Androids. []

Apple Inc., formerly Apple Computer, Inc., is an American multinational corporation headquartered in Cupertino, California[2] that designs, develops, and sells consumer electronics, computer software and personal computers. Its best-known hardware products are the Mac line of computers, the iPod music player, the iPhone smartphone, and the iPad tablet computer. Its software includes the OS X and iOS operating systems, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and production suites. The company was founded on April 1, 1976, and incorporated as Apple Computer, Inc. on January 3, 1977.[6] The word "Computer" was removed from its name on January 9, 2007, reflecting its shifted focus towards consumer electronics after the introduction of the iPhone.
[7][8][9]

Apple is the world's second-largest information technology company by revenue after Samsung Electronics, and the world's third-largest mobile phone maker after Samsung and Nokia.[10] Fortune magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012.[11][12][13][14][15] However, the company has received criticism for its contractors' labor practices, and for Apple's own environmental and business practices.[16][17][18] As of November 2012, Apple maintains 394 retail stores in fourteen countries[19][20] as well as the online Apple Store and iTunes Store.[21] It is the second-largest publicly traded corporation in the world by market capitalization, with an estimated value of US$414 billion as of January 2013.[22] As of September 29, 2012, the company had 72,800 permanent fulltime employees and 3,300 temporary full-time employees worldwide.[4] Its worldwide annual revenue in 2012 totalled $156 billion.[4]

197680: Founding and incorporation

The Apple I, Apple's first product, was sold as an assembled circuit board and lacked basic features such as a keyboard, monitor, and case. The owner of this unit added a keyboard and a wooden case.

Apple was established on April 1, 1976, by Steve Jobs, Steve Wozniak and Ronald Wayne[1] to sell the Apple I personal computer kit. The kits were hand-built by Wozniak[23][24] and first shown to the public at the Homebrew Computer Club.[25] The Apple I was sold as a motherboard (with CPU, RAM, and basic textual-video chips), which is less than what is today considered a complete personal computer.[26] The Apple I went on sale in July 1976 and was market-priced at $666.66 ($2,723 in 2013 dollars, adjusted for inflation.)[27][28][29][30][31][32] Apple was incorporated January 3, 1977,[6] without Wayne, who sold his share of the company back to Jobs and Wozniak for $800. Multi-millionaire Mike Markkula provided essential business expertise and funding of $250,000 during the incorporation of Apple.[33][34] The Apple II was introduced on April 16, 1977, at the first West Coast Computer Faire. It differed from its major rivals, the TRS-80 and Commodore PET, due to its character cellbased color graphics and an open architecture. While early models used ordinary cassette tapes as storage devices, they were superseded by the introduction of a 5 1/4 inch floppy disk drive and interface, the Disk II.[35] The Apple II was chosen to be the desktop platform for the first "killer app" of the business world, VisiCalc, a spreadsheet program.[36] VisiCalc created a business market for the Apple II and gave home users compatibility with the office, an additional reason to buy an Apple II. [36] Apple was a distant third place to Commodore and Tandy until VisiCalc came along.[37][38] By the end of the 1970s, Apple had a staff of computer designers and a production line. The company introduced the ill-fated Apple III in May 1980 in an attempt to compete with IBM and Microsoft in the business and corporate computing market.[39] Jobs and several Apple employees, including Jef Raskin, visited Xerox PARC in December 1979 to see the Xerox Alto. Xerox granted Apple engineers three days of access to the PARC facilities in return for the option to buy 100,000 shares (800,000 split-adjusted shares) of Apple at the pre-IPO price of $10 a share.[40] Jobs was immediately convinced that all future computers would use a graphical user interface (GUI), and development of a GUI began for the Apple Lisa.[41]

On December 12, 1980, Apple went public at $22 per share,[42] generating more capital than any IPO since Ford Motor Company in 1956 and instantly creating more millionaires (about 300) than any company in history.[43]

198185: Lisa and Macintosh

Apple's "1984" television ad, set in a dystopian future modeled after the George Orwell novel Nineteen Eighty-Four, set the tone for the introduction of the Macintosh.

Steve Jobs began working on the Apple Lisa in 1978, but in 1982, he was pushed from the Lisa team due to infighting. Jobs took over Jef Raskin's low-cost-computer project, the Macintosh. A race broke out between the Lisa team and the Macintosh team over which product would ship first. Lisa won the race in 1983 and became the first personal computer sold to the public with a GUI, but was a commercial failure due to its high price tag and limited software titles.[44]

The first Macintosh, released in 1984

In 1984, Apple next launched the Macintosh. Its debut was announced by the now famous $1.5 million television commercial "1984". It was directed by Ridley Scott and was aired during the third quarter of Super Bowl XVIII on January 22, 1984.[45] It is now hailed as a watershed event for Apple's success[46] and a "masterpiece".[47][48]

The Macintosh initially sold well, but follow-up sales were not strong[49] due to its high price and limited range of software titles. The machine's fortunes changed with the introduction of the LaserWriter, the first PostScript laser printer to be offered at a reasonable price, and PageMaker, an early desktop publishing package. It has been suggested that the combination of these three products was responsible for the creation of the desktop publishing market.[50] The Mac was particularly powerful in the desktop publishing market due to its advanced graphics capabilities, which had necessarily been built in to create the intuitive Macintosh GUI. In 1985 a power struggle developed between Jobs and CEO John Sculley, who had been hired two years earlier.[51] The Apple board of directors instructed Sculley to "contain" Jobs and limit his ability to launch expensive forays into untested products. Rather than submit to Sculley's direction, Jobs attempted to oust him from his leadership role at Apple. Sculley found out that Jobs had been attempting to organize a putsch and called a board meeting at which Apple's board of directors sided with Sculley and removed Jobs from his managerial duties.[49] Jobs resigned from Apple and founded NeXT Inc. the same year.[52]

198697: Decline
See also: Timeline of Apple II family and Timeline of Macintosh models

The Macintosh Portable was Apple's first "portable" Macintosh computer, released in 1989.

The Macintosh Portable was introduced in 1989 and was designed to be just as powerful as a desktop Macintosh, but weighed a bulky 7.5 kilograms (17 lb) with a 12-hour battery life. After the Macintosh Portable, Apple introduced the PowerBook in 1991. The same year, Apple introduced System 7, a major upgrade to the operating system which added color to the interface and introduced new networking capabilities. It remained the architectural basis for Mac OS until 2001. The success of the PowerBook and other products brought increasing revenue.[51] For some time, Apple was doing incredibly well, introducing fresh new products and generating increasing profits in the process. The magazine MacAddict named the period between 1989 and 1991 as the "first golden age" of the Macintosh. Following the success of the Macintosh LC, Apple introduced the Centris line, a low-end Quadra offering, and the ill-fated Performa line that was sold with an overwhelming number

of configurations and software bundles to avoid competing with the various consumer outlets such as Sears, Price Club, and Wal-Mart (the primary dealers for these models). Consumers ended up confused and did not understand the difference between models.[53] During this time Apple experimented with a number of other failed consumer targeted products including digital cameras, portable CD audio players, speakers, video consoles, and TV appliances. Enormous resources were also invested in the problem-plagued Newton division based on John Sculley's unrealistic market forecasts.[citation needed] Ultimately, none of these products helped, as Apple's market share and stock prices continued to slide.[citation needed] Apple saw the Apple II series as too expensive to produce, while taking away sales from the low end Macintosh.[54] In 1990, Apple released the Macintosh LC with a single expansion slot for the Apple IIe Card to migrate Apple II users to the Macintosh platform.[54] Apple stopped selling the Apple IIe in 1993. Microsoft continued to gain market share with Windows focusing on delivering software to cheap commodity personal computers while Apple was delivering a richly engineered, but expensive, experience.[55] Apple relied on high profit margins and never developed a clear response. Instead, they sued Microsoft for using a graphical user interface similar to the Apple Lisa in Apple Computer, Inc. v. Microsoft Corporation.[56] The lawsuit dragged on for years before it was finally dismissed. At the same time, a series of major product flops and missed deadlines sullied Apple's reputation, and Sculley was replaced as CEO by Michael Spindler.[57]

The Newton was Apple's first foray into the PDA markets, as well as one of the first in the industry. Despite being a financial flop at the time of its release, it helped pave the way for the Palm Pilot and Apple's own iPhone and iPad in the future.

By the early 1990s, Apple was developing alternative platforms to the Macintosh, such as the A/UX. Apple had also begun to experiment in providing a Mac-only online portal which they called eWorld, developed in collaboration with America Online and designed as a Macfriendly alternative to other online services such as CompuServe. The Macintosh platform was itself becoming outdated because it was not built for multitasking, and several important software routines were programmed directly into the hardware. In addition, Apple was facing competition from OS/2 and UNIX vendors such as Sun Microsystems. The Macintosh would need to be replaced by a new platform, or reworked to run on more powerful hardware.[58]

In 1994, Apple allied with IBM and Motorola in the AIM alliance. The goal was to create a new computing platform (the PowerPC Reference Platform), which would use IBM and Motorola hardware coupled with Apple's software. The AIM alliance hoped that PReP's performance and Apple's software would leave the PC far behind, thus countering Microsoft. The same year, Apple introduced the Power Macintosh, the first of many Apple computers to use Motorola's PowerPC processor.[59] In 1996, Michael Spindler was replaced by Gil Amelio as CEO. Gil Amelio made many changes at Apple, including extensive layoffs.[60] After numerous failed attempts to improve Mac OS, first with the Taligent project, then later with Copland and Gershwin, Amelio chose to purchase NeXT and its NeXTSTEP operating system, bringing Steve Jobs back to Apple as an advisor.[61] On July 9, 1997, Gil Amelio was ousted by the board of directors after overseeing a three-year record-low stock price and crippling financial losses. Jobs became the interim CEO and began restructuring the company's product line. At the 1997 Macworld Expo, Steve Jobs announced that Apple would join Microsoft to release new versions of Microsoft Office for the Macintosh, and that Microsoft made a $150 million investment in non-voting Apple stock.[62] On November 10, 1997, Apple introduced the Apple Online Store, tied to a new build-toorder manufacturing strategy.[63][64]

19982005: Return to profitability

On August 15, 1998, Apple introduced a new all-in-one computer reminiscent of the Macintosh 128K: the iMac. The iMac design team was led by Jonathan Ive, who would later design the iPod and the iPhone.[65][66] The iMac featured modern technology and a unique design, and sold almost 800,000 units in its first five months.[67] Through this period, Apple purchased several companies to create a portfolio of professional and consumer-oriented digital production software. In 1998, Apple announced the purchase of Macromedia's Final Cut software, signaling its expansion into the digital video editing market.[68] The following year, Apple released two video editing products: iMovie for consumers and, for professionals, Final Cut Pro, which has gone on to be a significant videoediting program, with 800,000 registered users in early 2007.[69] In 2002, Apple purchased Nothing Real for their advanced digital compositing application Shake,[70] as well as Emagic for their music productivity application Logic, which led to the development of their consumer-level GarageBand application.[71][72] iPhoto's release the same year completed the iLife suite.[73]

Apple retail stores allow potential customers to use floor models without making a purchase. (Apple Store, North Michigan Avenue, Chicago, Illinois in 2005)

Mac OS X, based on NeXT's OPENSTEP and BSD Unix was released on March 24, 2001, after several years of development. Aimed at consumers and professionals alike, Mac OS X aimed to combine the stability, reliability and security of Unix with the ease of use afforded by an overhauled user interface. To aid users in migrating from Mac OS 9, the new operating system allowed the use of OS 9 applications through Mac OS X's Classic environment.[74] On May 19, 2001, Apple opened the first official Apple Retail Stores in Virginia and California.[75] On July 9, they bought Spruce Technologies, a DVD authoring company. On October 23 of the same year, Apple announced the iPod portable digital audio player, and started selling it on November 10. The product was phenomenally successful over 100 million units were sold within six years.[76][77] In 2003, Apple's iTunes Store was introduced, offering online music downloads for $0.99 a song and integration with the iPod. The service quickly became the market leader in online music services, with over 5 billion downloads by June 19, 2008.[78] Since 2001, Apple's design team has progressively abandoned the use of translucent colored plastics first used in the iMac G3. This began with the titanium PowerBook and was followed by the white polycarbonate iBook and the flat-panel iMac.[79][80]

200507: Transition to Intel

Main article: Apple's transition to Intel processors

The MacBook Pro, Apple's first laptop with an Intel microprocessor, announced in January 2006.

At the Worldwide Developers Conference keynote address on June 6, 2005, Steve Jobs announced that Apple would begin producing Intel-based Mac computers in 2006.[81] On January 10, 2006, the new MacBook Pro and iMac became the first Apple computers to use Intel's Core Duo CPU. By August 7, 2006 Apple had transitioned the entire Mac product line to Intel chips, over one year sooner than announced.[81] The Power Mac, iBook, and PowerBook brands were retired during the transition; the Mac Pro, MacBook, and MacBook

Pro became their respective successors.[82][83] On April 29, 2009, The Wall Street Journal reported that Apple was building its own team of engineers to design microchips.[84] Apple also introduced Boot Camp to help users install Windows XP or Windows Vista on their Intel Macs alongside Mac OS X.[85] Apple's success during this period was evident in its stock price. Between early 2003 and 2006, the price of Apple's stock increased more than tenfold, from around $6 per share (splitadjusted) to over $80. In January 2006, Apple's market cap surpassed that of Dell.[86] Nine years prior, Dell's CEO Michael Dell said that if he ran Apple he would "shut it down and give the money back to the shareholders."[87] Although Apple's market share in computers had grown, it remained far behind competitors using Microsoft Windows, with only about 8% of desktops and laptops in the US.[citation needed]

200711: Widespread success

Three generations of the iPhone

Apple achieved widespread success with its iPhone, iPod Touch and iPad products, which introduced innovations in mobile phones, portable music players and personal computers respectively. In addition, the implementation of a store for the purchase of software applications represented a new business model. Touch screens had been invented and seen in mobile devices before, but Apple was the first to achieve mass market adoption of such a user interface that included particular pre-programmed touch gestures. Delivering his keynote speech at the Macworld Expo on January 9, 2007, Jobs announced that Apple Computer, Inc. would from that point on be known as Apple Inc., because computers were no longer the main focus of the company, which had shifted its emphasis to mobile electronic devices. The event also saw the announcement of the iPhone and the Apple TV.[88] The following day, Apple shares hit $97.80, an all-time high at that point. In May, Apple's share price passed the $100 mark.[89] In an article posted on Apple's website on February 6, 2007, Steve Jobs wrote that Apple would be willing to sell music on the iTunes Store without digital rights management (DRM) (which would allow tracks to be played on third-party players), if record labels would agree to drop the technology.[90] On April 2, 2007, Apple and EMI jointly announced the removal of DRM technology from EMI's catalog in the iTunes Store, effective in May.[91] Other record labels followed later that year.

In July of the following year, Apple launched the App Store to sell third-party applications for the iPhone and iPod Touch.[92] Within a month, the store sold 60 million applications and brought in $1 million daily on average, with Jobs speculating that the App Store could become a billion-dollar business for Apple.[93] Three months later, it was announced that Apple had become the third-largest mobile handset supplier in the world due to the popularity of the iPhone.[94] On December 16, 2008, Apple announced that after over 20 years of attending Macworld, 2009 would be the last year Apple would be attending the Macworld Expo, and that Phil Schiller would deliver the 2009 keynote in lieu of the expected Jobs.[95] Almost exactly one month later, on January 14, 2009, an internal Apple memo from Jobs announced that he would be taking a six-month leave of absence, until the end of June 2009, to allow him to better focus on his health and to allow the company to better focus on its products without having the rampant media speculating about his health.[96] Despite Jobs' absence, Apple recorded its best non-holiday quarter (Q1 FY 2009) during the recession with a revenue of $8.16 billion and a profit of $1.21 billion.[97]
Wikinews has related news:

Apple unveils iPhone 4, iOS 4 at Worldwide Developers Conference 2010 Apple to give free cases, refunds to iPhone 4 owners Apple unveils new iPods, Apple TV; updates iOS, iTunes Apple unveils new MacBook Air laptops, iLife '11 software suite

After years of speculation and multiple rumored "leaks", Apple announced a large screen, tablet-like media device known as the iPad on January 27, 2010. The iPad runs the same touch based operating system that the iPhone uses and many of the same iPhone apps are compatible with the iPad. This gave the iPad a large app catalog on launch even with very little development time before the release. Later that year on April 3, 2010, the iPad was launched in the US and sold more than 300,000 units on that day, reaching 500,000 by the end of the first week.[98] In May of the same year, Apple's market cap exceeded that of competitor Microsoft for the first time since 1989.[99] Apple released the fourth generation iPhone, which introduced video calling, multitasking, and a new uninsulated stainless steel design, which acts as the phone's antenna. Because of this antenna implementation, some iPhone 4 users reported a reduction in signal strength when the phone is held in specific ways. After a large amount of media coverage including mainstream news organizations, Apple held a press conference where they offered buyers a free rubber 'bumper' case, which had been proven to eliminate the signal reduction issue. Later that year Apple again refreshed its iPod line of MP3 players which introduced a multitouch iPod Nano, iPod Touch with FaceTime, and iPod Shuffle with buttons which brought back the buttons of earlier generations.[100][101][102] In October 2010, Apple shares hit an all-time high, eclipsing $300.[103] Additionally, on October 20, Apple updated their MacBook Air laptop, iLife suite of applications, and unveiled Mac OS X Lion, the latest installment in their Mac OS X operating system.[104] On January 6, 2011, the company opened their Mac App Store, a digital software distribution

platform, similar to the existing iOS App Store.[105] Apple was featured in the documentary Something Ventured which premiered in 2011.

2011present: PostSteve Jobs era

Apple store in Yonkers, New York

On January 17, 2011, Jobs announced in an internal Apple memo that he would take another medical leave of absence, for an indefinite period, to allow him to focus on his health. Chief operating officer Tim Cook assumed Jobs' day-to-day operations at Apple, although Jobs would still remain "involved in major strategic decisions for the company."[106] Apple became the most valuable consumer-facing brand in the world.[107] In June 2011, Steve Jobs surprisingly took the stage and unveiled iCloud, an online storage and syncing service for music, photos, files and software which replaced MobileMe, Apple's previous attempt at content syncing.[108] This would be the last product launch Jobs would attend before his death. It has been argued that Apple has achieved such efficiency in its supply chain[109] that the company operates as a monopsony (one buyer, many sellers), in that it can dictate terms to its suppliers.[110][111] In July 2011, due to the American debt-ceiling crisis, Apple's financial reserves were briefly larger than those of the US Government.[112] On August 24, 2011, Jobs resigned his position as CEO of Apple.[113] He was replaced by Tim Cook and Jobs became Apple's chairman. Prior to this, Apple did not have a chairman and instead had two co-lead directors, Andrea Jung and Arthur D. Levinson, who continued with those titles until Levinson became Chairman of the Board in November.[114] On October 4, 2011, Apple announced the iPhone 4S, which included an improved camera with 1080p video recording, a dual core A5 chip capable of 7 times faster graphics than the A4, an "intelligent software assistant" named Siri, and cloud-sourced data with iCloud.[115][116] The following day, on October 5, 2011, Apple announced that Jobs had died, marking the end of an era for Apple Inc.[117][118] The iPhone 4S was officially released on October 14, 2011. On October 29, 2011, Apple purchased C3 Technologies, a mapping company, for $240 million, becoming the third mapping company Apple has purchased.[119] On January 10, 2012, Apple paid $500 million to acquire Anobit, an Israeli hardware company that developed and supplies a proprietary memory signal processing technology that improves the performance of flash-memory used in iPhones and iPads.[120][121] On January 19, 2012, Apple's Phil Schiller introduced iBooks Textbooks for iOS and iBook Author for Mac OS X in New York City.[122] This was the first major announcement by Apple since the passing of Steve Jobs, who stated in his biography that he wanted to reinvent the textbook and education. The 3rd generation iPad was announced on March 7, 2012. It

includes a Retina display, a new CPU, a five megapixel camera, and 1080p video recording.
[123][124]

On a July 24, 2012, conference call with investors, Tim Cook said that he loved India, but that Apple was going to expect larger opportunities outside of India, citing the reason as the 30% sourcing requirement from India.[125][126][127][128] On August 20, 2012, Apple's rising stock rose the company's value to a world-record $624 billion dollars. This beat the non-inflation-adjusted record for market capitalization set by Microsoft in 1999.[129] On August 24, 2012, a US jury ruled that Samsung should pay Apple $1.05 billion (665m) in damages in an intellectual property lawsuit. Samsung said they will appeal the court ruling.[130] On September 12, 2012, Apple unveiled the iPhone 5, featuring an enlarged screen, more powerful processors, and running iOS 6. The latter includes a new mapping application (replacing Google Maps) that has attracted some criticism.[131] It was made available on September 21, 2012, and became Apple's biggest iPhone launch, with over 2 million preorders pushing back the delivery date to late October.[132] On October 23, 2012, Apple unveiled the iPad Mini, which features a 7.9-inch screen in contrast to the iPad's 9.7-inch screen. Apple also released a third-generation 13-inch MacBook Pro with a Retina display; the iPad 4, featuring a faster processor and a Lightning dock connector;[133][133] and new iMac and Mac Mini computers.[134][135] After the launch of Apple's iPad mini and fourth generation iPad on November 3rd, 2012, Apple announced that they had sold 3 million iPads in three days of the launch, but it did not mention the sales figures of specific iPad models.[136] On November 10, 2012, Apple confirmed a global settlement that would dismiss all lawsuits between Apple and HTC up to that date, in favor of a ten-year license agreement for current and future patents between the two companies.[137]It is predicted that Apple will make $280 million a year from this deal with HTC.[138] In December 2012, in a TV interview for NBC's Rock Center and also aired on the Today morning show, Apple CEO Tim Cook said that in 2013 the company will produce one of its existing lines of Mac computers in the United States.[139] In January 2013, Cook stated that he expected China to overtake the US as Apple's biggest market.[140]

Products
See also: Timeline of Apple products and List of products discontinued by Apple Inc.

Mac
Main article: Macintosh See also: Timeline of Macintosh models, List of Macintosh models grouped by CPU type, and List of Macintosh models by case type

MacBook Air: Consumer ultra-thin, ultra-portable notebook, introduced in 2008. MacBook Pro: Professional notebook, introduced in 2006. Mac Mini: Consumer sub-desktop computer and server, introduced in 2005. iMac: Consumer all-in one desktop computer, introduced in 1998. Mac Pro: Workstation desktop computer, introduced in 2006.

Apple sells a variety of computer accessories for Macs, including Thunderbolt Display, Magic Mouse, Magic Trackpad, Wireless Keyboard, Battery Charger, the AirPort wireless networking products, and Time Capsule.

iPad
Main article: iPad

Apple's homepage, displaying the fourth-generation iPad.

On January 27, 2010, Apple introduced their much-anticipated media tablet, the iPad, running a modified version of iOS. It offers multi-touch interaction with multimedia formats including newspapers, magazines, ebooks, textbooks, photos, movies, TV shows videos, music, word processing documents, spreadsheets, video games, and most existing iPhone apps.[141] It also includes a mobile version of Safari for web browsing, as well as access to the App Store, iTunes Library, iBookstore, contacts, and notepad. Content is downloadable via Wi-Fi and optional 3G service or synced through the user's computer.[142] AT&T was initially the sole US provider of 3G wireless access for the iPad.[143] On March 2, 2011, Apple introduced the iPad 2, which had a faster processor and two cameras on the front and back, respectively. It also added support for optional 3G service provided by Verizon in addition to the existing offering by AT&T.[144] However, the availability of the iPad 2 has been limited as a result of the devastating earthquake and ensuing tsunami in Japan in March 2011.[145] On March 7, 2012, Apple introduced the third-generation iPad, marketed as "the new iPad". It added LTE service from AT&T or Verizon, the upgraded A5X processor, and the Retina display (2048 by 1536 resolution), originally implemented on the iPhone 4 and iPhone 4S. The dimensions and form factor remained relatively unchanged, with the new iPad being a fraction thicker and heavier than the previous version, and minor positioning changes.[146]

On October 23, 2012, Apple introduced the fourth-generation iPad, marketed as the "iPad with Retina display". It added the upgraded A6X processor and replaced the traditional 30pin dock connector with the all-digital Lightning connector.[147] The iPad mini was also introduced, with a reduced 7.9-inch display and featuring much of the same internal specifications as the iPad 2.[148] Since its launch, iPad users have downloaded 3 billion apps, while the total App Store downloads is over 25 billion downloads.[149]

iPod
Main article: iPod

The 2012 iPod Shuffle, iPod Nano, iPod Classic, and iPod Touch.

On October 23, 2001, Apple introduced the iPod digital music player. Several updated models have since been introduced, and the iPod brand is now the market leader in portable music players by a significant margin, with more than 350 million units shipped as of September 2012.[150] Apple has partnered with Nike to offer the Nike+iPod Sports Kit, enabling runners to synchronize and monitor their runs with iTunes and the Nike+ website. Apple currently sells four variants of the iPod:

iPod Shuffle: Ultra-portable digital audio player, currently available in a 2 GB model, introduced in 2005. iPod Nano: Portable media player, currently available in a 16 GB model, introduced in 2005. Earlier models featured the traditional iPod click wheel, though the current generation features a multi-touch interface and includes an FM radio and a pedometer. iPod Touch: Portable media player than runs iOS, currently available in 32 and 64 GB models, introduced in 2007. The current generation features the Apple A5 processor, a Retina display, and dual cameras on the front (1.2 megapixel sensor) and back (5 megapixel iSight), the latter of which supports HD video recording at 1080p.[151] iPod Classic: Portable media player, currently available in a 160 GB model, first introduced in 2001.[152]

iPhone
Main article: iPhone

At the Macworld Conference & Expo in January 2007, Steve Jobs introduced the longanticipated[153] iPhone, a convergence of an Internet-enabled smartphone and iPod.[154] The

original iPhone was released on June 29, 2007 for $499 (4 GB) and $599 (8 GB) with an AT&T contract.[155] On February 5, 2008, it was updated to have 16 GB of memory, in addition to the 8 GB and 4 GB models.[156] It combined a 2.5G quad band GSM and EDGE cellular phone with features found in handheld devices, running scaled-down versions of Apple's Mac OS X (dubbed iPhone OS, later renamed iOS), with various Mac OS X applications such as Safari and Mail. It also includes web-based and Dashboard apps such as Google Maps and Weather. The iPhone features a 3.5-inch (89 mm) touchscreen display, Bluetooth, and Wi-Fi (both "b" and "g").[154] At Worldwide Developers Conference (WWDC) on June 9, 2008, Apple announced the iPhone 3G. It was released on July 11, 2008, with a reduced price of $199 for the 8 GB version, and $299 for the 16 GB version.[157] This version added support for 3G networking and assisted-GPS navigation. The flat silver back and large antenna square of the original model were eliminated in favor of a curved glossy black or white back. Following customer complaints, the previously-recessed headphone jack was changed to a flush jack for compatibility with more styles of headphones. Software capabilities were improved with the release of the App Store, providing applications for download that were compatible with the iPhone. On April 24, 2009, the App Store surpassed one billion downloads.[158] At WWDC on June 8, 2009, Apple announced the iPhone 3GS. It provided an incremental update to the device, including faster internal components, support for faster 3G speeds, video recording capbility, and voice control. At WWDC on June 7, 2010, Apple announced the iPhone 4, which the company describes as the "biggest leap we've taken" since the original model.[159] It features an all-new design, a 960x640 display, the Apple A4 processor also used in the iPad, a gyroscope for enhanced gaming, 5MP camera with LED flash, front-facing VGA camera and FaceTime video calling. Shortly after its release, reception issues were discovered by consumers, due to the stainless steel band around the edge of the device, which also serves as the phone's cellular signal and Wi-Fi antenna. The issue was corrected by a "Bumper Case" distributed by Apple for free to all owners for a few months. In June 2011, Apple overtook Nokia to become the world's biggest smartphone maker by volume.[160] On October 4, 2011, Apple unveiled the iPhone 4S, which was released in the United States, Canada, Australia, United Kingdom, France, Germany, and Japan on October 14, 2011, with other countries set to follow later in the year.[161] It features the Apple A5 processor, and is the first model offered by Sprint (joining AT&T and Verizon Wireless as the United States carriers offering iPhone models). On October 19, 2011, Apple announced an agreement with C Spire Wireless to sell the iPhone 4S with that carrier in the near future, marking the first time the iPhone was officially supported on a regional carrier's network.[162] Another notable feature of the iPhone 4S was Siri voice assistant technology, which Apple had acquired in 2010,[163] as well as other features, including an updated 8MP camera with new optics. Apple sold 4 million iPhone 4S phones in the first three days of availability, making it the most successful launch of any mobile phone to date.[164] On September 12, 2012, Apple introduced the sixth-generation iPhone, the iPhone 5. It added a 4-inch display, 4G LTE connectivity, and the upgraded Apple A6 chip, among several other improvements.[165] Two million iPhones were sold in the first twenty-four hours of preordering[166] and over 5 million handsets were sold in the first 3 days of its launch.[167]

Apple TV
Main article: Apple TV

The current generation Apple TV.

At the 2007 Macworld conference, Jobs demonstrated the Apple TV, (previously known as the iTV),[168] a set-top video device intended to bridge the sale of content from iTunes with high-definition televisions. The device links up to a user's TV and syncs, either via Wi-Fi or a wired network, with one computer's iTunes library and streams from an additional four. The Apple TV originally incorporated a 40 GB hard drive for storage, includes outputs for HDMI and component video, and plays video at a maximum resolution of 720p.[169] On May 31, 2007 a 160 GB drive was released alongside the existing 40 GB model[170] and on January 15, 2008 a software update was released, which allowed media to be purchased directly from the Apple TV.[171] In September 2009, Apple discontinued the original 40 GB Apple TV and now continues to produce and sell the 160 GB Apple TV. On September 1, 2010, alongside the release of the new line of iPod devices for the year, Apple released a completely redesigned Apple TV. The new device is 1/4 the size, runs quieter, and replaces the need for a hard drive with media streaming from any iTunes library on the network along with 8 GB of flash memory to cache media downloaded. Apple with the Apple TV has added another device to its portfolio that runs on its A4 processor along with the iPad and the iPhone. The memory included in the device is the half of the iPhone 4 at 256 MB; the same as the iPad, iPhone 3GS, iPod touch 3G, and iPod touch 4G.[172] It has HDMI out as the only video out source. Features include access to the iTunes Store to rent movies and TV shows (purchasing has been discontinued), streaming from internet video sources, including YouTube and Netflix, and media streaming from an iTunes library. Apple also reduced the price of the device to $99. A third generation of the device was introduced at an Apple event on March 7, 2012, with new features such as higher resolution (1080p) and a new user interface.

Software
See also: List of Macintosh software

Apple develops its own operating system to run on Macs, OS X, the latest version being OS X Mountain Lion (version 10.8). Apple also independently develops computer software titles for its OS X operating system. Much of the software Apple develops is bundled with its computers. An example of this is the consumer-oriented iLife software package that bundles iMovie, iPhoto and GarageBand. For presentation, page layout and word processing, iWork is available, which includes Keynote, Pages, and Numbers. iTunes, QuickTime media player,

Safari web browser, and Software Update are available as free downloads for both Mac OS X and Windows. Apple also offers a range of professional software titles. Their range of server software includes the operating system OS X Server; Apple Remote Desktop, a remote systems management application; and Xsan, a Storage Area Network file system. For the professional creative market, there is Aperture for professional RAW-format photo processing; Final Cut Pro, a video production suite; Logic Pro, a comprehensive music toolkit; and Motion, an advanced effects composition program. Apple also offers online services with iCloud, which provides cloud storage and syncing for a wide range of data, including email, contacts, calendars, photos and documents. It also offers iOS device backup, and is able to integrate directly with third-party apps for even greater functionality. iCloud is the fourth generation of online services provided by Apple, and was preceded by MobileMe, .Mac and iTools, all which met varying degrees of success.

How Apple Segments the Market

Apple has done a fabulous job in recent years of asserting itself as a major player in the computer industry. One of their tools for accomplishing this has been a fanatical commitment to high-quality products. They strive to make every product they offer to be the best in its class, and theyve largely succeeded at doing this. (And have used some very clever strategies to maintain this appearance when their products werent quite measuring up.) This has given them an incredibly strong brand. But it also allows them to position themselves in an enviable place in terms of market positioning. Apple products are expensive. Apple gets high margins on its hardware, allowing it to recoup large investments in NRE (non-recurring engineering) to design the hardware and its accompanying software. This is a great place to be from a competitive standpoint, because as a company they dont need to squabble over the cheapest parts to try to deliver the best prices to consumers. So long as they can maintain a sufficiently large customer base to support the practice, it is an easy place to defend against competition from. Certainly a lot easier than being Dell or HP, who struggle with operational efficiency to compete on price, and try to innovate within a very narrow window defined by their platform. Apples success at selling high-end products has secondary benefits for the rest of the ecosystem. Because the products are expensive, they tend to be purchased by people with more disposable income. So the segment of the computer market which buys Apple products self-selects to be very attractive demographic for many other reasons. Advertisers love to get their products in front of people who are more-willing-than-most to buy something expensive / unnecessary / fun. Similarly, app developers know that if they write an app for iPhone / iPad, the people who are able to buy it are much more likely to be willing to pay a couple bucks for something silly than, say, somebody who bought the cheapest smartphone they could afford because they felt they really need that functionality. I had previously speculated that Apples platform play required a very large distribution base to attract developers, which is not quite correct. The strategy is successful even with a relatively small market, provided that the market is segmented properly. Which in this case it clearly is.

Segmentation Strategy Most executives dont realize that segmentation strategy is the heart of Apples astonishing rise in sales, revenues, profits and business rankings. In fact, segmentation strategy is one of the most important of the business pricing strategies there is. Properly segmenting your market will lead to huge returns. Look at Apple. The company has amassed more cash than the US government, earns more than two-thirds of the profits in the smart-phone industry, earns more than 50% of the profits in the entire PC industry, and has become the number-one valued company in the United States. The basis of this business success is found in Apples market segmentation strategies theyve segmented their products vertically (creating a product for each use case) and sold them at the right price for only the most profitable market segments. They also identified segments that are willing to pay more for the specifics that Apple provides: the user experience, the quality of their products and the often-seamless integration provided. In addition, which is very important, they simply ignore prospects who are not willing to pay their price. In fact, on the question of when Apple would bring out a $300 NetBook computer, Steve Jobs famously replied Never. I just dont know how to make a quality product at that price. In that short sentence he summed up Apples whole business pricing strategy and positioning. Apple makes quality products for customers who are willing to pay more. As a business strategy, market segmentation is one of the most powerful and under-utilized weapons in the executives arsenal. But segmentation is not only for high tech manufacturers like Apple. It is just as important for companies as diverse as restaurant chains, software vendors, medical equipment manufacturers, business service vendors and stem cell companies. When companies look carefully at their buyers use cases, document the outcomes they wish to achieve, and define the segments that represent the best business opportunities, they then orient their products and services to serve these market segments better than anyone else. They can then optimize their prices to capture the maximum of these buyers willingness to pay, and create bundles, options, services, content and unbundles, to serve them better than anyone else in their market, and collect the rewards of superior execution.