You are on page 1of 3

Background: The early History Steven Paul Jobs was born in California on February 24, 1955.

His parents, unmarried and unable to care for a baby, put him up for adoption. He was adopted by Paul and Clara Jobs, who raised him in a northern California community surrounded by apricot orchards and farm country. After attending few courses in electronics at Hewlett-Packard in Palo Alto California, the orphan young Steven Paul Jobs was placed as a temporary summer worker, where he met Stephen Wozniak a recent dropout from the University of California at Berkeley, but with a great interest in crafting and inventing electronic gadget. It was not until 1974, when they met again at Wozniak`s "Homebrew Computer Club." Steve Jobs was not the tek-savvy person, rather was the person who has the eye and the convection of an entrepreneur. By 1976 the mergence of the two talents gives birth to Apple 1 computer priced at $666. Totally designed in Steve`s bedroom with the prototype build in the garage. Steve Wozniak was a gifted techno crafts men, where as Steve Jobs¶ real gift was his vision and powerful group communications skills to inspire The Apple I was the first single-board computer with built-in video interface, and on-board ROM, enables the machine to execute other programs from an external source. Jobs and Wozniak managed to earn $774,000 from the sales of the Apple I. The following year they design the Apple 2 personal computer earning $139,000,000. After three years of success there sales scored to 700 percent, reaching $583,000,000. By1980, Apple went public with a success no company had experienced before. But the Apple III was a fiasco; it had been rushed quickly into the market and in order to recover from this loss Steve Jobs initiated the project to develop the legendary Macintosh computer. Steve inspired many of his staff to work for this project. His enthusiasm was the compass to where he was going and was also an opportunity detector to where the digital revolution was going. The strengths of Macintosh design were not its features and technological characteristics, but friendliness, flexibility, and adaptability to perform creative work. Even with its strong sales Macintosh lacked some important features (no hard disk drive and insufficient computer memory). Moreover with the IBM supremacy in the market made its operating system a standard of the industry, which was not compatible with Apple's products. In 1985 Apple announced its first loss. Steve was trapped into escalation of commitment, by refusing to abandon or at least change his outsized sales projections, even the problem was obvious but Jobs' sensitive personality and immense ambition (may have helped drive his success) but also causes conflicts with the executives, board members and others, and led to his forced departure from the company he co-founded.. Steve was fired by the President he had hired. In 1985 both Jobs and Wozniak left the company they had founded. Jobs continue with his entrepreneurial carrier, and opened his own company NextStep in 1989. By 1993 and after a loss estimated at $250 million NextStep closed its hardware division to focus on the software development. When Apple began to struggle in the mid-1990s, Scully was replaced by Michael Spindler after him Gibert Amilio, but none of them was able to stop the slide in Apple¶s fortunes. In 1997 Steve Jobs was named the new permanent CEO. After returning to the helm at Apple, Jobs made a number of decisive moves that immediately improved the company's fortunes. He simplified the product line, introduced a new version of the Apple operating system, and entered into a cooperative agreement with Microsoft. In 1998 Jobs introduced the iMac. This computer offered sufficiently powerful processors and an affordable price tag. A number of new products followed, some of which, like the iBook, PowerMac and iMac G5were extremely successful. To keep the sales growing Apple continued to invest in development of new operating system and developing its own application such as video editing programs. In 2001 Apple launched a sleek new handheld product, a portable digital music player called the iPod. Comparable to MP3

y Apple¶s direct online sales channel will continue to grow. y Product development cycles have shortened in the mobile phone market. Apple¶s Weaknesses y Weak integration with Microsoft Office makes their product line less attractive to business enterprises. giving Apple a bigger opportunity in upgrade sales. By 2004.players introduced by other companies. y Apple tends to lead innovation and then watch other companies control the market once it has reached the tipping point and wider consumer adoption. are buying other Apple products. Apple¶s products are typically higher in price than its competitors. y They own their own Operating System (iOS). will likely be a huge revenue generator. y Steve Jobs succession Apple¶s Opportunities y Cross product sales will continue to increase as more and more people choose Apple. Excellent iPhone 4 sales are an excellent example. y Apple new iAd advertising platform for Applications designed for the iPhone. y Apple is an innovator and technology leader. Apple sold three million iPods in less than three years. y No debt. y Apple¶s first time customers. Apple also adopted forward integration business strategy. iPods and iPads. This form of vertical integration whereby activities are expanded to include control of the direct distribution of Apples¶ products was because of the poor and discriminated presence in many computer retailers. iPad and iPod touch devices. almost half of the digital music players bought by consumers were iPods. iPad and iPod touch could be a significant revenue generator. Consumers are willing to update their phone hardware every two years. by opening its own stores managed by Apple trained sales clerks. Thanks in part to a memorable advertising campaign and good word-of-mouth. Price sensitive consumers tend to not consider Apple in buying decisions. etc. featuring video chat. Apple¶s Strengths y Steve Jobs. Apple¶s brand is strong around the globe. the iPod allowed users to download music from CDs or from online sites. y Global reach. y A new release of Apple¶s iPod touch. including Apple¶s desktop and laptop computers based on the most recent quarter. Many own multiple products (Mac. y High price. iPhone. Apple¶s Threats . y Excellent brand loyalty by its customers. excellent cash flow with excellent Research & Development division that is able to deliver (premium) products that customers will stand in line to buy. y Google¶s Android Operating system is slowing Apple¶s growth rate in the mobile phone market. Apple¶s CEO and visionary.) y iTunes Online Store is an excellent source of revenue derived from sales of music and applications for Apple¶s iPhone. buying iPhone. which is used across their entire product line allowing them to sell a complete product without paying large royalty payments to their competitors. helping improve their already impressive gross margins.

He also understood the power of convergence and branched out into other areas to make Apple more than a computer company. Toshiba. those consumers have been looking for beauty. HP. if people liked other Apple products like the iPod. while still maintaining its drive to sell computers. . wouldn't they want to own a Mac? It was a well-calculated risk that paid off. And for quite some time. Yahoo! and Wal-Mart offering music cheaper. After all. Online Music Stores from Amazon. people are looking for devices that say something about them. Sony and IBM.y y y Cheaper laptop computers from Dell. Apple has always understood that and does its best to make its computers more elegant than its competitors. New online music models that including renting the entire music library for a low monthly rate could change how consumers pay for music.