However, ranking it as the industry leader would have a great challenge especially due to its performance in the mid-1980s and early 1990s when it registered great fluctuations in profit. At some time, they even ran at a loss of $1.6 billion under the watch of one Amelio (Yoffie & Kim, 2). It enjoyed a considerable market price share of about 16% in the 1980s, which would gradually reduce to about 2% in 2007 before starting to rise slowly. Apple transcended the market due to the uniqueness of their products as compared to its competitors. They invested more on R & D as compared to the rest of the providers to ensure that efficiency was the key to their product. They integrated their OS with other providers like Microsoft and UNIX to come up with a better processor. This satisfied the taste of different customer leading to greater and variable sales (Yoffie & Kim, 5).
The introduction of the digital hub saw a big improvement in the microprocessor products. Products like the iPod, iTunes, and iPads revolutionized the industry and were a big challenge to the smartphones. They also introduced PCs that were convenient to use and save much of the customers working space. This was contrary to what other competitors had provided. Apple works in a dynamic market that needs creativity and innovation to succeed. The players in the market are so competitive that failure to come up with a new and different product will lead to the company’s downfall. This is a type of market where weakened companies are bought with stronger ones to help beat their competitors. Alternatively, the providers have to venture into many products to survive. Apple would not survive on PCs alone, which led to their venture in other products like phones, MP3s, PlayStations, and even online clip sales.
This essay describes diversifying the Apple products, which increased their market share considerably. In addition, this for sure paid greater dividends as after a short period Apple would raise the market in terms of quality microprocessor gadgets…
In fact Microsoft pushed Apple far behind during this period and many people raised doubts about the future of Apple during this period. However, Apple bounced back during the latter part of 90’s and at the beginning of 2000 with the introduction of its popular “i” series products such as iphone, ipad, ipod, imac, itune etc.
The data collected from the selected Apple store will also be used to calculate the regression analysis, which be used to estimate the forecasted sales and demand for the Ipads. Lastly, the profitability and economic conditions of Apple Inc will be determined and recommendations given for future new or current products pricing.
Presently, the company has its operations in the Americas, Europe, Africa, Middle East and Japan. In addition, as Marino, Hattaway and Jackson (2000) report, there are retail Apple Stores in US, Italy, Japan, Canada and UK. In the year 2009, the company announced a net quarterly profit of $ 1.23 million.
The main conflict is the demand of the products that are on the market. At present, there are wide varieties of Apple products available in the market that have successfully captured the industry and have worked to improve the popularity and position of the company in the industry. The products are iPhone, iPod, iPad, Mac, iTunes, iOS etc.
The introduction of the iPod in 2001 led a transformation of turning Apple from a computer company into a consumer electronics company. The sales of the iPod skyrocketed after the firm created the iTunes division in 2003 which enabled customers to purchased single songs legally by downloading from the online iTunes store.
From the case study, it is clear that the major reason for the sudden fall in the Apple market share was licensing. Apple’s tiff rival Microsoft had licensed its operating system to the PC manufacturers while Apple was against it. In order to ensure that Apple remains a dominant force in the MP3 and cell phone segment, the organization will have to do more than just innovation.
This is the highest market cap in the world and was over $200 billion for second placed Exxon. This high market cap can be attributed to several factors. The first is the release of the highly successful iPhone 5 with the iPhone being the company’s most profitable product.
However, by 1996, poor strategy and product development, as well as the rapid growth of Microsoft and the PC market, left Apple nearly bankrupt. With Steve Jobs once again assuming leadership over the firm, a renewed level