The computer industry incorporates a broad range of products, from mp3 players / iPods and printers to “personal computers and powerful servers” (Linzmayer, 2004, P. 103). Businesses have difficulty working in the computer industry, specifically because of the active environment of technology.
In accordance to Moore’s law, the “numbers of transistors per square inch on integrated circuits will double every 18 months” (Linzmayer, 2004, P. 103), and costs will be decreased. This indicates that even the leading companies are required to stay very active and updated, as the industry is persistently changing and redefining its parameters.
Apple Inc. has lately made headlines by penetrating into the cell phone market with its launch of the Apple iPhone. Apple as well has an extensive range of computer products together with personal computers, “computer accessories, servers, networking solutions, and software packages” (Linzmayer, 2004, P. 103). Presently having a market share of 58 percent among the cell phone market, and staying on a profitable 5 percent of the personal computer market, Apple has constantly maintains its name within the industry by keeping an eye for aesthetics as well as inventiveness, together with ‘easy to use’, pioneering products.
Apple has most successfully developed the competitive strategies that let businesses in this industry to stay lucrative. Apple is renowned for its distinguished as well as innovative products, and dependable customer base. This joined with the halo effect from iPhone sales is likely to boost general market share and enhanced position Apple to remove market share from its rivals. In addition, Apple presents the maximum percentage of its sales to Research and Development, which better positions itself to have the benefit of primary mover benefit with the introduction of latest products. Apple has the maximum gross profit margin among its rivals because of its higher costs, and is only in charge for letting Apple to stay afloat within the personal computer market by a meager 4 percent market share. On the other hand, “Apple’s spare no expense philosophy in producing high quality differentiated goods drastically reduces its ability to translate a larger portion of gross profit into net profit” (Cruikshank, 2005, p. 72). Apple has the utmost operating expense ratio in addition to the lowest net profit margin with its rivals. If Apple is capable of cutting down on operating cost and make use of a few of the standard policies used by Dell, they will be capable of converting additional profits into earnings per share Apple has many internal strong pints that make it a triumphant as well as competitive business. Apple has a dominant foothold within the personal computer marketplace by being different with its pioneering approach and user-friendliness. Its operating system is created domestically, keeping it free from