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  1. 1. 12/26/2012 1
  2. 2. Presented by Hasan Ibrahim BIT0208 Iftekher Ahmed BIT0220 Khaza Moinuddin Mazumder BIT023412/26/2012 2
  3. 3. Apple ► An American multinational corporation ► Established on April 1,1976 in California, USA by Steve Jobs, Steve Wozniak and Ronald Wayne ► Designs and sells consumer electronics, computer software and Personal Computer ► Consumer12/26/2012 Electronics are 3 electronic equipment intended for everyday use, most often in
  4. 4. A Few Facts About Apple ► World’s third largest mobile phone maker after Samsung and Nokia ► Largest publicly traded company in the world by market capitalization ► Largest technology company in the world by revenue and profit, more than Google and12/26/2012 Microsoft combined 4 ► On August 20, 2012, Apple surpassed Microsoft to become the largest
  5. 5. Apple and Closed System ► Apple products are considered as closed systems. e.g. – iMac, iPod, iPad ► Closed System is an computing environment (usually an operating system) that,  Prevents interference from third-party software  Prohibits third-party software12/26/2012 from being installed 5  Keeps third-party hardware off from interoperating with it
  6. 6. Apple’s Business Problem Apple’s closed system comprised of iMac desktop with proprietary software and hardware support12/26/2012 6
  7. 7. Apple’s Business Problem (cont.) ► Apple’s rival in desktop market, Microsoft  Replicated the basic features of Mac OS  Encouraged developers to write app for Windows  Licensed Windows to mass- market PC manufacturers like Dell, HP and IBM12/26/2012 7 ► So users started preferring desktops with Windows
  8. 8. Apple’s recovery strategy12/26/2012 8
  9. 9. Apple’s recovery strategy (cont.) ► Steve Jobs decided to launch iPod, predicting it to have impact on Apple’s weakened desktop market ► Apple introduced iPod in October, 2001 ► iPod quickly grabbed 73 percent market share of portable music players ► Jobs cut a deal with the top five12/26/2012 9 music companies in US to sell music on iTunes
  10. 10. Apple’ recovery strategy (cont.) ► Apple denied licensing FairPlay to Yahoo, eMusic, Napster and its other competitors ► Apple’s competitors turned to Microsoft for copy-protection of music in their stores ► Microsoft’s copy protection software had disadvantages  Music could be played in portable12/26/2012 10 music players made by Samsung and SanDisk, but not on the wildly popular iPod
  11. 11. iPod’s Impact on Apple’s problem ► Apple sold 75 percent of all digital songs through iTunes ► Apple’s Increasing sale of iPod effected its desktop and portable products market as Steve Jobs predicted ► Since the arrival of iPod, Apple’s share of the desktop and portable12/26/2012 computer market in the US almost 11 doubled by early 2006 ► With more iPod sold, Apple’s
  12. 12. Sales growth for iPod over the years12/26/2012 Source: 12 m
  13. 13. Sales and profit graph for Apple (1995-2008)12/26/2012 Source: 13
  14. 14. Apple’s introduction of Boot Camp ► By early 2006, Apple introduced Boot Camp software ► Boot Camp assists iMac users to easily install Windows on it and partition drives ► It also enables iMac users to easily run applications software for both Mac OS X and Windows12/26/2012 Boot ► Camp lured even more 14 Windows users as well as iPod owners to try Apple’s Mac
  15. 15. Case Study Question 1 Do you agree with the sources in this case that Apple will dominate the digital music market for years to come? Why or why not?12/26/2012 15
  16. 16. Case Study Question 2 Can the key technology and business strategies Steve Jobs implemented with the closed system of the iPod be applied successfully to the iMac and other Apple closed-system computer products? Define your answer with several examples of what could or could not be accomplished for12/26/2012 16 Apple’s computer products line.
  17. 17. Case Study Question 3 Will the cachet of the iPod and the capabilities of Boot Camp and the Leopard version of Apple’s OS X lure many more Windows PC users to the Mac lineup of desktops and portables? Why or why not?12/26/2012 17
  18. 18. References ► [ ] Apple Inc., Consumer Electronics ► [ ] [ ] Closed system12/26/2012 18
  19. 19. 12/26/2012 19