The document discusses Apple's history and business strategies. It describes how Apple started as a computer company but faced competition from Microsoft in the desktop market. To recover, Apple launched the iPod in 2001 which was highly successful. As iPod sales grew, so did Apple's market share in computers. The iPod helped Apple dominate digital music and drove sales of Mac desktops and laptops after Boot Camp allowed running Windows on Macs.

1. 12/26/2012 1

2. Presented by
Hasan Ibrahim
BIT0208
Iftekher Ahmed
BIT0220
Khaza Moinuddin Mazumder
BIT0234
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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
► Consumer
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electronic equipment intended for
everyday use, most often in

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 and
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► On August 20, 2012, Apple surpassed
Microsoft to become the largest

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 software
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from being installed 5
 Keeps third-party hardware
off from interoperating with it

6. Apple’s Business Problem
Apple’s closed system comprised
of iMac desktop with
proprietary software and
hardware support
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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 IBM
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► So users started preferring
desktops with Windows

8. Apple’s recovery strategy
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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 five
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music companies in US to sell music
on iTunes

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 portable
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music players made by Samsung
and SanDisk, but not on the wildly
popular iPod

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 portable
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computer market in the US almost 11
doubled by early 2006
► With more iPod sold, Apple’s

12. Sales growth for iPod over
the years
12/26/2012 Source: 12
http://www.stopmusictheft.co
m

13. Sales and profit graph for
Apple (1995-2008)
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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 Windows
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► Camp lured even more 14
Windows users as well as iPod
owners to try Apple’s Mac

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?
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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 for
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Apple’s computer products line.

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?
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18. References
► [ Wikipedia.org ]
Apple Inc., Consumer Electronics
► [ answers.com ] [
geekinterview.com ]
Closed system
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