INDUS

TRY HISTORY

COMPUTER HARDWARE
COMPUTER SOFTWARE
CONSUMER ELECTRONICS
DIGITAL DISTRIBUTION

History of computing hardware (1960spresent)

The history of computing hardware starting at 1960 is marked by the conversion from
vacuum tube to solid state devices such as the transistor and later the integrated circuit. By
1959 discrete transistors were considered sufficiently reliable and economical that they made
further vacuum tube computers uncompetitive. Computer main memory slowly moved away
from magnetic core memory devices to solid-state static and dynamic semiconductor
memory, which greatly reduced the cost, size and power consumption of computer devices.

Third generation
The mass increase in the use of computers accelerated with 'Third Generation'
computers. These generally relied on Jack Kilby's invention of the integrated circuit (or
microchip), starting around 1965. However, the IBM System/360 used hybrid circuits,
which were solid-state devices interconnected on a substrate with discrete wires.
The first integrated circuit was produced in September 1958 but computers using
them didn't begin to appear until 1963. Some of their early uses were in embedded
systems, notably used by NASA for the Apollo Guidance Computer, by the military in
the LGM-30 Minuteman intercontinental ballistic missile, the Honeywell ALERT
airborne computer, and in the Central Air Data Computer used for flight control in the
US Navy's F-14A Tomcat fighter jet.
By 1971, the Illiac IV supercomputer, which was the fastest computer in the world
for several years, used about a quarter-million small-scale ECL logic gate integrated
circuits to make up sixty-four parallel data processors.
While large mainframe computers such as the System/360 increased storage and
processing abilities, the integrated circuit also allowed development of much smaller
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computers. The minicomputer was a significant innovation in the 1960s and 1970s. It
brought computing power to more people, not only through more convenient physical
size but also through broadening the computer vendor field. Digital Equipment
Corporation became the number two computer company behind IBM with their
popular PDP and VAX computer systems. Smaller, affordable hardware also brought
about the development of important new operating systems like Unix.

1969 Data General Nova.

In November 1966, Hewlett-Packard introduced the 2116A minicomputer, one of

the first commercial 16-bit computers. It used CTL (Complementary Transistor
MicroLogic) in integrated circuits from Fairchild Semiconductor. Hewlett-Packard
followed this with similar 16-bit computers such as the 2115A in 1967, the 2114A in
1968, and others .
In 1969, Data General introduced the Nova and shipped a total of 50,000 at $8000
each. The popularity of 16-bit computers such as the Hewlett-Packard 21xx series and
the Data General Nova led the way toward word lengths that were multiples of the 8bit byte. The Nova was first to employ medium-scale integration (MSI) circuits from
Fairchild Semiconductor, with subsequent models using large-scale integrated (LSI)
circuits. Also notable was that the entire central processor was contained on one 15inch printed circuit board.
In 1973, the TV Typewriter, designed by Don Lancaster, provided electronics
hobbyists with a display of alphanumeric information on an ordinary television set. It
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used $120 worth of electronics components, as outlined in the September 1973 issue
of Radio Electronics magazine. The original design included two memory boards and
could generate and store 512 characters as 16 lines of 32 characters. A 90-minute
cassette tape provided supplementary storage for about 100 pages of text. His design
used minimalistic hardware to generate the timing of the various signals needed to
create the TV signal. Clive Sinclair later used the same approach in his legendary
Sinclair ZX80.
Microprocessors

1971: Intel 4004.

On November 15, 1971, Intel released the world's first commercial microprocessor,
the 4004. It was developed for a Japanese calculator company, Busicom, as an
alternative to hardwired circuitry, but computers were developed around it, with much
of their processing abilities provided by one small microprocessor chip. Coupled with
one of Intel's other products - the RAM chip, based on an invention by Robert Dennard
of IBM, (kilobits of memory on one chip) - the microprocessor allowed fourth
generation computers to be smaller and faster than prior computers. The 4004 was
only capable of 60,000 instructions per second, but its successors, the Intel 8008,
8080 (used in many computers using the CP/M operating system), and the 8086/8088
family (the IBM personal computer (PC) and compatibles use processors still
backwards-compatible with the 8086) brought ever-growing speed and power to the
computers. Other producers also made microprocessors which were widely used in
microcomputers.
The following table shows a timeline of significant microprocessor development.

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Mainframes and minicomputers

Time-sharing computer terminals connected to central computers, such as the TeleVideo

ASCII character mode smart terminal pictured here, were sometimes used before the advent
of the PC.

Before the introduction of the microprocessor in the early 1970s, computers were
generally large, costly systems owned by large institutions: corporations, universities,
government agencies, and the like. Userswho were experienced specialistsdid not
usually interact with the machine itself, but instead prepared tasks for the computer
on off-line equipment, such as card punches. A number of assignments for the
computer would be gathered up and processed in batch mode. After the jobs had
completed, users could collect the output printouts and punched cards. In some
organizations it could take hours or days between submitting a job to the computing
center and receiving the output.
A more interactive form of computer use developed commercially by the middle
1960s. In a time-sharing system, multiple teleprinter terminals let many people share
the use of one mainframe computer processor. This was common in business
applications and in science and engineering.
A different model of computer use was foreshadowed by the way in which early,
pre-commercial, experimental computers were used, where one user had exclusive
use of a processor. Some of the first computers that might be called "personal" were
early minicomputers such as the LINC and PDP-8, and later on VAX and larger
minicomputers from Digital Equipment Corporation (DEC), Data General, Prime
Computer, and others. They originated as peripheral processors for mainframe
computers, taking on some routine tasks and freeing the processor for computation.
By today's standards they were physically large (about the size of a refrigerator) and
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costly (typically tens of thousands of US dollars), and thus were rarely purchased by
individuals. However, they were much smaller, less expensive, and generally simpler
to operate than the mainframe computers of the time, and thus affordable by
individual laboratories and research projects. Minicomputers largely freed these
organizations from the batch processing and bureaucracy of a commercial or
university computing center.
In addition, minicomputers were more interactive than mainframes, and soon had
their own operating systems. The minicomputer Xerox Alto (1973) was a landmark
step in the development of personal computers, because of its graphical user
interface, bit-mapped high resolution screen, large internal and external memory
storage, mouse, and special software.
Microprocessor and cost reduction
In the minicomputer ancestors of the modern personal computer, processing was
carried out by circuits with large numbers of components arranged on multiple large
printed circuit boards. Minicomputers were consequently physically large and
expensive to produce compared with later microprocessor systems. After the
"computer-on-a-chip" was commercialized, the cost to produce a computer system
dropped dramatically. The arithmetic, logic, and control functions that previously
occupied several costly circuit boards were now available in one integrated circuit
which was very expensive to design but cheap to produce in large quantities.
Concurrently, advances in developing solid state memory eliminated the bulky, costly,
and power-hungry magnetic core memory used in prior generations of computers
Microcomputer emerges
Main article: history of personal computers

The Apple II, one of the "1977 Trinity". The drive shown is a model made for the Apple III.

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Main article: Personal computer

The advent of the microprocessor and solid-state memory made home computing
affordable. Early hobby microcomputer systems such as the Altair 8800 and Apple I
introduced around 1975 marked the release of low-cost 8-bit processor chips, which
had sufficient computing power to be of interest to hobby and experimental users. By
1977 pre-assembled systems such as the Apple II, Commodore PET, and TRS-80 (later
dubbed the "1977 Trinity" by Byte Magazine) began the era of mass-market home
computers; much less effort was required to obtain an operating computer, and
applications such as games, word processing, and spreadsheets began to proliferate.
Distinct from computers used in homes, small business systems were typically based
on CP/M, until IBM introduced the IBM-PC, which was quickly adopted. The PC was
heavily cloned, leading to mass production and consequent cost reduction throughout
the 1980s. This expanded the PCs presence in homes, replacing the home computer
category during the 1990s and leading to the current monoculture of architecturally
identical personal computers.

SOFTWARE INDUSTRY
The software industry includes businesses for development, maintenance and
publication of software that are using different business models, mainly either
"license/maintenance based" (on-premises) or "Cloud based" (such as SaaS, PaaS,
IaaS, MaaS, AaaS, etc.). The industry also includes software services, such as training,
documentation, consulting and data recovery.
History
The word "software" was coined as a prank as early as 1953, but did not appear in
print until the 1960s. Before this time, computers were programmed either by
customers, or the few commercial computer vendors of the time, such as UNIVAC and
IBM. The first company founded to provide software products and services was
Computer Usage Company in 1955.
The software industry expanded in the early 1960s, almost immediately after
computers were first sold in mass-produced quantities. Universities, government, and
business customers created a demand for software. Many of these programs were
written in-house by full-time staff programmers. Some were distributed freely between
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users of a particular machine for no charge. Others were done on a commercial basis,
and other firms such as Computer Sciences Corporation (founded in 1959) started to
grow. Other influential or typical software companies begun in the early 1960s included
Advanced Computer Techniques, Automatic Data Processing, Applied Data Research,
and Informatics General. The computer/hardware makers started bundling operating
systems, systems software and programming environments with their machines.
When

Digital

Equipment

Corporation

(DEC)

brought

relatively

low-priced

microcomputer to market, it brought computing within the reach of many more

companies and universities worldwide, and it spawned great innovation in terms of
new, powerful programming languages and methodologies. New software was built for
microcomputers, so other manufacturers including IBM, followed DEC's example
quickly, resulting in the IBM AS/400 amongst others.
The industry expanded greatly with the rise of the personal computer ("PC") in the mid1970s, which brought desktop computing to the office worker for the first time. In the
following years, it also created a growing market for games, applications, and utilities.
DOS, Microsoft's first operating system product, was the dominant operating system at
the time.
In the early years of the 21st century, another successful business model has arisen for
hosted software, called software-as-a-service, or SaaS; this was at least the third
time,this model had been attempted. From the point of view of producers of some
proprietary software, SaaS reduces the concerns about unauthorized copying, since it
can only be accessed through the Web, and by definition no client software is loaded
onto the end user's PC.
Size of the industry
According to industry analyst Gartner, the size of the worldwide software industry in
2013 was US$407.3 billion, an increase of 4.8% over 2012. As in past years, the largest
four software vendors were Microsoft, Oracle Corporation, IBM, and SAP respectively.

[5]

Mergers and acquisitions

The software industry has been subject to a high degree of consolidation over the past
couple of decades. From 1988 to 2010, 41,136 mergers and acquisitions have been
announced with a total known value of US$1,451 billion ($1.45 trillion). The highest
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number and value of deals was set in 2000 during the high times of the dot-com
bubble with 6,757 transactions valued at $447 billion. In 2010, 1,628 deals were
announced valued at $49 billion. Approaches to successfully acquire and integrate
software companies are available
Business models within the software industry
Business models of software companies have been widely discussed. Network effects
in software ecosystems, networks of companies, and their customers are an important
element in the strategy of software company

CONSUMER ELECTRONICS INDUSTRY

Consumer electronics are electronic equipment intended for everyday use, most
often in entertainment, communications and office productivity. In British English they
are often called brown goods by producers and sellers.
Radio broadcasting in the early 20th century brought the first major consumer
product, the broadcast receiver. Later products include personal computers,
telephones, MP3 players, audio equipment, televisions, calculators, GPS automotive
electronics, digital cameras and players and recorders using video media such as
DVDs, VCRs or camcorders. Increasingly these products have become based on digital
technologies, and have largely merged with the computer industry in what is
increasingly referred to as the consumerization of information technology.
The CEA (Consumer Electronics Association) estimated the value of 2007 consumer
electronics sales at US$150 billio
History
For its first fifty years the phonograph did not use electronics. However, in the 1920s
radio broadcasting became the basis of mass production of radio receivers. The
vacuum tubes that had made them practical were used to improve record players as
well. Television was soon invented but remained insignificant in the consumer market
until the 1950s.
The transistor, invented in 1947 by Bell Laboratories, led to significant research in the
field of solid-state semiconductors in the early 1950s. The transistor's advantages
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revolutionized

that industry along

with

other

electronics. By

1959

Fairchild

Semiconductor had introduced the first planar transistor from which come the origins
of Moore's Law. Integrated circuits followed when manufacturers built circuits (usually
for military purposes) on a single substrate using electrical connections between
circuits within the chip itself.

When we were patenting this [planar transistor] we recognized it was a significan

Bell's invention of the transistor and the development of semiconductors led to far
better and cheaper consumer electronics.
Products
See also: List of electronics brands and Category:Consumer electronics

Main consumer electronics products include radio receivers, television sets, MP3
players, video recorders, DVD players, digital cameras, camcorders, personal
computers, video game consoles, telephones and mobile phones. Increasingly these
products have become based on digital technologies, and have largely merged with
the computer industry in what is increasingly referred to as the consumerization of
information technology such as those invented by Apple Inc. and MIT Media Lab.
Trends

A modern flat panel television set

One overriding characteristic of consumer electronic products is the trend of everfalling prices. This is driven by gains in manufacturing efficiency and automation,
lower labor costs as manufacturing has moved to lower-wage countries, and
improvements in semiconductor design. Semiconductor components benefit from

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Moore's Law, an observed principle which states that, for a given price, semiconductor
functionality doubles every two years.
While consumer electronics continues in its trend of convergence, combining
elements of many products, consumers face different decisions when purchasing.
There is an ever increasing need to keep product information updated and
comparable, for the consumer to make an informed choice. Style, price, specification,
and performance are all relevant. There is a gradual shift towards e-commerce webstorefronts.
Many products include Internet connectivity using technologies such as Wi-Fi,
Bluetooth, EDGE or Ethernet. Products not traditionally associated with computer use
(such as TVs or Hi-Fi equipment) now provide options to connect to the Internet or to
a computer using a home network to provide access to digital content. The desire for
high-definition (HD) content has led the industry to develop a number of technologies,
such as WirelessHD or ITU-T G.hn, which are optimized for distribution of HD content
between consumer electronic devices in a home.
Manufacturing
Main article: Electronics manufacturing
See also: Electronic packaging

Gramophone factory in Hannover-Nordstadt

Many consumer electronics are built in China, due to maintenance cost, availability of
materials, quality, and speed as opposed to other countries such as the United States.
Cities such as Shenzhen have become important production centres for the industry,
attracting many consumer electronics companies such as Apple Inc.

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Electronic component
Main article: Electronic component

An electronic component is any basic discrete device or physical entity in an

electronic system used to affect electrons or their associated fields. Electronic
components are mostly industrial products, available in a singular form and are not to
be confused with electrical elements, which are conceptual abstractions representing
idealized electronic components.
Software development
See also: Software development

Consumer electronics such as personal computers use various types of software.

Embedded software is used within some consumer electronics, such as mobile
phones. This type of software may be embedded within the hardware of electronic
devices. Some consumer electronics include software that is used on a personal
computer in conjunction with electronic devices, such as camcorders and digital
cameras, and third-party software for such devices also exists.
Standardization
Some consumer electronics adhere to protocols, such as connection protocols "to high
speed bi-directional signals".[11] In telecommunications, a communications protocol is
a system of digital rules for data exchange within or between computers.
Trade shows
The Consumer Electronics Show (CES) trade show has taken place yearly in Las
Vegas, Nevada since its foundation in 1973. The event, which grew from having 100
exhibitors in its inaugural year to more than 3,600 exhibitors in its 2014 edition,
features new consumer electronics and speeches by industry pioneers.
Retailing
Electronics retailing is a significant part of the retail industry in many countries. In the
United States, big-box store retailers include Best Buy and Sears, with Best Buy being
the largest consumer electronics retailer in the country. Broad-based retailers, such
as Wal-Mart and Target, also sell consumer electronics in many of their stores. In April
2014, retail e-commerce sales were the highest in the consumer electronic and
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computer categories as well. Some consumer electronics retailers offer extended

warranties on products with programs such as SquareTrade.
See also: Category:Consumer electronics retailers.

An electronics district is an area of commerce with a high density of retail stores that
sell consumer electronics."
See also: Category:Electronics districts.

Industries
Main article: Electronics industry
See also: Electronics industry in Japan, Electronics industry in China and Electronics industry
in Bangladesh

The electronics industry, especially meaning consumer electronics, emerged in the

20th century and has now become a global industry worth billions of dollars.
Contemporary society uses all manner of electronic devices built in automated or
semi-automated factories operated by the industry.
Mobile phone industry

This picture illustrates how the mobile phone industry evolved to what we see today as
modern smartphones

By country
Main articles: Mobile phone companies of India, Mobile phone industry in China, Mobile phone
industry in Japan, Mobile phone industry in Russia, Mobile phone industry in South Korea and
Mobile phone industry in the United States

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Service and repair

See also: Electronics technician

Consumer electronic service can refer to the maintenance of said products. When
consumer electronics have malfunctions, they may sometimes be repaired.
In contemporary times in Pittsburgh, Pennsylvania, increased popularity in listening to
sound from analog audio devices, as opposed to digital sound, has sparked a
noticeable increase of business for the electronic repair industry there. [17]
Environmental impact
Energy consumption
The energy consumption of consumer electronics and their environmental impact is increasing steadily.
EIA estimates that electronic devices and gadgets account for about 10%-15% of the
energy use in American homes largely because of their number; the average house
has dozens of electronic devices.[18]
The energy consumption of consumer electronics increases in America and Europe to about 50% of household consumption, if the term is redefined to include home
appliances such as refrigerators, dryers, clothes washers and dishwashers.
Standby power
Standby power used by consumer electronics and appliances while they are turned
off accounts for 510% of total household energy consumption, costing $100
annually to the average household in the United States.[19] A study by United States
Department of Energy's Berkeley Lab found that a videocassette recorders (VCRs)
consume more electricity during the course of a year in standby mode than when
they are used to record or playback videos. Similar findings were obtained concerning
satellite boxes, which consume almost the same amount of energy in "on" and "off"
modes.[20]
A 2012 study in the United Kingdom, carried out by the Energy Saving Trust, found
that the devices using the most power on standby mode included televisions, satellite
boxes and other video and audio equipment. The study concluded that UK households
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could save up to 86 per year by switching devices off instead of using standby mode.
[21]

A report from the International Energy Agency in 2014 found that $80 billion of

power is wasted globally per year due to inefficiency of electronic devices. [22]
Consumers can reduce unwanted use of standby power by unplugging their devices,
using power strips with switches, or by buying devices that are standardized for better
energy management, particularly Energy Star marked products.[19]
Electronic waste

Electronic waste: discarded electronic equipment

Electronic waste describes discarded electrical or electronic devices. Many consumer

electronics may contain toxic minerals and elements, and many electronic scrap
components, such as CRTs, may contain contaminants such as lead, cadmium,
beryllium, mercury, dioxins, or brominated flame retardants. Electronic waste
recycling may involve significant risk to workers and communities and great care
must be taken to avoid unsafe exposure in recycling operations and leaking of
materials such as heavy metals from landfills and incinerator ashes. However, large
amounts of the produced electronic waste from developed countries is exported, and
handled by the informal sector in countries like India, despite the fact that exporting
electronic waste to them is illegal. Strong informal sector can be a problem for the
safe and clean recycling.

DIGITAL DISTRYBUTION INDUSTRY

Digital distribution (also called content delivery, online distribution, or
electronic software distribution (ESD), among others) is the delivery or
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distribution of media content such as audio, video, software and video games. The
term is generally used to describe distribution over an online delivery medium, such
as the Internet, thus bypassing physical distribution methods, such as paper, compact
discs, and DVDs. The term online distribution is typically applied to freestanding
products; downloadable add-ons for other products are more commonly known as
downloadable content. With the advancement of network bandwidth capabilities,
online distribution became prominent in the 2000s.
Content distributed online may be streamed or downloaded, and often consists
of books, films and television programs, music, software, and video games. Streaming
involves downloading and using content at a user's request, or "on-demand", rather
than allowing a user to store it permanently. By contrast, fully downloading content to
a hard drive or other form of storage media may allow offline access in the future.
Specialist networks known as content delivery networks help distribute content
over the Internet by ensuring both high availability and high performance. Alternative
technologies for content delivery include peer-to-peer file sharing technologies.
Alternatively, content delivery platforms create and syndicate content remotely,
acting like hosted content management systems.
However, the term is also used in film distribution to describe distribution of
content through physical media, in opposition to distribution by analog media such as
photographic film and magnetic tape (see Digital cinema).
Impact on traditional retail
The rise of online distribution has provided controversy for the traditional
business models and resulted in challenges as well as new opportunities for
traditional retailers and publishers. Online distribution affects all of the traditional
media markets including music, press, and broadcasting. In Britain, the iPlayer, a
software application for streaming television and radio, accounts for 5% of all
bandwidth used in the United Kingdom.[2]
Music
The move towards online distribution led to a dip in sales at the start of 2000
when CD sales were nearly cut in half. One such example of online distribution taking
its toll on a retailer is the iconic Canadian music chain Sam the Record Man who
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blamed online distribution for having to close a number of its traditional retail venues
in 2007-08. One main reason that sales took such a big hit was that the pirating of
digital music was very accessible. With piracy affecting sales, the music industry
realized it needed to change its business model to keep up with the rapidly changing
technology. The step that was taken to move the music industry into the online space
has been successful for several reasons. The development of lossy audio compression
file formats such as MP3, allows users to compress music files into a high quality
format, compressed down to usually a 3 Megabyte (MB) file. The lossless FLAC format
may require only a few megabytes more. In comparison, the same song might require
30-40 Megabytes of storage on a CD. The smaller file size yields much greater
Internet transfer speeds.
The transition into the online space has boosted sales, and profit for some
artists. It has also allowed for potentially lower expenses such as lower coordination
costs, lower distribution costs, as well as the possibility for redistributed total profits.
These lower costs have aided new artists in breaking onto the scene and gaining
recognition. In the past, some emerging artists have struggled to find a way to market
themselves and compete in the various distribution channels. The Internet may give
artists more control over their music in terms of ownership, rights, creative process,
pricing, and more. In addition to providing global users with easier access to content,
online stores allow users to choose the songs they wish instead of having to purchase
an entire album from which there may only be one or two titles that the buyer enjoys.
The number of downloaded single tracks rose from 160 million in 2004 to 795
million in 2006 which accounted for a revenue boost from US$397 million to US$2
billion.
Videos
This section does not cite any references (sources). Please help improve this
section by adding citations to reliable sources. Unsourced material may be challenged and
removed. (July 2014)

Many traditional network television shows, movies and other video content is
now available online, either from the content owner directly or from third party
services. YouTube, Netflix, Synaptop, Amazon Video, FlickRocket and other Internetbased video services allow content owners to let users access their content on
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computers, smart phones, tablets or by using appliances such as video game

consoles, set-top boxes or Smart TVs.
Books
Some companies, such as Bookmasters Distribution, which invested US$4.5
million in upgrading its equipment and operating systems, have had to direct capital
toward keeping up with the changes in technology. The phenomenon of books going
digital has given users the ability to access their books on handheld digital book
readers. One benefit of electronic book readers is that they allow users to access
additional content via hypertext links. These electronic book readers also give users
portability for their books since a reader can hold multiple books depending on the
size of its hard drive. Companies that are able to adapt and make changes to
capitalize on the digital media market have seen sales surge. Vice President of
Perseus Books Group stated that since shifting to electronic books (e-books), it saw
sales rise by 68%. Independent Publishers Group experienced a sales boost of 23% in
the first quarter of 2012 alone.[7]
Tor Books, a major publisher of science fiction and fantasy books, started to sell
e-books DRM-free by July 2012. One year later the publisher stated that they will keep
this model as removing DRM was not hurting their digital distribution ebook business.
Smaller e-book publishers such as O'Reilly Media, Carina Press and Baen Books had
already forgone DRM previously.
Video games
Main article: Digital distribution in video games

Online distribution is changing the structure of the video game industry. Gabe
Newell, creator of the digital distribution service Steam, formulated the advantages
over physical retail distribution as such:
The worst days [for game development] were the cartridge days for the NES. It
was a huge risk you had all this money tied up in silicon in a warehouse somewhere,
and so youd be conservative in the decisions you felt you could make, very
conservative in the IPs you signed, your art direction would not change, and so on.
Now its the opposite extreme: we can put something up on Steam, deliver it to
people all around the world, make changes. We can take more interesting risks.[...]
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Retail doesnt know how to deal with those games. On Steam [a digital distributor]
theres no shelf-space restriction.
Gabe Newell, Rock, Paper, Shotgun

Since the 2000s, there has been an increasing number of smaller and niche
titles available and commercially successful, like e.g. remakes of classic games. The
new possibility of the digital distribution stimulated also the creation of game titles of
very small video game producers like Independent game developer

and Modders

(e.g. Garry's Mod), which were before not commercially feasible.

The years after 2004 saw the rise of many digital distribution services on the
PC, such as Amazon Digital Services, Desura, GameStop, Games for Windows Live,
Impulse, Steam, Origin, Direct2Drive, GOG.com, and GamersGate. The offered
properties differ significantly: while most of these digital distributors don't allow
reselling of bought games, Green Man Gaming allows this. Another example is
gog.com which has a strict non-DRM policy while most other services allow various
(strict or less strict) forms of DRM.

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INTRO
DUCTION
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that
designs, develops, and sells consumer electronics, computer software, and online services. Its hardware
products are the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod
portable media player, and the Apple Watch smartwatch.

Apple's consumer software includes the OS X and iOS operating systems, the iTunes media player, the
Safari web browser, and the iLife and iWork creativity and productivity suites. Its online services include
the iTunes Store, the iOS App Store and Mac App Store, and iCloud. Apple was founded by Steve Jobs,
Steve Wozniak, and Ronald Wayne on April 1, 1976, to develop and sell personal computers. It was
incorporated as Apple Computer, Inc. on January 3, 1977, and was renamed as Apple Inc. on January 9,
2007, to reflect its shifted focus toward consumer electronics. Apple (NASDAQ: AAPL) joined the Dow
Jones Industrial Average on March 19, 2015.

Apple is the world's largest information technology company by revenue, the world's largest
technology company by total assets, and the world's third-largest mobile phone manufacturer. On
November 25, 2014, in addition to being the largest publicly traded corporation in the world by market
capitalization, Apple became the first U.S. company to be valued at over US$700 billion. The company
employs 115,000 permanent full-time employees as of July 2015 and maintains 453 retail stores in sixteen
countries as of March 2015; it operates the online Apple Store and iTunes Store, the latter of which is the
world's largest music retailer.Apple's worldwide annual revenue totaled $233 billion for the fiscal year
ending in September 2015.
The company enjoys a high level of brand loyalty and, according to the 2014 edition of the
Interbrand Best Global Brands report, is the world's most valuable brand with a valuation of $118.9 billion.
By the end of 2014, the corporation continued to receive significant criticism regarding the labor practices
of its contractors and its environmental and business practices, including the origins of source materials.

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HISTORICAL
OVERVIEW
Apple Computer was formed in April 1976 by 25-year-old Steve Wozniak and 21-year-old
Steve Jobsboth college dropouts. After selling a van for some extra start-up cash, the two
set up shop in the Jobs family garage at 2066 Crist Drive in Los Altos, California, to start
building computers. The ideas and early innovation techniques that emerged from this
location would set the foundation for building one of the most important and globally effective
technology companies the world has ever seen. In fact, some diehard Apple fans come from
all over the globe just to pose for pictures in front of this now-famous garage.1 Apple
Computer stands out from similar companies with their unconventional business ideas that
constantly redefine the standards for product, marketing, and industry innovation techniques.
The company has become well-known through their commitment to challenge the so-called
possibilities of the computer industry. Their goal is to improve the user-friendliness of their
products and to encourage an open-minded approach when developing new technologies and
services.
The First Apple Computers Wozniak, the true technical mind behind the building process of
Apples early computers, spent the summer of 1976 building the companys very first
computer, the Apple I.2 MeanwhileJobs began creating advertisements and found a buyer for
the computer. The Byte Shop in Mountain ViewCalifornia, proved to be Apples first major
customerand, coincidentally, the first retail computer store chain in - 3 Figure 2. Apple Logo (1977) the world.3 The two Steves were able to build and sell fifty Apple I
computers that
summerall from within the confined space of the Jobs familys single-car garage. This would
mark the first of many successful products to come from the company.4 Apple Computer was
officially incorporated on January 3, 1977.5
Later that summer, Wozniak and Jobs began building the Apple II with the help of a few
technically-savvy friends and classmates. It was at this time that Jobs first realized his true
passion for the burgeoning computer industry.6 To fuel this passion, Jobs consulted with
retired Intel Corporation marketing manager Michael Markkula regarding the possible future of
Apple Computer. During this consultation, Markkula worked with
Jobs in coming up with a solid business plan and even purchased one-third of the company for
$250,000.7

Creating an Image In 1977, Jobs and Markkula hired Michael Scott as the

companys first president and Chief Executive Officer (CEO).8 In April of that same year, Apple

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decided it would be beneficial to their marketing strategies if they updated their image before
putting the Apple II on the consumer market. To create their new logo, Jobs contacted Robert
Janoff, an art director for advertising and public relations agency Regis McKenna. Janoff agreed
to design the logo from an essentially blank canvas. The really funny thing, explains Janoff,
was the only direction we got from Steve Jobs is: don't make it cute.9 Aside from some
color alterations, Janoffs iconic 1977 design remains to this day as the official logo of Apple
Computer, Inc. - 4 - After the success of the Apple I and Apple II, the company began work on
the Apple III, which turned out to be their very first project failure. The Apple III proved to be
an early sign of disagreements-to-come between the presidentMichael Scott and Steve Jobs.
In fact, Scott laid-off 40 employees after the Apple IIIs failurewithout any consultation or
approval from the Board of Directors. Because of his abrupt actions, Scott was demoted to
vice chairman, while Jobs was promoted to chairman. Markkula, who had originally hired Scott,
took over as Apples new CEO. Scott officially resigned from Apple in March of 1981.10 This
tension would continue to escalate through the development of the companys next
computer, the Apple Lisa. Graphical User Interface Named after Jobs oldest daughter, the
Lisa (also, Local Integrated Software Architecture) was the first personal computer to
implement a graphical user interface (GUI) technologyan idea which Jobs had adopted from
a prior visit to the Xerox Corporation. Surprisingly, Xerox did not think the technology would
serve a practical purpose for personal computing.11 The Lisa was the first personal computer
to include such features as: a hierarchal file system, windows, folders, icons, multiple tasking,
a mouse, a drop-down menu bar, and the ability to copy and paste.12
Jobs tested the patience of president Markkula and eager consumers by continuously
implementing new GUI features and pushing back the Lisas release date. Markkula grew tired
of Jobs constant need for improvement at any cost, and removed him from his valued
position as Lisas project designer. The Board of Directors then
demoted Markkula and hired former PepsiCo vice president John Sculley as the new - 5 CEO in 1983.13 Jobs saw this reorganizing as an opportunity to shift his focus to designing the
features for his next brainchild the Macintosh.

The Macintosh With improvements in the GUI, the Macintosh became a possibility box for
companies developing similar products.14 Enhancing some features from the Lisa, the
Macintosh implemented a desktop, mouse, graphical file system, icons, bit-mapped graphics,
menu bar navigation, applications running inside windows, and more. The Macintosh laid the
foundation for the entire computer industry. The true look and feel of personal computers
today can be attributed to the early design features of the Macintosh.

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Figure 3. Graphical User Interface of the Apple Macintosh (1984) The Macintosh, however, did
not dominate the consumer market as the company had hoped. Supported by Markkula and
the other members of the board, president Sculley once again demoted Jobs (this time from
vice-president and leader of the Macintosh division) in May 1985, leaving Jobs without any
managerial power.15 - 6 -

In a somewhat desperate attempt to boost Macintosh sales, Apple released the Macintosh XL.
This computer came with even more improved GUI updates, the innovative New Folder
command, and the introduction of AppleTalkthe first self-configuring local area network
(LAN) technology used to connect multiple computers to a single printer.16 This set the
desktop publishing revolution into motion.17

PRODUCTS
& SERVICES
Products

Mac
Main article: Macintosh
Macs that are currently being sold are:

MacBook: Consumer ultra-thin, ultra-portable notebook, introduced in 2006 and

relaunched in 2015.

MacBook Air: Consumer ultra-thin, ultra-portable notebook, introduced in 2008.

MacBook Pro: Professional notebook, introduced in 2006.

Mac Mini: Consumer sub-desktop computer, introduced in 2005.

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iMac: Consumer all-in one desktop computer, introduced in 1998.

Mac Pro: Workstation desktop computer, introduced in 2006.

Apple sells a variety of computer accessories for Macs, including Thunderbolt Display, Magic
Mouse, Magic Trackpad, Wireless Keyboard, Battery Charger, the AirPort wireless networking
products, and Time Capsule.

iPod
Main article: iPod

iPod line as of 2014. From left to right: iPod Shuffle, iPod Nano, iPod Touch.
On October 23, 2001, Apple introduced the iPod digital music player. Several updated models
have since been introduced, and the iPod brand is now the market leader in portable music
players by a significant margin. More than 350 million units have shipped as of September
2012. Apple has partnered with Nike to offer the Nike+iPod Sports Kit, enabling runners to
synchronize and monitor their runs with iTunes and the Nike+ website.
Apple currently sells three variants of the iPod:

iPod Shuffle: Ultra-portable digital audio player, currently available in a 2 GB model,

introduced in 2005.

iPod Nano: Portable media player, currently available in a 16 GB model, introduced

in 2005. Earlier models featured the traditional iPod click wheel, but the current
generation features a multi-touch interface and includes an FM radio and a
pedometer.

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iPod Touch: Portable media player that runs iOS and is currently available in 16, 32,
64, and 128 GB models, introduced in 2007. The current generation features the
Apple A8 processor, a Retina display, Siri and dual cameras on the front (1.2
megapixel sensor) and back (8 megapixel iSight). The latter camera supports HD
video recording at 1080p and slow motion video at 120fps in 720p.

iPhone

Main article: iPhone

The first-generation iPhone, 3G, 4, 5, 5C and 5S to scale.

At the Macworld Conference & Expo in January 2007, Steve Jobs introduced the longanticipated iPhone, a convergence of an Internet-enabled smartphone and iPod. The firstgeneration iPhone was released on June 29, 2007 for $499 (4 GB) and $599 (8 GB) with an
AT&T contract. On February 5, 2008, it was updated to have 16 GB of memory, in addition to
the 8 GB and 4 GB models. It combined a 2.5G quad band GSM and EDGE cellular phone with
features found in handheld devices, running scaled-down versions of Apple's Mac OS X
(dubbed iPhone OS, later renamed iOS), with various Mac OS X applications such as Safari
and Mail. It also includes web-based and Dashboard apps such as Google Maps and Weather.
The iPhone features a 3.5-inch (89 mm) touchscre display, Bluetooth, and Wi-Fi (both "b" and
"g").
A second version, the iPhone 3G, was released on July 11, 2008 with a reduced price of $199
for the 8 GB version and $299 for the 16 GB version. This version added support for 3G
networking and assisted-GPS navigation. The flat silver back and large antenna square of the
original model were eliminated in favor of a glossy, curved black or white back. Software
capabilities were improved with the release of the App Store, which provided iPhonecompatible applications to download. On April 24, 2009, the App Store surpassed one billion
downloads. On June 8, 2009, Apple announced the iPhone 3GS. It provided an incremental

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update to the device, including faster internal components, support for faster 3G speeds,
video recording capability, and voice control.
At the Worldwide Developers Conference (WWDC) on June 7, 2010, Apple announced the
redesigned iPhone 4. It featured a 960x640 display, the Apple A4 processor, a gyroscope for
enhanced gaming, a 5MP camera with LED flash, front-facing VGA camera and FaceTime
video calling. Shortly after its release, reception issues were discovered by consumers, due to
the stainless steel band around the edge of the device, which also serves as the phone's
cellular signal and Wi-Fi antenna. The issue was corrected by a "Bumper Case" distributed by
Apple for free to all owners for a few months. In June 2011, Apple overtook Nokia to become
the world's biggest smartphone maker by volume. On October 4, 2011, Apple unveiled the
iPhone 4S, which was first released on October 14, 2011. It features the Apple A5 processor
and Siri voice assistant technology, the latter of which Apple had acquired in 2010. It also
features an updated 8MP camera with new optics. Apple sold 4 million iPhone 4S phones in
the first three days of availability.
On September 12, 2012, Apple introduced the iPhone 5. It added a 4-inch display, 4G LTE
connectivity, and the upgraded Apple A6 chip, among several other improvements. Two
million iPhones were sold in the first twenty-four hours of pre-ordering and over five million
handsets were sold in the first three days of its launch. Upon the launch of the iPhone 5S and
iPhone 5C, Apple set a new record for first-weekend smartphone sales by selling over nine
million devices in the first three days of its launch. The release of the iPhone 5S and 5C was
the first time that Apple simultaneously launched two models.
A patent filed in July 2013 revealed the development of a new iPhone battery system that
uses location data in combination with data on the user's habits to moderate the handsets
power settings accordingly. Apple is working towards a power management system that will
provide features such as the ability of the iPhone to estimate the length of time a user will be
away from a power source to modify energy usage and a detection function that adjusts the
charging rate to best suit the type of power source that is being used.
In a March 2014 interview, Apple designer Jonathan Ive used the iPhone as an example of
Apple's ethos of creating high-quality, life-changing products. He explained that the phones
are comparatively expensive due to the intensive effort that is used to make them:
We dont take so long and make the way we make for fiscal reasons ... Quite the reverse. The
body is made from a single piece of machined aluminium ... The whole thing is polished first
to a mirror finish and then is very finely textured, except for the Apple logo. The chamfers
[smoothed-off edges] are cut with diamond-tipped cutters. The cutters dont usually last very

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long, so we had to figure out a way of mass-manufacturing long-lasting ones. The camera
cover is sapphire crystal. Look at the details around the sim-card slot. Its extraordinary!

iPad
Main article: iPad
On January 27, 2010, Apple introduced their much-anticipated media tablet, the iPad, which
runs a modified version of iOS. It offers multi-touch interaction with multimedia formats
including newspapers, ebooks, photos, videos, music, word processing documents, video
games, and most existing iPhone apps. It also includes a mobile version of Safari for web
browsing, as well as access to the App Store, iTunes Library, iBookstore, Contacts, and Notes.
Content is downloadable via Wi-Fi and optional 3G service or synced through the user's
computer. AT&T was initially the sole U.S. provider of 3G wireless access for the iPad.
On March 2, 2011, Apple introduced the iPad 2, which had a faster processor and a camera on
the front and back. It also added support for optional 3G service provided by Verizon in
addition to AT&T. The availability of the iPad 2 was initially limited as a result of a
devastating earthquake and tsunami in Japan in March 2011. The third-generation iPad was
released on March 7, 2012 and marketed as "the new iPad". It added LTE service from AT&T or
Verizon, an upgraded A5X processor, and Retina display. The dimensions and form factor
remained relatively unchanged, with the new iPad being a fraction thicker and heavier than
the previous version and featuring minor positioning changes.
On October 23, 2012, Apple's fourth-generation iPad came out, marketed as the "iPad with
Retina display". It added the upgraded A6X processor and replaced the traditional 30-pin dock
connector with the all-digital Lightning connector. The iPad Mini was also introduced. It
featured a reduced 7.9-inch display and much of the same internal specifications as the iPad
2. On October 22, 2013, Apple introduced the iPad Air and the iPad mini with Retina Display,
both featuring a new 64 bit Apple-A7 processor. The iPad Air 2 was unveiled on October 16,
2014. It added better graphics and central processing and a camera burst mode as well as
minor updates. The iPad Mini 3 was unveiled at the same time.
Since its launch, iPad users have downloaded three billion apps. The total number of App
Store downloads is over 75 billion.

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Apple Watch
Main article: Apple Watch

The Apple Watch quickly became the best-selling wearable device, with the shipment of 11.4
million smart watches in the first half of 2015, according to analyst firm Canalys.
The Apple Watch smartwatch was launched by Cook on September 9, 2014, and released on
April 24, 2015. The wearable device consists of fitness-tracking capabilities that are similar to
Fitbit, and must be used in combination with an iPhone to work (only the iPhone 5, or later
models, are compatible with the Apple Watch).

Apple TV
Main article: Apple TV
At the 2007 Macworld conference, Jobs demonstrated the Apple TV (previously known as the
iTV), a set-top video device intended to bridge the sale of content from iTunes with highdefinition televisions. The device links up to a user's TV and syncs, either via Wi-Fi or a wired
network, with one computer's iTunes library and streams content from an additional four. The
Apple TV originally incorporated a 40 GB hard drive for storage, included outputs for HDMI
and component video, and played video at a maximum resolution of 720p. On May 31, 2007,
a 160 GB drive was released alongside the existing 40 GB model. A software update released
on January 15, 2008 allowed media to be purchased directly from the Apple TV.
In September 2009, Apple discontinued the original 40 GB Apple TV and now continues to
produce and sell the 160 GB Apple TV. On September 1, 2010, Apple released a completely
redesigned Apple TV. The new device is 1/4 the size, runs quieter, and replaces the need for a
hard drive with media streaming from any iTunes library on the network along with 8 GB of
flash memory to cache media downloaded. Like the iPad and the iPhone, Apple TV runs on an

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A4 processor. The memory included in the device is half of that in the iPhone 4 at 256 MB; the
same as the iPad, iPhone 3GS, third and fourth-generation iPod Touch.
It has HDMI out as the only video out source. Features include access to the iTunes Store to
rent movies and TV shows (purchasing has been discontinued), streaming from internet video
sources, including YouTube and Netflix, and media streaming from an iTunes library. Apple also
reduced the price of the device to $99. A third generation of the device was introduced at an
Apple event on March 7, 2012, with new features such as higher resolution (1080p) and a new
user interface.
At the September 9, 2015 event, Apple unveiled an overhauled Apple TV, introducing the App
Store and a new "Siri Remote" with a touchpad.

Software
Apple Worldwide Developers Conference is held annually by Apple to showcase its new
software and technologies for software developers.
Apple develops its own operating system to run on Macs, OS X, the latest version being OS X
El Capitan (version 10.11). Apple also independently develops computer software titles for its
OS X operating system. Much of the software Apple develops is bundled with its computers.
An example of this is the consumer-oriented iLife software package that bundles iMovie,
iPhoto and GarageBand. For presentation, page layout and word processing, iWork is
available, which includes Keynote, Pages, and Numbers. iTunes, QuickTime media player, and
Software Update are available as free downloads for both OS X and Windows.
Apple also offers a range of professional software titles. Their range of server software
includes the operating system OS X Server; Apple Remote Desktop, a remote systems
management application; and Xsan, a Storage Area Network file system. For the professional
creative market, there is Aperture for professional RAW-format photo processing; Final Cut
Pro, a video production suite; Logic Pro, a comprehensive music toolkit; and Motion, an
advanced effects composition program.
Apple also offers online services with iCloud, which provides cloud storage and syncing for a
wide range of data, including email, contacts, calendars, photos and documents. It also offers
iOS device backup, and is able to integrate directly with third-party apps for even greater
functionality. iCloud is the fourth generation of online services provided by Apple, and was
preceded by MobileMe, .Mac and iTools, all which met varying degrees of success.

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Apple SIM
Apple launched a SIM card service that can be used by iPad owners in 90 countries. [214]

Electric vehicles
Main article: Apple electric car project
According to the Sydney Morning Herald, Apple wants to start producing an electric car with
autonomous driving as soon as 2020. Apple has made efforts to recruit battery experts and
other electric automobile workers from A123 Systems, LG Chem, Samsung Electronics,
Panasonic, Toshiba, Johnson Controls, and Tesla Motors.

SERVICES iCloud
iCloud is a cloud storage and cloud computing service from Apple Inc. launched on October 12, 2011. As of
July 2013, the service had 320 million users. The service provides its users with means to store data such as
documents, photos, and music on remote servers for download to iOS, Macintosh or Windows devices, to
share and send data to other users, and to manage their Apple devices if lost or stolen.
The service also provides the means to wirelessly back up iOS devices directly to iCloud, instead of being
reliant on manual backups to a host Mac or Windows computer using iTunes. Service users are also able to
share photos, music, and games instantly by linking accounts via AirDrop wireless.It replaced Apple's
MobileMe service, acting as a data syncing center for email, contacts, calendars, bookmarks, notes,
reminders (to-do lists), iWork documents, photos and other data.One of Apple's iCloud data centers is
located in Maiden, North Carolina, US.

Apple Store
The Apple Store is a chain of retail stores owned and operated by Apple Inc., dealing with
computers and consumer electronics. The stores sell Macintosh personal computers, software, iPod, iPad,
iPhone, Apple Watch, Apple TV, and select third-party accessories. All stores offer a Genius Bar for
technical support and repairs, free product workshops for the public, youth programs (workshops, field trips,
Apple Camps);[1] some high-profile stores feature a theater for presentations and workshops and a studio for
training with Apple products. Under the leadership of Ron Johnson, the former senior Vice President of
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Retail Operations, the Apple Stores have, according to an article in The New York Times, been responsible
for "[turning] the boring computer sales floor into a sleek playroom filled with gadgets". [2] Apple stores have
a standardised appearance with light wood tables and a general minimal design.
With global sales of US$16 billion in merchandise in 2011, Apple leads the United States retail
market in terms of sales per unit area. Apple has 481 retail stores in 18 countries and an online store
available in 39 countries.

iTunes Store
The iTunes Store, originally the iTunes Music Store, is a software-based online digital media store
operated by Apple Inc. It opened on April 28, 2003, and has been the largest music vendor in the United
States since April 2008, and the largest music vendor in the world since February 2010. It offers over 43
million songs, 700,000 apps, 190,000 TV episodes and 45,000 films as of September 12, 2012. [1] The iTunes
Store's revenues in the first quarter of 2011 totalled nearly US$1.4 billion; by February 6, 2013, the store
had sold 25 billion songs worldwide.
While most downloaded files initially included usage restrictions enforced by FairPlay, Apple's
implementation of digital rights management (DRM), iTunes later initiated a shift into selling DRM-free
music in most countries, marketed as iTunes Plus. On January 6, 2009, Apple announced that DRM had
been removed from 80% of its music catalog in the US. Full iTunes Plus availability was achieved in the US
on April 7, 2009, coinciding with the introduction of a three-tiered pricing model; however, television
episodes, many books, and films are still FairPlay-protected. As of June 2013, the iTunes Store possesses
575 million active user accounts, and serves over 315 million mobile devices, including Apple Watches,
iPods, iPhones, Apple TV and iPads.

iBooks Store
The iBooks Store is an EPUB content sales and delivery system that delivers ebooks to any iOS
device (namely the iPad, iPhone, and iPod Touch) running iOS 4.2 and later. It does not currently support
either the downloading or reading of iBooks directly on Windows or Gnu/Linux systems, but it does support
the downloading and reading of iBooks on OS X V10.9 and later.
The iBooks shelf turns around to reveal the iBooks Store. From here users can purchase various
books from Apple. iBooks can sync between devices, so one could start reading a book on one device and
continue from where one left-off on another.
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Prior to the unveiling of the iPad, publishers Penguin Books, HarperCollins, Simon & Schuster,
Macmillan Publishers, and Hachette Book Group USA committed to producing content for the iBooks
Store. Additional publishers were invited to participate on the day of the product announcement, January 27,
2010. The iBooks Store also provides access to the 30,000+ free books available from Project Gutenberg,
and it provides content channeled through Smashwords, allowing independent authors and publishers to
self-publish.
The day before the iPad event, Terry McGraw, the CEO of McGraw-Hill, appeared to divulge
information to Erin Burnett on CNBC about the upcoming iPad release. This was quickly picked up and
disseminated by rumor sites and eventually mainstream media outlets as revelation of features of the iPad.
McGraw Hill was not included in the iPad presentation at the Apple media event and there was speculation
that the exclusion was in response to this release of information. However, McGraw-Hill has stated that the
information disclosed by McGraw was not privileged, and that the company had not intended to participate
in the event.
In 2011, an Apple spokesperson announced that "We are now requiring that if an app offers customers the
ability to purchase books outside of the app, that the same option is also available to customers from within
the app with in-app purchase."[35] Due to the 30% revenue share that Apple receives from the in-app
purchase mechanism, the financial viability of competing bookstore apps run by other book retailers is
uncertain, even though in many countries, the iBooks Store still does not provide consumers access to any
books at all except for free out-of-copyright works.

Mac App Store

The Mac App Store is a digital distribution platform for OS X applications. It was created by Apple Inc.
The platform was announced on October 20, 2010, at Apple's "Back to the Mac" event. Apple began
accepting app submissions from registered developers on November 3, 2010, in preparation for its launch.[5]
It was released on January 6, 2011, as part of the free Mac OS X 10.6.6 update for all current Snow Leopard
users. After 24 hours of release, Apple announced that there were over one million downloads.

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