1 APPLE INC.

IN 2010

Apple Inc. in 2010 Student Name American Public University Business 620

2 Apple Inc, in 2010 Steve Jobs and Steve Wozniak created Apple Computer Inc. in 1976, introducing the first apple personal computer that was mass produced. Throughout the years apple has attained great heights and success in the computer and technological arena. The company has had a competitive advantage in the creation and marketing of the iPod, iPhone, and various other personal media devices including the apple personal computer. This paper will address the following: 1. How Apple compete in the PC market? How has its strategy evolved with the changing industry dynamics? 2. Assess Apples competitive position in regarding MP3 players and Smartphone. What threats are seen? What challenges confront Apple at the end of the case? 3. Was Steve Jobs an effective strategic leader? Since his departure what has happened to Apple? How Apple Competes in the PC Market Apple competed in the 2010 market at an all time high, with personal computer shipment increasing to a cool 27.7 percent. This gave Apple the momentum they were looking for, outperforming other personal computer vendors. Apple was not the fourth largest in personal computer market share below Dell, HP, and Acer. Apple has evolved with the changing industry and in capturing market share with the introduction of new innovation technological products. Apples Competitive Position, MP3 Players and Smart-phones In the last quarter of 2010, Apple acquired a whopping 86 percent of growth in the iPhone sales. Apple outperformed competitors such as RIM Corporations blackberry with a 35 percent market growth. Apple launched a new device that grew in the technological industry like

3 a wildfire the iPad. The iPad tablet introduced to the public market in April 2010 during an unfavorable time when a personal gadget costing $500 was not in the average persons budget. Even though the iPad costs $500 it has been said that the Hugh gain in sales was contributed due to the fact the average computer during that time costs in excess of $700. Much to Apples surprise the iPad was a booming success selling over 34 million copies in the U.S. and over 84 million worldwide. This was a testimony that Apple Inc. has the power of innovation and direction to capture unseen markets with new technology. With the Hugh success of the iPhone and iPad Apple is experiencing many treats from competitors. Proview Technology Co. located in Taiwan, a manufacturer of computer screens threatened to sue Apple for trademark violations. It has been found that Proview registered and marketed a computer screen they called the IPAD during 2001 in China. The company not only registered its IPAD in China, but also in Asian countries and the European Union. Even though Apple purchased Proviews EU trademark, Apple is has been crippled by the China based company. Apple quickly settled the lawsuit with Proview Technologies, paying $60 million in order to settle the legal dispute which had lasted two years. Apples iPad sales were threatened by the impending lawsuit. Proview had applied to Chinas customs asking them to block any shipments of Apples iPods coming in or out of the country. Proview also requested that local retailers stop selling Apples iPods. Steve Jobs an Effective Strategic Leader Steve Jobs has been labeled a man, a leader of rare strategic coherence. In 2005 when Apple Inc. bounced back with market dominance and profitability it wasnt just because of the iPod. It was because Steve Jobs had formulated a plan that would put Apple at the top of the

4 market. Steve knew that technology would grow to a popularity that would become ripe for the introduction of new personal computing products. Once the broadband penetration has exceeded fifty percent in the personal and commercial market, it was time to bring new technical gadgets to the fore front. Steve Jobs had foresight and was able to vision the future for apple as early as 2001 when Jobs put together assembling and owning all the components needed to enter and strive in the broadband marketplace, with products such as iTunes, Safari, QuickTime and the Mac OS. One can see that Steve took heed to many of Porters key concepts on strategy. Porters classic work differentiates between two key elements of business success: operational effectiveness and strategy (Hill, 2012). The death of Steve Jobs shook the world and has raised many questions what will happen to Apple Computers Inc. will there be life after death. Steve Jobs, no doubt was in the drivers seat, directing and steering the company in the right direction, however many have been gain to doubt whether the company will continue to thrive under the new direction of CEO Tim Cook. One of the things people loved most about Apple was Steve Jobs; people would ignore negative information regarding taxes, Samsung issues, android, etc The Apple Corporations is very secretive regarding their future plans and innovations, which makes it hard to determine the new company vision and future of their products. Over the last several months Apple has started to stumble according to many. In the technological industry there are ups and downs and it helps to have the talent of foresight to understand such situations in an unpredictable industry. Apple beat the odds for twelve years, however thats because the company was ran by a dictator having total control, who had an incredible genus ability to vision the future and act on it. Apple was dependent on Steve, and he made very few mistakes in the guidance and steering of this great ship.

5 Apple has started to slip, its stock has fallen to levels on the day that Steve Jobs past away. The stock is starting to reach levels of historic lows causing investors to doubt their faith in the company. Some has speculated that investors are starting to see Apples stock as just another company stock and not as the great Apple Corporation under the direction of Steve Jobs. Conclusion The Apple Corporation has shown its ability under the direction of Steve Jobs to navigate through rough waters and overcome against all odds. With the development of fresh new innovative technological products such as the Mac pc, iPhone, iPod, and iPad the company has grown too historically. With the loss of the companys CEO and leader Steve Jobs, once only questions if the company will continue to thrive in an unpredictable technological market.

6 References Apple, RIM, ZTE Big Winners in Smartphone Market 2010. (2011). Channel Insider, 1-2. Caulfield, B. (2011). Counting iPads, Apple Is Fourth Biggest PC Company. Forbes.Com, 16. Heffernan, M. (2011, August 25). Steve Jobs' Leadership Legacy: Focus on Strategy. Retrieved from CBS News: www.cbsnews.com Hill, A. (2012, June 6). Steve Job's Strategic Vision. Retrieved from Footnote 1: www.fotenote1.com Krishnamoorthy, A. (2012, July 2). Apple Pays Proview $60m to Resolve IPad. Retrieved from Bloomberg: www.bloomberg.com