Apple Computer Inc. Product Details

INTRODUCTION

In 1976, Apple Computer, Inc. was established and was incorporated in 1977. Apple's first product was the Apple I which began the personal computer revolution. In 2007, Apple Computer, Inc. changed their name to Apple, Inc. They made this change because they shifted their focus from only producing computers to producing other products for industries such as entertainment and mobile telecommunications.

BCG MATRIX

QUESTION MARK

Mac

* The Mac software in the Question Mark category shows their potential to either gain market share or degenerate to the Dog category. In both cases, current statistics show high growth rates and low relative market shares.

* Mac software fares with a growth rate of 32% and a market share of .01. This rapid growth means the products consume more than they generate, thanks to their low market share.

* The reason for Mac's low market share is because of Microsoft's dominance in the OS market. Such low market shares might suggest that Apple divest itself of its computer business and focus on its rapidly growing Star products.

* However, it is obvious that the market synergies created between their computer business and it's other products are invaluable and that divesting the Mac OS X and Mac software lines would only be likely to hurt its Star and Cash Cow products.

Star

IPad

* In January 2010, Apple revealed the iPad in a further extension of the digital hub strategy. The iPad is a computer with no physical keyboard but a touch screen device offering internet connectivity with Wi-Fi and on the move 3G capability. Basically the iPad looks like a bigger iPhone, an iPhone with just a bigger display.

* Apple is proposing the iPad as a mobile device to read e-books, browse the web, write and receive emails, view movies and photos on a screen.

* In terms of pricing the iPad, traditionally, Apple would introduce a new product with a premium price tag, developing volume, supply and segment penetration before relaxing the price constraint.

* For the iPad, the strategy was geared to getting the product into as many hands of as many people as possible, "right from the start". In 2011, Apple launched the iPad 2.0. Thinner, faster, more capacity with a longer battery life.

* Once again, the Apple mantra of constant improvement challenging the performance of the Key Success factors has been exemplified.

* Strategy Analytics showed ipad's market share at 75% in 4Q10. With several new entrants flocking to the market, the competition for iPad is heating up. iPad is mainly under attack by the android tablet PCs.

IPhone

* In 2007, with the successful launch of the iPhone, Apple has marked another milestone in its development and growth.

* Although the iPhone is not the top market leader, it is a clear contender with a 28% market share, 13% less than market leader RIM, with the Blackberry. This leaves the iPhone with a .68 relative market share.

* The