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Apple Market Essay

Apple changed its company name from Apple Computer to Apple Inc in 2007. And with this name change, the chief element of Apple strategy is to let consumer know, it is not just a computer company, but a company provide other products, such as iPod, iTunes, and iPhone. In Sculley Years, Apple’s chief element was to be versatile compare to IBM, and it will be the complete desktop solution with desktop publishing. Also, Mac wants to have a closer relationship with its customers, which is called love affairs. Apple spend significantly amount of money on R&D compare to other companies, and bringing out hit products every 6 to 12 months. Although, Newtown was a failed product, but overall, Apple kept coming out with new versatile designed product that grabs consumers’ hearts. The last night Sculley did before he left was forge an alliance with IBM and driving the cost down by shifting much of its manufacturing to subcontractors.

When Spindler took over the company, he reinvigorated Apple’s core markets: education and desktop publishing. But he killed the OS alliance with Intel and cut R&D by 16%. Apple lost its momentum. Amelio replaced Spindler and returned apple to its premium-price differentiation strategy, acquired Steve Job’s NeXT and named him as the next CEO replaced Amelio. Steve Jobs brought the Macintosh licensing program to an abrupt end by agreeing with Microsoft to develop core products such as Office. He also consolidated Apple’s product range, reducing the number of its lines from 15 to 3. The launching of iMac introduced Windows backed machines that supported “plug-and-play”.

Also Jobs continued restructuring efforts such as outsourcing, website selling, streamline operations, reinvigorate innovation. (pared down inventory and increase R&D) Apple is not a technology compare but a cultural force. Apple continued to create high premium machines that offered a cutting-edge, tightly integrated user experience with a premium price. And Apple has also involved into its non-Macintosh business such as Apple TV, iPhone, iTune, iPod and the latest iPad, because of the MP3 and Smart-Phone fast growing market in the past 10 years. The Apple’s strategy continues to evolve based on the current market and consumers needs & wants, the success will be focusing on technology and innovation, distribution and sales globally.

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