Apple Background

Background: The early History Steven Paul Jobs was born in California on February 24, 1955. His parents, unmarried and unable to care for a baby, put him up for adoption. He was adopted by Paul and Clara Jobs, who raised him in a northern California community surrounded by apricot orchards and farm country. After attending few courses in electronics at Hewlett-Packard in Palo Alto California, the orphan young Steven Paul Jobs was placed as a temporary summer worker, where he met Stephen Wozniak
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  Background : The early History Steven Paul Jobs was born in California on February 24, 1955. His parents, unmarried andunable to care for a baby, put him up for adoption. He was adopted by Paul and Clara Jobs, whoraised him in a northern California community surrounded by apricot orchards and farm country.After attending few courses in electronics at Hewlett-Packard in Palo Alto California, the orphanyoung Steven Paul Jobs was placed as a temporary summer worker, where he met StephenWozniak a recent dropout from the University of California at Berkeley, but with a great interestin crafting and inventing electronic gadget. It was not until 1974, when they met again atWozniak`s Homebrew Computer Club. Steve Jobs was not the tek-savvy person, rather wasthe person who has the eye and the convection of an entrepreneur. By 1976 the mergence of thetwo talents gives birth to Apple 1 computer priced at $666. Totally designed in Steve`s bedroomwith the prototype build in the garage.   Steve Wozniak was a gifted techno crafts men, where asSteve Jobs¶ real gift was his vision and powerful group communications skills to inspireThe Apple I was the first single-board computer with built-in video interface, and on-boardROM, enables the machine to execute other programs from an external source. Jobs andWozniak managed to earn $774,000 from the sales of the Apple I. The following year theydesign the Apple 2 personal computer earning $139,000,000. After three years of success theresales scored to 700 percent, reaching $583,000,000. By1980, Apple went public with a successno company had experienced before. But the Apple III was a fiasco; it had been rushed quicklyinto the market and in order to recover from this loss Steve Jobs initiated the project to developthe legendary Macintosh computer. Steve inspired many of his staff to work for this project. Hisenthusiasm was the compass to where he was going and was also an opportunity detector towhere the digital revolution was going. The strengths of Macintosh design were not its featuresand technological characteristics, but friendliness, flexibility, and adaptability to performcreative work  . Even with its strong sales Macintosh lacked some important features (no hard disk drive and insufficient computer memory). Moreover with the IBM supremacy in the marketmade its operating system a standard of the industry, which was not compatible with Apple's products. In 1985 Apple announced its first loss. Steve was trapped into escalation of commitment, by refusing to abandon or at least change his outsized sales projections, even the problem was obvious but Jobs' sensitive personality and immense ambition (may have helpeddrive his success) but also causes conflicts with the executives, board members and others, andled to his forced departure from the company he co-founded.. Steve was fired by the President hehad hired. In 1985 both Jobs and Wozniak left the company they had founded. Jobs continuewith his entrepreneurial carrier, and opened his own company NextStep in 1989. By 1993 andafter a loss estimated at $250 million NextStep closed its hardware division to focus on thesoftware development.When Apple began to struggle in the mid-1990s, Scully was replaced by Michael Spindler after him Gibert Amilio, but none of them was able to stop the slide in Apple¶s fortunes. In 1997Steve Jobs was named the new permanent CEO. After returning to the helm at Apple, Jobs madea number of decisive moves that immediately improved the company's fortunes. He simplifiedthe product line, introduced a new version of the Apple operating system, and entered into acooperative agreement with Microsoft. In 1998 Jobs introduced the iMac. This computer offeredsufficiently powerful processors and an affordable price tag. A number of new productsfollowed, some of which, like the iBook, PowerMac and iMac G5were extremely successful.To keep the sales growing Apple continued to invest in development of new operating systemand developing its own application such as video editing programs. In 2001 Apple launched asleek new handheld product, a portable digital music player called the iPod. Comparable to MP3   players introduced by other companies, the iPod allowed users to download music from CDs or from online sites. Thanks in part to a memorable advertising campaign and good word-of-mouth;Apple sold three million iPods in less than three years. By 2004, almost half of the digital music players bought by consumers were iPods. Apple also adopted forward integration    businessstrategy; by opening its own stores managed by Apple trained sales clerks. This form of verticalintegration whereby activities are expanded to include control of the direct distribution of Apples¶ products was because of the poor and discriminated presence in many computer retailers. Apple¶s Strengths y   Steve Jobs, Apple¶s CEO and visionary. y   Excellent brand loyalty by its customers. Many own multiple products (Mac, iPhone,etc.) y   iTunes Online Store is an excellent source of revenue derived from sales of music andapplications for Apple¶s iPhone, iPad and iPod touch devices. y    No debt, excellent cash flow with excellent Research & Development division that is ableto deliver (premium) products that customers will stand in line to buy. y   Global reach, Apple¶s brand is strong around the globe. y   They own their own Operating System (iOS), which is used across their entire productline allowing them to sell a complete product without paying large royalty payments totheir competitors. y   Apple is an innovator and technology leader. y   Apple¶s first time customers, buying iPhone, iPods and iPads, are buying other Apple products, including Apple¶s desktop and laptop computers based on the most recentquarter.  Apple¶s Weaknesses y   Weak integration with Microsoft Office makes their product line less attractive to business enterprises. y   Google¶s Android Operating system is slowing Apple¶s growth rate in the mobile phonemarket. y   High price. Apple¶s products are typically higher in price than its competitors. Pricesensitive consumers tend to not consider Apple in buying decisions. y   Apple tends to lead innovation and then watch other companies control the market once ithas reached the tipping point and wider consumer adoption. y   Steve Jobs succession Apple¶s Opportunities y   Cross product sales will continue to increase as more and more people choose Apple. y   Product development cycles have shortened in the mobile phone market, giving Apple a bigger opportunity in upgrade sales. Excellent iPhone 4 sales are an excellent example.Consumers are willing to update their phone hardware every two years. y   A new release of Apple¶s iPod touch, featuring video chat, will likely be a huge revenuegenerator. y   Apple¶s direct online sales channel will continue to grow, helping improve their alreadyimpressive gross margins. y   Apple new iAd advertising platform for Applications designed for the iPhone, iPad andiPod touch could be a significant revenue generator. Apple¶s Threats  y   Cheaper laptop computers from Dell, Toshiba, HP, Sony and IBM. y   Online Music Stores from Amazon, Yahoo! and Wal-Mart offering music cheaper. y    New online music models that including renting the entire music library for a lowmonthly rate could change how consumers pay for music.He also understood the power of convergence and branched out into other areas to make Applemore than a computer company, while still maintaining its drive to sell computers. After all, if  people liked other Apple products like the iPod, wouldn't they want to own a Mac?It was a well-calculated risk that paid off. people are looking for devices that say something about them. And for quite some time, thoseconsumers have been looking for beauty.Apple has always understood that and does its best to make its computers more elegant than itscompetitors.
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