Apple Computer experienced many difficulties in the 1990s. As five years passed, the company has had four different CEOs. As each CEO took over, the company would go thru a different reformation. In July of 1997, Apple had submitted two-thirds of its market share. It was said that losses topped 1. 6 billion dollars and shares were trading near all-time lows. Co-founder Steve Jobs had come to Apples rescue when the company was at its lowest point. He unleashed a series of dramatic moves like a stunning decision to sign a long-term cross-licensing agreement with Microsoft for $150 million dollars.
Jobs then ended Spindlers(former Ceo) cloning strategy and went on to kill the Newton, John Sculleys(both former Ceos) pride and joy. Jobs bravest strategy was the iMac, a smart designed, low-cost Macintosh that took the market by storm in 1998. four years later, an updated and more powerful version of the iMac was introduced as a digital hub for Apples new peripheral devices and software. Jobs also broke tradition by opening many of Apple-exclusive retail stores and by outsourcing iMac production.
By 2000, Jobs had reversed course on nearly every aspect of his predecessors strategies and had returned the company to profitability. In 2002, however, the company again faced weak unit sales, flat gross margins, and declined share in several core markets. Steve Jobs and Steve Wozniak dropped out of college in their early 20s and founded Apple Computer on April Fools Day in 1976. Working out of Jobs garage in Los Altos, California, they built a computer circuit board than named the Apple I. After a several months, they had made 200 sales and taken on a new partner.
He was A. C Mike Markkula, Jr. , a minted millionaire who had retired from Intel at the age of 33. Markkula, who was active in attracting venture capital, was the experienced businessman on the team; Wozniak was the technical genius; and Jobs was the visionary who sought to change the world through technology. He made it Apples mission to bring an easy-to use computer to every man, woman, and child. In April of 1978, the company had launched the Apple II, a simple machine that ordinary people could use straight out of the box.
This machine had set off a computing revolution that drove the personal computer industry to $1 billion in annual sales in less than three years. Apple quickly became the industry leader, selling more than 100,000 Apple IIs by the end of 1980. In December 1980, Apple launched a successful IPO. Apples competitive position changed fundamentally when IBM entered the PC market in 1981. The IBM PC, which relied on Microsofts DOS operating system and a microprocessor from Intel, was stolid and gray when compared to the graphics and sound enhanced Apple II.
But the IBM PC was a relatively open system that other manufacturers could clone. By comparison, Apples computers relied on proprietary designs that only Apple could produce. As IBM-compatibles proliferated, Apples revenues continued to grow, but its market share dropped sharply, falling to a low 6. 2% in 1982. The company controlled the only significant hardware and software alternative to the IBN standard. Apple practiced horizontal and vertical integration to a greater extent than any other PC company, with the exception of IBM.
Apple designed its products from scratch, specifying unique chips, disk drives, monitors, and even unusual shapes for its computers chassis. While it never backward integrated into microprocessors- which were supplied exclusively by Motorola-the company assembled most of its own products in state-of-the-art factories in California. Apple also developed its own operating system which was bundled with the Mac; Mac applications software and many peripherals, such as printers. In my view, its easy to determine why Apple had its success and its later troubles.
When it first constructed its computer, there wasnt many competitors and it was the best thing out at its time with its special graphic designs it had. As years passed, the other manufacturers created computers that were cheaper than Apples brand. I believe the biggest problem that Apple faces compared to other PCs is that is uses a different operation system where almost all other computers contains Windows. This makes it difficult because almost all software that is created these days is compatible with Windows operating system only.