2. Presented by
Hasan Ibrahim
BIT0208
Iftekher Ahmed
BIT0220
Khaza Moinuddin Mazumder
BIT0234
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3. Apple
► An American multinational
corporation
► Established on April 1,1976 in
California, USA by Steve
Jobs, Steve Wozniak and Ronald
Wayne
► Designs and sells consumer
electronics, computer software
and Personal Computer
► Consumer
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electronic equipment intended for
everyday use, most often in
4. A Few Facts About
Apple
► World’s third largest mobile
phone maker after Samsung and
Nokia
► Largest publicly traded company
in the world by market
capitalization
► Largest technology company in
the world by revenue and
profit, more than Google and
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► On August 20, 2012, Apple surpassed
Microsoft to become the largest
5. Apple and Closed
System
► Apple products are considered as
closed systems.
e.g. – iMac, iPod, iPad
► Closed System is an computing
environment (usually an
operating system) that,
Prevents interference from
third-party software
Prohibits third-party software
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from being installed 5
Keeps third-party hardware
off from interoperating with it
6. Apple’s Business Problem
Apple’s closed system comprised
of iMac desktop with
proprietary software and
hardware support
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7. Apple’s Business Problem
(cont.)
► Apple’s rival in desktop
market, Microsoft
Replicated the basic features of
Mac OS
Encouraged developers to write
app for Windows
Licensed Windows to mass-
market PC manufacturers like
Dell, HP and IBM
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► So users started preferring
desktops with Windows
9. Apple’s recovery strategy
(cont.)
► Steve Jobs decided to launch
iPod, predicting it to have impact on
Apple’s weakened desktop market
► Apple introduced iPod in
October, 2001
► iPod quickly grabbed 73 percent
market share of portable music
players
► Jobs cut a deal with the top five
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music companies in US to sell music
on iTunes
10. Apple’ recovery strategy
(cont.)
► Apple denied licensing FairPlay to
Yahoo, eMusic, Napster and its other
competitors
► Apple’s competitors turned to
Microsoft for copy-protection of
music in their stores
► Microsoft’s copy protection
software had disadvantages
Music could be played in portable
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music players made by Samsung
and SanDisk, but not on the wildly
popular iPod
11. iPod’s Impact on Apple’s
problem
► Apple sold 75 percent of all digital
songs through iTunes
► Apple’s Increasing sale of iPod
effected its desktop and portable
products market as Steve Jobs
predicted
► Since the arrival of iPod, Apple’s
share of the desktop and portable
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computer market in the US almost 11
doubled by early 2006
► With more iPod sold, Apple’s
12. Sales growth for iPod over
the years
12/26/2012 Source: 12
http://www.stopmusictheft.co
m
13. Sales and profit graph for
Apple (1995-2008)
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14. Apple’s introduction of
Boot Camp
► By early 2006, Apple introduced
Boot Camp software
► Boot Camp assists iMac users to
easily install Windows on it and
partition drives
► It also enables iMac users to easily
run applications software for both
Mac OS X and Windows
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► Camp lured even more 14
Windows users as well as iPod
owners to try Apple’s Mac
15. Case Study Question 1
Do you agree with the sources
in this case that Apple will
dominate the digital music
market for years to come?
Why or why not?
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16. Case Study Question 2
Can the key technology and
business strategies Steve Jobs
implemented with the closed
system of the iPod be applied
successfully to the iMac and other
Apple closed-system computer
products? Define your answer with
several examples of what could
or could not be accomplished for
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Apple’s computer products line.
17. Case Study Question 3
Will the cachet of the iPod and
the capabilities of Boot Camp
and the Leopard version of
Apple’s OS X lure many more
Windows PC users to the Mac
lineup of desktops and
portables? Why or why not?
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