Can a company which once uses a technology different from everyone else in its industry and which has used that technology to build a loyal, if small, customer base, survive over the long term? This research considers the current state of the company and examines the future direction of this once dynamic and innovative company.
Apple Computer participates in five business segments: computer hardware, operating systems, Claris systems (application software), printers and scanners (peripherals) and Newton personal assistants, plus some miscellaneous operations. The following chart illustrates the contribution to revenue from these segments (Burrows 35):
When founded in the mid-1970s, Apple set out to manufacture a computer which would be affordable by large numbers of people and which would be easy to use. That goal was continued when the Macintosh was introduced in the mid-1980s and the company sought to gain access to markets which it had not penetrated to that point. Apple did not license its operating system to other companies (as IBM did with its Microsoft operating system) but instead relied on the high quality of the machines to bring consumers to Apple. The company also refrained from discounting its machines and continued to charge a premium for its products even as IBM-clones were competing in an increasingly price sensitive market. The company felt that its commitment to quality and to easy to use software would bring customers to it, and the company's goals were met in the early years as those consumers who were not interested in becoming "computer gurus" sought out the Macintosh for its ease of use. In this way, the company became the dominant machine in the entertainment and graphics industries (Fisher 43).
Apple Computer manufactures proprietary microcomputers, software and peripherals. Apple machines use Motorola microprocessors while the company's primary competition, IBM and IBM clones, use the Intel f...