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Saturday, 12 April 2014

APPLE – INCEPTION, FALL AND RISE OF THE ELECTRONICS MNC


THE ‘APPLE’ REVOLUTION:
Gone are the days where the word “Apple”, would make most of us just think of the fruit. If you ask anyone who has a basic knowledge of electronic consumer goods about “Apple”, their immediate response would relate to the prestigious electronics and software developer across the world. That’s the impact Apple organization has made in the contemporary world.

WIDE ARRAY OF PRODUCTS:
Apple is a multinational corporation having its base headquarters in Cupertino, California that deals with the design and development of different consumer electronics, personal computers and software applications. Its most famous products include the Mac line of computers, iPods, iPhone mobiles, and iPad tablet computers among the hardware products and OS X, IOS among the operating systems along with different software applications like iTunes media browser and the Safari web browser, iLife and iWork creativity and productivity suites. It has been established almost 38 years ago. Let us have a brief look into how this renowned organization has evolved through the decades.

INCEPTION OF APPLE:
Steve Jobs and Steve Woznaik used to work for an American video game and home computer company known as Atari Inc. in their early career. But in the year 1976, they left the job to establish a company on their own which basically deals with the sale of personal computer kits. Hence on 1st April, 1976 the Apple computercompany was established by the both of them along with Ronald Wayne. The name was christened in remembrance of a happy summer Jobs had spent picking apples!

FIRST SALE AND INCORPORATION:
The Apple I kits were basically motherboards built single handedly by Steve Woznaik and they were first publicly shown at the Homebrew Computer Club. The first Apple I device which constituted CPU, RAM and basic textual video chips was sold in July of 1976 for $666.66!
One of the co-founders of Apple, Roland Wayne sold his share of Apple for $800 after which the Apple Company was incorporated on January 3rd, 1977. The funding of $250,000 along with the required expertise for incorporation was given by Mike Markkula who was a multi-millionaire.

APPLE II, III AND LISA:
This advanced version computer, Apple II came with cell-based color graphics and an open architecture also designed by Woznaik, which were not available in its then rivals TRS-80 and Commodore PET. The early usage of cassette tapes was replaced by 5 ¼ inch floppy disk drives known as Disk II. It was chosen to be the platform for first killer app of the business world, VisiCalc.

Apple III was introduced later in the May of 1980 as a competition to the products of other organizations like IBM and Microsoft in the corporate market of computing. After visiting Xerox PARC Company in 1979, Jobs was convinced that every future computer would run with a Graphical User Interface (GUI)and it was then first developed for Apple Lisa personal computer. With $22 per share, Apple went public in 1980 becoming a company that created most number of millionaires in the history.

MACINTOSH:
Because of some internal disputes between Steve Jobs and the Apple Lisa team, he removed himself from that project and joined a much less budgeted Macintosh project. Both teams competed on who we would release their version first. Though Lisa had won the race, it was a commercial failure because of high price and limited software titles.

Macintosh on the other hand had a very good opening fueled by the masterpiece of an advertisement directed by famous director Ridley Scott announcing its debut. Though the follow-up sales were slow, the introduction of Post Script Laser Printer, LaserWriter and PageMaker changed the fate of this product making the combination a very powerful and intuitive Macintosh package.

DISPUTE AND JOBS RESIGNATION:
Because of a power struggle between Jobs and the two years earlier hired John Scully in 1985, Jobs was deprived of all the managerial duties after the board of directors supported John Scully. Uninterested to continue the work at Apple, Jobs resigned from the company and founded NeXT Inc in the same year.

POWERBOOK – GOLDEN AGE:
Apple introduced “PowerBook” in the year 1991 after introducing Macintosh Portable in 1989 which faced heavy weight problems. PowerBook solved all those problems with enhanced effective functioning and hence the sales and revenue were hugely increased for the Apple Company. This period between 1989 and 1991 was regarded as the Golden Age for Apple.

PERIOD OF DECLINE:
Because of too much experimentation in producing a variety of appliances like Digital Cameras, Portable CD audio players, speakers, video consoles, and TV appliances etc. which had not made a huge mark in the market, Apple faced a huge commercial failure in the 1990s. Also the unyielding strategies of the then CEO John Scully did not help either.

Meanwhile Microsoft had been developing effective and efficient software applications which came cheap. Apple, though had been developing quality software, because of the high cost and richness, their products had been a commercial failure. Even though they sued Microsoft for using a similar GUI as that of Apple Lisa, the case dragged and eventually dismissed after many years. The Apple’s decline continued with a heavy loss in almost every strategy they employed. Their CEO John Scully was replaced by Michael Spindler then.

During Michael’s reign, many strategies were employed to enhance the version of Macintosh and introducing alternative platforms like A/UX and experimented with Mac-only online portal called e-World. They faced huge competition from OS/2 and UNIX vendors and the outdated Macintosh was not helping them either. Apple collaborated with IBM and Motorola to enhance the performance of Macintosh and together they produced Power Macintosh using Motorola’s Power PC processor but it was unable to create any huge difference.

Michael Spindler was then replaced by Gil Amelio in 1996 who later tried to install a number of changes to Apple and Mac OS but failed miserably. Apple then ousted Gil Amelio after observing the heavy loss that incurred to the organization on July 1997. Before that, Gil Amelio brought back Steve Jobs and chose to purchase NeXT and NeXTSTEP operating system.

Steve Jobs then became the interim CEO and started restructuring the company’s product line as follows

•    Collaboration with Microsoft to release newer MS office for Macintosh in 1997.
•    Introduction of all-in-one computer in 1998 led by Jonathan Ive.
•  Purchase of several companies to create a portfolio of professional and consumer-oriented digital production software including Macromedia’s Final Cut.

REGAINING THE POWER:

The years between 2000 and 2006 marked the power regaining period for the Apple Company. Starting with Mac OS X which was released in 2001, there have been many developments in the productions of innovative operating systems and software applications. Since then, they have abandoned the use of colored plastics starting with the titanium PowerBook.

The new MacBook Pro and iMac became the first Apple computers to use Intel’s Core Duo CPU on January 10, 2006 shortly after Jobs’ announcement that they would be producing systems based on Intel. The new products that followed were Mac Pro, MacBook and MacBook Pro and since then Apple began building its own engineers to design microchips. To install Windows XP or Vista alongside Mas OS X, a new software Boot Camp was introduced.

With an increase from $6 to $80 per share, the price of Apple’s stock had raised more than ten times which represented an enormous success and it had even beat Dell’s market cap by January 2006. The only thing they were unable to beat was Microsoft as only 8% of Apple’s laptops and desktops were used in US.

THE APPLE MOBILE ERA:

Apple had developed a number of successful mobile devices, media players and personal computers between the years 2007 and 2010. It had brought a new dimension to the touch screen devices by including certain pre-programmed touch gestures. With most of the success coming from the mobiles, Apple decided that it would concentrate on developing hand held devices. The share price of Apple crossed $100 mark by May of 2007.

After introducing the innovative iPhones, iPods, Apple began developing third party applications for these touch devices. These had become a huge success too and later Apple had become third largest mobile handset supplier in the world owing to the popularity of the iPhone.

In the year 2010, Apple had introduced the iPad touch device which is nothing but a large screen tablet device based on the same operating system which iPhone uses. iPad devices also have been a huge success and it enabled Apple to exceed the Microsoft’s market cap since 1989. Later iPhone 4 which came with the features like video calling and multitasking was released which faced some problem with the signal reception. Apple then released a free bumper case for iPhone 4 users to eliminate the signal reduction. The release of iPhone 4 was followed by multi touch iPod Nano, iPod touch and iPod shuffle devices.

Later that year, in the month of October, the shares of Apple reached an all-time high with as much as $300 per share.

ACHIEVEMENTS AND RECOGNITION:

• Apple is now the world’s second largest IT Company in terms of revenue with only Samsung Electronics in front of it.
• It is also the third largest mobile phone maker after Samsung and Nokia.
•It has been named the most admired company by Fortune Magazine in United States in 2008 and in the world consequently for five years from 2008 to 2012.

•It has also become the world’s most valuable brand among Omnicom Group’s “Best Global Brands” report surpassing Coca-Cola on September 30, 2013.

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