Apple Computer

Case analysis 1 – Apple Computer 1. What were some of Apple’s biggest successes and failures?
The greatest success of Apple Computer would be iPod/iPhone/iTunes/App store. They brought a whole new level of technology into this world. The function and design of these four products became a new trend that everyone must have. They began with iPod/iTunes, the design of iPod was revolutionary because it didn’t look like a normal MP3 player, Apple designed the internal hard disk into the iPod. Moreover, people can download music from iTunes for very low prices, the costs typically start from only $0.99 per song. After the success of iPod, Apple continued their research and development in their next generation of technology. In 2007, they launched the iPhone, which combined iPod functionality and mobile phone along with touchscreen technology. Furthermore, their design of the iPhone’s user interface helped launched Apple into the mobile phone industry which was a game changer in this industry. They also opened up the App store to third-party developers, so that developers can create application for the iPhone and sell it in the App stores.

Apple’s biggest failures were Apple Lisa, Macintosh portable, Macintosh TV, and Pippin. Why did these products failed? Let’s talk about the first one, Apple Lisa, it costs $9,995 and this price set was in 1983. In today’s dollars, the price would be equivalent to $21,000. It is incredibly expensive for a computer. Secondly, Macintosh portable, the 16-pound device was too much weight to carry and then it was replaced by Powerbook. Thirdly, Macintosh TV, let’s say that it was a weird combination between computer and TV. It wasn’t good at neither TV nor computer. The last product was Pippin; it is a game console with less than 20 games available. A crawling processor loaded games at a snail’s pace. By that time, users would rather choose Sony Playstation and Nintendo 64.

2. How much of Apple’s success can be linked directly back to its culture?
It depends on the era, while Steve Jobs was CEO; he was one of the greatest innovators because of his ideas and concepts. I believe that there are some principles of Apple are presented as follows 1. Don’t follow your customers; lead them. 2. Temper engineer with art. 3. Focus on the few to sell many. 4. Be your own toughest critics. (CBS-BNET by Chris Morrison | August 10, 2009 “Four Principles of Apple’s Successes http://www.cbsnews.com/news/four-principles-of-apples-successes-and-failures/) The success of the Apple’s products such as iPod, iPhone or iPad showed that they can operationalize their dream and communicate it well to their customers. They clearly showed that their culture was to set their standards very high. When they first released their products, thousands of customers were in line for the store to open and the products were sold out quickly even though the price of their products were higher than other vendors in the same industry. They were the leader of smartphone innovations at the time. They had the right people to do the right job and were able to execute to conquer the market.

3. How do the actions of Apple apply to the TCOs?
Apple is focusing on customer satisfaction, since today’s buyers are more educated and technologically aware; they see Apple as a good partner with reliable products. Apple continually puts out new updates for its software. Moreover, Apple uses Intel chips which allow customer to run Windows Software and Mac OS, so virtually customers can get two computers for the price of one. The next thing is all Apple products maintain their value surprisingly well. For example, if you sell 2007 Macbook pro, you’ll have lost only a couple hundred dollars less than when you bought it originally. From this action, people can turn around and sell Apple products at a later time. Additionally, Apple also makes software updates incredibly easy for all Apple consumers. When a new OS comes out, all Apple customers will be able to update their software in just a few easy steps.