Apple Inc. Strength And Weakness

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Apple Computer Inc. Strengths The strength of the Apple brand has always been their cutting-edge design and innovation. Several examples of this include the introduction of the iPod, the mac mini and the Apple Cinema Display. Each of these appealed to various customers such as graphic design, publishing, and film and music production for their Monitor products. Due to Apple’s strong brand equity iPod consumers began demanding Apple computers. Thus apple benefited from positive externalities due its strong brand equity. Another strength of Apple is their OS X, which aims to create interest and generate additional revenue. Their OS X embodies an emerging digital lifestyle which has garnered the attention of many consumers. It has also been noted that the OS X has had fewer reported security hazards than their competitor, Microsoft Windows. Proprietary software further increases revenue and enhances the Apple image and reinforces their Mission Statement. Software titles such as iTunes and iPhoto create a positive computing experience. Steve Jobs has also transitioned from proprietary connections for peripherals to a more universal standard (USB). This further allows flexibility for Apple consumers to utilize non-Mac products and for non-Mac users to use Mac products. This allows Apple to open the system to a degree while still controlling the core of its technology. One of the largest bets that Apple has had to make was with the launch of the iPod and its aggressive push into digital music. Due to the vision by Steve Jobs, Apple created a niche and now holds a monopoly over mp3 players. Apple’s brand and innovation allows them to charge premium prices with margins ranging from 20% - 30%. The result of which is a 75% market share in the US. They are estimated to have a 70% share of the world market by 2010. Their extreme dominance in the

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