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Industry Analysis of Apple
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Harvard Business School
Added on 2020-02-24
Industry Analysis of Apple
Harvard Business School
Added on 2020-02-24
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Running head: INDUSTRY ANALYSISIndustry AnalysisName of the student:Name of the University:Author Note:
1INDUSTRY ANALYSIS1. Apple is one of the leading brands in the IT industry. The launch of the i-phone and i-padcreated revolution in the technological world. This leader of the market witnessed considerabledecline in the PC industry, with the changes in the 1980s and mid 1990s. The year 1980 markedan important phase in the history of Apple, as the first successful initial public opening (IPO),was launched in December 1980. The leading position of Apple found an obstruction, as IBMentered the market of the personal computers (PC). The PCs designed by IBM used the DOSoperating system of Microsoft, and the microprocessor of Intel, for their PCs. The operatingsystem was an open one, and could be cloned by other companies. However, Apple practicedhorizontal and vertical integration, and relied on the operating systems and processors developedby their in-house teams. Though the operating system developed by Apple, Macintosh gainedpopularity initially, however, the lack of speed of the processor, and lack of compatible softwaremade Apple, loses their business to IBM. The net income of Apple fell by 62% between theyears 1981 and 1984. During the years 1985 to 1993, with the newly recruited executive JohnSculley, the new markets for the PC were sought. The PCs of Apple were driven by superiorsoftware. Apple, during this time grabbed more than half of the PC market, thus enhancing thesale of Apple. The company thus made considerable profit. Sculley went into alliance with IBM,with joint ventures on creating new PC OS and multimedia applications. It was also decided thatIntel would clone the Mac processors, thus speeding up the processors. However, even with suchefforts, the margin of Apple dropped to 34%. With this failure, Michael Spindler replaced JohnSculley. Spindler disallowed the Mac OS on the Intel chips. By the year 1995, the alliancebetween IBM and Apple was broken. Even after an investment of $500, none of the companieswanted to switch to the new technologies. After the loss, in 1996, Gilbert Amelio was approinetd
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