Apple Computer Comprehensive Case Analysis
Uploaded by spootyhead on Mar 19, 2007
Apple Computer Comprehensive Case Analysis
Industry Summary
Apple Computer’s standard industrial classification (SIC) is 3571. SIC 3571 is used for companies that manufacture computer hardware. The top computer hardware manufacturers by sales are IBM, Hewlett-Packard, Compaq, Dell Computer, Cisco Systems, Sun Microsystems, Xerox, EMC, Seagate, and Gateway. Growth in the computer hardware industry in the United States is predicted to be slow because of the recession and market saturation. Consumers are holding on to their computers because they are adequate for now. According to International Data Corp, the industry was supposed to grow 16.6% in 2001. 16.6% growth is good for some industries, but not computer hardware manufacturers. The computer hardware industry will not see a lot of growth in the United States until the current recession ends
Hewlett-Packard and Compaq are attempting to merge to make the world’s largest computer hardware manufacturer. Hewlett-Packard and Compaq together would have 87 billion dollars in earnings a year, operations in more than 160 countries, and over 145,000 employees. Although Hewlett Packard and Compaq claim the merger will benefit customers, some critics believe a monopoly will be created and consumers will pay higher prices.
Company Summary
Steve Jobs and Stephen Wozniak founded Apple Computer in 1976. Their first computer was called the Apple I. Apple was incorporated in 1977. After incorporating, Jobs and Wozniak introduced the Apple II computer.
Apple went public in 1980. Investors were eager to buy stock in a company on the cutting edge of technology. All of Apple’s shares were sold in a few minutes.
In 1983 Apple introduced the Lisa computer, which was the underpinning for the Macintosh computer. The Lisa and the Macintosh had graphical user interfaces that were easy to use.
Jobs tried to take over Apple in 1985, but President and CEO, Sculley, stopped him with the support of the board. Jobs resigned and Wozniak left to start his own company soon after.
Apple faced some hard times over the years competing with Microsoft, IBM compatible computers, and PC clone manufacturers. Apple takes pride in being different, but its downfall seems to be that it is too different. Apple computers are not IBM compatible and over 90% of computers on the market are IBM compatible. Apple has manage to find a niche in the education and creative markets.
Specific Information
• A distinct competency...