Apple Computer in 2004: Gearing up for Online Music

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Case Details:

Case Code : BSTA052
Case Length : 14 Pages
Period : 2004
Organization : Apple Computers
Pub Date : 2004
Teaching Note :Not Available
Countries : Global
Industry : Hardware, Music

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background Note

Operating from a garage, college dropouts Steve Jobs and Stephen Wozniak founded Apple Computer in 1976. Jobs functioned as the business manager and Wozniak as the technical expert. Their first product was Apple I, which differed from other PCs as it was sold without a keyboard or a monitor...

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Evolution of Apple's product line

Right from its inception, Apple had been a company committed to building great products. Apple launched a number of innovative products and features in the early 1980s- Graphical User Interface (GUI), a window based operating system that allowed the user to view and search between several applications at once, and a mouse that made applications easier to use by just moving and pointing to positions on the screen.

Product development under Jobs

After taking over from Amelio, Jobs launched several initiatives. He dropped 70% of Apple's new projects, including inkjet printers and Newtons. He also ended the Macintosh Licensing Program as clones cannibalized Apple built Macs...

Forays into Online Music

Apple's forays into online music were guided by the company's strong belief that people wanted to own music, not rent it. As Jobs put it , "Nobody ever went out and asked users, Would you like to keep paying us every month for music that you thought you already bought?...

Exhibits

Exhibit: I: Apple: Five-year Financial History
Exhibit: II: Apple: Product Wise, Geographic and Unit Sales Data for 2002
Exhibit: III: Apple's Product Portfolio
Exhibit: IV: Evolution of Apple's Product Line

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