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Case Study: Apple Computer (2006) Apple Computer has always been an interesting and often exciting firm. It had been the first to make and the mass-market a personal computer with its Appl IIc.

The company had been the darling of the stock market in the mid-1980s when it cemented its technological advantage through the introduction of its state-of-the-art Macintosh (MAC) personal computer. Nevertheless, the Microsoft Windows operating system and Office software coupled with Intel microprocessors left Apple far behind in PC market share by mid-1990s.Apple Computer had fallen to being just a niche player in the industry. At that time, it was rumored that the company had little future unless it merged with or sold out to another computer company. With the beginning of 21st century, Apple’s fortunes changed for better. The introduction of the iPod catapulted apple back into the spotlight, just at a time when Microsoft and Intel seemed to be losing momentum. 2006 was another exciting year for Apple Computer and for its management and shareholders for both good news and bad news.

GOOD NEWS On May 23, 2006, Apple and Nike announced a joint-technology running shoe. The new Nike shoe would have a sensor placed in a small pocket of the shoe, and the wireless receiver on the iPod Nano. The runner would be able to track distances covered, calories burned, and time pent exercising On August 2, 2006, Coke and Apple announced that Coke would offer codes for 70 million free iTunes to German and UK Coke customers. Coke was to be allowed to links its website with Apple’s iTunes site.On October 9, 2006, Apple Computer announced 4th Quarter profits rose 27% to $546 million, and revenues rose 32% to $4. 84 billion when compared with 2005 results. Mac shipments reached 1.

61 million computers, which was the highest sales in the company’s history. On November 8, 2006, Apple’s management announced that iTunes would offer Spanish language and bilingual shows in cooperation with NBC Universal’s Telemundo. It was also to offer regional Mexican baladas y boleros and pop Latino.On November 12, 2006, Apple announced that it had made an agreement with 6 airlines, AirFrance, Continental, Delta, Emirates, KLM and United, to install iPod connections in their in-flight entertainment systems. This was scheduled for mid-2007. On November 16, 2006, Apple announced that its iPhone, the highly anticipated iPod cell phone, would include a 2. 0 megapixel digital camera.

An analyst estimated that this iPhone could add 22% to Apple’s earnings in 2007.



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