In 2000 Steve Jobs introduced a device to the market that was able to play and hold all your music. The reaction at first was negative many of Apple fan boys were forecasting that this will be the next "Newton" (Failed attempt of Apple of conquer the PDA market)., but it’s a saying that goes " Give time to the time", This device well known for us today as the "IPod" which arguable is the most revolutionarily device of this century, as for today like one of my colleagues mentioned me: " IPod is Apple bread and butter".
IPod produce above 40% of Apple revenue, and the potential of growing is unlimited it , but Apple hasn’t let the glory come to their head and has keep pushing for innovation, and like I mentioned in a another post, Steve’s guys work hard to get a good perception from the users, and the whole society as market. Last year we got in our hands the sweat , and slick device IPhone which merge a Smartphone and IPod in one. The reviews since day one has been outstanding, it seems like every person either has one or at least want one.
The situation is very favorable right now for Apple Inc, we remember as today how Apple was isolate it from the rest of the Tech market where everything was about PC. Today is not a secret the Apple is growing in exponential numbers. Today Apple enjoy a "favorable" 8% of market share in the Operating System world, which 8 years ago, was almost at 1%.
This amazing comeback of Apple has been produce by many factors, mainly of how they use ironically the PC platform as their gateway to the world. With ITunes which has perfectly blend the Pc world with the IPod.
We just have to look at this rough numbers published by Eweek Magazine:
- ITunes since April 2003 when it open to the world until July 12 of 2004 sold 100 million songs.
- By July 18 2005 ITunes sold 500 million songs.
- Amazingly by July 31, 2007 it spike to 3 billion songs.
Apple has become the no.2 musical retailer behind Wall-Mart (at the time I am writing this post it became #1) , but more important with a different business model which lower the operation cost, since most activities are done in a online level.
Having said that, they are some issues that Apple most overcome :conquer the corporate market. This is the key for them to move from been a successful company, to be one of the most important companies in the world. Unlike many people believe, the "big" money for the Tech world is in the corporate level. Corporations in USA spent 4 to 1 ratio when we compare with regular users, Apple is aware of that, and is already making the first baby step in the right direction, announcing that IPhone will sync with Microsoft Exchange which controls must of the mail servers in the corporate world (70%).
Now they are many suggestions that come to my mind that Apple should go for, in order to capture a piece of the corporate market:
- They have to understand that they are hardware company more than a Software company. It’s even some experts that suggest that Apple should limit them self to make Macs and load Windows OS. (I will explain more about this in another post).
- Lower prices in order to maximize revenues. (it’s so many people around the world that will love a Mac, but it is so overprice).
- Have more SKU models, as for now Apple just have 6 computer models.
- Should be more open to the open source community, since Apple OSX is a product of the open source community.
- Now that they are in their peak with those "MAC vs. PC", commercials, keep the same approach, but involve somehow advantages in a corporation environment.
Although I do not own the absolute true I just hope that Mr. Jobs will listen here and there, from us the people that are asking for a affordable Mac for the day to day users.