Based on Your Analysis, How Sustainable Is Apple’s Competitive Position in Pcs?

Based on your analysis, how sustainable is Apple‘s competitive position in PCs? (Removed when edit) Apple has a stable market share compared to its competitors Apple has steadily maintained a ratio of around 3%-5% in the PC Manufactures’ world market share in the last 10 years, which means it has a sustainable market share power.

Since the computer market is large and growing due to technology and consumer psychology changes every year, a few of Apple’s competitors have entered or left the market. For instance, Compaq had 13% in 2000, then was acquired by Hewlett-Packard (HP) in mid-2002.

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PC vendors like Fujitsu Siemens, Packard Bell, NEC, etc. lost their market share after 2000. However, PC vendors like Lenovo and Acer, entered the market and grew quickly in the last 10 years. During this time, Apple’s computer sales were growing faster than the industry. The top brand, HP, accounted for 17. 7% of worldwide shipments in 2011, 0. 8% lower than the year 2010.

Meanwhile, Apple had 4. 7% in 2011 and 3. 9% the year before. [1] Apple’s target market is increasing Apple remained committed to the education market for many years. However, new PC products focused on home consumers’ instead.

Customers enjoy Apple’s innovative products.

For example, one kind of Apple computer: the ultra-thin Mac Air , is described as “stylish”, “slim” and “powerful”, words that were seemingly reserved for it. Thus, Mac Air became the third –largest PC vendor in the US. With 11% unit share in Q4 2011. [2] Apple’s vision and strategy help it sustain in the PC market Vision that shows sustainability Apple’s ex-CEO, Steve Jobs, had presented a vision for the Macintosh called”digital hub.

” He believed that the Macintosh had a real advantage for consumers who were becoming entrenched in a digital lifestyle: using digital cameras, portable music players, digital camcorders, and mobile phones.

Since Apple’s smartphone product, the iPhone, is in strong demand and leads the cellular phone market, the Mac could be the preferred “hub” to control, integrate, and add value to Apple’s other products. Therefore, once consumers buy one of Apple’s products, they will readily continue purchasing Apple’s other products. The popularity of media products, such as the iPod, iPhone, and iPad, were critical to bringing consumers attention to the Mac. So Macintosh, one of Apple’s products in the PC market which delivers a cutting-edge, tightly integrated user experience, is strongly placed in the market.

Remarkable strategies that shows it is sustainable: “Premium-price”, 91% of PCs priced above $1000 in the U. S. market was sold by Apple. [3] As known by the Apple brand and its ex-CEO, Steve Jobs, Apple’s computers are also very popular in international markets. With more profit in the PC Manufacturers’ market, the company has more gross margin than its’ competitors such as Dell and HP. [4] Because of that, it has the advantage to fund more Research and Development (R;amp;D) and invest in its product innovation. Stable “operation management”, given its successful R;amp;D and supply strategy in its smartphone market.

Apple can easily reuse the technology which was used in its other product, such as iPhone or iPod, which can reduce its opportunity cost. In addition, Apple offers a new distribution strategy which can enhance Mac sales.

Besides its direct sales, its office website and its retail store partners, Apple opened more than 300 stores in 13 countries, which has increased the opportunity to export Macs. Third, with many stores around the world, Mac will have better customer service, which will enhance customers’ long-term confidence in it. Elaborate with others: Apple introduced a new OS in 2001.

The OS includes a new user interface that would incorporate touch and would be available for PCs as well as tablets. In 2006, Apple started using Intel’s chips, which allows the Mac to also natively run Microsoft Windows along with Windows applications.

This offset a long standing disadvantage of choosing a Mac in the past—the relative lack of Macintosh software. Differentiation technology leads the future: The Mac OS X was based on LINUX, a more stable, industrial-strength OS favored by computer professionals. Apple issued upgrades every 12 to 18 months, in greater frequency than Microsoft.

With this speed, the company can fix its flaws faster, leading an almost perfect reputation in the market. My conclusion on the Apple Mac: Apple has a solid competitive advantage in the PC market in the future.

Analysts predict that more than two billion PCs would be used in the world by 2015. [5] Apple computers will continue being innovative and earn an increasing share in the PC market. As we all know, Apple itself is a growing company. Based on its current size and its software and hardware systems, it still has a lot of growing space in future markets. References: .

David B. Yoffie, Penelope Rossano, “Apple Inc. in 2012”, Harvard Business School, May 15th, 2012, Exhibit 6 2. Rajani Singh and David Daoud,” Worldwide PC Market:4Q11 Review,” IDC, April 2012, P. 11 3.

“Windows 7 Release May Test Apple’s Winning Streak,” Reuters News, October 14, 2009, via Factiva, accessed March 2010 4. David B. Yoffie, Penelope Rossano, “Apple Inc. in 2012”, Harvard Business School, May 15th, 2012, Exhibit 5 5 “Computers sold in the world – sources and methods,” September 8, 2011, http://www. worldofmeters.

info/computers/,acessed April 2012