Thursday 28 October 2010

An Apple a day keeps the competitors at bay.



30 years ago you would have been forgiven for thinking that an apple was just an everyday fruit, made famous by falling on Isaac Newton’s head. Apple Inc. has since transformed that premonition, so much so that people’s first thoughts aren’t of just a fruit anymore, but of a corporation that makes music devices, computers, phones and other electronic items.

Apple’s rise to the forefront of technology has been staggering. This is especially overwhelming as it started with the co-founder, Steve Wozniak, hand building its first product, the Apple 1, in 1976. The company initially struggled to cope with its competitors, IBM and Microsoft. However, after subsequent products such as the Apple III and the Apple Lisa became commercial failures, it wasn’t until 1984 that Apple really made its mark in the world of computers.

The release of the first Macintosh, along with its iconic “1984” commercial, brought massive attention and interest to the corporation. It was these series of products that really proved that Apple was a serious contender to other competitors, despite the blip that was the incredibly heavy portable Macintosh. While the company tried to develop new merchandise throughout the 1990s, it wasn’t until 2001 that they had a truly unique flagship product.

As most people know, the iPod has revolutionised the way we listen to music. Even though it was not the first portable media player, it has since become the most recognisable and most popular, selling over 220 million units since it’s inception. Along with the iPhone, the iMac, and the newly released iPad, these products represent the core of Apple’s products today and have helped it become a technology giant.

To put Apple’s development into facts and figures, it was only worth a few thousand dollars back when it began in 1976. Now it is valued at a breathtaking $222 billion, with CEO Steve Jobs’ fortune estimated to be a cool $6.1 billion. This is made even more significant by the milestone that Apple achieved earlier this year, where they overtook Microsoft for the first time ever to become the world’s largest technology firm. Even though their rivals continue to earn nearly triple the profit Apple do, this is seen as a vital step to the business solidifying it’s position as the most, or one of the most, influential in the advancement of technology.

In the UK especially we seem to love Apple products. Worldwide, iPhones outsold Blackberrys in the last quarter, selling 14.1 million handsets between July and September. In Britain this trend is reflected, where the iPhone has become the fastest selling smartphone, catching up with the leader Nokia, who shifted 26.5 million handsets.

However, Apple enjoys less success in the United States, where Blackberrys are leading the line with a 36% share of the smartphone market, while Google’s Android operating system has recently pushed the iPhone into third place. In the near future this doesn’t seem likely to change as the number of apps that will become available to Android users is tipped to better Apple’s own App Store. However, as the iPhone 4’s own slogan has proved with increased sales, Apple can “change everything. Again”.

Of course, the story cannot be told just by sales figures and growth rates. Apple has shaped technology in the 21st century and will do for years to come. It has kept its rivals on their toes, and with the arrival of the extraordinary iPad, this has prompted other companies to bring out new versions of the tablet device in order to compete with this success. The iPod however has no realistic rival, and has been an iconic symbol for media players since it was created. It has made the transition of music from your computer, to your iPod ready so you can walk the dog, only a matter of minutes. This means listening to music, looking at your bank balance, or even destroying green pigs with a flock of birds is easier than it ever has been.

What is more important is that Apple seems to keep it’s customers happier than any other company. In terms of the iPhone 89% of owners said they were very satisfied with it and would consider upgrading to a future generation of the iPhone, while only 71% of Android users were happy with their device. These statistics are vital, showing that Apple have the edge in attracting, and more importantly, keeping customers.

There is no sign of Apple slowing down either, with the IT juggernaut topping $3 billion profit in the second quarter of 2010, beating the same quarter last year by over $1 billion. This has been helped by the increasing demand for iMacs and its sister products, including the MacBook. Apple’s trick is that they make their products look extremely fashionable. I myself am a victim of this, after self-professing I’d never buy any Apple products I went and bought an iPod Classic in January 2009 and an iPhone 4 only last week. This mix of desirability and fashion has led to Fortunes magazine naming Apple the most admired company in the world for the past three years.

So, can anyone stop Apple? Yes, it can be seen that Apple has met its fiercest competition yet, certainly in the phone market. However at the moment they’ve still got their noses in front. Microsoft and Google have got their work cut out if they are to replace Apple at the top of the tree anytime soon, but this can only improve the market as a whole.

So who knows, Apple’s sales could drop over the next few years, establishing a new world leader in technology, but what is sure is that the battle within the technology market is definitely an enthralling one. It might even take an event such as an apple falling on a director’s head to provide the spark for the stand out product of 2011.

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