Apple IPod Summary The company started off as Apple Computer by Steve Jobs and Steve Wozniak, a pair

of 20 something college dropouts in 1976. Despite a strong brand, rapid growth and high profit in the late 1980s, Apple almost went bankrupt in 1996. Jobs then went to work and transformed Apple Computers into Apple Inc with innovative and technologically sophisticated non-PC products in 2000s. By 2010, the company also viewed itself as a mobile device company. Apple became the fourth largest PC vendor in the US market with an 8% share by the end of 2009. Its market capitalization went to $220 billion in spring of 2010. Through multi-million dollar marketing campaigns such as the successful Think Different ads and catch slogan, Apple promoted itself as a hip alternative to other computer brands. It also highlighted its computers as the world greenest lineup of notebooks. The goal of Apple is to differentiate its products amid intense competition in the PC and mobile device industry. Target Market: The target market for Apple falls into the following categories: Home users, small and medium sized business, education segment, younger generation and creative individuals call the Mac users. Apple retail store concept helped consumers to look at the eyecatching products as well as directly use and experience Apples software. Products: The successful product line of Apple Inc. consists of Macintosh, iPod series, iPhone series, iPad, iMac. Apple had two notable products that failed to live up to expectation namely Mac Mini and Apple TV. Competitors: Jobs viewed Apples control of both hardware and software as strength. Apple has a highly innovative product line that aims to deliver a cutting-edge, highly integrated user experience. Since Apple Inc. has a diverse product line, it faces competition from mobile industry as well as PC industry.

Situational Analysis

Alternative Recommendations: 1. Apple can strengthen the relationship with the PC industry giants like Intel and Microsoft and enter into joint ventures with others like Samsung and Motorola, to bring out new hits. 2. Innovation and thinking differently has always been the key success factor of Apple. It has always been the first one to create technically elegant products and others have followed it. Apple should keep innovating new products to stay ahead of competition. 3. Apple should remove proprietary, and support open source development to attract more developers around the world to write applications for Apple products. 4. International expansion is a great opportunity for Apple Inc. to fight competition. 5. Apple Inc. presence in the United States and some parts of Europe is very strong. But it has not really broken the international barrier and taken any other countries by storm e.g. Asian market. In many countries like India and China, there is a huge population of younger

generation, whose inclination towards innovative and technically sophisticated products is rapidly increasing. So if Apple penetrates into those markets, it could probably increase its market share and sustain its competitive advantage. Its competitors like HP, Lenovo, Dell, Nokia etc. have a strong presence in the US as well as in international market. If Apple has surpassed IBM, HP, Intel and rest of the tech-world experts in the US, it can win over them in other markets too. So Apples plan should be to go international, to grow and sustain its domination in the competitive industry. Implication for Marketing Mix Product: Apple should continue with its innovative products internationally. Mobile technology is a fast growing technology in Asian countries like India and China. So focus on mobile devices in Asian countries would be a smart step. Price: Apple should focus on the buying power of international market. It can go for medium pricing for the price sensitive Asian market and may be medium-high pricing for European and similar market. Promotion: Apple should continue promotion of its products on the ground of innovation, style and technical elegance, internationally. Place: Superstores like Wal-mart and best-buy in European market and online sale, shopping malls and education sector in Asian market.

Key Highlights:1. On October 23, 2001, Apple introduced the iPod digital music player. Several updated models have since been introduced, and the iPod brand is now the market leader in portable music players by a significant margin, with more than 350 million units shipped as of September 2012. Apple has partnered with Nike to offer the Nike+iPod Sports Kit, enabling runners to synchronize and monitor their runs with iTunes and the Nike+ website. Apple currently sells four variants of the iPod: iPod Shuffle: Ultra-portable digital audio player, currently available in a 2 GB model, introduced in 2005. iPod Nano: Portable media player, currently available in a 16 GB model, introduced in 2005. Earlier models featured the traditional iPod click wheel, though the current generation features a multi-touch interface and includes an FM radio and a pedometer.

iPod Touch: Portable media player than runs iOS, currently available in 32 and 64 GB models, introduced in 2007. The current generation features the Apple A5 processor, a Retina display, and dual cameras on the front (1.2 megapixel sensor) and back (5 megapixel iSight), the latter of which supports HD video recording at 1080p. iPod Classic: Portable media player, currently available in a 160 GB model, first introduced in 2001.