Apple Ind

Industry Analysis
The computer industry includes a wide variety of products, from mp3
players and printers to personal computers and powerful servers. Companies
have trouble operating within the computer industry, namely due to the dynamic
nature of technology. Moore’s law, formulated by Gordon Moore in 1965, states
that the numbers of transistors per square inch on integrated circuits will double
every 18 months, and prices will be reduced. This means even the largest firms
must stay on their toes, as the industry is constantly changing and redefining its
parameters.
Apple Computer Inc. has recently made headlines by breaking into the
portable music market with its introduction of the Apple iPod and iTunes
software. Apple also carries a long line of computer products including personal
computers, computer accessories, servers, networking solutions, and software
packages. Currently capturing a market share of 65% among the portable music
market, and holding a profitable 2% of the personal computer market, Apple has
consistently kept its name in the industry.1,12 Apple has stayed afloat in the
industry by keeping an eye for aesthetics and creativity, coupled with user
friendly and innovative products.

Industry Demand Drivers
The drivers for new growth in the industry historically has been achieved
through the introduction of innovative products and/or efficiently and cost
effectively producing existing products. Apple and Dell have each capitalized on
one of these methods and are currently experiencing the highest levels of
success within the industry. Other demand drivers typically have encompassed
increased speed, memory, usability, and stylish designs.
Growth in the personal computer market is expected to decrease in 2005
due to the lack of new product introductions, resulting from the highly developed
market. However, the portable music sector has experienced tremendous
growth and is forecasted to continue this trend in the near...