Apple in 2005: Moving into the Mainstream?


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Case Details:

Case Code : BSTA118
Case Length : 13 Pages
Period : -
Organization : -
Pub Date : 2005
Teaching Note :Not Available
Countries : USA
Industry : -

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Introduction

In May 2005, Steve Jobs (Jobs), CEO of Apple Computers (Apple), announced that Apple might start using Intel microprocessors in its PC business from 2006. With this unprecedented move, Apple surprised its competitors, customers and suppliers. Traditionally, Apple had stayed away from the Wintel model (companies that used Microsoft's Windows software and Intel's microprocessors).

Meanwhile, Apple had made a strong comeback in the recent past with its iPod music player and online music portal iTunes. Notwithstanding the success of iPod and iTunes, Apple's future in the IT industry was by no means guaranteed.

In the past, Apple had squandered its lead in the PC market, despite having great products. Even in 2005, Apple was considered as a niche player, with no significant presence in the mainstream market. Many rivals considered Apple to be heavily dependent on iPod.

Apple's change of heart to use Intel chips seemed to mark a turning point. Would this move pay off and finally take Apple into the mainstream?...

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