CDGI’S

CHAMELI DEVI SCHOOL OF ENGINEERING, INDORE

Evolution of Apple

by

Nishant Deo

(0832ec111050)

Mr. Vivek Trivedi

(Guide Coordinator)

DEPARTMENT OF ELECTRONICS AND COMMUNICATION ENGINEERING

VI SEMESTER 2014 – 2015

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First Page:

CDGI’S

CHAMELI DEVI SCHOOL OF ENGINEERING, INDORE

Evolution of Apple

by

Nishant Deo

(0832ec111050)

Mr. Vivek Trivedi

(Guide Coordinator)

DEPARTMENT OF ELECTRONICS AND COMMUNICATION ENGINEERING

VI SEMESTER 2014 – 2015

2

Certificate:

CDGI’SCHAMELI DEVI SCHOOL OF ENGINEERING,

INDOREDEPARTMENT OF ELECTRONICS AND

COMMUNICATION ENGINEERINGVI SEMESTER 2014 – 2015

CERTIFICATECertified that this is the bona fide record of the seminar report on

Evolution of Apple

Carried out by

Nishant Deo (0832ec111050)

of VI semester (Department of Electronics and communication Engineering) during the Even Semester 2014 – 15. He / She has satisfactorily completed the seminar report and presentation as prescribed by the Rajiv Gandhi Technical University, Bhopal, in partial fulfillment towards the award of B.E. Degree in Electronics and communication Engineering.

Signature of Guide Signature of Seminar coordinator(Name : Mr. Vivek Trivedi ) (Name:Miss Hemant Dubey)Date: Date:

Signature of HOD (Name: ________)

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Acknowledgement:

CDGI’SCHAMELI DEVI SCHOOL OF ENGINEERING,

INDOREDEPARTMENT OF ELECTRONICS AND

COMMUNICATION ENGINEERINGVI SEMESTER 2014 – 2015

ACKNOWLEDGEMENTI have immense pleasure in expressing my sincerest and deepest sense of

gratitude towards my Guide Mr. Vivek Trivedi (Guide Coordinator) for the

assistance in preparing and presenting the seminar. I also take this opportunity

to thank Seminar Coordinator and Head of the department, for providing the

required facilities in completing my seminar report.

I am greatly thankful to my Parents, Friends and Faculty members for their

motivation, guidance and help whenever needed.

Nishant Deo

(0832ec111050)

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Contents of the report:

Contents

Chapter No. Description Page numbers.Certificate 3

Acknowledgement 4

Contents 5Synopsis 6

Pre-Foundation 8

Apple 1 9

Apple 2 10

Apple 3 11

The Apple IPO 12

Xerox PARC and The Lisa 13

The release of Macintosh 14

1985 –Steve Jobs leaves Apple 15

The Apple II family of the 1980 ‘s 16

The Mac family 16

The early-mid 1990s 16

1997: The Return of Jobs 17

CEO 17

The Microsoft deal 17

1998- 2001: Apple's Renaissance 18

The iMac, iBook, and Power Mac G4 18

Mac OS X 18

The iPod 19

Apple retail stores 19

The Intel transition 22

Apple and "i" Web services 22

5

iPod and iTunes Store 24

iOS Evolution - iPhone & iPad 26

Products of Apple 27

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Synopsis

Apple Inc. (NASDAQ: AAPL; previously Apple Computer, Inc.) is an American multinational

corporation that designs and markets consumer electronics, computer software, and personal

computers. The company's best-known hardware products include the Macintosh line of computers,

the iPod, the iPhone and the iPad. Apple software includes the Mac OS X operating system;

the iTunes media browser; the iLife suite of multimedia and creativity software; the iWork suite of

productivity software; Aperture, a professional photography package; Final Cut Studio, a suite of

professional audio and film-industry software products; Logic Studio, a suite of music production

tools; the Safari internet browser; and iOS, a mobile operating system. As of August 2010, the

company operates 301 retail stores in ten countries, and an online store where hardware and software

products are sold. As of May 2010, Apple is one of the largest companies in the world and the most

valuable technology company in the world, having surpassed Microsoft.

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1969-1984: Jobs and Wozniak

Pre-foundation

Garage of Steve Jobs' parents on Crist Drive in Los Altos, California

Steve Jobs and Steve Wozniak were outcasts while they were in high school; by 1975, they had withdrawn from Reed College and UC Berkeley, respectively. Wozniak designed a video teletype that he could use to log on to the minicomputers at Call Computer. Alex Kamradt commissioned the design and sold a small number of them through his firm. Aside from their interest in up-to-date technology, the impetus for "the two Steves" seems to have had another source. In his essay From Satori to Silicon Valley (published 1986), cultural historian Theodore Roszak made the point that the Apple Computer emerged from within the West Coast counterculture and the need to produce print-outs, letter labels, and databases. Roszak offers a bit of background on the development of the two Steves’ prototype models.

In 1975, Wozniak started attending meetings of the Homebrew Computer Club. New microcomputers such as the Altair 8800 and the IMSAI inspired him to build a microprocessor into his video teletype and have a complete computer.

At the time the only microcomputer CPUs generally available were the US$179 Intel 8080, and the US$170Motorola 6800. Wozniak preferred the 6800, but both were out of his price range. So he watched, and learned, and designed computers on paper, waiting for the day he could afford a CPU.

When MOS Technology released its US$20 6502 chip in 1976, Wozniak wrote a version of BASIC for it, then began to design a computer for it to run on. The 6502 was designed by the same people who designed the 6800, as many in Silicon Valley left employers to form their own companies. Wozniak's earlier 6800 paper-computer needed only minor changes to run on the new chip.

Wozniak completed the machine and took it to Homebrew Computer Club meetings to show it off. At the meeting, Wozniak met his old friend Jobs, who was interested in the commercial potential of the small hobby machines.

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The Apple I

The very first Apple Computer logo, drawn by Ronald Wayne, depicts Isaac Newton under an apple tree.

The Apple logo in 1977 created by Rob Janoff with the rainbow color theme used until 1998.

Steve Jobs and Steve Wozniak had been friends for some time, having met in 1971, when their mutual friend, Bill Fernandez, introduced 21-year-old Wozniak to 16-year-old Jobs. Jobs managed to interest Wozniak in assembling a machine and selling it.

Jobs approached a local computer store, The Byte Shop, who said they would be interested in the machine, but only if it came fully assembled. The owner, Paul Terrell, went further, saying he would order 50 of the machines and pay US $500 each on delivery. Jobs then took the purchase order that he had been given from the Byte Shop to Cramer Electronics, a national electronic parts distributor, and ordered the components he needed to assemble the Apple I Computer. The local credit manager asked Jobs how he was going to pay for the parts and he replied, "I have this purchase order from the Byte Shop chain of computer stores for 50 of my computers and the payment terms are COD. If you give me the parts on a net 30 day terms I can build and deliver the computers in that time frame, collect my money from Terrell at the Byte Shop and pay you."

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With that, the credit manager called Paul Terrell who was attending an IEEE computer conference at Asilomar in Pacific Grove and verified the validity of the purchase order. Amazed at the tenacity of Jobs, Terrell assured the credit manager if the computers showed up in his stores Jobs would be paid and would have more than enough money to pay for the parts order. The two Steves and their small crew spent day and night building and testing the computers and delivered to Terrell on time to pay his suppliers and have a tidy profit left over for their celebration and next order. Steve Jobs had found a way to finance his soon-to-be multimillion-dollar company without giving away one share of stock or ownership.

The machine had only a few notable features. One was the use of a TV as the display system, whereas many machines had no display at all. This was not like the displays of later machines, however; text was displayed at a terribly slow 60 characters per second. However, this was still faster than the teletypes used on contemporary machines of that era. The Apple I also included bootstrap code onROM, which made it easier to start up. Finally, at the insistence of Paul Terrell, Wozniak also designed a cassette interface for loading and saving programs, at the then-rapid pace of 1200 bit/s. Although the machine was fairly simple, it was nevertheless a masterpiece of design, using far fewer parts than anything in its class, and quickly earning Wozniak a reputation as a master designer.

Joined by another friend, Ronald Wayne, the three started to build the machines. Using a variety of methods, including borrowing space from friends and family, selling various prized items (like calculators and a VW bus) and scrounging, Jobs managed to secure the parts needed while Wozniak and Wayne assembled them. But the owner of the Byte Shop was expecting complete computers, not just printed circuit boards. The boards still being a product for the customers Terrell still paid them. Eventually 200 of the Apple I's were built.

The Apple II

But Wozniak had already moved on from the Apple I. Many of the design features of the I were due to the limited amount of money they had to construct the prototype, but with the income from the sales he was able to start construction of a greatly improved machine, the Apple II; it was presented to the public at the first West Coast Computer Faire on April 16 and April 17, 1977. On the first day of exhibition, Jobs introduced Apple II to aJapanese chemist named Toshio Mizushima who became the first authorized Apple dealer in Japan.

The main difference internally was a completely redesigned TV interface, which held the display in memory. Now not only useful for simple text display, the Apple II included graphics, and, eventually, color. Jobs meanwhile pressed for a much improved case and keyboard, with the idea that the machine should be complete and ready to run out of the box. This was almost the case for the Apple I machines sold to The Byte Shop, but one still needed to plug various parts together and type in the code to run BASIC.

Building such a machine was going to be fiscally burdensome. Jobs started looking for cash, but Wayne was somewhat gun shy due to a failed venture four years earlier, and eventually dropped out of the company. Banks were reluctant to lend Jobs money; the idea of a

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computer for ordinary people seemed absurd at the time. Jobs eventually met "Mike" Markkula who co-signed a bank loan for US$250,000, and the three formed Apple Computer on April 1, 1976. Why Apple? At the time, the company to beat was Atari, and Apple Computer came before Atari alphabetically and thus also in the phone book. Another reason was that Jobs had happy memories of working on an Oregon apple farm one summer.

With both cash and a new case design in hand thanks to designer Jerry Manock, the Apple II was released in 1977 and became the computer generally credited with creating the home computer market. Millions were sold well into the 1980s. A number of different models of the Apple II series were built, including the Apple IIe and Apple IIGS, which could still be found in many schools as late as 2005.

The Apple III

Apple III

By the early 1980s, Apple Computer faced increasing competition. While the Apple II was already established as a successful business-ready platform because of Visicalc, Apple was not content. The Apple III (Apple 3) was designed to take on the IBM PC in the business environment.

The Apple III was a relatively conservative design for computers of the era. However, Steve Jobs did not want the computer to have a fan; rather, he wanted the heat generated by the electronics to be dissipated through the chassis of the machine, forgoing the cooling fan.

Unfortunately, the physical design of the case was not sufficient to cool the components inside it. By removing the fan from the design, the Apple III was prone to overheating. This caused the integrated circuit chips to disconnect from the motherboard. Customers who contacted Apple customer service were told to "drop the computer on the desk", which would cause the ICs to fall back in to place.

Thousands of Apple III computers were recalled and, although a new model was introduced in 1983 to rectify the problems, the damage was already done.

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The Apple IPO

On December 12, 1980, Apple launched the Initial Public Offering of its stock to the investing public. When Apple went public, it generated more capital than any IPO since Ford Motor Company in 1956 (as claimed in two books and ICon: Steve Jobs ) and instantly created more millionaires (about 300) than any company in history. Several venture capitalists cashed out, reaping billions in long-term capital gains.

In January 1981, Apple held its first shareholders meeting as a public company in the Flint Center, a large auditorium at nearby De Anza College, which is often used for symphony concerts. (Previous meetings were held quietly in smaller rooms, because there had only been a few shareholders.) The business of the meeting had been planned (or choreographed) so that the voting could be staged in 15 minutes or less. In most cases, voting proxies are collected by mail and counted days or months before a meeting. In this case, after the IPO, many shares were in new hands.

Steve Jobs started his prepared speech, but after being interrupted by voting several times, he dropped his prepared speech and delivered a long, emotionally charged talk about betrayal, lack of respect, and related topics.

Xerox PARC and the Lisa

Lisa

While Apple Computer’s business division was focused on the Apple III, a separate group was focused on a computer that would change the world. While the Apple III was another iteration of the text-based computer, this new machine would feature a completely different

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interface and introduce the words mouse, icon, and desktop into thelexicon of the computing public.

In return for the right to buy US$1,000,000 of pre-IPO stock, Xerox granted Apple Computer three days access to the PARC facilities. After visiting PARC, they came away with new ideas that would complete the foundation for Apple Computer's first GUI computer, theApple Lisa.(Popular folklore states that "Lisa" was Steve Jobs' first daughter; Apple maintains it means Locally Integrated Software Architecture.)

Apple Computer's engineers did not come up with the LISA interface overnight. In fact, the first iteration of the soon-ubiquitous WIMPinterface was a poorly-drawn picture of a floppy disk. It was only after months of usability testing and work that Apple settled on the LISA interface of windows and icons.

The Lisa was introduced in 1983 at a cost of US$9,995. Because of the high price, it failed to penetrate the market, however it was a useful proof of concept.

The release of the Macintosh and the 1984 commercial

The Macintosh 128k was announced to the press in October 1983, followed by an 18-page brochure included with various magazines in December. Its debut, however, was announced by a single national broadcast of the now famous US$1.5 million television commercial, "1984". It was directed by Ridley Scott, aired during the third quarter of Super Bowl XVIII on January 22, 1984, and is now considered a "watershed event" and a "masterpiece."1984 used an unnamed heroine to represent the coming of the Macintosh (indicated by her white tank top with a Picasso-style picture of Apple’s Macintosh computer on it) as a means of saving humanity from "conformity" (Big Brother).[16] These images were an allusion to George Orwell's noted novel, Nineteen Eighty-Four, which described a dystopian future ruled by a televised "Big Brother."

For a special post-election edition of Newsweek in November 1984, Apple spent more than US$2.5 million to buy all 39 of the advertising pages in the issue. Apple also ran a “Test Drive a Macintosh” promotion, in which potential buyers with a credit card could take home a Macintosh for 24 hours and return it to a dealer afterwards. While 200,000 people participated, dealers disliked the promotion, the supply of computers was insufficient for demand, and many were returned in such a bad shape that they could no longer be sold. This marketing campaign caused CEO John Sculley to raise the price from US$1,995 to US$2,495 (adjusting for inflation, about US$5,000 in 2007).

Two days after the 1984 ad aired, the Macintosh went on sale. It came bundled with two applications designed to show off its interface: MacWrite and MacPaint. Although the Mac garnered an immediate, enthusiastic following, it was too radical for some, who labeled it a mere "toy". Because the machine was entirely designed around the GUI, existing text-mode and command-driven applications had to be redesigned and the programming code rewritten; this was a challenging undertaking that many software developers shied away from, and resulted in an initial lack of software for the new system. In April

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1984 Microsoft's MultiPlan migrated over from MS-DOS, followed by Microsoft Word in January 1985. In 1985, Lotus Software introduced Lotus Jazz after the success of Lotus 1-2-3 for the IBM PC, although it was largely a flop. Apple introducedMacintosh Office the same year with the lemmings ad, infamous for insulting potential customers. It was not successful.

Macintosh also spawned the concept of Mac evangelism which was pioneered by Apple employee, and laterApple Fellow, Guy Kawasaki.

Despite initial marketing difficulties, the Macintosh brand was eventually a success for Apple. This was due to its introduction of desktop publishing (and later computer animation) through Apple's partnership with Adobe Systems which introduced the laser printer and Adobe PageMaker. Indeed, the Macintosh would become known as the de-facto platform for many industries including cinema, music, advertising, publishing and the arts.

While it did briefly license some of its own designs, Apple did not allow other computer makers to "clone" the Mac until the 1990s, long after Microsoft dominated the marketplace with its broad licensing program. By then, it was too late for Apple to reclaim its lost market share and the Macintosh clones achieved limited success before being axed after Steve Jobs returned to Apple Computer in 1997

1985: Jobs leaves Apple

After an internal power struggle the board of directors sided with Sculley and Jobs was asked to resign. Jobs then co-founded the visual effects house, Pixar. He also went on to found NeXT Inc., a computer company that built machines with futuristic designs and ran the UNIX-derived NeXTstep operating system. NeXTSTEP would eventually be developed into Mac OS X. While not a commercial success due in part to its high price, the NeXT computer would introduce important concepts to the history of the personal computer (including serving as the initial platform for Tim Berners-Lee as he was developing the (World Wide Web).

1985-1997: Sculley, Spindler, Amelio

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Macintosh SE

Corporate Performance

Under leadership of John Sculley, Apple issued its first corporate stock dividend on May 11, 1987. A month later on June 16, Apple stock split for the first time in a 2:1 split. Apple kept a quarterly dividend with about 0.3% yield until November 21, 1995., August 2010 Between March 1988 and January 1989, Apple undertook five acquisitions, including software companies Network Innovations,Styleware, Nashoba Systems, and Coral Software, as well as satellite communications company Orion Network Systems.

The Apple II family of the 1980s

Apple now had two separate, incompatible platforms: the Apple II, an affordable, expandable home computer, and the Apple Macintosh, the closed platform for professionals. John Gruber, among others, has speculated that this platform incompatibility was the main reason the Macintosh did not share the initial commercial success which was experienced by the Apple II in the late 1970s. However, by the mid - 1980s, the Apple II was now competing with the IBM PC and its clones, and a new energy was focused upon marketing the Macintosh.

Thus, Apple continued to sell both lines promoting them to different market segments: the Macintosh to colleges, college students, and knowledge workers, and the Apple II to home users and public schools. A few months after introducing the Mac, Apple released a compact

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version of the Apple II called the Apple IIc. And in 1986 Apple introduced the Apple IIgs, an Apple II positioned as something of a hybrid product with a mouse-driven, Mac-like operating environment. Apple II computers remained an important part of Apple's business until they were discontinued in the early 1990s.

The Mac family

At the same time, the Mac was becoming a product family of its own. The original model evolved into the Mac Plus in 1986 and spawned the Mac SE and the Mac II in 1987 and the Mac Classic and Mac LC in 1990. Meanwhile, Apple attempted its first portable Macs: the failed Macintosh Portable in 1989 and then the more popular PowerBook in 1991, a landmark product that established the modern form and ergonomic layout of thelaptop. Popular products and increasing revenues made this a good time for Apple. MacAddict magazine has called 1989 to 1991 the "first golden age" of the Macintosh.

On February 19, 1987, Apple registered the "Apple.com" domain name, making it one of the first hundred companies to register a .com address on the nascent Internet.

The early-mid 1990s

In the late 1980s, Apple's fiercest technological rivals were the Amiga and Atari ST platforms. But by the 1990s, computers based on the IBM PC had become more popular than all three; they finally had a comparable GUIthanks to Windows 3.0, and were out-competing Apple.

Apple's response to the PC threat was a profusion of new Macintosh lines including Quadra, Centris, andPerforma. Unfortunately, these new lines were marketed poorly. For one, there were too many models, differentiated by very minor graduations in their tech specs. The excess of arbitrary model numbers confused many consumers and hurt Apple's reputation for simplicity. Apple's retail resellers like Sears and CompUSAoften failed to sell or even competently display these Macs. Compounding matters was the fact while the machines were cheaper than a comparable PC (counting all the things built in which had to be added to the 'bare bones PC') the poor marketing gave the impression that the machines were more expensive.

In 1991, Apple partnered with long-time competitor IBM to form the AIM alliance. The ultimate goal was to create a revolutionary new computing platform, known as PReP, which would use IBM and Motorola hardware and Apple software. As the first step toward the PReP platform, Apple started the Power Macintosh line in 1994, using IBM's PowerPC processor. These processors used a RISC architecture, which differed substantially from the Motorola 680X0 series that were used by all previous Macs. Parts of Apple's operating system software were rewritten so that most software written for older Macs could run in emulation on the PowerPC series. Apple also refused IBM's offer to purchase the company, but later unsuccessfully sought another offer from IBM.

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In addition to computers, Apple has also produced consumer devices. In 1993, Apple released the Newton, an early PDA. Though it failed commercially, it defined and launched the category and was a forerunner and inspiration of devices such as Palm Pilot and Pocket PC.

1997: The Return of Jobs

In 1996, the struggling NeXT company beat out Be Inc.'s BeOS in its bid to sell its operating system to Apple. Apple purchased Steve Jobs' company, NeXT on December 10, 1996, and its NeXT step operating system. This would not only bring Steve Jobs back to Apple's management, but NeXT technology would become the foundation of the Mac OS X operating system.

On November 10, 1997, Apple introduced the Apple Store, an online retail store based upon the WebObjects application server the company had acquired in its purchase of NeXT. The new direct sales outlet was also tied to a new build-to-order manufacturing strategy.

CEO

On July 9, 1997, Gil Amelio was ousted as CEO of Apple by the board of directors after turning the company around from a multibillion loss to a $25 million dollar profit.Jobs stepped in as the interim CEO to begin a critical restructuring of the company's product line. He would eventually become CEO and has served in that position to the present day.

The Microsoft deal

At the 1997 Macworld Expo, Steve Jobs announced that Apple would be entering into partnership with Microsoft. Included in this was a five-year commitment from Microsoft to release Microsoft Office for Macintosh as well a US$150 million investment in Apple. It was also announced that Internet Explorer would be shipped as the default browser on the Macintosh. Microsoft chairman Bill Gates appeared at the expo on-screen, further explaining Microsoft's plans for the software they were developing for Mac, and stating that he was very excited to be helping Apple return to success. After this, Steve Jobs said this to the audience at the expo:

If we want to move forward and see Apple healthy and prospering again, we have to let go of a few things here. We have to let go of this notion that for Apple to win, Microsoft has to lose. We have to embrace a notion that for Apple to win, Apple has to do a really good job. And if others are going to help us that's great, because we need all the help we can get, and if we screw up and we don't do a good job, it's not somebody else's fault, it's our fault. So I think that is a very important perspective. If we want Microsoft Office on the Mac, we better treat the company that puts it out with a little bit of gratitude; we like their software.

So, the era of setting this up as a competition between Apple and Microsoft is over as far as I'm concerned. This is about getting Apple healthy, this is about Apple being able to make incredibly great contributions to the industry and to get healthy and prosper again.

1998- 2001: Apple's Renaissance

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The original iMac

The iMac, iBook, and Power Mac G4

While discontinuing Apple's licensing of its operating system to third-party computer manufacturers, one of Jobs's first moves as new acting CEO was to develop the iMac, which bought Apple time to restructure. The original iMac integrated a CRT display and CPU into a streamlined, translucent plastic body. The line became a sales smash, moving about one million units a year. It also helped re-introduce Apple to the media and public, and announced the company's new emphasis on the design and aesthetics of its products.

More recent products include the iBook, the Power Mac G4, and the AirPort product series, which helped popularize the use of Wireless LAN technology to connect computers to networks.

In 1999, Apple introduced the Power Mac G4, which utilized the Motorola-made PowerPC 7400 containing a 128-bit instruction unit known as AltiVec, its flagship processor line. Also that year, Apple unveiled the iBook, its first consumer-oriented laptop that was also the first Macintosh to support the use of Wireless LAN via the optional AirPort card that was based on the 802.11b standard.

Mac OS X

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Company headquarters on Infinite Loop in Cupertino

In 2001, Apple introduced Mac OS X, an operating system based onNeXT's NeXTstep and the FreeBSD kernel. Aimed at consumers and professionals alike, Mac OS X married the stability, reliability and security of Unix with the ease of a completely overhauled user interface. To aid users in transitioning their applications from Mac OS 9, the new operating system allowed the use of Mac OS 9 applications through the Classic environment. Apple's Carbon API also allowed developers to adapt their Mac OS 9 software to use Mac OS X's features.

Apple retail stores

In May 2001, after much speculation, Apple announced the opening of a line of Apple retail stores, to be located throughout the major U.S. computer buying markets. The stores were designed for two primary purposes: to stem the tide of Apple's declining share of the computer market, as well as a response to poor marketing of Apple products at third-party retail outlets.

The iPod

In October 2001, Apple introduced its first iPod portable digital audio player. The iPod started as a 5 gigabyte player capable of storing around 1000 songs. Since then it has evolved into an array of products including theMini (now discontinued), the iPod Touch, the Shuffle, the iPod Classic, the Nano, and the iPhone. As of March 2010, the largest storage capacity for an iPod was 160 gigabytes.

2002 - Present: the iTunes-iOS Juggernaut

In early 2002, Apple unveiled a redesigned iMac, using the G4 processor. The new design had a hemispherical base and a flat panel all-digital display supported by a swiveling neck. This model was discontinued in the summer of 2004.

In 2002, Apple also released the Xserve 1U rack mounted server. Originally featuring two G4 chips, the Xserve was unusual for Apple in two ways. It represented an earnest effort to enter the enterprise computer market and it was also relatively cheaper than similar machines released by its competitors. This was due, in no small part, to Apple's use of Fast ATA drives as opposed to the SCSI hard drives used in traditional rack-mounted servers. Apple later released the Xserve RAID, a 14 drive RAID which was, again, cheaper than competing systems.

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In mid-2003, Steve Jobs launched the Power Mac G5, based on IBM's G5 processor. Apple claims this was the first 64-bit computer sold to the general public, but in fact that title actually goes to the AMD Opteron line (Opteron processors were however marketed more directly to the enterprise for use in rackmount servers and in workstations). Both 64-bit CPUs were pre-dated by the 64-bit Alpha architecture, although the Alpha was aimed more at servers and workstations and not at the "general public." The Power Mac G5 was also used by Virginia Tech to build its prototype System X supercomputing cluster, which at the time garnered the prestigious recognition of the third fastest supercomputer in the world. It cost only US$5.2 million to build, far less than the previous #3 and other ranking supercomputers. Apple's Xserves were soon updated to use the G5 as well. They replaced the Power Mac G5 machines as the main building block of Virginia Tech's System X, which was ranked in November 2004 as the world's seventh fastest supercomputer.[30]

A new iMac based on the G5 processor was unveiled August 31, 2004 and was made available in mid-September. This model dispensed with the base altogether, placing the CPU and the rest of the computing hardware behind the flat-panel screen, which is suspended from a streamlined aluminium foot. This new iMac, dubbed the iMac G5, is the world's thinnest desktop computer, measuring in at around two inches (around 5 centimeters).

2004, however, was a turning point for Apple. After creating a sizable financial base to work with, the company began experimenting with new parts from new suppliers. As a result Apple was able to produce new designs so quickly over a short amount of time, with the release of the iPod Video, then the iPod Classic, and eventually the iPod touch and iPhone. Each Apple product thus far has been under equally high demand.

Through the 1990s, personal computers based on Microsoft's Windows operating system began to gain a much larger percentage of new computer users than Apple. As a result, Apple fell from controlling 20% of the total personal computer market to 5% by the end of the decade. The company was struggling financially under then-CEO Gil Amelio when on August 6, 1997 Microsoft bought a US$150 million non-voting share of the company as a result of a court settlement with Apple. Perhaps more significantly, Microsoft simultaneously announced its continued support for Mac versions of its office suite, Microsoft Office, and soon created a Macintosh Business Unit. This reversed the earlier trend within Microsoft that resulted in poor Mac versions of their software and has resulted in several award-winning releases. However, Apple's market share continued to decline, reaching 3% by 2004.

Initially, the Apple Stores were only opened in the United States, but in late 2003, Apple opened its first Apple Store abroad, in Tokyo's Ginza district. Ginza was followed by a store in Osaka, Japan in August 2004. In 2005, Apple opened stores in Nagoya, the Shibuya district of Tokyo, Fukuoka, and Sendai. Another store was opened in Sapporo in 2006. Apple's first European store opened in London in November 2004, and is currently the largest store. A store in the Bullring shopping centre in Birmingham opened in April 2005, and the Bluewatershopping centre in Kent opened in July 2005. Apple opened its first store in Canada in the middle of 2005 at theYorkdale Shopping Centre in North York, Toronto. Later on in 2005 Apple opened the Meadowhall Store inSheffield and the Trafford Centre Store

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in Manchester (UK). Recent additions in the London area include theBrent Cross Apple Store (January 2006) and the Apple Store in Westfield in Shepherd's Bush (September 2008).

Also, in an effort to court a broader market, Apple opened several "mini" stores in October 2004 in attempt to capture markets where demand does not necessarily dictate a full scale store. The first of these stores was opened at Stanford Shopping Center in Palo Alto, California. These stores follow in the footsteps of the successful Apple products: iPod mini and Mac mini. These stores are only one half the square footage of the smallest "normal" store and thus can be placed in several smaller markets.

On April 29, 2005, Apple released Mac OS X v10.4 "Tiger" to the general public.

Apple's wildly successful PowerBook and iBook products relied on Apple's previous generation G4 architecture which were produced by Freescale Semiconductor, a spin off from Motorola. Engineers at IBM had minimal success in making their PowerPC G5 processor consume less power and run cooler but not enough to run in iBook or PowerBook formats. As of the week of October 24, 2005. Apple released the Power Mac G5 Dual that features a Dual-Core processor. This processor contains two cores in one rather than have two separate processors. Apple has also developed the Power Mac G5 Quad that uses two of the Dual-Core processors for enhanced workstation power and performance. The new Power Mac G5 Dual cores run individually at 2.0 GHz or 2.3 GHz. The Power Mac G5 Quad cores run individually at 2.5 GHz and all variations have a graphics processor that has 256-bit memory bandwidth.

The Intel transition

In a keynote address on June 6, 2005, Steve Jobs officially announced that Apple will begin producing Intel-based Macintosh computers beginning in 2006.Jobs confirmed rumors that the company had secretly been producing versions of its current operating system Mac OS X for both PowerPC and Intel processors over the past 5 years, and that the transition to Intel processor systems would last until the end of 2007. Rumors of cross-platform compatibility had been spurred by the fact that Mac OS X is based on OPENSTEP, an operating system that was available for many platforms. In fact, Apple's own Darwin, the open source underpinnings of Mac OS X, was also available for Intel's x86 architecture.

On January 10, 2006, the first Intel-based machines, the iMac and MacBook Pro, were introduced.[36][37] They were based on the Intel Core Duo platform. This introduction came with the news that Apple will complete the transition to Intel processors on all hardware by the end of 2006, a year ahead of the originally quoted schedule.

In January 2007, Apple Computer, Inc. shortened its name to simply Apple Inc. In his Keynote address, Jobs explained that with their current product mix consisting of the iPod and Apple TV as well as their Macintosh brand, Apple really wasn't just a computer company anymore. At the same address, Jobs revealed a product that would revolutionize an industry in which Apple had never previously competed: the Apple iPhone. The iPhone combined Apple's first widescreen iPod with the world's first mobile device boasting visual voicemail,

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and an internet communicator capable of running a fully functional version of Apple's web browser Safari on the iPhone OS.

Apple and "i" Web services

In 2000, Apple introduced its iTools service, a collection of free web-based tools that included an email account, internet greeting cards called iCards, a service called iReview that gave internet users a place to read and write reviews of Web sites, and a tool called KidSafe which promised to prevent children from browsing inappropriate portions of the web. The latter two services were eventually canceled because of lack of success, while iCards and email became integrated into Apple's .Mac subscription based service introduced in 2002 and discontinued in mid-2008 to make way for the release of the new MobileMe service, coinciding with the iPhone 3G release. MobileMe, which carries the same US$99.00 annual subscription price as its .Mac predecessor, features the addition of "push" services to instantly and automatically send emails, contacts and calendar updates directly to user's iPhone devices. Some controversy surrounded the release of MobileMe services to users resulting in expected downtime and a significantly longer release window. As a result of this, Apple extended the subscriptions existing MobileMe subscribers by an additional 30 days free-of-charge.

iPod and iTunes Store

A 2nd generation iPod

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iPod mini with the user interface set to German

On October 23, 2001, Apple introduced the iPod, a portable digital music player. Its signature features included an LCD, easy to use interface, and a large capacity drive (initially 5 GB) which was enough to hold approximately 1,000 songs. It was quite large when compared to the 20-30 songs of Flash-based players of the time. Apple has since revised its iPod line several times, introducing a slimmer, more compact design, Windows compatibility (previous iPods only interacted with Macintosh computers), AAC compatibility, storage sizes of up to 160 GB, and easier connectivity with car or home stereo systems. On October 26, 2004, Apple released a color version of their award winning iPod which can not only play music but also show photos. In early 2005, Apple unveiled a smaller iPod : theiPod Shuffle, which is about the size of a pack of gum. Speaking to software developers on June 6, 2005, Steve Jobs said the company's share of the entire portable music device market stood at 76%.

Apple has revolutionized the computer and music industry by signing the five major record companies to join its new music download service, the successful iTunes Music Store, now known as iTunes Store. Unlike other fee-based music services, the iTunes Store charges a flat US$0.99 per song (or US$9.99 per album). Users have more flexibility than on previous on-line music services. For example, they can burn CDs including the purchased songs (although a particular playlist containing purchased music may only be burned seven times), share and play the songs on up to five computers, and, of course, download songs onto an iPod.

The iTunes Music Store commercial model is one-time purchase, which contrasts with other commercial subscription music services where users are required to pay a regular fee to be

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able to access musical content (but are able to access a larger volume of music during the subscription).

The iTunes Music Store was launched in 2003 with 2 million downloads in only 16 days; all of which were purchased only on Macintosh computers. Apple has since released a version of iTunesfor Windows, allowing Windows users the ability to access the store as well. Initially, the music store was only available in the United States due to licensing restrictions, but there were plans to release the store to many other countries in the future.

In January 2004 Apple released a more compact version of their iPod player, the 4 GB iPod Mini. Although the Mini held fewer songs than the other iPod models at that time, its smaller size and multiple colours made it popular with consumers on debut with many stores having "sold out" their initial inventories of the devices.

In June 2004 Apple opened their iTunes Music Store in the United Kingdom, France, and Germany. A European Union version opened October 2004 (actually, a Eurozone version; not initially available in the Republic of Irelanddue to the intransigence of the Irish Recorded Music Association (IRMA) but eventually opened Thursday January 6, 2005.) A version for Canada opened in December 2004. On May 10, 2005, the iTunes Music Store was expanded to Denmark, Norway, Sweden, and Switzerland.

On December 16, 2004, Apple sold its 200 millionth song on the iTunes Music Store to Ryan Alekman fromBelchertown, Massachusetts. The download was The Complete U2, by U2. Just under three months later Apple sold its 300 millionth song on March 2, 2005. On July 17, 2005, the iTunes Music Store sold its 500 millionth song. At that point, songs were selling at an accelerating annualized rate of more than 500 million.

On January 11, 2005, an even smaller version of the iPod was announced, this one based on flash memory instead of using a miniaturized hard drive. The iPod Shuffle, like its predecessors, proved so popular that it sold out almost immediately, causing delays of up to four weeks in obtaining one within a single week of its debut.This is despite the fact that critics had gawked at the lack of LCD screen in the Shuffle, a norm in almost all current flash memory based mp3 players.

The iPod is giving an enormous lift to Apple's financial results. In the quarter ending March 26, 2005, Apple earned US$290 million, or 34¢ a share, on sales of US$3.24 billion. The year before in the same quarter, Apple earned just US$46 million, or 6¢ a share, on revenue of US$1.91 billion.

In July 2005, the iPod was given a color screen, merging the iPod and iPod Photo.

On September 7, 2005, Apple replaced the iPod Mini line with the new iPod Nano. While some consumers were put off by the high price tag (US$199 for 2 GB), and easily scratchable surface, the Nano had sold 1 million units in the first 17 days.

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A month later, on October 12, 2005 Apple introduced the new 5th generation iPod with video playback capabilities. The device is also 40% thinner than a 4th generation iPod and has a larger screen.

On October 25, 2005, the iTunes Store went live in Australia, with songs selling for A$1.69 each, albums at (generally) A$16.99 and music videos and Pixar short films at A$3.39. Briefly, people in New Zealand were able to buy music off the Australian store. However, that loophole was quickly closed.

On February 23, 2006, the iTunes Music Store sold its 1 billionth song.

The iTunes Music Store changed its name to iTunes Store on September 12, 2006 when it began offering video content (TV shows and movies) for sale. Since iTunes inception it has sold over 2 billion songs, 1.2 billion of which were sold in 2006. Since downloadable TV and movie content was added 50 million TV episodes and 1.3 million movies have been downloaded.

In early 2010, Apple celebrated the 10 billionth song downloaded from the iTunes Music Store.

iOS Evolution - iPhone & iPad

First announced on January 9, 2007, Apple introduced the first version of the iPhone being publicly available on June 29 that same year in selected countries/markets. It was another 12 months before the iPhone 3G became available on July 11, 2008. Apple announced the iPhone 3GS on June 8, 2009, along with plans to release it later in June, July, and August, starting with the U.S., Canada and major European countries on June 19. This 12-month iteration cycle has continued with the iPhone4 model arriving in similar fashion in 2010. January 2011 has also seen a Verizon model being announced with expected availability in February 2011.

The Macs that are available now (Jan. 2011) are the 27 iMac, the mac pro, the mac book, mac book air, mac book pro and the mac mini. The latest version or mac os x is Snow leopard (10.6). In summer 2011, Apple will have Mac OS X lion (10.7). On February 10, 2011, the Apple iPhone will be on Verizon Wireless and AT&T. Now 2 iPod types are touch screen (Jan. 2011), the iPod nano and the iPod touch, a big advance in technology. Apple TV now has a 2nd generation (Jan 2011) 4 times smaller, but 4 times better! And now Apple has gone wireless, Apple now has a wireless touch pad, a wireless keyboard, a wireless mouse, and even a wireless external hard drive.

The Apple iPad was announced on January 27, 2010 with retail availability commencing in April and systematically growing in markets throughout 2010. The iPad fits into Apple product line snuggly, as an iOS device, twice the screen size of an iPhone without the phone capabilities. While there were initial fears of product cannibalisation the FY2010 financial results released in Jan 2011 included commentary of a reverse 'halo' effect, where iPad sales were leading to increased sales of iMacs and MacBooks.

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Considering that both product ranges have only been in existence for a combined 4 years, the fact that over 70 million iPhones and earning the company billions is a remarkable success. Apple now rates highly as a mobile phone manufacturer and continues to break new ground with the iPad.

Apple Products:

Apple has been so successful in these last years thanks to his fresh, imaginative way to think and do its business: a winning combination of exceptional products, great style and design, great strategy, innovative marketing, sleek and enticing communications.

Apple owes its overwhelming success in the last years to the iPhone and to the smart iPod and iTunes product combination, a combination of a great hardware piece with great style, great software, great performance, user friendly interface, with a good e-business service. The iPod + iTunes halo effect and new great Mac computers and Mac OS software did the rest in increasing Apple revenue stream.

In the 5 years between 2003 to 2008 the Apple share value increased 25 times, from $7.5 to $180 per share. At july 2008 prices, before the US Financial Crisis, Apple stock market capitalization was $160 billion.In January 2010 Apple shares topped the $210 mark.

But even the best companies with the best products have bottleneck factors which often avoid full exploitation of the opportunities.

The iPad

The new Apple Tablet, the iPad - an unnecessary product? -iPad Marketing StrategySteve Jobs claims the iPad gives the best way to experience the web.Yet, the iPad does not have Flash Player, Flash is essential on the web and is used everywhere. Surfing the Web without Flash gives you big empty boxes in the middle of a page. Video on the web is mostly implemented in Flash. No Flash, no video.So, what Steve Jobs says is untrue. Actually the iPad gives one of the worst web experiences

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you can imagine.Besides, the iPad does not have USB ports.

The iPod.

Few people are aware - and few market analysts too - that for the first 3 years the iPod was an absolute flop. The iPod was launched in october 2001, and between 2001 and 2004 iPod sales were between 100-200 thousand units per quarter, very far from today's 10-20 million units per quarter, and the iPod sales were not even covering the product research & development costs.Then, in June-Aug 2004 something happened, and iPod sales began to grow strongly, quarter after quarter. Today, we all know where the iPod stands, and what a remarkable success it is.

The iPod made the fortune of Apple, and it stands out as the major turning point in the company growth.

Few people know that the iPod + iTunes business idea was not conceived inside Apple, but was proposed to Apple by an outside source, a music lover and Engineer named Tony Fadell.

More on Tony Fadell and on the iPod marketing on iPod Marketing Strategy

The iPod marks another outstanding result in marketing:the annihilation of competitors. To know more see the analysis onThe iPod competitors

It should be noted that, since the second generation of iPods in 2002, the iPods were made compatible not only with the Mac operating systems but with Microsoft Windows operating systems as well.

We should ask ourselves (and to Steve Jobs): how many iPods would have been sold if the iPods would had been compatible only with Mac operating systems?Where the iPod is manufactured and assembled

The iPhone

The pipeline of new products which came out from Apple in the last years is impressive, and overwhelming. In 2007, with the successful launch of the iPhone, Apple has marked another milestone in its development and growth.

And moreover, the iPhone enters a market - the market of mobile phones - a market which is mature, and saturated. Nonetheless, Apple has been able to develop a revolutionary product, and to change the paradigm in the mobile phone market.

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The iPhone is 5 years ahead of all its competitors. A wonderful product, amazing user interface, great design. It is not only a mobile phone, it is a product between a mobile phone and a laptop computer. Even calling it a smartphone is not enough.In July 2008 Apple launched the second generation iPhone, the iPhone 3G.

The iPhone 3GS

In June 2009 Apple launched its third generation iPhone: the iPhone 3GS.The iPhone 3GS has a 3 megapixel autofocus camera, video recording and editing capabilities, voice control, longer battery life, 7.2 Mbps HSDPA internet connection. iPhone 3GS is twice faster than the iPhone 3G. The iPhone 3GS prices: $199 for the 16GB model, $299 for the 32GB model.more on the new iPhone 3GS on the iPhone 3GS page.More on iPhone Marketing on the iPhone Marketing Strategy page.

Apple did great. no doubt. However Apple has done some serious mistakes.

The most serious mistakes Apple has done concern marketing and distribution strategies in Europe.Apple has overlooked the European markets, and missing big numbers in unexploited sales. With better marketing strategy, better communication and distribution, Apple could have made 300% more revenues in Europe in the last 4 years. Apple Marketing in Europe

We met with with Erik Stannow, Apple Vice President of Marketing for Europe & EMEA. We have been talking with Erik Stannow about the marketing and distribution issues of Apple in the European markets and we gave some valuable suggestions to improve the Apple marketing strategy and distribution in Europe.Well, it seems that in Cupertino they don't care so much about Europe.

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