Apple Computer: Evolution of Product Line

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We are surrounded by camcorders, digital cameras, MP3 players, Palms, cell phones, DVD players. Some of these things are plenty useful without a personal computer. But a personal computer definitely enhances their value. And several are completely unusable without a PC--a PC meaning a Mac, in our case. We believe the next great era is for the personal computer to be the digital hub of all these devices.

- Steve Jobs, Founder CEO¹.

Introduction

In early 2002, CEO Steve Jobs (Jobs) was developing a new strategy for Apple. His recent efforts had focused on positioning Apple products as an integrating platform for a range of household digital devices like cameras, video recorders, music players, etc. Jobs called this the "era of the Digital Lifestyle."With the company performing poorly in the traditional computer market, Apple's future seemed to be dependent on how well Jobs could integrate product development strategies with the digital technologies in the consumer electronics market.

For many years, Apple had differentiated itself in the computer market, be it through its creative marketing efforts in building futuristic product designs or simply through its expertise in developing state-of-the art products.

Apple's products enjoyed great popularity in classrooms, web design shops, graphic art studios etc, where high end computing was required. Apple also enjoyed a trusted and loyal customer base (25 million worldwide) that openly shunned the PCs developed by leading players like Compaq, Dell and IBM...

Excerpts >>

1] Josh Quittner and Rebecca Winters, "Apple's New Core,"Time (South Pacific), 14th January 2002.

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