Apple reached its bottom 1997. Revenues dropped by about 36% in two successive years. Apple’s mid-1990s business model was based on the production and sale of Macintosh. Apple completely focused on closed platforms, from hardware components to their own operating system. The source of revenues were exclusively through the sale of PCs and software. The company’s potential to innovate declined significantly after the departure of Steve Jobs. The downfall had started. The return of Steve Jobs in the mid- nineties was the turning point. Apple started the world of “digital entertainment”. The starting point of business model innovation was the development of new lifestyle product iPod. By introducing the iPod, apple changed its business model
