The Case Study Of Apple's Ipod And The Ipod

Decent Essays
Register to read the introduction… The iPod was comparable in size to most portable CD players and used a 1.8”” hard drive. Also, it had five GB of storage space and could hold about 1,000 songs. The iPod was superior to all contemporary flash memory-based players, which could store only about 30 songs. Upon its release, Jobs proclaimed that ““with iPod, listening to music will never be the same again.””27 However, most industry analysts felt that the iPod’’s price of US$339.9528 was too expensive and that it would limit sales. Contrary to analysts’’ predictions, the iPod was a great success. Overall, it had high sales numbers –– in the fourth quarter of 2001 alone, Apple sold around 125,000 iPods.29 Apple’’s resellers were key to the success of the iPod, as they aggressively promoted the product. In March 2002, Apple introduced a new model of the iPod. The storage capacity was doubled to 10 GB and its price was raised to US$499.30 During the same year, the company made some technical changes to the product, increased the storage capacity to 20 GB and decreased the prices of the five and 10 GB models. On January 11, 2005, Apple introduced the iPod Shuffle, which used flash memory. By May 2005, Apple had captured 58 per cent of the flash player market, and by May 2005, Apple held 90 per cent31 of the hard-disk player market share in the United …show more content…
This approach seemed to be effective: as a retailer, Apple stores averaged approximately $4,000 in gross sales per square foot of retail space per month.52 Apple also treated its employees like adults –– unlike other companies that tended to use approaches that generated cynicism or created a false sense of belonging. For instance, during an orientation session, Gap Inc. showed a video about the perils of employee theft during orientation, while Starbucks distributed handbooks telling employees to ““Be Authentic.”” According to Frankel, Apple was doing a number of things well. To begin with, employees were taught to work together, as customers can easily tell when employees do not get along with each other. In addition, Apple flooded the retail zone with employees, as sales and profits could be lost every minute that customers had to wait for help. Furthermore, employees handed out business cards, a habit that was not typical in a retail

Related Documents

  • Decent Essays

    Apple began in 1976, in the garage of Steve Job's adoptive parents, where he and his friend Steve Wozniak created the first apple computer. The initial selling price of this computer was $666.66 and at the end of that year, the Apple 1 had earned $774,000. Three years later, after the Apple 2 was released, sales increased by 700% to $139 million. When Apple became publicly traded in 1980, it had a market value $1.2 million dollars by the end of the first day. The success of Apple is indubitable.…

    • 529 Words
    • 3 Pages
    Decent Essays
  • Improved Essays

    The expectancy model of motivation can be used to analyze certain behaviors that led to Nordstrom’s successes and failures during its rapid growth period between the 1960s and 1980s. The expectancy model contains three main pillars to evaluate the level of motivation in a situation: effort, performance, and outcome. An individual’s motivation is highest when each of these is clearly defined and tightly linked together in the person’s mind. Nordstrom made several mistakes in motivating their employees, which cost them in the long run.…

    • 904 Words
    • 4 Pages
    Improved Essays
  • Decent Essays

    Apple proves that being secretive holds power. The success of using the tactic of withholding information from consumers has been proven time and time again to phenomenally increase sales each time their product hits the stores (Kinicki & Williams, 2013). Whenever Apple comes out with new product people are filled with a strong desire to want to know what was made they scramble to stores to buy its latest gadget (Eadicicco, 2014). The power of secrecy is a good marketing strategy for Apple; they do not spend vast amounts of money like its competitors did on advertising. The business strategy's goal was to create mystery about their product line which results in massive crowds at retail stores and the end results equals high profits for Apple.…

    • 157 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Iphones, Inc. Case Study

    • 1642 Words
    • 7 Pages

    A very recent topic that has been circulating in the news is the topic of the FBI and the company known as Apple. Apple is known for its many products ranging from iPhones, MacBook’s, and watches that most of you, I imagine, have. The controversy surrounds an iPhone 5c that was found to be the work phone of one of the two Islamic San Bernardino terrorists. The FBI is requesting that Apple creates a backdoor to install on the phone to disable its security features. Apple does not want to do this for privacy reasons.…

    • 1642 Words
    • 7 Pages
    Improved Essays
  • Decent Essays

    Evee Apple Case Study

    • 51 Words
    • 1 Pages

    If the Evee Apple has been successful in proving a sex discrimination cause of action, Faith+1 will attempt to exempt themselves from liability by arguing three possible defenses. The three possible defenses are the following: (1) bona fide occupational qualification (BFOQ), (2) the first amendment defense, and (3) religious institution defense.…

    • 51 Words
    • 1 Pages
    Decent Essays
  • Improved Essays

    Products are constantly being released by Apple worldwide within small time frames. Apple’s other goal is to remain the most dominant brand for technology. This aim motivates Apple and its internal stakeholders. This goal has been achieved, since Apple is dominating the high-tech market. Apple is number one in the world for highest amount of profit, which is also one of their targets, being 53.73 Billion USD.…

    • 999 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Apple Music Case Study

    • 1496 Words
    • 6 Pages

    Apple Music Apple is a revolutionary company in digital music and has changed the structure of recorded music market with iPod and iTunes in the 2000s. Apple’s iPod and iTunes have led digital music market as the leading provider of MP3 players. However, Apple is now a newcomer in streaming music market with Apple Music, launched in 2015. Since 2005, global digital music revenues have been growing so fast (Exhibit 1-a Global Recorded Music Industry Revenues 2005-2015).…

    • 1496 Words
    • 6 Pages
    Superior Essays
  • Great Essays

    On the other hand, Apple also dominates in the global market as it has developed new innovative products at least two years, while its competitors are just making their offerings more competitive. For example, the new iPhone that will most likely go to market in October was designed and signed off on two years ago. This is the reason why Apple is still successful in innovation until today (Bajarin,…

    • 1032 Words
    • 5 Pages
    Great Essays
  • Great Essays

    Resources and competencies/capabilities of a company are two most integral parts of the strategic capabilities of any company. In the most simplest terms Apple’s strategic capabilities can be divided in two forms i.e. Tangible and Intangible resources. Apple’s tangible resources include the CEO, Tim Cook, employees, the integrated system of software and hardware, its retail store all across the world. Whereas, some of the intangible resources include its brand name, unique design, cash In hand and a loyal customer database. Tim Cook Tim Cook has proved himself to be a good leader despite the criticism that no one can replace Steve Jobs.…

    • 2363 Words
    • 10 Pages
    Great Essays
  • Improved Essays

    Samantha Schlessel September 25, 2017 Professor Kim Apple Inc. in 2012 Case Write Up Define the PC industry in terms of products, players, and geography. The PC industry started off with creating personal and portable computers for consumers worldwide. The two main players in the PC industry are Apple and IBM. Apple and IBM took two different approaches to manufacturing their PC’s:…

    • 854 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Apple vs. Android If you’ve ever had any doubts regarding the demand for smart phones, research done by IDC states that the global smart phone market has topped 1 billion shipments, covering about one seventh of the world’s population, a new milestone. Most everyone can agree that smart phones are a familiar way of life, but the big debate is whether a user’s best option is to pick out an Apple or Android device. While both Android and Apple dish out portable technology that keeps us connected, they go about it in contrasting ways.…

    • 731 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    According to Apple’s Employee Handbook, 1993, they are committed to recognizing individual contributions through rewards that are both psychological and financial. Apple also professes to conduct its business with empathy. But Apple was identified of using cheap labor and poor humanitarian conditions for the workers in China. They moved operations overseas in the 2000’s when they realized they could employee willing individuals to work at a moment ’s notice very cheaply.…

    • 1460 Words
    • 6 Pages
    Improved Essays
  • Superior Essays

    Most people know and love the Apple brand. Its image is universal and easily recognizable, with a sleek design that separates its brand from competitors. “Apple enjoys the loyal following that it does because of the totality and consistency that comes from experiencing the products and the surround-sound that envelops them” (Joseph). Another part of their marketing strategy is not just with their products themselves but within their Apple store. “There are nearly 300 stores in the country right now, and each allows you to touch the brand and simultaneously be enveloped by it.…

    • 2889 Words
    • 12 Pages
    Superior Essays
  • Improved Essays

    Apple Watch Essay

    • 993 Words
    • 4 Pages

    Apple Inc. uses their brand to compete in several competitive markets. The brand continues to evolve and expand its range of products and services. Apple originally started in 1976 with basic desktop computers and then laptops 20 years later. It took another 5 years for Apple to really expand into a first major new product area with the iPod, later followed by the iPhone in 2007 and the iPad in 2010, and recently…

    • 993 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Businesses need to have a remarkably fluid organizational structure and culture in order to operate efficiently and be successful or profitable as a company. The organization structure ranks the hierarchy, which identifies specific policies and measures that are immensely crucial to completing company objectives. Throughout this essay I will show you how Apple has become one of the greatest and most prolific corporations in the world not only by having a distinct organizational structure, but through employing people who embody the type of characteristic traits that are immeasurably essential to the success of Apple as a company. I will also detail a plan and proposal for Apple’s new and improved organizational culture and structure…

    • 1422 Words
    • 6 Pages
    Improved Essays