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Can Apple combat Microsoft’s Lock-in?. Amy Dix Jay Gorman Hap Phillips Scott Tower. January 2001 Digital Lifestyle Strategy Announced “ all the applications and hardware needed to equip a digital lifestyle ”. Mac OS X operating System iTunes iDVD iMovie iPod. 2002 The new iMac.
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Can Apple combat Microsoft’s Lock-in? Amy Dix Jay Gorman Hap Phillips Scott Tower
January 2001 Digital Lifestyle Strategy Announced “all the applications and hardware needed to equip a digital lifestyle” Mac OS X operating System iTunes iDVD iMovie iPod 2002 The new iMac
A little history. Goal of the Digital Hub Strategy: Increase Apple market share to 10%
The iPod Release & the “Apple Only” Strategy • Released in November 2001 • Technologically superior to any other • MP3 player on the market • 125,000 sales within first 60 days • Only compatible with Macs, not • Windows based operating systems • Premium price, $399
“…estimates predict that if Apple were to make the iPod compatible with the Window’s operating system, it would be able to generate sales over $300 million in a year.” “Will Apple Live Up to the Expo Hype,” Joe Wilcox and Ian Fried, January 4, 2002, www.news.com. The iPod Release & the “Apple Only” Strategy Was this a smart strategy? Is this a way to reduce Microsoft’s lock-in?
“…the introduction of a new consumer desktop machine could help Apple significantly, noting that 40 percent of Mac owners have a pre-iMac machine.” “Will Apple Live Up to the Expo Hype,” Joe Wilcox and Ian Fried, January 4, 2002, www.news.com. Phase II: The New iMac
How Apple is Attempting to Break the Lock-In Cycle? • Media Campaign
How Apple is Attempting to Break the Lock-In Cycle? • Media Campaign • iPod compatibility (incompatibility) • Early introduction in schools • Apple retail stores • How effective will these be?
Suggestions for Apple • Position iMac as the home computer • that everyone can use • Continue to offer Apple multi-media • programs exclusively for Apple hardware • Offer a Windows compatible iPod & • and use the iPod as a means to grow • the Apple brand • Do not focus on the business market