Personal computer was first introduced by Apple under name of Mac. However, after MS DOS, was introduced, it was used in a lot of computers because the OS was compatible with many computers. This MS DOS had led great development in PC industry since it helped to make technical standard in PC industry. At the beginning, PC was considered as a supply for offices, dong all kinds of calculations and graphic works to save time and energy. As time went by, People started to have computers in their home and PCs became necessities to their lives. Nowadays, PC is not a necessity but also a favorite to individuals and people express who they are by what kinds of PCs they show. For example, a person using Mac and iPod consider himself as a hip and liberal person and it becomes a known fact.
2) Long-term strategy for its PC business
Itunes is made and sold for sales of iPod. Profits from the sales of iTunes are not significant compared to those of iPod. Regarding this in mind, I think iPod’s growth will be sustainable. Since Apple keeps making new products that are compatible with iPod and iTunes, the sales of iPod will not decrease significantly. Moreover, with Apple’s long-term strategy of being a provider of digital home will only increase the sales of iPod because people would want to buy more products with Apple logo once they taste it.
*4) *iPhone*’*s business model (Apps Store)
▪ Apple used to have exclusive agreement with service providers and got shares of service revenue on it’s 2G model. Now, Apple changed its agreement a little bit. The contract with service providers is not exclusive anymore and Apple only got constant amount of money from the companies per device sold. (revenue-generating from carrier)
▪ Besides, Apple also makes some money from iTunes store when people buy contents to use on their new phones.
*5) *Reason*’*s for Motorola*’*s sudden decline?
▪ Motorola did not capture who their real customers were and what they wanted : As...