Apple I Pod From Business Perspective Essay

3192 words - 13 pages

Technology has changed in the terms of portable music and with the invention of the Apple iPod in 2001, the ease and accessibility to download and listen to music has never been easier. Apple has developed a device that weighs no more than 6.2 ounces (and as few as 3.6 ounces) and can hold up to 10,000 songs. Despite the weak market overall, the market for digital media is undeniably hot and barring a consumer spending meltdown, it should stay that way. In light of current computer market conditions, Apple is wise to leverage a moderately priced consumer product like iPod to generate revenue. The iPod is an excellent opportunity to drive an additional revenue stream. Despite current global economic conditions, information technology is forecast to grow significantly over the next several years. Importantly, many experts believe that IT innovations like the iPod will particularly help drive consumers to electronic stores to purchase ground-breaking technologies due to the cost.

Being in business for almost 30 years, Apple Computers started with two friends in high school; considered outsiders because of their love of electronics. Steven Wozniak “had been dabbling in computer-design for some time when, in 1976, he designed what would become the Apple I.” His friend, Steven Jobs, “who had an eye for the future, insisted that he and Wozniak try to sell the machine, and on April 1, 1976, Apple Computer was born.” ( It was not until the Apple II was introduced at a tradeshow in 1977 that the business started to take off.
One of the most recent products developed by Apple which has become very successful has been the iPod. The iPod is a slick, tiny device that allows users to download songs from a specific website and this unit “holds” the songs in which they can be played at any time. The iPod is thought of as a handheld jukebox. It has not been any easy success ride for this product. First launched in October 2001, at a cost of $399, many skeptics were uncertain that this product would become an item that would be found in homes. The concern was the fact was that “only Macintosh users, less than a twentieth of the marketplace, could use it.” ( Strictly for personal entertainment, this product has recently been remodeled to allow holding more songs and now is facing strict competition. The biggest advantage of the newest version is the lower price down to $299.

“Sony Electronics will begin selling two hard-drive music players this fall which, combined with its new music download service, will create an iPod-like parallel universe.” ( Sony will now become a competitor against the original portable device. The difference will be about $100 - $200 higher in price for Sony product; but storage space is higher is this unit. This fall will bring additional players to the market as a number of companies are introducing their own versions....

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