Can Apple combat

1
Can Apple combat Microsofts Lock-in?
Amy Dix Jay Gorman Hap Phillips Scott Tower
2
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
3
A little history.
Goal of the Digital Hub Strategy
Increase Apple market share to 10
4
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

5
The iPod Release the Apple Only Strategy
Was this a smart strategy?
Is this a way to reduce Microsofts lock-in?
6
Phase II The New iMac
7
(No Transcript)
8
(No Transcript)
9
How Apple is Attempting to Break the Lock-In
Cycle?

• Media Campaign

10
(No Transcript)
11
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?

12
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

13
Questions?