Jul 10, 2012

How does Apple from a "mess" company become into a market value of the first company?

In April this year apple market value up to $619 billion, is the most abundant global financial resources of science and technology company, even after a experts predict with apple further open up in their China market, their market value in the next year is likely to break through the trillions of mark. "One trillion" is by no means a small number, especially for the early 90's, Apple is regarded as "mess" of the company that is even more so. Now apple has so distinct change method, the reason for what?

Fairy tale of design
Since 1977 after the Apple II, "design" is rooted in Apple's. Apple II inspiration comes from Steve jobs in the department store Macy seen in the food processor and the coffee machine. He try to (and failed) persuade, suddenly, the needs of customers is only for the printer and modem add expansion slots, but this product has such a friendly design, in which jobs played an important role.
Bondi iMac
Then, friendly, and simple became the key characteristic of apple products, whether Lisa, the 80’s or 90 s Macintosh is the iMac, OS X and the iOS devices are now. For apple, the design is not let the product look more pleasing to eye, it is part of the process, from the start throughout the entire process.

2000 Jobs in the magazine interview said "most of the people think that design is only external. In fact, it is the inner modified. It's like a curtain and the fabrics of sofa." Steve jobs and apple think design is not only the external, in the description of the iMac when he said "iMac is meant to be the best consumer computer. In this computer, different parts should do coordination work." "If this is let your engineers turn impossible to possible, then let nature take its course. I insist to give up the use of fan, because use a do not send" buzz "noise computer will feel more comfortable," Jobs said, "thus increasing the quantity, how to improve the energy, improve the heat conduction system equipment. This is the most thorough part. We take consumers money is doing this: we are take care the details, let them have the heart to be more convenient and comfortable."

This principle used in the entire apple experience. This is why in every category, apple have different products for consumers to choose, why even the cheapest apple tools will also use beautiful packaging, why apple often have all sorts of new product prototype design, but rarely see these products are the official launch day. Other companies want to be all of all, and apple is trying to be a "crazy great company.

To be as great as apple, need to have amazing production process, the unique marketing, and see the future and competition ability. Now apple has completely with these conditions, but in the 90’s they have no these conditions.

The 1990’s apple's largest "trouble" is Microsoft, at that time Microsoft has been the dominant position in the personal computer field. In 1985, after Jobs’ left, the apple is only by introducing functional differentiation products to respond to the crisis, apple’s approach didn't work.

The magazine was even said apple can say is that "industry the management of one of the worst company". In 1997, apple share price fell to the lowest point 12 years, and now apple’s value is the sum of Microsoft and Google, in 1997, its market value was only $2.17 billion, Microsoft at that time was $114.1 billion.

Jobs the second wave
Steven JobsIs apple "to drive out to go out" of the 1996 jobs in the PBS Wall Street Week program said the joint set up company has some problem. "Apple freeze, while others have to catch up with them. Their different places have vanished, particularly with Microsoft contrast... apple’s way out is not the land, but innovation. Innovation once come to apple, it will also bring honor for apple to return to glory."

In 1997 he returned to apple after initially is simplified, whether product line used by apple or the numbers of advertising company, and transfer the focus. What jobs knows with Microsoft's PC was a "by the competition", so he didn't even want to step into the PC market.

Ice hockey legend Wayne Gretzky once said: "a good ice hockey players know where ice hockey, and a great ice hockey players can know where ice hockey will go." Jobs hope apple is a great company, he put the apple chips were on the "Internet and mobile media", he thinks this is "hockey" will travel to direction.

1998 iMac let apple turn to good, it became the most popular personal computers. In 2000, apple began to recover, Steve jobs in the Business Week said in an interview with "the next few years calculation and communications industry in the big bang would push us to an incredible position."

A year later the apple launched iPod, although it is not the first paragraph MP3 player, but it is the most satisfactory products. Other rivals, as long as it is can think of characteristics, all the products to add, and apple just let the product keep beautiful of primitive simplicity.

Although iPod industrial design does not say to go up innovation, but it perfectly integrate with iTunes, iTunes Music Store and can provide unparalleled experience. Marketing and product packaging factors will let consumers feel worth the money. The other company is the production of gadgets, and apple production is eager to thing. 2005 iPod "halo effect": Morgan Stanley survey in 2005 found that 43% of iPod users said consider buying a Mac. Apple in the PC market share gradually rise, now account for 10% of the share.

Similar fretting
Apple has not suffered from other competitors fretting, because it is apple products eating each other: Steve jobs can realize iPod's greatest threat is smart phones, so, their solution is to develop smart phones which will contain iPod’s function, not protect iPod. The iPhone performance well, its business has even more than Microsoft.

Apple is eating into PC market. iPad occupied part of the PC sales, and destroy the Internet PC. Although its competitors in the continuous efforts, but flat basic market is iPad. If let the iPad classify to PC name, so now apple has become the largest PC maker.

Apple from the 90’s failure won the precious experience, in the Cook, led by apple shut down their factories and warehouses, outsourcing production. Cook says his methods and dairy industries are the same. He also made many beneficial to increase the competitive advantages of apple deal. They apply to ensure product component suppliers paying suppliers, and even help supplier to build new manufacturing facilities. In 2011, apple says their "stock component prepaid and capital expenditure" for 4 billion dollars. These expenses can bring apple more advantages, which guarantee the supply of key components.

Apple can continue to keep them the money? At least in the far apple still has no apparent fault. Although rivals may be in some way to catch up with apple (such as smart phones), but apple each quarter earnings are to want a good quarter. Apple is still innovators, consumers like their products.

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