About Apple Computer

Apple Inc. is a global technology company that designs, manufactures and markets personal technology products, including personal computers, mobile devices, portable music players and related software. In May 2010, Apple overtook its chief rival, Microsoft Corp., as the world's most valuable technology company. Apple ranked #1 in Fast Company's 2011 list of the world's most innovative companies, thanks to its development of highly successful products, such as the iPod digital music player, the iPad tablet computer and the iPhone. The company is headquartered in Cupertino, California.

History

In 1976, Steve Jobs, Steve Wozniak and Ronald Wayne founded Apple Computer. The Apple I, basically a personal computer kit designed by Wozniak, was sold through retail stores. In January 1983, Apple introduced the user-friendly Apple Lisa, the first computer to use a graphical user interface. Apple's MacIntosh PC product line helped propel Apple to the forefront of the computer market. However, by 1996, Apple was nearly bankrupt thanks to product flops, including the Powerbook laptop PC and the Apple Newton handheld. The company's return to profitability began with the simple and user-friendly iMac desktop computer in 1998, as well as the modern Mac operating system. In October 2001, Apple introduced the iPod, which helped revolutionize portable digital music. The touch-screen iPhone, released in January 2007, was enormously successful; three years later, the iPad tablet PC further cemented Apple's reputation as a leading innovator.

Corporate Structure and Assets

As of 2011, Jobs was the chief executive officer of Apple. The chief operating officer was Tim Cook, and the company had nine senior vice presidents. Apple also has a seven member Board of Directors and three board committees: Audit & Finance, Nominating and Compensation. The company is traded on the NASDAQ stock exchange under the symbol AAPL. In the first fiscal quarter of 2011, Apple recorded revenue of $26.7 billion. This revenue is attributed in large part to strong sales of iPods, iPads, iPhones and iMacs. According to "Forbes," Apple's total assets as of 2011 were $86.7 billion. More than half of the company's sales come from outside of the U.S.

Disruptive Innovations

Scott Anthony, managing director of Innosight Ventures, said that Apple's success came from developing five disruptive technologies, which are products that change a market permanently and force other companies to reevaluate their own products. These included: the iPod, which included a revolutionary spin wheel for accessing songs; the iTunes music store, which made it easy to search and sample music online; the iPhone, with its intuitive interface; the AppExchange, a store that sells tens of thousands of applications for Apple mobile devices; and the Apple Store, which sold about $2 billion worth of products annually.

Rivalry with Microsoft

Throughout its history, Apple and Microsoft have engaged in a high profile rivalry. In March 1988, Apple filed a $5.5 billion copyright infringement lawsuit against Microsoft and Hewlett Packard, alleging that there was a "substantial similarity" between Microsoft's Windows operating system and that of the Lisa and MacIntosh. The case was dropped in 1993. Both companies have created "Mac vs. PC" advertisements, touting the advantages of their own platforms.

References

• The New York Times: Apple Passes Microsoft as No. 1 in Tech; Miguel Helft and Ashlee Vance; May 2010.
• The Harvard Business Review: Three Critical Innovation Lessons from Apple; Scott Anthony; May 2010.
• The Seattle Times: Apple-Microsoft Lawsuit Fizzles To A Close -- `Nothing Left' To Fight About; Paul Andrews; June 1993.
• PC Magazine: Apple's Profits, Revenue Hit Records; So Do iPhone, iPads; Mark Hachman; January 2011.
• Forbes: Apple Inc. Balance Sheet.
• Apple-History: Company History: 1976-1981.