What you Don’t Know about APPLE

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Read this week’s required article: “What You Don’t Know About Apple”. Retrieved from the Ashford University Library.

In a three- to four-page paper (not including the title and reference pages):

  • Discuss if Apple will continue its path to be the frontrunner in revolutionizing the digital marketplace.
  • Discuss if Apple’s competition has increased their share of the marketplace at Apple’s expense.
  • Discuss if Apple will succeed without Steve Jobs.

You must use at least three scholarly sources from the
Ashford University Library, one of which must be peer reviewed, in
addition to the textbook. Your paper must be formatted according to APA
style as outlined in the Ashford Writing Center.

Here is the attached article>;;;;;;

WHAT YOU DON’T KNOW ABOUT APPLE 

Contents

  1. TRUTH NO. 1: Apple has never been a nonstop, new-product machine.
  2. TRUTH NO. 2: The real driver of Apple’s success has been incremental innovation.
  3. TRUTH NO. 3: Apple’s distinctive reputation can hurt as much as help.
  4. TRUTH NO. 4: The legacy of Jobs is haunting the company.
  5. TRUTH NO. 5: Apple won’t give up the magic without a fight.
Section:
NEXT

FIVE TRUTHS THAT EXPLAIN OUR LOVE-HATE AFFAIR WITH THE QUINTESSENTIALLY ICONIC COMPANY

When Apple’s
market cap soared to $660 billion last fall, the company was worth more
than Amazon, Facebook, Google, Microsoft, two Nokias, and three
BlackBerrys — combined. But then Apple’s share price tumpled 35%, and
it lost its mantle as the world’s most valuable company. So what’s gone
wrong?

Could
it be that Apple’s best quarter ever — and the second most profitable
in U.S. corporate history, at $13.1 billion — is a head-for-the-hills
disaster? With margins declining and no imminent “insanely great” new
products (as Steve Jobs liked to call them), has the age of Apple come
abruptly to an end?

To
understand what’s happening with Apple, it’s prudent to step back from
the noise of Wall Street and recognize five essential truths about
Apple’s success.

TRUTH NO. 1: Apple has never been a nonstop, new-product machine.

Apple’s
stock wouldn’t have plunged if expectations, financial and otherwise,
hadn’t been so high. Apple is the market’s most emotionally driven
brand, “the Super Bowl for stock lunatics,” as Stock-Twits CEO Howard
Lindzon puts it. Every tech blogger, hedge-fund manager, and fan has a
fervent opinion about it. We have been emotionally conditioned to
believe in Apple’s game-changing powers.

Apple
thrived on this attention and the belief that the next revolutionary
product was coming: iPod, iPhone, iPad. What is too easily forgotten is
that Apple’s quantum leaps were never fast and furious. We forget that
six years separated the launches of the iPod and the iPhone, and three
years came between the iPhone and iPad. What is more, the pace of
adoption of these products, meteoric of late, was not always so. The
iPad took two years to sell 100 million units; the iPhone nearly four
years; the iPod six.

Is
there impatience about what’s coming next? Of course. Wall Street is
indignant that Apple hasn’t announced a wearable computer, say, or a
voice-controlled TV. As Lindzon says, “Apple’s problem is that it can’t
dance to what Wall Street wants.” But, frankly, it never has.

TRUTH NO. 2: The real driver of Apple’s success has been incremental innovation.

If
the magic of Steve Jobs was his aptitude for conceiving new product
categories, the marvel of Apple has been its seemingly inexhaustible
capacity to pummel consumers again and again with product refinements.
Apple has earned a distinctive reputation for thriving with only a
handful of products; often overlooked is how many different versions of
these few products Apple continually rolls out.

The
Apple gadgets we know and love today are markedly different from their
first iterations. Yes, the 2001 launch of the iPod marked the beginning
of a revolution in how we consume music. But most forget that iPod sales
didn’t explode until 2005, when Apple released the Nano. Apple released
two dozen versions of the iPod — including generations of the Classic,
Nano, Mini, Shuffle, Touch, even one branded and distributed by
Hewlett-Packard — and gobbled up 70% of the market.

Apple
repeated the trick with the iPhone and iPad. The iPhone launched in
2007; sales surged in 2009, with the launch of the iPhone 3GS. Last
quarter, the iPhone 4, 4S, and 5 were among the top five best-selling
smartphones in the United States. The iPad, launched in 2010, went
through four generations in two years, prolonging Apple’s stock surge;
last quarter, 43% of tablets shipped were iPads.

Apple’s
software innovations helped turn these products into objects of lust,
as the iTunes Store did for the iPod and the App Store and Siri did for
the iPad Mini and iPhone 4S.

TRUTH NO. 3: Apple’s distinctive reputation can hurt as much as help.

“Apple
has become a victim of its own success,” says Piper Jaffray analyst
Gene Munster. As the lore of Apple’s innovative prowess spreads through
the culture, its iterative improvements have started to feel like too
little, too late. Some consumers have begun to discount (or be
disappointed by) the latest product tweaks, waiting for revolutionary
disruptions that, in fact, come only rarely. Others feel burned by
Apple’s habit of holding back features to create demand for the next
generation (as Apple purportedly did by omitting the camera in the
original iPad).

The
result is that Apple doesn’t get full credit anymore for some great
products. Apple’s last major launch was the iPhone 5. It is the
lightest, thinnest, and fastest-selling iPhone yet, with 5 million
snapped up on its first weekend. But like Apple’s exceptional quarterly
earnings, the iPhone 5 drew lukewarm reaction from critics. Apple’s
success has led everyone to judge it by a different set of standards.
It’s the M. Night Shyamalan effect: The more people expect the
unexpected — and incessantly guess what’s coming — the harder it is to
surprise them.

TRUTH NO. 4: The legacy of Jobs is haunting the company.

The
impatience with Apple isn’t driven solely by emotion. Tangible changes
in the business are at issue too. When Jobs died, in late 2011, many
speculated Apple’s unprecedented market run would end. Instead, its
share price continued to swell, leading some to believe that the fears
about Jobs’s passing were overblown.

In
actuality, we’re seeing the post-Jobs slump today, a year later than
expected. Why the delay? After his death, Apple continued to churn out
hit products, and just as important, the outpouring of support for Jobs
devolved upon the company, which was seen to embody his spirit — the
archetypal American innovator. The halo effect is gone today; Apple is
clearly Tim Cook’s company now. He has put his stamp on it most
noticeably by ousting top executive Scott Forstall, who was one of
Jobs’s closest confidants. Forstall was chiefly behind the company’s
success in mobile — but had since been named as responsible for Apple’s
Maps fiasco.

In
the wake of Maps, and with no apparent breakthrough product coming,
investors and consumers alike are wondering what the post-Jobs era will
really be like.

TRUTH NO. 5: Apple won’t give up the magic without a fight.

Apple’s
aura of Oz-like omniscience has always been carefully cultivated. Jobs
famously cloaked Apple in a mantle of paranoid secrecy, perpetually
grooming the rumor mill to hype the Next Great Thing. With Jobs gone,
Apple’s constituents (including carping Wall Streeters) are less patient
with this approach.

In
the meantime, competitors are filling the void, which explains why
Google has spent so much time talking up Google TV and Google Glass, its
futuristic eye-wear project. Google’s openness about the projects on
its docket differs markedly from the Apple model: The effect is both to
sustain interest and to temper expectations — training followers that
when the company discusses a product, it isn’t necessarily just around
the corner. So if Google doesn’t introduce, say, a driverless car in the
next three years, nobody will be (too) disappointed.

The
question is whether Apple can defy the odds and retain its sorcerer’s
hat or whether it will settle down into a life more ordinary. The latter
has been the fate of tech stars before Apple (witness Microsoft) and
since (witness Facebook). The transition would be a tough one for Apple;
if it sheds its status as an agent of revolutionary change, there’s no
telling how proponents — consumers and investors — will react.

But
all will be forgiven, and the question forgotten, if Apple can indeed
deliver something unexpected and terrific. So will Apple produce another
iPod? Another iPhone? Another iPad? We can only do what we have always
done with Apple: wait and wonder.

FLICKERING SNAPSHOT OF YAHOO’S FUTURE

MYSPACE’S BIG PLAN (STOP LAUGHING)

INNOVATING IN MICROSOFT’S GARAGE

PHOTO (COLOR): CEO Tim Cook, now firmly in the spotlight

PHOTO (BLACK & WHITE)

~~~~~~~~

By AUSTIN CARR

SEPTEMBER 7, 2005

Apple releases the iPod Nano, its best-selling music player.

JANUARY 9, 2007

Jobs introduces the iPhone, which generates $173 billion in revenue.

JANUARY 14, 2009

Jobs goes on medical leave.

JANUARY 27, 2010

Jobs unveils the iPad; it sells 100 million units in two years.

SEPTEMBER 2012

Average adjusted closing price: $660.22; all-time peak of $705.07 came on September 21, 2012.

NOVEMBER 2, 2012

Apple releases the iPad Mini.

JANUARY 23, 2013

Apple reports its best quarterly earnings ever.