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How The IPhone Saved Apple

February 06, 2010 By: lilybird Category: iPhone/iPod

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Apple has managed to make up lost ground to Microsoft since the release of personal computers (PC) back in the mid 80s. In the early 80s, one of Apple’s geeks decided to leave the company and started his own. The geek that left was Bill Gates. Bill Gates believed in open technology, allowing his computer systems to be compatible with programs developed by third party vendors. That gave way to the technology revolution that has shaken up the world since the beginning of the 90s when the Internet was first released for public consumption. As PCs users rose by the millions, Apple just watched from the corners unable to stop the rise of a giant by the name of Microsoft.

It’s now 2009 and although Microsoft still dominates the personal computer markets, Apple has managed to become relevant again.

Apple is now the synonymous of stylish, reliability and coolness.

Apple’s Comeback

Millions of consumers world wide now own an apple product and is not a personal computer. For Apple it was obvious that trying to compete with mighty Microsoft for personal computer supremacy was not working. And in 2001, Apple’s strategy was re-designed to come up with a new product where the market was not well defined. Portable music player was the bet and in 2001 the first iPod was born.

The birth of the iPod

At a mere 5GB hard-drive based, Apple unveils the first iPod that sold for $399.00

The market strategy changed from marketing personal computers to how cool it is to have your “Whole CD Library with you all the time” Steve Jobs (Apple’s CEO) tells reporters in a press conference in 2001. As the iPod hits the stores in November 2001, Apple sells 125,000 iPods during the holiday season. And although Apple was first seen as a potential threat to digital multimedia products such as music, for it’s “Rip, Mix, Burn” slogan, Steve Jobs assured the music giants that the iPod will not violate any laws because it was developed to “legally acquire music” and he added, “you have the right to manage it in all other devices you own”

During the Mac Expoworld Expo, Jobs notes that Apple has sold more than 600,000 iPods in the 14 months since it’s launch. By April 2003, Apple added a solid-state scroll wheel with four buttons to the device. By January 2004 Apple increased the number of iPods available to the public by unveiling a whole new line of “mini” iPods. The new iPods where the size of business cards with a storage capacity of 4GB which sold for $299 and included multiple colors such as gold, blue, pink, and green.

By late 2005, iPods were the most popular product of the Apple’s line. And all of this was happening when the hard drive was still in place (this means the device had a slower response) In August 2006, Creative and Apple square off in court. Creative and Apple trade lawsuits in court alleging that both have violated patents, Apple and Creative settle their disputes when Apple agrees to pay a $100 million settlement. Creative agrees to begin making Apple iPods accessories.

Microsoft Strikes Back at Apple with the Zune

Ironically, it was Microsoft’s turns to sit in the corner and watch how Apple’s popularity grew faster than anyone predicted. In November 14, 2006, Microsoft released it’s own MP3 player; The Zune. The awaited MP3 war between Microsoft and Apple had begun. Microsoft’s new MP3 player named Zune was sporting an attractive 30gigabyte storage capability, FM radio and a 3 inch screen and it’s controls consisted of a circular shape under the 3 inch screen with four buttons (very similar to the iPod). The price tag was $249.95 at release date and hundreds of thousands of Microsoft loving fans thought that Microsoft had an answer to the dominating iPod. It was not long since the Zune’s release date that consumers began to realize that the Zune was no match to the powerful iPod-iPhone combo. One year after it’s release, Zune began experimenting technical problems that doomed it’s sales. News of software issues flowed through the Internet like water in a river. Sales began to decrease and iPod nevertheless stayed strong.

Apple and Cellular Technology – A Rocky Road

Apple’s ever-changing creative team joined forces with Motorola in December 16th 2004 and jointly came up with a new device that allowed consumers to make phone calls and play music at the same time. This was the beginning of an evolutionary idea, the all-in-one idea.

In late September 2005, Apple and Motorola release a cell phone by the name of ROKR. Steve Jobs called this device an iPod Shuffle in your phone. In a bold statement in October 2005, Apple announces that there are more phones yet to roll out of production. Although iPod was enjoying a huge success by this time, Apple ambitious projects focus on something far larger than audio on the go. It was clear that Apple already had the iPhone idea by then since in September 16 2006, Apple files for iPhone trademarks in New Zealand. And although everything seemed go smoothly for Apple, in September 2005, Ocean Telecom Services files for iPhone trademark in the United States. Another battle was waged between Apple and Ocean Telecom but this time Apple emerged victorious and the patent was granted to Apple iPhone. Then in December 2006 Linksys which is a company owned by Cisco launched a VoIP phone named Iphone. Cisco however, owned the Iphone name since 2000.

Finally, in January 09 2007, Steve Jobs announced at Macworld that Apple will release the iPhone and he also provided a bit of it’s capabilities. But right before the launch of the iPhone, Cisco suits Apple for the iPhone name and both corporations agree to share the iPhone name.

In turmoil May 16 2007 right before the iPhone release, a rumor makes the news that Apple will delay the release of the highly anticipated iPhone. These rumors make Apple stocks stumble and the company loses almost 4 billions in one day.

iPhone Release Day

On a bright June 29 2007, the Apple iPhone debuts as a stand-alone cell phone and built-in iPod. The brand new gadget contained very cool features such as motion sensors that allow you to place the iPhone sideways and automatically moves the screen to the correct resolution, GPS, accurate virtual keyboard and a signature clown fish as wallpaper. Steve Jobs describe his brand new toy as “An entire computer that just happens to make phone calls”.

The only draw-back was Apple iPhone commitment to AT&T. At the time of release, Apple iPhone could only be used on the AT&T network limiting a huge number of Apple-loving-fans enrolled in other phone networks. And although this commitment from Apple is still in place there are some services that allow consumers to run an iPhone in other networks such as T-Mobile.

Since 2007, Apple has retired it’s 2GB version of the iPhone and has upgraded it’s original phone to a more robust stronger device. The current device is now able to stream, download, and create high quality video on the fly and it runs on a powerful 3G network that allows for fast Internet connectivity.

Where is Apple going with this?

As we can imagine, Apple is not done just yet. Currently the iPhone-iPodTouch are unquestionable leaders in the MP3 player’s market and may very well (When Apple terminates it’s current AT&T commitment) become the king of mobile technology as well.

Even though Apple has been closed to the idea of allowing third party applications running on its proprietary hardware, those closed minded ideas are beginning to crack. In early 2008, Apple announced that it would allow third party vendors to develop applications for its iPhone/iPod touch.

This move by Apple is creating great success in the Mobile gaming business which is another feature that is well exploited in the iPhone/iPod. iTunes (Apple’s Multimedia Store) is loaded with hundreds of thousands of applications for the iPod and iPhone for a minimal fee.

Apple has managed to create a device that appeals to everyone. The newest iPhone currently runs on a 3G wireless network and contains a large 32 gigabyte storage capacity.

Apple challenges consumers to answer the following question; where can you find a mini Mac computer that you can fit in your hand and is able to; make phone calls, browse the Internet, carry a whole music catalog, and allows you to play games? The simple answer to Apple’s question is the iPhone.

Stay up to date with the newest features discovered for your iPhone or iPod touch.

Article Source: http://EzineArticles.com/?expert=Raul_Guerridos

Raul Guerridos – EzineArticles Expert Author

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1 Comments to “How The IPhone Saved Apple”


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