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Apple Inc in 2012

By:   •  July 18, 2013  •  Essay  •  784 Words (4 Pages)  •  1,399 Views

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Open source is a good direction to look, I mean Redhat Inc. is a pretty successful company, but the only problem with a free platform is that it only generates so much revenue. Redhat is one of the major players behind linux, and even then Red hat only generated $1.1B in revenue the past fiscal year, whereas Apple was able to generate $108B in revenue the past fiscal year.

Open source is a notable force in the market place, but it always takes players in a market place to use Linux to its full potential (just look at IBM mainframe computer, all run on Linux).

Open source is an okay business model, but it really depends on who's running it. That being said, for Apple running an open source model isn't going to maximize their profits, in fact it would actually put them further behind. Linux is great when you're a business to business company like IBM.

Apple has the right idea for product offerings to the consumer market, and using Linux, or providing a free Apple IOS won't be a priority at least not for some time. Sure IOS generates a very small% of Apple's revenue. However Apple needs control over their platform, something open source doesn't provide.

I don't think Apple is cornering any market, but they usually do arrive first. When Apple places dibs it gives an impression that they're dominating, but they really aren't. It's like Apple is the may flower expedition. They spread a lot of colonies all over the place, and since they're first. They get a massive head start.

What's interesting is that even if Samsung gains more market share on the Apple iPhone. The Apple iPad is still the most dominant tablet. Even if Samsung expands into tablets it will be a while before "varying price points" will take over Apple's market share, but then again. The Apple iPad 3 already has varying price points, so there's very little Samsung can do.

Apple is experiencing sales growth in all product categories. Whether it be the Ipod, the Ituned Store, the App Store, IMac, Mactop, Ipads, Iphones, and etc. What people buy with an Apple product is the connection their devices can have together.

The reason why I stick with an android, is because I expect it to be more compatible with my Samsung Windows 7 Laptop, and my Windows 7 desktop. If people go the Apple route, they'll make sure their next PC is a mac, next laptop is a Macbook, next tablet is an Ipad, next phone is an iPhone, next song purchase is on iTunes, next app purchase from Apple App Store, next book purchase from iBooks store, next mall outing includes stopping by the Apple store, and etc.

It doesn't help that Apple always releases one new product category every one or two years, and refreshes all the products I mentioned above every single year. So they continue to gain momentum,

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