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"digital Hub" Strategy

Essay by   •  May 14, 2011  •  Essay  •  264 Words (2 Pages)  •  1,472 Views

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"Digital Hub" strategy

The factor which has sustained Apple's competitive position in PC is "Digital Hub" Strategy. Apple obtained major of market share in the early days. However, Apple sometimes struggled with other competitors in the market of PC manufacturer due to decline of average selling price (ASP) and emergence of lower priced models equipped with Wintel.

The Macintosh can be the preferred "hub" to control, integrate, and add value to people who are becoming entrenched in a digital lifestyle, using digital devices such as digital cameras, portable music players. Although several industry insiders were anxious for impact of alternative technology such as digital devices (smartphones, PSIII), Steve Jobs had a clear view to position the Macintosh at the heart of business strategy for Apple. Apple's control of both hardware and software is regarded as unique strength, focusing on home consumers' lifestyle. Apple reinforces in four categories to support strength of Mac as "Digital Hub" for other devices in addition to restructuring inside of company such as hiring Taiwanese contract assemblers for manufacturing.

CPU (Microprocessor)

CPU of Apple had been weakness since Macintosh was introduced into the market in 80's. Although Mac had advantage in terms of ease of use, industrial design, and technical elegance, Apple had suffered its slow speed and lack of compatible causing sales decline. Apple introduced Macintosh line-ups mounting Intel-Microprocessor with faster speed and less power-hungry. It resulted in success to capture the consumers expecting to buy Intel Based PC. Apple also launched PC which can run Windows OS with Windows applications. These movements can offset a longstanding disadvantage of Mac.

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