Analyze the PC industry. Are the dynamics favorable to Apple or problematic? Explain.

Though personal computers were first made by Apple Company, IBM Company mainstreamed the market in 1980. Later on, in the early 1990s, Wintel Company was dominating the industry. Expanding the capabilities of computers and cheap prices were the main factors mainstreaming the growth of personal computers. By the beginning of 2010, above one billion personal computers were used in the world. This high figure was caused by high internet demand and emerging capabilities.

However, the production of personal computers went down between the years 1995 and 2005 due to the failure of revenue growth. This led to the popularity of contract manufacturing firms in China and Taiwan since they took the advantage and researched complex areas resulting in new personal computer products. This was advantageous to Apple since they acted as one business unit, and since there was no competition within the organization, they continued making profits while other companies were making losses.

Due to many firms joining the industry, two industries dealing with personal computers emerged; those that dealt with the production disk drives, keyboards, and memory chips and those that dealt with microprocessors and operating systems. This system was very favorable to Apple since it dealt with a chain of products compatible with one another.

From the year 2000, there has been an advancement of technology that ranged from people using cell phones for gaming consoles, which directly worked as personal computers. Playing online games and the introduction of smartphones was a part of the advantages to Apple, who used Macintosh Technology in their products, meaning that the production of this hardware and software was under their control.

Apple advanced its technology from Macintosh to iPod in 2001, then iPhone to iPad in 2010. All these changes led to the changing of the company’s name to Apple Inc. and also made it the leading company in the industry.

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