Company Overview
Highlights
A British judge ruled in favor of Apple in 2006 following a trademark infringement suit filed by The Beatles' label, Apple Records.
Starting with its "1984" Super Bowl ad of that same year, and continuing through the recent "Think Different" and "Switch" campaigns, Apple has been notable for its compelling advertising.
The iTunes Music Store, which sells digital files of songs for 99 cents each, sold more than a million songs during its first week in operation.
Founded in 1976 by Steve Jobs and Steve Wozniak, Apple rose from a garage-based Silicon Valley startup to the top of the market on the back of the Apple II released in the late ’70s and Macintosh in the '80s. The Windows-based PC market soon surged upon the emergence of Microsoft's operating system, however, leaving Apple far behind its competitors and relying mostly on its prominence in the web design, graphics development, and education markets. That is, until the turn of the century.
In 2001, Apple introduced the iTunes music store and its first line of iPods: the slick, pocket-sized music players that initiated the company’s revival as the younger, cooler player in the tech world. As sales of the iPod and other product lines soared, Apple responded to its growing popularity by opening more than 200 Apple Stores in the U.S. and 40 internationally, equipped with “Genius” support. The retail locations now generate 20 percent of Apple’s profits.
In early 2007, the company partnered with AT&T and unveiled the iPhone: a device that combines the capabilities of a telephone, mp3 player, and computer, with more than 10,000 applications that allow users to do, well, just about anything. The iPhone and it’s related products accounted for 6 percent of Apple’s revenues in 2008. The total number of iPhone app downloads surpassed 1 billion in April 2009, as a handful of developers made a fortune from the development of apps such as iShoot.
While the company continues searching for the next big innovation, it remains focused on its computer-related software and hardware. Apple received rave reviews for the Mac OS X operating system released in 2001, and introduced the Mac OS X Leopard system to the market as a direct competitor to Microsoft’s Vista in 2007. Wall Street Journal tech expert Walt Mossberg said the new system, which replaced Apple’s Tiger system, works better and faster than Vista—a review Apple used in its “I’m a PC. I’m a Mac.” ad campaign featuring a young, tech savvy guy as Mac’s customer and an outdated, confused older man.
The company also remains dedicated to seeking innovation in the computer hardware sector, even while its other products surpass computers in sales. The company’s desktop and laptop computers include the Mac mini, iMac, MacBook, as well as the more powerful Mac Pro and MacBook Pro. Other product lines include servers, wireless networking equipment (Airport), publishing and multimedia software such as iLife, Final Cut Pro, and DVD Studio Pro, along with the database software made under its FileMaker subsidiary. It also produces popular software applications such as Final Cut Pro and DVD Studio Pro.
The Macworld Conference held every January is the most anticipated event of the year for Apple devotees who speculate for months about which product releases will be announced. At the 2009 conference, Apple introduced a 17-inch MacBook Pro; DRM-free iTunes, allowing songs to be limitlessly played and distributed, iLife 09, which includes updated versions of iPhoto, iMovie, GarageBand, and iWeb; and iWork 09, which is similar to Microsoft Office.
One important presence missing from 2009’s Macworld expo was CEO Steve Jobs, due to his waning health. In 2004, Jobs battled pancreatic cancer and was cleared of the disease after a complicated whipple procedure. But at the January 2008 Macworld conference, his gaunt figure provoked rumors and concern for his health. In January 2009, he revealed to the apple community that a hormone imbalance was causing his weight loss, and he would be taking a medical leave of absence until June 2009, leaving COO Tim Cook in charge of the company.