Wednesday, February 02, 2005

Apple Computer, Inc. reaches highest profit and revenue in its history.

Lately, we as consumers have more and more been hearing about Apple Computer when it comes to today's technology. It's upstart of the iPod and iTunes music start created new markets for many buyers and attracted many to Apple. This past quarter Apple's revenues rose and the company gained a net profit of $295 million. They have been experiencing increased sales all over the world; Europe accounting for $847 milion in revenue.

Have consumers started to buy according to quality, lack of viruses/spyware, and a seemingly more dependable computer rather than a cheaper under the cut Wintel computer? Apple has now, however, joined the club of producing $800 dollar and less computers. Although Apple claims it is not just trying to make a cheap computer. The new mac mini, which is basically I tiny box, has already been a big hit on the market. It's small desktop size with great performance makes it attractive to many. Also the iMac G5 (similar design style to the iPod) has been a hit. It's lack of wires, all-in-one flat screen, makes it very nice for the desk. Consumers seem to be finding the unique style more and more attractive.

Apple Computer, Inc. is expecting to open up two dozen new stores of which 10 will be out of the U.S. With a new total of 125 retail stores they expect to gain more profit expecially since the stores out of the country have already far surpassed expectations.

Microsoft's hold on the mac word processor is also slowly dwindling. The release of iWork 2005 is meant to give mac users a word processor and slideshow program made by Apple that is fully compatible with Microsoft Word and Powerpoint. Also the amount of media software is ever increasing and many of these programs can be bought in a simpler form for casual home use.

One huge difference between Apple and the Wintel world is that Apple controls all of it's products. It doesn't allow anyone else to make their products, which it has been found in the long run that this makes it about 36% cheaper to own any Apple when compared with an equivalent Wintel Computer (a report done by Garter Group).

Apple has shown great improvement in revenue, profit, and market shares in just this last quarter. Just how much has Apple affected today's computer world? Did it all start with music and the iPod? Or a demand in higher standards?

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