There are a number of key issues at Apple Computer. One is that the company’s market share is shrinking. Another is that its traditional base of support is purchasing fewer Apples computers. Another key issue is the fact that certain operating systems, and a large number of popular software programs do not work on Apple or Macintosh personal computers.
Apple has a number of complex problems it needs to address. One involves the fact that Apple’s market share is declining. This makes it difficult to convince software companies to continue to invest the money needed to make both a Windows and a Mac version of their software. Another problem is that Apple will find it increasingly difficult to keep its PCs competitively priced. Larger manufacturers such as Dell enjoy r economies of scale in their production process that Apple does not. The recently announced rebates and price cuts may not be enough to attract potential customers back to Apple. Another problem for Apple is that its marketing message is confusing. Another problem is that Apple’s new G4 product sales were lower than anticipated, and this occurred at about the same time as iMac sales began to declining faster than expected.
One recommendation is that Apple try to find a way to successfully develop, manufacture and market a technologically innovative product that is able to compete in a highly competitive PC marketplace. To do so, Apple must overcome reluctance on the part of operating systems designers and software companies to support Apple products. The company also needs to find market niches in which it can compete effectively. At one time, those niche included education and graphic arts. These niches may still be viable for Apple, but to gain back lost market share will require good product, competitive prices, and an effective marketing and advertising campaign.