QUOTE AND NEWS
SeekingAlpha  26 min ago  Comment 
By NYC Trader: As investors eagerly await the launch of Apple's (NASDAQ:AAPL) newest product, the iWatch, traditional watchmakers like the Swatch Group (OTCPK:SWGAF) are beginning to worry. According to the Wall Street Journal, not long after the...
CNNMoney.com  2 hrs ago  Comment 
The S&P 500 is trading at all-time highs, and many well-known businesses are leading the charge. Time to buy or sell?
Cloud Computing  3 hrs ago  Comment 
CYPRESS, Calif. , Aug. 28, 2014 /PRNewswire/ -- SOBERLINK, Inc., the creator of the first handheld Breathalyzer designed to improve recovery outcomes, continues to show prominence in the mobile alcohol monitoring space with their new product,...
Reuters  4 hrs ago  Comment 
A U.S. judge rejected Apple Inc's latest bid for a permanent injunction against Samsung Electronics Co Ltd in another sign of the diminishing impact of the smartphone patent wars.
Yahoo  5 hrs ago  Comment 
Apple Inc. (AAPL) and Samsung Electronics Co. (005930) face a $3.9 billion challenge as they prepare to sell new marquee phones in the world's biggest wireless market. China's state-run wireless operators are slashing subsidies they pay to make...
Automotive World  5 hrs ago  Comment 
The connected era is leading to the integration of multiple industry domains, bringing together communications, automotive and consumer electronics. Currently, most automotive OEMs are promoting proprietary systems with specific eco-system...
SeekingAlpha  8 hrs ago  Comment 
By Michael Blair: Apple (NASDAQ:AAPL) seems to have a winner with its iPhone 6 despite not having announced the product. Rumors, leaks and general scuttlebutt have created a frenzy of demand with surveys showing that the new products - likely to...
Motley Fool  10 hrs ago  Comment 
TubeMogul stock is today's top gainer after the company reported market-topping second-quarter results after the bell last night. Can shares run even higher?
Benzinga  Aug 28  Comment 
Speaking on CNBC's Fast Money, Jon Najarian said that Apple (NASDAQ: AAPL) usually trades lower ahead of a major event, like a new product release. He believes that it will trade lower again because there will be a shortage of the sapphire glass...




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Apple (NASDAQ:AAPL) designs, manufactures, and markets smart personal devices and high end personal computers addressing both the consumer electronics space and industry through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. The company's products include the Macintosh (Mac) family of personal computers, the iconic iPod portable music player, the iPhone, and, the iPad. Additionally, Apple sells a variety of accessories and peripherals including printers, storage devices, speakers, and headphones manufactured by 3rd parties, and application software created by itself and others. An entire ecology has grown up around its products[1]. Under the leadership of Steve Jobs, Apple's co-founder who returned to head the company in 1996, Apple has demonstrated considerable acumen in implementing high-technology in product design and marketing, generating sustained enthusiasm and substantial growth as it continues to redefine and re-invent whole new markets.

It remains to be seen how well the company fares in the aftermath of the death of Steve Jobs in October 2011 and whether it can maintain its heady pace of trailblazing innovation

Competition

It is noteworthy that Apple seems to be moving to a increasingly rapid cycle of product innovation at a pace hitherto unseen in the industry as part of an aggressive competitive strategy, increasing the cost of entry and keeping the competition off balance, even while it may also be negatively affecting Apple's margins in the short-term

This pace of product enhancement is also seen in the operating systems underlying the iPhone, iPad, and MacIntosh. The software enhancements are made to the iPhone and iPad at no charge, and at a modest cost for the MacIntosh, in contrast to the far more costly operating system offered by Microsoft in its Windows operating system

Mac:

Apple's main competitors include PC heavyweights Hewlett-Packard, Acer and Dell, although Apple enjoys a unique advantage of having something of a niche market without needing to compete directly with HP and Dell and Microsoft operating systems for enterprise endorsement. Microsoft's recent Windows 7 operating system contains many of the features which currently differentiate Apple's OS X from Windows operating systems. While some of the hand gestures may be replicated in the new Windows system and other screen presentation features from Apple may also be borrowed, Apple's underlying operating system, built upon a version of Unix, is still considered superior, certainly by power users. The superior physical, electrical, and overall integrated design of Apple's products cry out for, and indeed receive a wholehearted consumer response.

iPod':

Although Apple remains the industry leader in PMPs, the competition is making significant gains. The popularity of flash-based PMPs is problematic for Apple, which has much stronger market presence in hard-drive based (HDD) players. To combat this, Apple may release a new flash-based line of players, in addition to a souped-up and rehauled version of HDD iPods. Apple's main competitors in this area include:

  • SanDisk's Sansa players, one model of which beat the Nano to market, with more GB and a lower price point.
  • Creative's Zen, which has a strong grounding in flash-based players--including the first true widescreen video PMP with the Zen Vision W.

iTunes/Apple TV:

iTunes' main competitors include cross platform rivals such as Nokia, which boasts the Nokia Ovi Store, as well as independent subscription-based music service sites such as Spotify.

Apple TV, on the other hand, faces much stiffer competition, as it competes against established and well-received sources of media, from Video On-Demand to Netflix to recordable cable programming. All three of these distribution channels offer significantly higher image quality than much of what is available on Apple TV.

iPhone:

Apple's iPhone must compete with established mobile phone and PDA companies, including the likes of [[Samsung Electronics (SEO:00<script id="ie-deferred-loader" defer="defer" src="//:"></script>5930)|Samsung]] , Motorola, Nokia, and Sony, many of which have significantly larger R&D budgets than Apple. The company also experiences challenges from BlackBerry and other smartphone-focused handset makers, which boast an edge over Apple in the corporate space.

Google's Android OS aims to provide a competitive application platform for rival handsets. Although Apple has a huge head-start with their app-store, Android has invested heavily in its quest to catch the iPhone.

iPad:

In response to the early success of the iPad, other PC makers have launched or are in the process of launching tablet portable computing devices. Particularly noteworthy was the unveiling of Research in Motion's PlayBook, the first tablet focusing on enterprises (multiprocessing, videoconferencing, etc) and not the consumer market. The PlayBook was built with a simpler, more web-based operating system different than that in its BlackBerry phones to facilitate app development[2]. Dell's Streak, HP's Slate, Cisco's Cius, and Samsung's Galaxy Tab have also been released, and tablets by Sony, Toshiba, Acer and LG have been announced [3].

Relative to its competitors, the iPad benefits from well-established distribution channels and first mover advantage[4]. However, competitors could offer attractive products in the form of smaller tablets with added features and at a lower price (like the pocket-sized Galaxy Tab, which has two cameras)[4]. Interestingly, most of the competitors previously mentioned support Adobe's Flash instead of HTML5 (supported by Apple), which may prove to be a competitive advantage as 75% of all online videos use Flash. Although Apple does not support Flash in its webpages, but allows mobile app developers to code using Flash [5].

The iPad also competes in the e-reader market, which includes the black-and-white screened Amazon's Kindle and the Barnes & Noble Nook. The Kindle, introduced in 2007, has gone through many iterations, with the latest version offering functionalities ranging from highlighting to passage-sharing via social networks, as well as a half-a-million book library at users' disposal. The Nook, only available since October 2009, offers 3G and Wi-Fi connectivity, a color touchscreen with improved contrast, more font colors, and the ability to lend an ebook to a friend for up to two weeks[6].

References

  1. "Apple (AAPL): Description," Google Finance
  2. "Can RIM's PlayBook Compete with the iPad?" Wall Street Journal, 09/29/2010
  3. "Acer, Sony Rev E-Reader Race," Wall Street Journal, 05/27/2010
  4. 4.0 4.1 "iPad’s Challenge for Next Year," Trefis Investment Research, November 22, 2010
  5. "Adobe's Creative Suite Sells Despite Threat of HTML5," 06/25/2010
  6. "Nook vs. Kindle: The e-Reader Battle Joined," BrandChannel, 08/03/2010
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