Until 2001, Apple was considered an innovative computer maker. But under then chief, Steve Jobs, Apple introduced iPod in 2001 and iPhone in 2007 shifting its business strategy to consumer electronics. Founded in 1976, Apple was known for its higher end personal computer products. Is this strategy shift risky for Apple or paying off dividends?
It appears that Apple’s business strategy shift working handsomely for Apple and its shareholders. Apple was teetering financial ruin in 1990s and in December 2000 it had a market capitalization of just $4.6 billion. At this writing Apple’s value has ballooned over $700 billion for the first time. It is leger than the Switzerland gross domestic product (GDP).
Early on, Apple battled with Microsoft for computer software supremacy including a legal battle for alleged infringement of Windows. These early battles shaped Apple and with the introduction of iPod and later with its iPhone it deviated from its software exclusivity. However, unlike other behemoths, Apple stayed its course as hardware as well as a software developer. Its move into the consumer electronics resulted in fighting with then leaders including smartphone producer Nokia. Its innovative pipeline is thriving and a new Apple iWatch is expected to hit the market in April 2015.