PC Industry in 2007 - Free Essay Example

Sample details Pages: 9 Words: 2588 Downloads: 5 Date added: 2017/06/26 Category IT Essay Type Narrative essay Did you like this example? PC Industry in 2007 The personal computer (PC) market is bifurcated with the top four vendors HP, Dell, Acer and Lenovo commanding 50% of worldwide PC shipments. The next two biggest players Toshiba and Apple capture only 4.1% and 2.6% market share respectively. Using an average of the top four vendors financial performance as a proxy for the PC industry, ROA and ROS on aggregate is 6% and 5% respectively putting them in line and below the overall economic average. Don’t waste time! Our writers will create an original "PC Industry in 2007" essay for you Create order An analysis of the industry forces according to Michael Porters model would indicate that value creation is hampered by high buyer power and high supplier power while value capture is often difficult given the high level of rivalry and the increasing commoditization of PCs. However, Apples line of Macs has been able to buck the trend of falling ASPs (average selling price has fallen 8% since 1999) and consistently been more profitable than its rivals earning 35% gross margins vs. 19% for Dell and 24% for HP. This intra-industry difference is due to consumers higher willingness to pay (almost 40% higher net sales per unit) as further discussed below as well as Apples strategy to not participate in the low-price volume segments of the PC industry. Apple Incs Competitive Advantage (i) Apple Design Apple has been well ahead of the curve from a design perspective, with the company placing a large emphasis on style as far back as the early 90s with the launch of the first generation iMac. Apple figures out what consumers will most want from the devices and engineers the devices to serve those wants and it does so reliably (Apple is well known for the reliability of its Mac OS and customer focus). HP and Dell have both undergone a â€Å"de-commoditization† strategy validating Apples decade long strategy although neither HP nor Dell has been as successful. As consumers gravitate towards notebooks from desktops, Apples design strategy will increasingly pay more dividends with consumers becoming more style conscious as devices become more portable. (ii) Ownership of Software Apples high quality bundled software creates a more inelastic demand for its hardware as those accustomed to Apples ease of use and interfaces are unlikely to purchase another PC when its time for an upgrade which creates a recurring hardware venue for Apple. This is unlike the Microsoft-based PC world, where similar experiences can be found across virtually all vendors. Apples proprietary software is a key differentiator as it is the only major hardware vendor that can provide a fully integrated solution to consumers. As users become more familiar with and accustomed to Apples software (such as Macintosh OS X and iTunes) and user interface, it increases customer loyalty making them less likely to switch to a Dell or HP. (iii) Product ecosystem The strength of Apple is its ability to create Apple-Centric ecosystem where all its products and functionalities are inter-connected. For example, the Mac operating system (OS) is not available on non-Apple PCs, and while iPods can connect to non-Apple PCs, the only software management option is Apples iTunes (i.e. iPods cannot synch with Windows Media Players and iTunes cannot synch with non-Apple mp3 players). Apple has further expanded this strategy into its distribution by launching a network of retail Apple stores that again promote the entire Apple user experience. This tactic of controlling the user experience from hardware design to software applications, services and point of purchase are keys to Apple distinguishing itself from its competitors. (iv) Apple Brand Apple has mastered the technique of using its brand as leverage into new consumer electronic markets witnessed by the interest that surrounds any potential new product launches and the hype is usually all positive. Apple does an outstanding job of integrating new products into the existing ecosystem, where Apple was once a computer company, the release of the iPod has expanded the company into media and entertainment, and the iPhone has done the same into mobile communications. This creates the so-called halo effect where consumers who try one Apple product become more likely to try another. The halo effect can have significant impact on Mac sales if purchases of other Apple products then try Macs instead of PCs. In summary, Apple has managed to buck many of the negative industry forces by positioning itself mostly in the consumer PC market and converging computing with entertainment and communications. Apples tight control of its value chain (hardware, software, applications an d retail distribution) differentiates its user experiences and its ecosystem approach raises the competitive/switch barriers allowing it to charge premium prices relative to the industry. Mac Share of World PC Market While easily forgotten today, with the successes of the iPod and iPhone, Apples history is deeply rooted in personal computers since the companys inception in the mid-1970s. In the 20-plus years since, the Mac has become an accepted member of the PC industry with strong appeal to educational and creative professional markets, but limited adoption in the broader PC market. The primary reason for Apples limited market share is its adherence to using Apple-only products, which limits interoperability with other software programs (although Macs have been able to run Microsoft Office beginning in 1997). However, in recent years, Apple has opened up with the compatibility of iPods and iTunes on Window-based devices and the availability of the Windows operating systems on Macs could be drivers for market share gain. A simple calculation shows that by gaining an additional 1% of the worlds PC market, Apple could add $1.3B to its operating margins (currently at $4.4B at the end of 2007). Industry Change Innovation drives market share in most industries and this is especially salient in the PC industry. Quite often the efforts have revolved around making computer components smaller but more powerful with the ultimate goal of making computing ubiquitous no matter where the user is. With the first PC displacing the â€Å"mini-computer† in the 80s, to the advent of the laptop and now netbooks gaining in popularity, computers marketed today are becoming more compact as soon as the technology and economics allows it. Going forward, the miniaturization and the eventual gutting out of the PC will continue first with more universal adoption of the smart-phone as its functionalities converge with those of the PCs, to the eventual migration of software and application online removing the need for processing and memory hardware that are currently used in PCs. Wireless as a computing platform and digital convergence Consumers bought 1.1 billion handsets in 2007 compared with 269 million PCs worldwide. While tradition wireless users have simply been utilizing their handsets for voice conversations or for SMS, a number of industry dynamics are coming together that have changed consumer usage of wireless handsets. The combination of advanced wireless handsets, advanced 3G and mobile WiFi and numerous mobile applications it allows significant opportunity for wireless and handset providers to drive mobile multimedia content. With decreasing cost of processing power, storage, display technology and battery technology handset, vendors are creating smart-phones that have the computing and storage power similar to a PC just a few short years ago. Additionally smart-phones are equipped with a substantially larger full color screens that enable far superior viewing characteristics relative to traditional wireless handsets. Although wireless networks are slower than many consumers may like, wireless carri ers across the world are upgrading their networks to 2.5G and 3G technologies that allows immense data transfer. A second cross current sweeping the industry is the increasing trend towards digital convergence (the ability to transfer all forms of digital content from the Internet, to home entertainment centers and to portable devices) culminating in cloud computing where all software and application are stored and accessed online. Customers will be willing to pay a premium for the benefit of seamless integration of various products, particularly as devices grow in complexity and the performance benefits become more pronounced. Can Apple shape the change The handset vendors are likely to be the biggest beneficiaries at the early stage of this architectural change similar to how PC vendors were the first obvious beneficiaries of the growth in the personal computing market. Early success stories created from this trend include RIM and Apple. In previous upgrade cycles, consumers chose their wireless phones primarily on the form-factor and price of a mobile handset, software applications and features although important were generally viewed as secondary functions that were nice to have but not critical to the purchase decision. Indifference was largely due to the lack of sophistication as mobile games were limited and music consisted of low quality ringtones. In todays market, the technological architecture underlying mobile handsets is finally catching up to meet the needs of more sophisticated software applications. Consumers and professionals alike can now browse the Internet, e-mail colleagues and friends, play the latest racing g ame and listen to music and watch video all from a single device and there is no device that does it better than the Apple iPhone. The iPhone has changed the dynamics of not only the smart-phone market but also the broader handset industry with its sleek design and intuitive user interface and excellent performance of its touch-screen software. The ability to effectively integrate software applications into mobile handsets in a manner that is intuitive to the end user will provide a critical factor and a huge value propositions for end users. Also while digital convergence is still in an emergent phase Apple is well positioned to capitalize on the trend. Apple already has a number of the pieces in place, including being the sole hardware vendor with a proprietary operating system (Mac OS X), market leading portable video device (iPod) as well as other nascent complementary product offerings (AppleTV). Apples digital environment sets the company apart from its competitors as it can provide hardware and software that is more seamlessly integrated. Apples iTunes will likely be at the epicentre of this convergence as it syncs multiple devices and holds access to Apples enormous customer base. Macs: Beginning of the end? (Maybe not) While the disruptive technologies borne out of smart phones and cloud computing has the potential to change the core assets of the PC industry, it does not necessarily mean PCs are destined for obsolescence at least not anytime soon and not in its entirety. However, it does mean innovation in the PC market that will capitalize on these trends. Apple has been a frontrunner with the release of the ultra subcompact MacBook Air that has minimal hardware requirements perfect for cloud computing as well as the iPhone which is fast becoming the industry standard for smart-phones. Furthermore, the continued proliferation of iPhones creates a ready-made installed base of new Apple consumers who could be converted to Mac purchasers in the short term. If Apple does meet its 10 million target in its first year of sales (highly likely given preliminary sales data) and making an assumption that of the 10 million 50% are non-Mac users, a 30% penetration of this non-Mac iPhone base would turn i nto 1.5 million additional number of Macs sold. Using the simple earnings accretion calculation as above this would lead to an incremental gain of $735 million in pretax income which would surely increase as iPhone adoption accelerates. Macs still drive revenue and GM Although the iPhone garners the most attention from investors and the media given the long term impact on the companys results, Macs continue to be the main growth driver at Apple. Macs still account for 43% of total sales and its gross margin is in line with corporate gross margin (both at 35%). Looking at its suite of products, iPod margins are below the corporate average (30-35%) and the iTunes business is a loss leader used as a reverse razor and blade strategy. While iPhone gross margins are the highest (around +45%) its revenue and margin contribution is minimal given iPhone sales is 1/10 that of Macs. Central to Apples ability to drive above industry growth comes from its reinvestment of â€Å"excess gross margin† into aggressively priced products and emergent technologies such as AppleTV so if Apple divested its PC unit, it would cut off a significant source of funding. In order to succumb the high initial cost curves associated with new product introductions Apple n eeds to retain the steady cash flows generated from Mac sales. Recommendations (i) Short term: Focus on core products Premium products = stable and attractive gross margins. The growth strategy for Macs should continue to be sell well designed and premium products that provide a great user experience. As a premium product provider, Apple maintains a healthy gross margin (30% +) and emphasizes high-quality product design over cost-saving measures. Apple has made necessary trade-offs by eschewing the low-end portion of the market and focuses only on the middle and high end segments. Geographically, Apples market share is strongest in North America. The company still has opportunity for further penetration within the US market and it should continue its retail strategy that broadens the availability of Mac products. However, the low hanging fruit over the next decade may lie in its under penetration in markets abroad offers a significant opportunity (such as non-Japan Asia and Latin America). A more aggressive push into international markets could be a source of growth primarily driven by high vol ume sales of core products (portable computers, desktops, iPod) supplemented by strong-selling new products (i.e. iPhone) which transition over time to become core products. (ii) Medium term: Continue to invest in software and application While Apple generates its earnings and cash flows from selling devices, the software and applications it builds for its devices are crucial. Specifically the unique features of the Mac OS, the simplicity of iTunes, and the innovation of the App Store are all part of what holds together the Apple ecosystem. iTunes is one of the key Apple products for driving the halo effect. It is the software that connects devices within the Apple ecosystem and by controlling software Apple is better able to integrate applications that matter most to its customers. By delivering added value and differentiating itself, Apple may be able to buck the overall decline in PC sales through market share gains. With the technology shift into cloud computing gaining traction and the high capital expenditure required for development, Apple would benefit from alliances with infrastructure cloud companies such as Cisco as well as on the application side with Microsoft and Google. Apple should learn from its mistakes in the early 1980s when it lost significant market share by closing its operating system to outsiders. (iii) Long term: Emphasize culture of risk taking To ensure that it continues to create innovative designs and content, Apple must emphasize its culture of risk taking and be unafraid of expanding new markets even at the risk of cannibalize existing products. While the PC accounts for more than 40% of current sales and overall industry PC sales growth still stand at low single digits, it is not unthinkable that smart-phones can ramp up faster than desktop connection as more users connect to the internet via their phones than the desktop PC within the next decade. The PC cycle is entering its mature phase while mobile computing is still in its early stages and Apple is currently leading the charge in mobile innovation. It must continue to develop its application ecosystem, push the envelope on RD, and enhance user experience even at the expense of cannibalizing PC sales because otherwise new entrants will. Apple has had a history of disrupting markets and creating new ones and this has to continue especially if it transforms itself to a consumer electronic company. Apple Mac Swot Analysis

Effects Of Smoking On The United States - 1026 Words

Summary The key aspect to be discussed is the fact that main reason for the significant decline in the number of smokers in the past decade still alludes healthcare researchers. Some better known causes however, include better insurance coverage to help smokers who quit the habit. An equally important factor is the execution of stricter laws prohibiting more smokers to smoke in public places. As identified by the CDC, the percentage of U.S adults who smoke cigarettes have has declined from 20.9% in 2005 to 16.8% in 2014. The evidence also suggests that smoking was noticeably ln 2014 than in 2013. Sources reported that tobacco is the leading cause of preventable disease and death. Another essential point is that it kills 28,000 people every year in New York and afflicts nearly 600,000 residents with serious injuries directed to their smoking. In addition, smoking kills half a million Americans every year and costs about $300 billion dollars a year. Considering this report, it can be conclude d that real progress in helping American smokers quit as well as more progress is possible. According to Dr Laurent Greillier from Nord Hospital in Marseille said â€Å"nowadays, everyone knows smoking is a risk factor for developing several cancers especially lung cancer. Based on the findings of healthcare experts, it can be argued that anti-smoking campaigns get the maximum credit for the reduced number of smokers with is not entirely deserved of them. Researchers state that they are notShow MoreRelatedEffects Of Smoking On The United States1311 Words   |  6 Pagescigarette smoking is higher in the United States and kills more than 480,000 Americans each year (2015). In fact, cigarettes are harmful to smokers and nonsmoker, and the number of smokers rises day by day. Moreover, there are many harmful effects smoking has on an individual, such as heart disease, cancer, and the effect on nonsmoker and women, while it may cause an individual to feel relaxed, spend a lot of money and not be informed, it is harmful in the United States. The consequences of smoking areRead MoreEffects Of Smoking On The United States1570 Words   |  7 PagesWorld-wide efforts have increased to alarm people of the danger in consuming tobacco products, both first hand and second hand. In recent years, reports have proven a decline in smoking. However, there are still millions of people that smoke in the United State of America. As a result, the effect of smoking has become a major health risk. According to the Centers for Disease Control and Prevention (CDC), tobacco use is the leading preventable cause of death, disease, and disability in the USRead MoreEffects Of Smoking On The United States976 Words   |  4 PagesSmoking Smoking, the drug killer number one is everywhere at this time, even government and enough information, which we can get almost everywhere cannot stop some young people. What forces young people to smoke? Why they risk their health just for cigarettes. Is it the addiction what make them smoke, or it is a societal pressure, or it is something else ? The second important question is that, what is the major and minor effect of smoking. I have many experiences with smoking, because using of thisRead MoreEffects Of Smoking On The United States905 Words   |  4 PagesPrevention (CDC), smoking kills more than 480,000 in the U.S. each year. In order to reduce this statistic, numerous controlling strategies are adopted by the government, which includes a limitation of tobacco advertising, and the prohibition of smoking in public areas. Meanwhile, several people are suffering from health issues caused by consumption of cigarette. It increases the risk of cancer, heart disease and stroke. The se three diseases are the leading causes of death in the United States (Taylor 8)Read MoreEffects Of Smoking On The United States1841 Words   |  8 PagesIn the United States, tobacco use is the number one cause of preventable death. Chronic cigarette smoking is associated with many adverse health effects and 70% of adult smokers started smoking when they were adolescents. The World Health Organization’s definition of adolescence is a period of development that corresponds to the period between the ages of 10 and 19 years. This age group is vulnerable to initiate risky behaviors such as cigarette smoking. According to the Surgeon General’s reportRead MoreEffects Of Smoking On The United States2439 Words   |  10 PagesIn the United States, tobacco smoking is by far the leading cause of lung cancer, which includes non-small cell lung cancer. About 80% of lung cancer deaths are caused by smoking, and many others are caused by exposure to secondhand smoke. Smoking is clearly the strongest risk factor for non-small cell lung cancer, but it often interacts with other factors. Smokers exposed to other known risk factors such as radon and asbestos are at even higher risk. However, not everyone who smokes gets lung cancerRead MoreEffects Of Smoking On The United States871 Words   |  4 PagesPathogenic role of smoking has been proved by many researchers in the world and in our country. Smoking 01 cigarettes himself losing 5.5 minutes of life. The average life expectancy of people who smoke less than non-smokers from 05 to 08 years. Smoking increases the mortality rate from 30 to 80%, mainly because of cancer (lung cancer), chronic obstructive pulmonary disease, cardiovascular disease.... The degree of increased risk depends on the age of starting smoking (smoking as soon as the higherRead MoreThe Effects Of Smoking On The United States1639 Words   |  7 PagesSmoking is established as a recognized cause of cancer, lung disease, coronary heart dis ease, and stroke(US Public Health Service,1964,Doll R 1976,1994, US Department of Health and Human Services,1989).it is considered to be the single most important avoidable cause of premature morbidity and mortality in the world. WHO has estimated that there are about 1100 million smokers worldwide; this represents about one-third of the global population aged over 15 years (WHO,1997). About 73% of these smokersRead MoreEffects Of Smoking On The United States2197 Words   |  9 Pagesproducts for example cigarettes while ant-smoking campaigns are the activities and rally that the tobacco industries and other institutions or organization employ to oppose or curb smoking globally, example public education. The rate of smoking globally is on the rise if the current data is to go by the youths will be the most affected compared to adults, this trend is worrying and leaves us with many questions than answers concerning the future of the nations. Smoking has been identified as one of th eRead MoreEffects Of Cigarette Smoking On The United States961 Words   |  4 PagesThe facts are right there on the box; â€Å"Cigarette smoking causes lung cancer, heart disease, and emphysema and may complicate pregnancy.† Almost all teen smokers say they regret beginning to smoke. Most smokers attribute the habit of smoking to the glamorization of smoking in the media, peer pressure, self-image, and easy access to tobacco; from stealing cigarettes from parents or having someone who is 18 buy the cigarettes for them. Teen smoking is on the rise and it is a problem. Cigarette smoke

Civil Law Affidavit Of Tipene M Johnstone †MyAssignmenthelp.com

Question: Discuss about the Civil Law Affidavit Of Tipene M Johnstone. Answer: Affidavit Of Tipene M. Johnstone In Support Of PlaintiffS Application For Summary Judgement Application 1.I am the Senior Partner of the plaintiff firm in this proceeding. I am authorised to make this affidavit on behalf of the plaintiff firm. The plaintiff firm owns and operates a business named Johnstone Associates, engaged in offering services as Barristers Solicitors, situated at 10 Armagh Street PO Box 123, DX GP5678, in Hamilton (the firm). 2.In May 2016, the plaintiff firm offered its services in the field of Barristers Solicitors in which the firm is a specialist, to Mr. David Malcolm Watson, the respondent. It was agreed between the plaintiff firm and the respondent that respondent shall pay an hourly rate of $150 to the plaintiff firm for the legal services rendered. Attached and marked as AS1. 3.The respondent, David Malcolm Watson provided me with the details of the property which he intended to purchase. He wanted us to offer guidance and legal advice on documentation involved in the purchase of property situated at 34 Hathaway Street, Hamilton. 4.I studied the legal provisions of the Hamilton City Council and also checked the District Plan. The property in question was built in accordance with the District Plan. 5.On 19 September 2016, I sent the invoice to the defendant on behalf of the plaintiff firm. Attached and marked as AS2. In the invoice I made clear the details of the services rendered by the plaintiff firm and also quoted the price for those services as had been agreed between us in the month of May 2016 when the contract for the services was enacted between the plaintiff firm and the respondent. 6.Not receiving any response from the respondent, I despatched a reminder on 05 October 2016. Attached and marked as AS3. In the reminder I pointed out that an amount of $4,000 was standing overdue towards the defendant since 19 September 2016. 7.In the reminder notice, I drew the attention of the defendant to the payment clause as well as to the interest clause in case of delay in payment beyond seven days, of my Letter of Acceptance dated 03 May 2016. Attached and marked as AS1 with the notice. 8.The respondent did not reply to the reminder either nor did it show any willingness of paying the outstanding amount, which was now due for more than five months, as against the seven days payment period stipulated in the service contract. 9.I again posted a demand notice to the respondent on 06 November 2016. Attached and marked as AS4. 10.By now it was becoming apparent that the defendant was not willing to settle the outstanding amount. 11.This left us with no other recourse of recovery but the legal recourse. Hence, we decided to file this injunction. 12.We believe that the defendant has the ability and means to pay this amount but not the willingness to settle the outstanding. Hence, we pray, through this interlocutory application, for an interim injunction against the defendant. Signature of DeponentSWORN at Hamilton on this 08 day of September 2017 before me: A Solicitor of the High Court of New Zealand Hamilton Registry Attachments AS 1: Letter of Retainer AS 2: Invoice AS 3: Letter to Watson Outstanding Amount AS 4: Letter to Watson Demand Notice AS 5: Memo to Staff Solicitor References I, Tipene M. Johnstone, Partner, Johnstone Associates of Hamilton, swear: