Question

Between 1988 and 2001 Apple did not do well in the Mac business? What was the problem? Why was Apple so weak in the 1990’s?

Answer 1

• By Mid 1990s apple products were seen as overpriced minor improved versions of their predecessors. The competitors were beating Macintosh in every aspect. Windows were capturing markets aggressively with their lower prices as USP. The Q1 of 1997, Apple stock hit a 12-year low of $4 and the company reported a $708 million loss
• Microsoft agreed to infuse Cash of $150 million with deals of making internet explorer as the default browser in the Macs.
• In 1998 the iMac was launched at $1299 which was quite overpriced for only a translucent version of the previous versions. The audience gave it a downward reception due to lack of disk drive and USB ports
• In 1997 the PowerMac G3 was launched, but due to the market being dominated by Windows, its reception was low and even in cases underperformed as per the expectations
• However, with Steve Jobs returning and the launch of iPod and the global reception caused the shareholders to trust back and Apple ended up being the most valuable company in 2001.