Apple faces challenge to its role as innovator

Article Abstract:

Apple Computer Inc, once known as the company that defined inventiveness and creativity in the microcomputer industry, is on the defensive. Apple built a reputation on products that were both easy to learn and easy to operate. Now, industry observers wonder if the company is still capable of innovation. Apple's Macintosh microcomputer is already six years old, and competing machines offer similar styles of computing, often at lower cost. And Apple is challenged by Microsoft's Windows 3.0, which gives a Mac-like interface to IBM microcomputers and compatibles. Apple increasingly trails in the industry in innovation, seemingly unable to translate technology into commercial products. Apple's stock is down, closing at $39.50 a share on Aug 10, 1990. Shares had sold for more than $50 in 1989.

Management, Marketing, AAPL, Apple Inc., Marketing Strategy, Sculley, John, Apple Macintosh (680X0-based system)

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Prices cut, models added in I.B.M.'s new PC push

Article Abstract:

IBM intensifies its drive to regain control of the microcomputer industry in Apr 1991 by cutting prices and introducing new models of its PS/2 line of microcomputers. IBM is one of the first computer manufacturers to offer a microcomputer based on the new Intel Corp 486SX microprocessor, a new low-priced version of the powerful 80486 microprocessor. Industry analysts note that IBM's influence in the computer industry and computer software industry has been waning, particularly after it recent break with Microsoft Corp over the development of the OS/2 operating system. The number one computer maker believes its new products and price reductions, which range between six and 12 percent on critical machines, will help it outpace the computer industry in 1991.

International Business Machines Corp., IBM, Growth (Physiology), Growth, Strategic Planning, Competition, Pricing Policy

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